The President's recent share sale, despite a lower share price, hints at insiders' doubts about the stock's valuation. Despite Herc Holdings' profitability and profit growth, the history of insider sales calls for caution before investing.
The positive trends in Herc Holdings' ROCE and its ability to profitably reinvest capital are encouraging. The stock has performed exceptionally well over the last five years, reflecting these patterns. However, further due diligence is recommended given the promising fundamentals.
Insiders selling rather than buying - even below current stock price - casts a negative light on the stock. It appears they don't view the current price as a bargain. The level of insider ownership doesn't particularly stand out, suggesting caution on buying Herc Holdings shares.
Despite recent pullbacks and slow EPS growth, Herc Holdings is favored amid potential for long-term sustainable growth, suggesting the sell-off might present an investment opportunity.
Herc Holdings' increasing ROCE trend indicates promising future prospects and a profitable reinvestment strategy. Important to observe if the trend persists, while considering identified risks.
Insider selling at Herc Holdings indicates shares may be overpriced. Lack of insider buying and higher-volume selling could ward off potential investors. Investors are advised to proceed with caution.
High ROE might not suggest efficient profit generation, as it might be due to high debt relative to equity, indicating risk. Herc Holdings' high ROE should be assessed cautiously due to its high debt level. Preferred are companies achieving high ROE without much debt.
Herc Holdings股票討論區
2023前兩季度營收增長27.7%,營業利潤增長32.6%,淨利潤增長9.2%,營業利潤是利息費用的2.75倍,利息負擔極重。
資產負債表顯示近兩年收購較多,商譽及其他無形資產從2021年初的3.96億增長到2022年末的8.5億,佔11.09億淨資產的77%。
目前市盈率12.3,市盈率TTM微降到11.6,估值看起來不高,但是實際上利潤都進到了固定資產,單2022年固定資產就增加了14億,而當年利潤僅有3.3億,因此自由現金流極差,加上高昂的債務成本,缺乏吸引力。
In reaction to earnings/guidance:
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