Hertz shares: Price analysis before buying or selling

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ISIN code: US42806J7000

Ticker: NASDAQ: HTZ

Index or market: NASDAQ

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Elements to consider before selling or buying Hertz shares

Analysis N°1

Firstly we would monitor the development policy followed by this group which resides mainly on the accomplishment of acquisitions of other companies. These strategic operations often signify growth.

Analysis N°2

In the same way the implementation of strategic partnerships by the Hertz Group with certain targeted companies related to the travel, business services and insurance sectors could be advantageous factors or indicators to take into account.

Analysis N°3

We would also monitor the growth in the presence of Hertz around the world with the creation of subsidiaries and agencies in strategic countries such as in the emerging markets.

Analysis N°4

Of course, other factors such as the price of fuel, more precisely those of oil and petrol, can also significantly affect the financial results of this company and will therefore also impact this company’s share price on the stock markets.

Analysis N°5

Finally, you should also pay careful attention to the strong competition in this activity sector with the movements in the distribution of the market share of the other major companies in this sector as well as related significant news and announcements.

Analysis before buying or selling Hertz shares

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General presentation of Hertz

To improve your knowledge of the Hertz Company and its share price we now offer you the opportunity to read our detailed presentation of this company. It is absolutely necessary for you to know the different activities exercised by this company as well as its major sources of income to be able to understand its growth and development possibilities over the medium and long term.

The Hertz Global Holdings Inc Group is in fact an American holding company. It is actually the parent company of Rental Car Intermediate Holding LLC which owns and operates the Hertz rental group which is the major operating company of Hertz Global.

This company also exercises activities in different sectors with US Rental, International Car Rental and All Other Operations. Here as follows are details on how these activities are organised according to their respective turnover:

Firstly, the US Rental and US RAC activities are specialised in vehicle rentals including those for individuals, vehicle rental for the tourism sector as well as other sectors including light and utility lorries and vans and various auxiliary services and products in the United States. This sector alone generates over 70% of the Hertz Group turnover.
We then note the activities of RAC International which is specialised in the rental and leasing of vehicles such as cars but also various other vehicles including light lorries and other products and services but on an international level. This sector generates 22.3% of this company’s turnover.
Finally, the sector ‘All Other Operations’ concerns the activities of the Donlen Corporation which notably provides rental and vehicle park management services as well as other commercial activities.

The Hertz Global Group exercises its activities through several brands including Hertz, Dollar, and Thrifty and currently operates over 12,400 company and franchise sites. The company employs nearly 38,000 people at present.

Photo credits: ©jetcityimage/123RF.COM

The major competitors of Hertz

If you wish to carefully examine the growth possibilities of the Hertz Group you should also take into account the level of competition in this activity sector. This is why we now offer you the opportunity to learn more in detail about the major competitors to this group on the market:

Europcar

The Europcar Mobiity Group is of course one of the principal competitors to the Hertz Group. In fact, this French company that provides mobility solutions was created in 1949 and is based in Paris. It provides vehicle rental services as well as others including chauffeur services, vehicle sharing, electric scooter sharing, vehicle rentals between individuals as well as a service for the research and comparison of transport methods. This group is currently the European leader in this activity sector.

Avis

Another major competitor to the Hertz Group is of course the Avis Rent a Car Group which is specialised in vehicle rental but is also a subsidiary of the Avis Budget Group which is the owner and operator of this brand. The Avis Group is one of the leaders in this activity sector and exercises its operations in over 160 countries through nearly 5,000 vehicle rental agencies worldwide.

TD Holdings

Previously known as the BAT Group Inc. this is a holding company based in China that mainly exercises used luxury vehicle leasing activities under the brand name Batcar. The group also provides a range of upmarket brand name vehicles for leasing. Although this company mainly operates in China it is also attempting to exercise its activities in other countries in medium level sectors.

Sixt International

This competitor is a German company that currently casts a shade over the American giant Hertz. In fact, Sixt International is specialised in vehicle rentals and exercises its activities not only in Germany but also in numerous countries worldwide.

Enterprise Rent a Car

Finally, the last major competitor that we shall examine here relating to the Hertz Group is none other than the American company Enterprise Rent a Car which is based in the state of Missouri. This is a subsidiary of the Enterprise Holdings Group that operates other vehicle rental companies including Alamo Rent a Car, National Car Rental and Citer. Enterprise Rent a Car is particularly present in the United States, Canada, Mexico and China but also exercises its activities in Europe.

The major partners of Hertz

Although the Hertz Group has to face some serious competition it can also count upon certain strategic partnerships it has created with other companies with the aim of increasing its income or gaining popularity. Here are a few recent examples of this type of alliance that will enable you to ascertain the situation more clearly.

Air France

Firstly it should be remembered that the Hertz Group regularly implements partnerships with airlines as is the case with the French group Air France for the last thirty years. This partnership has enabled both groups to offer their clients certain exclusive advantages such as the assurance of a Hertz rental vehicle for Air France passengers as required. Among the available offers we note discounts on Hertz rental vehicles for Air France clients and the guarantee that the Hertz Rent a Car agency at the airport will remain open until the arrival of the last client of the company.

