H&E Equipment Services, Inc.

H&E Equipment Services operates as an integrated equipment services company in the US. The company has five segments: Rentals, Sales of Rental Equipment, Sales of New Equipment, Parts Sales, and Repair and Maintenance Services. The Rentals segment provides equipment for rent on various terms. Used rental equipment is sold through the Sales of Rental Equipment segment. New construction equipment is sold through a professional sales force. The company also sells parts and provides repair and maintenance services.

Overview

Sector

Rental & Leasing Services

Target Price

72.7 USD

Current Price

94.6 USD

Potential

-23%

Strengths

The company has low debt. Net Debt to EBITDA Ratio is 0.34 and it is lower than the sector mean.
The company has high returns. ROIC (48.15%) is higher than the sector mean (12.72%).
EV/EBITDA (5.59) is lower than the sector mean (8.91).
EV/EBIT (15.68) is lower than the sector mean.
Strong EBITDA Margin of 43.51%.

Weaknesses

With a depreciation Potential of -23.15%, based on our fundamental analysis, it suggests the stock may be overvalued.

Key Financial Data

Indicator	Value
PER	28.2
EV/EBITDA	5.6
Price/Free Cash Flow'	78.1
ROIC	48.1%
Net Debt/EBITDA	0.3