Core Thesis - Hertz Global Holdings, Inc. (HTZ) is viewed positively due to its asset management-like operations, recent stabilization in cash flow, and potential for significant upside if execution remains strong [1][6][7]. Company Overview - Hertz is the third-largest car rental company globally, with the top three players controlling approximately 95% of the market [3]. - The company operates in a highly consolidated industry, and despite its strong brand, investor sentiment has declined due to concerns over leverage and negative cash flow [3]. Financial Performance - As of February 5th, HTZ's share price was $4.94, with trailing and forward P/E ratios of 23.71 and 11.78, respectively [1]. - Following its exit from bankruptcy in 2021, Hertz initially benefited from rising used car prices but misallocated cash flows into share buybacks and electric vehicle investments, leading to negative free cash flow [5]. - The company has faced challenges due to falling used car prices and rapid price cuts from competitors like Tesla, resulting in losses and additional borrowing [5]. Operational Strategy - Hertz functions more like an asset manager, focusing on fleet economics, depreciation, and residual values as key profitability drivers [4]. - The company has recently rotated its fleet at more reasonable prices and recognized losses, contributing to cash flow stabilization and positive EBITDA [6]. Future Outlook - Liquidity is strong, with major debt maturities extended to 2028-2029, and rising used car prices are expected to provide additional support [7]. - Under conservative assumptions, Hertz is positioned to break even, and a normalization of operations could lead to substantial upside potential [7]. - Previous bullish perspectives on Hertz, including those from notable investors, highlight improving industry conditions and operational turnarounds, although the stock has depreciated by approximately 30% since earlier coverage [8].