Hertz Global Holdings, Inc.’s stock was trading at $4.9400 on February 5th. The company operates in a consolidated car rental industry, with the top three players controlling 95% of the market. Despite fears of excessive leverage and negative cash flow, Hertz’s stock is trading at low earnings multiples.

Hertz operates more like an asset manager, buying, renting, and selling vehicles at scale. Post-bankruptcy, Hertz struggled with falling used car prices and losses from EV investments. However, the company has stabilized its fleet, reduced EV exposure, and recognized losses, leading to improved cash flow and potential deleveraging.

Looking ahead, Hertz’s liquidity is strong, debt maturities are pushed out, and rising used car prices offer support. Even under conservative assumptions, the company could break even, with potential for significant upside if operations normalize. This sets the stage for a potential rerating if Hertz executes well on its strategy.

Read more at Yahoo Finance: Hertz Global Holdings, Inc. (HTZ): A Bull Case Theory