Hertz Global Return On Equity vs. Net Income
| HTZWW Stock | USD 2.15 0.14 6.97% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.1992238 | Current Value 0.21 | Quarterly Volatility 7.97159902 |
For Hertz Global profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hertz Global to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hertz Global Hldgs utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hertz Global's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hertz Global Hldgs over time as well as its relative position and ranking within its peers.
Hertz |
Is Cargo Ground Transportation space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Hertz Global. If investors know Hertz will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Hertz Global listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.31) | Earnings Share 1.193 | Revenue Per Share 30.018 | Quarterly Revenue Growth (0.05) | Return On Assets (0.03) |
The market value of Hertz Global Hldgs is measured differently than its book value, which is the value of Hertz that is recorded on the company's balance sheet. Investors also form their own opinion of Hertz Global's value that differs from its market value or its book value, called intrinsic value, which is Hertz Global's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hertz Global's market value can be influenced by many factors that don't directly affect Hertz Global's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Hertz Global's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hertz Global is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hertz Global's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Hertz Global Hldgs Net Income vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Hertz Global's current stock value. Our valuation model uses many indicators to compare Hertz Global value to that of its competitors to determine the firm's financial worth. Hertz Global Hldgs is rated below average in return on equity category among its peers. It is one of the top stocks in net income category among its peers . At this time, Hertz Global's Return On Equity is fairly stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Hertz Global by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Hertz Net Income vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Hertz Global |
| = | -1.34 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Hertz Global |
| = | 616 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Hertz Net Income Comparison
Hertz Global is currently under evaluation in net income category among its peers.
Hertz Global Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Hertz Global, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hertz Global will eventually generate negative long term returns. The profitability progress is the general direction of Hertz Global's change in net profit over the period of time. It can combine multiple indicators of Hertz Global, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -248 M | -235.6 M | |
| Operating Income | 915 M | 594.1 M | |
| Income Before Tax | 286 M | 300.3 M | |
| Total Other Income Expense Net | -629 M | -660.5 M | |
| Net Income | 616 M | 646.8 M | |
| Income Tax Expense | -330 M | -313.5 M | |
| Net Interest Income | -703 M | -738.1 M | |
| Net Income From Continuing Ops | 1.1 B | 1.1 B | |
| Net Income Per Share | 1.97 | 2.07 | |
| Income Quality | 4.02 | 4.22 | |
| Net Income Per E B T | 2.15 | 1.16 |
Hertz Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Hertz Global. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Hertz Global position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Hertz Global's important profitability drivers and their relationship over time.
Use Hertz Global in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Hertz Global position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hertz Global will appreciate offsetting losses from the drop in the long position's value.Hertz Global Pair Trading
Hertz Global Hldgs Pair Trading Analysis
The ability to find closely correlated positions to Hertz Global could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hertz Global when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Hertz Global - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Hertz Global Hldgs to buy it.
The correlation of Hertz Global is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Hertz Global moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hertz Global Hldgs moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Hertz Global can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Hertz Global position
In addition to having Hertz Global in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Healthcare Thematic Idea Now
Healthcare
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Healthcare theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Healthcare Theme or any other thematic opportunities.
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Additional Tools for Hertz Stock Analysis
When running Hertz Global's price analysis, check to measure Hertz Global's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Hertz Global is operating at the current time. Most of Hertz Global's value examination focuses on studying past and present price action to predict the probability of Hertz Global's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hertz Global's price. Additionally, you may evaluate how the addition of Hertz Global to your portfolios can decrease your overall portfolio volatility.