HTZ
Hertz Global Holdings Inc.
Consumer
04/29/2014
Presented
| Date | 04/24/2014 |
| Price | $28.25 |
| Market Cap | $12.60B |
| Ent Value | $28.38B |
| P/E Ratio | 29.14x |
| Book Value | $6.22 |
| Div Yield | N/A |
| Shares O/S | 447.69M |
| Ave Daily Vol | 8,600,000 |
| Short Int | 2.35% |
Current
| Price | $2.92 |
| Market Cap | $0.41B |
| Hertz Global Holdings, Inc., through its subsidiaries, is engaged in the car and equipment rental businesses worldwide. It operates through four segments: U.S. Car Rental, International Car Rental, Worldwide Equipment Rental, and All Other Operations. The company rents and leases various car models on an hourly, daily, weekend, weekly, monthly, or multi-month basis; crossovers; and light trucks under the Hertz, Dollar, Thrifty, and Firefly brands. It also operates car rental locations at or near airports, as well as in central business districts and suburban areas of cities in the United States, Canada, France, Germany, Italy, the United Kingdom, Spain, the Netherlands, Belgium, Luxembourg, the Czech Republic, Slovakia, Australia, New Zealand, China, and Brazil; and operates retail used car sales locations in the United States, France, and Australia, as well as provides car-sharing services. In addition, the company rents earthmoving equipment, material handling equipment, aerial and electrical equipment, air compressors, pumps, generators, small tools, compaction equipment, and construction-related trucks, as well as sells new equipment, and consumables, such as gloves and hardhats. Further, it offers claim administration services comprising investigating, evaluating, negotiating, and disposing various claims, including third-party, first-party, bodily injury, property damage, general liability, and product liability. Additionally, the company provides vehicle financing, acquisition, and remarketing; license, title, and registration; maintenance consultation; fuel management; accident management; telematics-based location; and equipment financing services to commercial fleets in the United States and Canada. It serves various industries, such as construction, petrochemical, automobile manufacturing, railroad, power generation, shipbuilding, and entertainment and special events. The company was founded in 1918 and is headquartered in Park Ridge, New Jersey. |
Highlights
The presenter is long shares of Hertz Global (HTZ), as well as Avis Budget Group (CAR) at this time. He focused the discussion on the opportunity for HTZ to separate its more volatile, lower multiple HERC commercial equipment leasing business from the higher margin car rental segment. With 85% of total revenue and 80% of EBIT derived from car rentals, a plethora of operating synergies, and the potential for meaningful improvement in its leverage profile, it makes sense to split up the business.
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