URI - Why H&E Equipment Could Soon Catch Up With Peers' Performance

• H&E Equipment is currently priced as if its Return on Equity and margins will fail to improve post the pandemic.
• As a relatively smaller player, HEES was not able to absorb fixed costs as efficiently as its larger peers during the market downturn, which led to temporarily lower margins.
• The company's heavy reliance to specific service segments as well as regional exposure also contributed to its disproportional fall in profitability.
• Looking forward, however, HEES is in a good position to capitalize on ongoing industry trends and return to high profitability.

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