Herc Holdings Inc. — Earnings Quality Grade F
HRI · Industrials
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 65 days, change +1 days YoY
AR outpaced revenue for 2 consecutive years
Revenue grew 28.3% but CFFO declined -11.4%
Expense Quality
No material inventory
CapEx growth 3.7% vs revenue 28.3%. Normal
SG&A/Gross Profit = 40.0%. Normal
Gross margin 32.6%, change -1.7pp. Stable
Cash Flow Quality
CFFO far exceeds NI (ratio 1085.0x). Non-cash charges depressing profits
FCF < 50% of Net Income for 3 years
Accruals ratio = -7.9%. Low accruals
Cash $0.1B covers only 1% of debt $9.7B
Balance Sheet Health
Goodwill+Intangibles $4.5B = 233% of equity. Over 50%
Debt/EBITDA = 6.5x (>4x). Interest coverage = 1.5x (<2x). Financial stress
Other assets -80.3% vs revenue 28.3%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Goodwill+Intangibles surged 265% YoY
Manipulation Score
M-Score = -2.24 (< -2.22). Unlikely manipulator
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Beneish M-Score
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Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25