Herc HoldingsHRI -3.79%84 3-Year ROIIC % is 2.54 as of Dec. 2025, which is 78% below its 10-year median of 11.76. GuruFocus rates HRI with a GF Score™ of 84/100 and a GF Value™ of $168.79 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 1,006 Business Services companies, Herc Holdings ranks worse than 56.56% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Herc Holdings's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 2.54%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Herc Holdings's 3-Year ROIIC % or its related term are showing as below:
HRI's 3-Year ROIIC % is ranked worse than 56.56% of 1006
companies
in the Business Services industry
Industry Median: 4.96
vs HRI: 2.54
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Herc Holdings 3-Year ROIIC % Related Terms
Herc Holdings 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Herc Holdings's 3-Year ROIIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Rental & Leasing Services subindustry, Herc Holdings's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Herc Holdings 3-Year ROIIC % vs Business Services Industry
For the Business Services industry and Industrials sector, Herc Holdings's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Herc Holdings's 3-Year ROIIC % falls into.
Herc Holdings's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 622 (Dec. 2025) - 425.0636 (Dec. 2022) )
/
( 13219 (Dec. 2025) - 5464 (Dec. 2022) )
=
196.9364
/
7755
=
2.54%***
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Herc Holdings (HRI) has a 3-Year ROIIC % of 2.54 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Herc Holdings and its competitors. This is 78% below median its historical median of 11.76. Over the past decade, Herc Holdings' 3-Year ROIIC % has ranged from 2.54 to 67.63. According to the industry distribution chart, Herc Holdings ranks #569 out of 1006 companies in the Business Services industry, placing it in the top 56.6%.
Is Herc Holdings' 3-Year ROIIC % too high?
Herc Holdings' current 3-Year ROIIC % of 2.54 is 78% below median its 10-year median of 11.76. Over the past 10 years, this metric has ranged from a low of 2.54 to a high of 67.63. The Business Services industry median 3-Year ROIIC % is 4.96. Herc Holdings' value of 2.54 is 48.8% below this industry median. Based on the distribution chart, Herc Holdings ranks #569 out of 1006 companies in the Business Services industry, which is below the industry midpoint. Overall, Herc Holdings has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Herc Holdings' 3-Year ROIIC % compare to EQPT and WSC?
According to the Business Services industry distribution chart, Herc Holdings ranks #569 out of 1006 companies for 3-Year ROIIC %. This places Herc Holdings in the lower half of its industry. The industry median 3-Year ROIIC % is 4.96. Herc Holdings' value of 2.54 is 48.8% below this benchmark. Historically, Herc Holdings' own 3-Year ROIIC % has ranged from 2.54 to 67.63 over the past decade. While the company's 10-year median is 11.76 vs. the industry median of 4.96, Herc Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Business Services company?
The median 3-Year ROIIC % among Business Services companies is 4.96, based on 1,006 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Herc Holdings's current 3-Year ROIIC % of 2.54 is 48.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Herc Holdings and its competitors. For the Business Services industry, the median 3-Year ROIIC % is 4.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Herc Holdings's current 3-Year ROIIC % is 2.54, which is 78% below median its own 10-year median of 11.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Herc Holdings stock overvalued right now?
Based on GuruFocus' analysis, Herc Holdings (HRI) is currently considered Modestly Undervalued. The stock's GF Value™ is $168.79, compared to a current price of $134.91 — trading 20.1% below its estimated fair value. The current 3-Year ROIIC % is 2.54, which is 78% below median its 10-year median of 11.76 and 48.8% below the Business Services industry median of 4.96. Herc Holdings' overall GF Score™ is 84/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Herc Holdings (HRI), the current 3-Year ROIIC % is 2.54 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Herc Holdings (HRI) Overvalued in 2026?
Based on GuruFocus' analysis, Herc Holdings stock appears to be undervalued.
The current stock price of $134.91 is trading 20.1% below its estimated GF Value™ of $168.79.
GuruFocus considers Herc Holdings to be Modestly Undervalued.
Key valuation signals for HRI:
3-Year ROIIC %: 2.54 (78% below median its 10-year median of 11.76)
GF Value™: $168.79 vs. price of $134.91 (20.1% below fair value)
Industry Position: 48.8% below the Business Services median (#569 of 1006)
No single metric tells the full story. See the HRI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Herc Holdings is an equipment rental company that was spun out of Hertz Global in 2016. It is currently the third-largest player in North America, after United Rentals and Sunbelt Rentals, with an approximate 6% market share pro forma for its 2025 acquisition of H&E Equipment Services. It serves a similar mix of companies to its peers (industrial, commercial, and residential construction) from its 450 locations targeting the top 100 metropolitan markets in the US. Herc's rental fleet of approximately $7 billion is also similar in composition to its peer group in terms of equipment offered. The company is also pursuing diversification by bundling and increasing specialty solutions for its customer base. Herc's portfolio skews toward local customers versus national accounts (60%/40%).
84GF Score
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