HENNES & MAURITZ AB-B SHS (HMSB.DE) Stock Fundamental Analysis
FRA:HMSB - Deutsche Boerse Ag - SE0000106270 - Common Stock - Currency: EUR
HMSB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 49 industry peers in the Specialty Retail industry. While HMSB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HMSB has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year HMSB was profitable.
HMSB had a positive operating cash flow in the past year.
Each year in the past 5 years HMSB has been profitable.
HMSB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HMSB's Return On Assets of 6.18% is amongst the best of the industry. HMSB outperforms 83.67% of its industry peers.
HMSB's Return On Equity of 23.89% is amongst the best of the industry. HMSB outperforms 91.84% of its industry peers.
HMSB has a better Return On Invested Capital (10.59%) than 83.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HMSB is in line with the industry average of 8.30%.
The 3 year average ROIC (7.98%) for HMSB is below the current ROIC(10.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.18% | ||
| ROE | 23.89% | ||
| ROIC | 10.59% |
ROA(3y)4.41%
ROA(5y)4.01%
ROE(3y)16.88%
ROE(5y)14.25%
ROIC(3y)7.98%
ROIC(5y)6.98%
1.3 Margins
With a decent Profit Margin value of 4.66%, HMSB is doing good in the industry, outperforming 77.55% of the companies in the same industry.
HMSB's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.17%, HMSB is in the better half of the industry, outperforming 79.59% of the companies in the same industry.
In the last couple of years the Operating Margin of HMSB has remained more or less at the same level.
HMSB has a better Gross Margin (52.87%) than 81.63% of its industry peers.
In the last couple of years the Gross Margin of HMSB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.17% | ||
| PM (TTM) | 4.66% | ||
| GM | 52.87% |
OM growth 3Y-0.56%
OM growth 5Y0.23%
PM growth 3Y-3.61%
PM growth 5Y-3.01%
GM growth 3Y0.42%
GM growth 5Y0.31%
2. Health
2.1 Basic Checks
HMSB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, HMSB has less shares outstanding
HMSB has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HMSB has been reduced compared to a year ago.
2.2 Solvency
HMSB has a debt to FCF ratio of 3.87. This is a good value and a sign of high solvency as HMSB would need 3.87 years to pay back of all of its debts.
HMSB's Debt to FCF ratio of 3.87 is fine compared to the rest of the industry. HMSB outperforms 67.35% of its industry peers.
A Debt/Equity ratio of 1.40 is on the high side and indicates that HMSB has dependencies on debt financing.
With a Debt to Equity ratio value of 1.40, HMSB is not doing good in the industry: 77.55% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | N/A |
ROIC/WACC3.43
WACC3.09%
2.3 Liquidity
A Current Ratio of 1.15 indicates that HMSB should not have too much problems paying its short term obligations.
HMSB's Current ratio of 1.15 is in line compared to the rest of the industry. HMSB outperforms 48.98% of its industry peers.
A Quick Ratio of 0.51 indicates that HMSB may have some problems paying its short term obligations.
The Quick ratio of HMSB (0.51) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
HMSB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.34%, which is quite good.
HMSB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.32% yearly.
HMSB shows a small growth in Revenue. In the last year, the Revenue has grown by 0.56%.
HMSB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.15% yearly.
EPS 1Y (TTM)18.34%
EPS 3Y2.83%
EPS 5Y-2.32%
EPS Q2Q%-50.67%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y5.63%
Revenue growth 5Y0.15%
Sales Q2Q%3.1%
3.2 Future
HMSB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.23% yearly.
Based on estimates for the next years, HMSB will show a small growth in Revenue. The Revenue will grow by 1.70% on average per year.
EPS Next Y7.38%
EPS Next 2Y8.98%
EPS Next 3Y8.11%
EPS Next 5Y9.23%
Revenue Next Year0.16%
Revenue Next 2Y1.28%
Revenue Next 3Y1.81%
Revenue Next 5Y1.7%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.07, HMSB is valued on the expensive side.
73.47% of the companies in the same industry are more expensive than HMSB, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.45. HMSB is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.00, which indicates a correct valuation of HMSB.
Based on the Price/Forward Earnings ratio, HMSB is valued a bit cheaper than the industry average as 69.39% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, HMSB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.07 | ||
| Fwd PE | 16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HMSB is valued a bit cheaper than the industry average as 73.47% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HMSB indicates a somewhat cheap valuation: HMSB is cheaper than 73.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.69 | ||
| EV/EBITDA | 6.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HMSB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.72
PEG (5Y)N/A
EPS Next 2Y8.98%
EPS Next 3Y8.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.05%, HMSB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.99, HMSB pays a better dividend. On top of this HMSB pays more dividend than 91.84% of the companies listed in the same industry.
HMSB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.05% |
5.2 History
The dividend of HMSB decreases each year by -7.85%.
