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1. Company Snapshot

1.a. Company Description

H&E Equipment Services, Inc.operates as an integrated equipment services company.The company operates in five segments: Equipment Rentals, Used Equipment Sales, New Equipment Sales, Parts Sales, and Repair and Maintenance Services.


The Equipment Rentals segment provides construction and industrial equipment for rent on a daily, weekly, and monthly basis through a fleet of approximately 42,725 pieces of equipment.The Used Equipment Sales segment sells used equipment through retail sales force primarily from its rental fleet, as well as inventoried equipment that are acquired through trade-ins from equipment customers.The New Equipment Sales segment sells new construction equipment through a professional in-house retail sales force.


The Parts Sales segment sells parts for the equipment customers, as well as offers for its rental fleet.The Repair and Maintenance Services segment serves its rental fleet and equipment owned customers, as well as offers ongoing preventative maintenance services to industrial customers.It also provides ancillary equipment support activities, including transportation, hauling, parts shipping, and loss damage waivers.


The company's rental fleet consists of hi-lift or aerial work platforms, cranes, earthmoving and material handling equipment, and others.It serves industrial and commercial companies, construction contractors, manufacturers, public utilities, municipalities, maintenance contractors, and various other industrial account customers.As of December 31, 2021, the company had a network of 102 service facilities in the Pacific Northwest, West Coast, Intermountain, Southwest, Gulf Coast, Southeast, and Mid-Atlantic regions of the United States.


H&E Equipment Services, Inc.was founded in 1961 and is headquartered in Baton Rouge, Louisiana.

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1.b. Last Insights on HEES

H&E Equipment Services, Inc.'s recent performance was driven by a quarterly cash dividend of $0.275 per share, demonstrating the company's commitment to returning value to shareholders. Additionally, the announcement of a proposed acquisition by Herc Holdings Inc. for $78.75 in cash and 0.1287 shares of Herc common stock per H&E share has likely contributed to the company's recent activity. The extension of the tender offer by Herc Holdings Inc. on April 16, 2025, further supports this notion.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Herc Holdings and H&E Equipment Services Announce Expiration of the Tender Offer to Acquire Shares of H&E Equipment Services and Expected Closing Date

May -30

Source: globenewswire.com

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Herc Holdings and H&E Equipment Services Announce Expiration of the Tender Offer to Acquire Shares of H&E Equipment Services and Expected Closing Date

May -30

Source: businesswire.com

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H&E Rentals Provides Update on Quarterly Cash Dividend

May -19

Source: globenewswire.com

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Herc Holdings Announces Expiration of HSR Act Waiting Period for Planned Acquisition of H&E Equipment Services

May -15

Source: businesswire.com

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H&E Rentals Reports First Quarter 2025 Results

Apr -29

Source: globenewswire.com

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Herc Holdings Extends Tender Offer to Acquire H&E Equipment Services

Apr -16

Source: businesswire.com

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Herc Holdings Commences Tender Offer for All Outstanding Shares of H&E Equipment Services

Mar -19

Source: businesswire.com

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3 Mid-Caps Worth Watching Closely in March

Feb -28

Source: marketbeat.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.77%)

6. Segments

Equipment Rentals

Expected Growth: 1.8%

The 1.8% growth in equipment rentals from H&E Equipment Services, Inc. is driven by increasing construction activities, rising demand for infrastructure development, and a growing need for cost-effective equipment solutions. Additionally, the company's strategic expansion into new markets and investments in digital platforms have contributed to the growth.

Used Equipment

Expected Growth: 1.5%

The 1.5% growth in Used Equipment from H&E Equipment Services, Inc. is driven by increasing demand from construction and industrial companies seeking cost-effective solutions, expansion into new markets, and strategic acquisitions. Additionally, the company's strong online presence, efficient logistics, and competitive pricing strategy contribute to its growth.

Parts

Expected Growth: 1.2%

H&E Equipment Services, Inc.'s 1.2% growth is driven by increasing demand for construction and industrial equipment rentals, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on fleet management and maintenance services, as well as its diversified customer base, contribute to its steady growth.

