GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Herc Holdings Inc (NYSE:HRI) » Definitions » Gross Margin %

HRI (Herc Holdings) Gross Margin % : 39.90% (As of Sep. 2024)


View and export this data going back to 2016. Start your Free Trial

What is Herc Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Herc Holdings's Gross Profit for the three months ended in Sep. 2024 was $385 Mil. Herc Holdings's Revenue for the three months ended in Sep. 2024 was $965 Mil. Therefore, Herc Holdings's Gross Margin % for the quarter that ended in Sep. 2024 was 39.90%.


The historical rank and industry rank for Herc Holdings's Gross Margin % or its related term are showing as below:

HRI' s Gross Margin % Range Over the Past 10 Years
Min: 22.6   Med: 26.77   Max: 38.87
Current: 37.69


During the past 11 years, the highest Gross Margin % of Herc Holdings was 38.87%. The lowest was 22.60%. And the median was 26.77%.

HRI's Gross Margin % is ranked better than
54.31% of 998 companies
in the Business Services industry
Industry Median: 34.285 vs HRI: 37.69

Herc Holdings had a gross margin of 39.90% for the quarter that ended in Sep. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Herc Holdings was 9.00% per year.


Herc Holdings Gross Margin % Historical Data

The historical data trend for Herc Holdings's Gross Margin % 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.

* Premium members only.

Herc Holdings Gross Margin % Chart

Herc Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 27.13 29.56 36.47 38.87 37.26

Herc Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 38.22 38.94 35.45 36.08 39.90

Competitive Comparison of Herc Holdings's Gross Margin %

For the Rental & Leasing Services subindustry, Herc Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % 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's Gross Margin % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Herc Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Herc Holdings's Gross Margin % falls into.



Herc Holdings Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Herc Holdings's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=1223 / 3282
=(Revenue - Cost of Goods Sold) / Revenue
=(3282 - 2059) / 3282
=37.26 %

Herc Holdings's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=385 / 965
=(Revenue - Cost of Goods Sold) / Revenue
=(965 - 580) / 965
=39.90 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Herc Holdings  (NYSE:HRI) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Herc Holdings had a gross margin of 39.90% for the quarter that ended in Sep. 2024 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Herc Holdings Gross Margin % Related Terms

Thank you for viewing the detailed overview of Herc Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Herc Holdings Business Description

Traded in Other Exchanges
Address
27500 Riverview Center Boulevard, Bonita Springs, FL, USA, 34134
Herc Holdings is an equipment rental company that was spun out of Hertz Global in 2016. It is currently the third-largest equipment rental company (4% market share) in North America, after United Rentals and Sunbelt Rentals, with a fleet size of $6.4 billion. It serves commercial and residential construction customers, the environmental sector, industrial entities, and entertainment production companies. During much of its 50-year-plus history, the company has rented equipment such as aerial lifts to its customers for intermittent use. More recently, it has broadened its catalog to include a host of specialty items. Separately, Herc Holdings' strategy now incorporates long-term rentals to industrial customers where Herc maintains its own staff at the customer site.
Executives
Aaron Birnbaum officer: SVP & Chief Operating Officer 27500 RIVERVIEW CENTER BLVD., BONITA SPRINGS FL 34134
Tamir Peres officer: SVP&Chief Information Officer 27500 RIVERVIEW CENTER BLVD., BONITA SPRINGS FL 34134
Lawrence Harris Silber director, officer: President & CEO 7 FOX HOLLOW COURT, FLEMINGTON NJ 08822
Christian J Cunningham officer: SVP & Chief HR Officer C/O HERC HOLDINGS INC., 27500 RIVERVIEW CENTER BLVD., BONITA SPRINGS FL 34134
Mark Alan Schumacher officer: VP, CAO and Controller 27500 RIVERVIEW CENTER BLVD, BONITA SPRINGS FL 34134
Carl C Icahn 10 percent owner C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH-1, SUNNY ISLES BEACH FL 33160
Mark Irion officer: SVP & CFO C/O NEFF CORPORATION, SUITE 400, 3750 N.W. 87TH AVENUE, MIAMI FL 33178
Hunter Clark Gary director C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Steven D Miller director 16690 COLLINS AVENUE, PH, SUNNY ISLE BEACH FL 33160
Rakesh Sachdev director 3050 SPRUCE STREET, ST LOUIS MO 63103
James H Browning director 3760 JARDIN, HOUSTON TX 77005
Andrew Teno director C/O FIR TREE INC., 55 WEST 46TH STREET, 29TH FLOOR, NEW YORK NY 10036
Shari L Burgess director
Andrew Langham director C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Herbert L Henkel director C/O INGERSOLL-RAND COMPANY LIMITED, 155 CHESTNUT RIDGE ROAD, MONTVALE NJ 07645