Dividend Growth(5Y)-7.85%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
95.04% of the earnings are spent on dividend by HMSB. This is not a sustainable payout ratio.
DP95.04%
EPS Next 2Y8.98%
EPS Next 3Y8.11%
FRA:HMSB (7/3/2025, 7:00:00 PM)
12.245
+0.04 (+0.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners22.46%
Inst Owner ChangeN/A
Ins Owners0.88%
Ins Owner ChangeN/A
Market Cap17.34B
Analysts51.43
Price Target13.09 (6.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.05% |
Yearly Dividend0.58
Dividend Growth(5Y)-7.85%
DP95.04%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-20.38%
Min EPS beat(2)-46.79%
Max EPS beat(2)6.03%
EPS beat(4)1
Avg EPS beat(4)-18.19%
Min EPS beat(4)-46.79%
Max EPS beat(4)6.03%
EPS beat(8)4
Avg EPS beat(8)-8.17%
EPS beat(12)6
Avg EPS beat(12)-8.44%
EPS beat(16)9
Avg EPS beat(16)-9.37%
Revenue beat(2)0
Avg Revenue beat(2)-3.42%
Min Revenue beat(2)-3.95%
Max Revenue beat(2)-2.88%
Revenue beat(4)0
Avg Revenue beat(4)-3.2%
Min Revenue beat(4)-3.95%
Max Revenue beat(4)-2.01%
Revenue beat(8)0
Avg Revenue beat(8)-2.47%
Revenue beat(12)0
Avg Revenue beat(12)-2.31%
Revenue beat(16)0
Avg Revenue beat(16)-2.24%
PT rev (1m)-7.04%
PT rev (3m)-10%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.07 | ||
| Fwd PE | 16 | ||
| P/S | 0.82 | ||
| P/FCF | 9.69 | ||
| P/OCF | 6.07 | ||
| P/B | 4.22 | ||
| P/tB | 5.17 | ||
| EV/EBITDA | 6.48 |
EPS(TTM)0.61
EY4.98%
EPS(NY)0.77
Fwd EY6.25%
FCF(TTM)1.26
FCFY10.32%
OCF(TTM)2.02
OCFY16.47%
SpS14.89
BVpS2.9
TBVpS2.37
PEG (NY)2.72
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.18% | ||
| ROE | 23.89% | ||
| ROCE | 14.92% | ||
| ROIC | 10.59% | ||
| ROICexc | 12.41% | ||
| ROICexgc | 13.6% | ||
| OM | 7.17% | ||
| PM (TTM) | 4.66% | ||
| GM | 52.87% | ||
| FCFM | 8.49% |
ROA(3y)4.41%
ROA(5y)4.01%
ROE(3y)16.88%
ROE(5y)14.25%
ROIC(3y)7.98%
ROIC(5y)6.98%
ROICexc(3y)9.84%
ROICexc(5y)8.7%
ROICexgc(3y)10.94%
ROICexgc(5y)9.68%
ROCE(3y)11.28%
ROCE(5y)9.86%
ROICexcg growth 3Y2.73%
ROICexcg growth 5Y-9.12%
ROICexc growth 3Y3.25%
ROICexc growth 5Y-7.29%
OM growth 3Y-0.56%
OM growth 5Y0.23%
PM growth 3Y-3.61%
PM growth 5Y-3.01%
GM growth 3Y0.42%
GM growth 5Y0.31%
F-Score6
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 3.87 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 53.43% | ||
| Cap/Sales | 5.06% | ||
| Interest Coverage | 25.29 | ||
| Cash Conversion | 81.44% | ||
| Profit Quality | 182.17% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | N/A |
F-Score6
WACC3.09%
ROIC/WACC3.43
Cap/Depr(3y)39.04%
Cap/Depr(5y)30.46%
Cap/Sales(3y)3.79%
Cap/Sales(5y)3.17%
Profit Quality(3y)328.53%
Profit Quality(5y)606.52%
High Growth Momentum
Growth
EPS 1Y (TTM)18.34%
EPS 3Y2.83%
EPS 5Y-2.32%
EPS Q2Q%-50.67%
EPS Next Y7.38%
EPS Next 2Y8.98%
EPS Next 3Y8.11%
EPS Next 5Y9.23%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y5.63%
Revenue growth 5Y0.15%
Sales Q2Q%3.1%
Revenue Next Year0.16%
Revenue Next 2Y1.28%
Revenue Next 3Y1.81%
Revenue Next 5Y1.7%
EBIT growth 1Y6.19%
EBIT growth 3Y5.03%
EBIT growth 5Y0.38%
EBIT Next Year125.36%
EBIT Next 3Y35.98%
EBIT Next 5Y19.65%
FCF growth 1Y3.37%
FCF growth 3Y-20.98%
FCF growth 5Y1.72%
OCF growth 1Y22.53%
OCF growth 3Y-10.72%
OCF growth 5Y1.84%