New Equipment

Expected Growth: 2.2%

The 2.2% growth in New Equipment from H&E Equipment Services, Inc. is driven by increasing demand from construction and industrial sectors, fueled by government infrastructure investments and rising commodity prices. Additionally, the company's strategic expansion into new markets and product offerings, such as aerial lifts and cranes, contributes to the growth.

Services

Expected Growth: 2.5%

H&E Equipment Services' 2.5% growth is driven by increasing demand for equipment rentals, particularly in the construction and industrial sectors. Additionally, the company's strategic expansion into new markets, investments in digital platforms, and focus on operational efficiency are contributing to its growth momentum.

Non-Segmented

Expected Growth: 1.8%

H&E Equipment Services, Inc.'s non-segmented 1.8% growth is driven by increasing demand for equipment rentals, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on operational efficiency, cost savings, and investments in technology have contributed to its growth.

7. Detailed Products

Heavy Equipment Rentals

H&E Equipment Services offers a wide range of heavy equipment rentals for construction, industrial, and commercial applications.

New Equipment Sales

H&E Equipment Services sells new heavy equipment from top manufacturers, including aerial lifts, cranes, and material handling equipment.

Used Equipment Sales

H&E Equipment Services offers a selection of used heavy equipment from various manufacturers, including aerial lifts, cranes, and material handling equipment.

Equipment Repair and Maintenance

H&E Equipment Services provides repair and maintenance services for heavy equipment, including routine maintenance, repairs, and refurbishments.

Parts and Attachments

H&E Equipment Services offers a wide range of parts and attachments for heavy equipment, including OEM and aftermarket options.

Training and Support

H&E Equipment Services provides operator training, technical support, and maintenance training for heavy equipment operators and maintenance personnel.

8. H&E Equipment Services, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is low for H&E Equipment Services, Inc. because the company provides specialized equipment rental services, making it difficult for customers to find substitutes.

Bargaining Power Of Customers

The bargaining power of customers is medium for H&E Equipment Services, Inc. because while customers have some bargaining power due to the availability of alternative equipment rental services, the company's strong brand reputation and wide range of equipment offerings mitigate this power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low for H&E Equipment Services, Inc. because the company has a diverse supplier base and is not heavily dependent on any single supplier.

Threat Of New Entrants

The threat of new entrants is medium for H&E Equipment Services, Inc. because while there are barriers to entry in the equipment rental industry, new entrants can still enter the market with significant investment and planning.

Intensity Of Rivalry

The intensity of rivalry is high for H&E Equipment Services, Inc. because the equipment rental industry is highly competitive, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 77.07%
Debt Cost 4.98%
Equity Weight 22.93%
Equity Cost 13.85%
WACC 7.02%
Leverage 336.08%

11. Quality Control: H&E Equipment Services, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Ennis

A-Score: 6.7/10

Value: 7.2

Growth: 4.1

Quality: 7.2

Yield: 10.0

Momentum: 2.5

Volatility: 9.0

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H&E Equipment Services

A-Score: 5.4/10

Value: 3.3

Growth: 6.2

Quality: 5.8

Yield: 3.0

Momentum: 9.5

Volatility: 4.3

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PROG Holdings

A-Score: 4.8/10

Value: 8.3

Growth: 5.8

Quality: 6.9

Yield: 2.0

Momentum: 1.5

Volatility: 4.3

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Willis Lease Finance

A-Score: 4.6/10

Value: 7.8

Growth: 7.6

Quality: 5.0

Yield: 1.0

Momentum: 2.0

Volatility: 4.3

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Hertz

A-Score: 3.9/10

Value: 8.5

Growth: 2.0

Quality: 1.9

Yield: 0.0

Momentum: 9.5

Volatility: 1.3

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FlexShopper

A-Score: 3.0/10

Value: 9.6

Growth: 3.1

Quality: 4.9

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

94.64$

Current Price

94.64$

Potential

-0.00%

Expected Cash-Flows