- 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.
For further details see:
Why H&E Equipment Could Soon Catch Up With Peers' Performance