LVMH MOET HENNESSY LOUIS VUI (1MC.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MC - FR0000121014 - Common Stock
590.6 EUR
-6 (-1.01%)
Taking everything into account, 1MC scores 5 out of 10 in our fundamental rating. 1MC was compared to 52 industry peers in the Textiles, Apparel & Luxury Goods industry. 1MC scores excellent on profitability, but there are some minor concerns on its financial health. 1MC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- 1MC had positive earnings in the past year.
- In the past year 1MC had a positive cash flow from operations.
- 1MC had positive earnings in each of the past 5 years.
- 1MC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 7.76%, 1MC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- 1MC has a Return On Equity (16.82%) which is in line with its industry peers.
- Looking at the Return On Invested Capital, with a value of 11.02%, 1MC is in the better half of the industry, outperforming 67.31% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1MC is in line with the industry average of 11.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.76% | ||
| ROE | 16.82% | ||
| ROIC | 11.02% |
ROA(3y)9.81%
ROA(5y)8.67%
ROE(3y)23%
ROE(5y)21.42%
ROIC(3y)13.1%
ROIC(5y)11.61%
1.3 Margins
- 1MC has a Profit Margin of 13.26%. This is in the better half of the industry: 1MC outperforms 76.92% of its industry peers.
- In the last couple of years the Profit Margin of 1MC has grown nicely.
- 1MC has a better Operating Margin (21.63%) than 82.69% of its industry peers.
- In the last couple of years the Operating Margin of 1MC has grown nicely.
- 1MC has a Gross Margin of 66.03%. This is in the better half of the industry: 1MC outperforms 63.46% of its industry peers.
- In the last couple of years the Gross Margin of 1MC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.63% | ||
| PM (TTM) | 13.26% | ||
| GM | 66.03% |
OM growth 3Y-4.64%
OM growth 5Y1.76%
PM growth 3Y-7.53%
PM growth 5Y2.09%
GM growth 3Y-0.62%
GM growth 5Y0.24%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1MC is still creating some value.
- The number of shares outstanding for 1MC remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, 1MC has less shares outstanding
- The debt/assets ratio for 1MC is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.09 indicates that 1MC is not in any danger for bankruptcy at the moment.
- 1MC's Altman-Z score of 4.09 is fine compared to the rest of the industry. 1MC outperforms 73.08% of its industry peers.
- 1MC has a debt to FCF ratio of 2.72. This is a good value and a sign of high solvency as 1MC would need 2.72 years to pay back of all of its debts.
- 1MC's Debt to FCF ratio of 2.72 is fine compared to the rest of the industry. 1MC outperforms 76.92% of its industry peers.
- 1MC has a Debt/Equity ratio of 0.51. This is a neutral value indicating 1MC is somewhat dependend on debt financing.
- The Debt to Equity ratio of 1MC (0.51) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.72 | ||
| Altman-Z | 4.09 |
ROIC/WACC1.48
WACC7.47%
2.3 Liquidity
- A Current Ratio of 1.48 indicates that 1MC should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.48, 1MC perfoms like the industry average, outperforming 48.08% of the companies in the same industry.
- 1MC has a Quick Ratio of 1.48. This is a bad value and indicates that 1MC is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1MC has a Quick ratio (0.72) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
- The earnings per share for 1MC have decreased strongly by -21.26% in the last year.
- The Earnings Per Share has been growing by 12.04% on average over the past years. This is quite good.
- Looking at the last year, 1MC shows a decrease in Revenue. The Revenue has decreased by -3.24% in the last year.
- Measured over the past years, 1MC shows a quite strong growth in Revenue. The Revenue has been growing by 9.55% on average per year.
EPS 1Y (TTM)-21.26%
EPS 3Y1.69%
EPS 5Y12.04%
EPS Q2Q%-21.46%
Revenue 1Y (TTM)-3.24%
Revenue growth 3Y9.66%
Revenue growth 5Y9.55%
Sales Q2Q%-4.48%
3.2 Future
- The Earnings Per Share is expected to grow by 10.58% on average over the next years. This is quite good.
- Based on estimates for the next years, 1MC will show a small growth in Revenue. The Revenue will grow by 3.48% on average per year.
EPS Next Y-11.72%
EPS Next 2Y-0.84%
EPS Next 3Y4.14%
EPS Next 5Y10.58%
Revenue Next Year-4.67%
Revenue Next 2Y-0.89%
Revenue Next 3Y1.44%
Revenue Next 5Y3.48%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- 1MC is valuated quite expensively with a Price/Earnings ratio of 26.85.
- 1MC's Price/Earnings is on the same level as the industry average.
- 1MC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 23.91, 1MC is valued on the expensive side.
- The rest of the industry has a similar Price/Forward Earnings ratio as 1MC.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, 1MC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.85 | ||
| Fwd PE | 23.91 |
4.2 Price Multiples
- 1MC's Enterprise Value to EBITDA is on the same level as the industry average.
- 65.38% of the companies in the same industry are more expensive than 1MC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.42 | ||
| EV/EBITDA | 11.94 |
4.3 Compensation for Growth
- The decent profitability rating of 1MC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.23
EPS Next 2Y-0.84%
EPS Next 3Y4.14%
5. Dividend
5.1 Amount
- 1MC has a Yearly Dividend Yield of 2.18%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.99, 1MC has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, 1MC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
5.2 History
- On average, the dividend of 1MC grows each year by 15.93%, which is quite nice.
Dividend Growth(5Y)15.93%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1MC pays out 61.30% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of 1MC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP61.3%
EPS Next 2Y-0.84%
EPS Next 3Y4.14%
LVMH MOET HENNESSY LOUIS VUI / 1MC.MI FAQ
What is the fundamental rating for 1MC stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1MC.MI.
Can you provide the valuation status for LVMH MOET HENNESSY LOUIS VUI?
ChartMill assigns a valuation rating of 3 / 10 to LVMH MOET HENNESSY LOUIS VUI (1MC.MI). This can be considered as Overvalued.
What is the profitability of 1MC stock?
LVMH MOET HENNESSY LOUIS VUI (1MC.MI) has a profitability rating of 7 / 10.
Can you provide the financial health for 1MC stock?
The financial health rating of LVMH MOET HENNESSY LOUIS VUI (1MC.MI) is 5 / 10.
Can you provide the expected EPS growth for 1MC stock?
The Earnings per Share (EPS) of LVMH MOET HENNESSY LOUIS VUI (1MC.MI) is expected to decline by -11.72% in the next year.