AXA

Another advantageous partnership you should be aware of is that which links the Hertz Group with the AXA insurance company. In exchange for providing an insurance service for the Hertz car rental clients AXA offers discounts on its light and utility ranges of vehicles for individuals. This offer is available in France and other European countries where both groups are present and are reserved for existing AXA clients.

Accor

Finally, in 2016, the Hertz Group also implemented a strategic partnership with the AccorHotels Group with the aim of increasing the advantages offered by the Accor loyalty programme. Through this strategic partnership, member clients of the AccorHotels loyalty programme named ‘Club AccorHotels’ can benefit from certain special offers on individual vehicle rentals and other similar advantages. Due to this partnership Hertz for its part can strengthen its position on the largest international markets. This partnership came into being in March 2019. It should be remembered here that the AccorHotels loyalty programme includes the following brands

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The factors in favour of a rise in the Hertz share price:

Of course, in order to carry out a good analysis of the Hertz share price, you will need to know the strengths and weaknesses of this company. This will allow you to anticipate its capacity to face possible threats and to seize opportunities that will present themselves to this company in the years to come. Here is a more precise comparison of these elements.

Let's begin this analysis by summarising the main strengths that the Hertz group currently has and which should enable it to face the future effectively.

Firstly, the effectiveness of the Hertz Group's international expansion strategy. It has a large geographical reach compared to its competitors. It has a large consumer base and can maintain a strong brand image throughout the world.
Another advantage of the Hertz Group is its focus on continuous product innovation, which enables it to maintain a stable and strong market position. This also enables it to improve customer satisfaction.
Another major strength of the group is its acquisition strategy. Since its creation, the group has always based its growth strategy on the acquisition of other smaller competitors, which now allows it to position itself in a large number of markets with sites and offices all over the world and a diversified pricing strategy.
More recently, the Hertz Group has also implemented a strategy to develop its specific business in the rental and equipping of rental companies in the US and Canada, which has provided it with many additional revenue streams.
Finally, another major strength of the Hertz Group is its balanced customer and business mix. This diversifies the sources of revenue and protects the company from potential industry risk.

The factors in favour of a drop in the Hertz share price:

Of course, as you might expect, Hertz does not only have its strengths, but also some weaknesses that you should be aware of before you start analysing this stock. Here are the main weaknesses that the group is currently suffering from:

First of all, the financial situation of the Hetz Group is not the most comfortable in the market. Firstly, the financial situation of the Hetz Group is not the most comfortable on the market. It should be remembered that the company still has a relatively high level of debt, which weighs on its enterprise value and profitability despite its high turnover.
There has also been a significant decline in the total fleet of rental cars on the market for some years and the Hertz group could suffer the consequences in the long term if the trend continues.
Competition in this sector of activity is also one of the group's weaknesses, as many of its rivals are trying to take market share and thus represent a real threat to its future.
With the need to electrify the group's range of vehicles, Hertz has to spend a lot of money to renew its fleet to meet its legal obligations and its commitments to reduce carbon emissions.
Finally, the Hertz Group's business is also heavily impacted by oil prices, particularly if fuel prices rise. For example, demand for thermal vehicle rental tends to fall when the price of fuel rises.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

Who are the principal shareholders of the Hertz Group?

At present, part of the Hertz Group capital is held by major private shareholders. Among these we note the following: Icahn Associates Holding which holds 38.9% of the shares, Dimensional Fund Advisors which owns 8.39% of the shares, Reconnaissance technologies LLC with 6.66%, PAR Capital Management Inc with 6.35%, The Vanguard Group with 6.31%, JANA Partners LLC with 6.30%, GAMCO Asset management Inc with a 5% shareholding, Fairholme Capital Management LLC with 4.65%, Goldman Sachs & Co LLC with 4.37% and finally The Carlyle Group LP which owns 3.27%.

What are the subsidiaries currently owned by the Hertz Group?

The Hertz Group owns and operates a number of different subsidiaries that exercise diverse activities in various sectors. These include Hertz Equipment which rents a wide range of items destined for the construction and industrial sectors. There is also the Hertz Claim Management Corporation which manages a float of vehicles adapted for damages, civil liability and defence guarantees and the Hertz Local Edition which is dedicated to replacement vehicles and at present only operates in the American market, and finally we note Hertz Trois Soleils which only exercises its activities in France and is specialised in the rental of camping cars.

How to implement a complete technical analysis of the Hertz share price?

A comprehensive technical analysis of the Hertz share price requires above all the use of quality charts. It is best here to use the most recent online charts that can be personalised according to your requirements and upon which can be displayed several indicators simultaneously such as those for trends and volatility. You can then examine them carefully to ascertain the probability of a continuance or a reversal of the trend of this share price.

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Analysis before buying or selling Hertz shares