1.50Open1.50Pre Close0 Volume16 Open Interest190.00Strike Price0.00Turnover65.44%IV11.31%PremiumDec 20, 2024Expiry Date0.00Intrinsic Value100Multiplier9DDays to Expiry1.50Extrinsic Value100Contract SizeAmericanOptions Type-0.1286Delta0.0094Gamma141.70Leverage Ratio-0.2455Theta-0.0069Rho-18.23Eff Leverage0.0715Vega
Herc Holdings Stock Discussion
In reaction to earnings/guidance:
• $Super Micro Computer (SMCI.US)$ +18%, $Nokia Oyj (NOK.US)$ +7.7%, $Danaher (DHR.US)$ +6.3%, $RLI Corp (RLI.US)$ +5%, $CSX Corp (CSX.US)$ +4.3%, $Las Vegas Sands (LVS.US)$ +4.2%, $Alcoa (AA.US)$ +3.4%(also authorizes new $500 mln share repurchase program)
• $Steel Dynamics (STLD.US)$ +2.8%, $Herc Holdings (HRI.US)$ +2.6%, $Tesla (TSLA.US)$ +2.5%, $Philip Morris International (PM.US)$ +2.5%, $F.N.B. Corp (FNB.US)$ ...
Return On Capital Employed (ROCE): What is it?
For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Herc Holdings:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
0.091 = US$336m ÷ (US$4.1b - US$427m) (Based on the trailing twelve months to September 2021).
Therefore, Herc Holdings has an ROCE of 9.1%. In absolute terms, that's a low return but it's around the Trade Distributors industry average of 11%.
The Bottom Line On Herc Holdings' ROCE
To sum it up, Herc Holdings is collecting higher returns from the same amount of capital, and that's impressive. And a remarkable 430% total return over the last five years tells us that investors are expecting more good things to come in the future. So given the stock has proven it has promising trends, it's worth researching the company further to see if these trends are likely to persist.
Article excerpted from Yahoo.
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