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OUR COMPANY Hertz Holdings was incorporated in Delaware in 2015 to serve as the top-level holding company for Rental Car Intermediate Holdings, LLC, which wholly owns Hertz, Hertz Global's primary operating company. Hertz was incorporated in Delaware in 1967 and is a successor to corporations that have been engaged in the vehicle rental and leasing business since 1918.
The business is unprofitable at the operating level (-9.76% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 6.0% YoY. The question is whether this is cyclical or a structural shift.
Free cash flow declined 28% versus the prior year, cash generation momentum has weakened. ROIC dropped from -22.09% to -29.14%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$8.70B
▼ -6.0% YoY
Net Income (TTM)
-$637M
▲ +73.9% YoY
Op. Margin
-7.00%
▲ +26.0pp YoY
ROIC
-20.84%
▼ -7.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$1.29B
▼ -27.9% YoY
Op. Cash Flow (TTM)
$1.39B
▼ -26.9% YoY
Net Debt
$1.81B
Cash & Equiv.
$583M
5Y CAGR: +10.1%
5Y CAGR: +12.3%
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