HERMES INTERNATIONAL (HMI.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HMI - FR0000052292 - Common Stock
2024 EUR
-53 (-2.55%)
We assign a fundamental rating of 7 out of 10 to HMI. HMI was compared to 52 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the health and profitability get an excellent rating, making HMI a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, HMI is valued expensive at the moment. These ratings would make HMI suitable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year HMI was profitable.
- In the past year HMI had a positive cash flow from operations.
- Each year in the past 5 years HMI has been profitable.
- Each year in the past 5 years HMI had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 20.53%, HMI belongs to the best of the industry, outperforming 94.23% of the companies in the same industry.
- The Return On Equity of HMI (26.99%) is better than 86.54% of its industry peers.
- The Return On Invested Capital of HMI (24.91%) is better than 92.31% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for HMI is significantly above the industry average of 11.64%.
- The last Return On Invested Capital (24.91%) for HMI is above the 3 year average (23.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.53% | ||
| ROE | 26.99% | ||
| ROIC | 24.91% |
ROA(3y)20.1%
ROA(5y)18.1%
ROE(3y)27.33%
ROE(5y)25.35%
ROIC(3y)23.47%
ROIC(5y)21.82%
1.3 Margins
- HMI's Profit Margin of 28.54% is amongst the best of the industry. HMI outperforms 100.00% of its industry peers.
- In the last couple of years the Profit Margin of HMI has grown nicely.
- HMI has a Operating Margin of 41.21%. This is amongst the best in the industry. HMI outperforms 100.00% of its industry peers.
- In the last couple of years the Operating Margin of HMI has grown nicely.
- HMI has a Gross Margin of 70.31%. This is in the better half of the industry: HMI outperforms 71.15% of its industry peers.
- In the last couple of years the Gross Margin of HMI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.21% | ||
| PM (TTM) | 28.54% | ||
| GM | 70.31% |
OM growth 3Y0.88%
OM growth 5Y3.62%
PM growth 3Y3.69%
PM growth 5Y6.45%
GM growth 3Y-0.48%
GM growth 5Y0.33%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HMI is creating value.
- HMI has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for HMI has been increased compared to 5 years ago.
- The debt/assets ratio for HMI has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 27.91 indicates that HMI is not in any danger for bankruptcy at the moment.
- HMI has a Altman-Z score of 27.91. This is amongst the best in the industry. HMI outperforms 98.08% of its industry peers.
- HMI has a debt to FCF ratio of 0.49. This is a very positive value and a sign of high solvency as it would only need 0.49 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.49, HMI belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
- A Debt/Equity ratio of 0.10 indicates that HMI is not too dependend on debt financing.
- With an excellent Debt to Equity ratio value of 0.10, HMI belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.49 | ||
| Altman-Z | 27.91 |
ROIC/WACC3.06
WACC8.15%
2.3 Liquidity
- A Current Ratio of 4.50 indicates that HMI has no problem at all paying its short term obligations.
- The Current ratio of HMI (4.50) is better than 98.08% of its industry peers.
- A Quick Ratio of 3.65 indicates that HMI has no problem at all paying its short term obligations.
- HMI's Quick ratio of 3.65 is amongst the best of the industry. HMI outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.5 | ||
| Quick Ratio | 3.65 |
3. Growth
3.1 Past
- HMI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.57%.
- Measured over the past years, HMI shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.70% on average per year.
- HMI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.31%.
- HMI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.12% yearly.
EPS 1Y (TTM)0.57%
EPS 3Y23.48%
EPS 5Y24.7%
EPS Q2Q%-5.27%
Revenue 1Y (TTM)10.31%
Revenue growth 3Y19.09%
Revenue growth 5Y17.12%
Sales Q2Q%7.06%
3.2 Future
- The Earnings Per Share is expected to grow by 9.25% on average over the next years. This is quite good.
- HMI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.94% yearly.
EPS Next Y-2.37%
EPS Next 2Y5.02%
EPS Next 3Y7.35%
EPS Next 5Y9.25%
Revenue Next Year7.12%
Revenue Next 2Y7.86%
Revenue Next 3Y8.29%
Revenue Next 5Y8.94%
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 decreasing.
- 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
- Based on the Price/Earnings ratio of 47.42, the valuation of HMI can be described as expensive.
- Based on the Price/Earnings ratio, HMI is valued a bit more expensive than 61.54% of the companies in the same industry.
- HMI is valuated expensively when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- HMI is valuated quite expensively with a Price/Forward Earnings ratio of 41.83.
- 63.46% of the companies in the same industry are cheaper than HMI, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, HMI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.42 | ||
| Fwd PE | 41.83 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HMI is valued a bit more expensive than the industry average as 78.85% of the companies are valued more cheaply.
- 67.31% of the companies in the same industry are cheaper than HMI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.3 | ||
| EV/EBITDA | 27.78 |
4.3 Compensation for Growth
- HMI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.92
EPS Next 2Y5.02%
EPS Next 3Y7.35%
5. Dividend
5.1 Amount
- HMI has a Yearly Dividend Yield of 1.22%.
- HMI's Dividend Yield is comparable with the industry average which is at 1.99.
- Compared to the average S&P500 Dividend Yield of 1.82, HMI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
- The dividend of HMI is nicely growing with an annual growth rate of 40.81%!
Dividend Growth(5Y)40.81%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- 62.91% of the earnings are spent on dividend by HMI. This is not a sustainable payout ratio.
- HMI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.91%
EPS Next 2Y5.02%
EPS Next 3Y7.35%
HERMES INTERNATIONAL / HMI.DE FAQ
What is the ChartMill fundamental rating of HERMES INTERNATIONAL (HMI.DE) stock?
ChartMill assigns a fundamental rating of 7 / 10 to HMI.DE.
What is the valuation status for HMI stock?
ChartMill assigns a valuation rating of 1 / 10 to HERMES INTERNATIONAL (HMI.DE). This can be considered as Overvalued.
What is the profitability of HMI stock?
HERMES INTERNATIONAL (HMI.DE) has a profitability rating of 9 / 10.
Can you provide the expected EPS growth for HMI stock?
The Earnings per Share (EPS) of HERMES INTERNATIONAL (HMI.DE) is expected to decline by -2.37% in the next year.
Can you provide the dividend sustainability for HMI stock?
The dividend rating of HERMES INTERNATIONAL (HMI.DE) is 3 / 10 and the dividend payout ratio is 62.91%.