HENNES & MAURITZ AB-B SHS (HMSB.DE) Stock Fundamental Analysis
FRA:HMSB - Deutsche Boerse Ag - SE0000106270 - Common Stock - Currency: EUR
Overall HMSB gets a fundamental rating of 5 out of 10. We evaluated HMSB against 54 industry peers in the Specialty Retail industry. HMSB has an excellent profitability rating, but there are concerns on its financial health. HMSB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
HMSB had positive earnings in the past year.
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
With an excellent Return On Assets value of 6.45%, HMSB belongs to the best of the industry, outperforming 84.91% of the companies in the same industry.
With an excellent Return On Equity value of 25.19%, HMSB belongs to the best of the industry, outperforming 88.68% of the companies in the same industry.
HMSB's Return On Invested Capital of 11.27% is amongst the best of the industry. HMSB outperforms 83.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.45% | ||
| ROE | 25.19% | ||
| ROIC | 11.27% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 4.96%, HMSB belongs to the top of the industry, outperforming 81.13% of the companies in the same industry.
In the last couple of years the Profit Margin of HMSB has declined.
Looking at the Operating Margin, with a value of 7.69%, HMSB is in the better half of the industry, outperforming 79.25% 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.
Looking at the Gross Margin, with a value of 53.47%, HMSB belongs to the top of the industry, outperforming 83.02% of the companies in the same industry.
HMSB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.69% | ||
| PM (TTM) | 4.96% | ||
| GM | 53.47% |
OM growth 3Y0.11%
OM growth 5Y0.64%
PM growth 3Y-3.61%
PM growth 5Y-3.01%
GM growth 3Y0.44%
GM growth 5Y0.33%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HMSB is creating value.
HMSB has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
The Debt to FCF ratio of HMSB is 3.79, which is a good value as it means it would take HMSB, 3.79 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HMSB (3.79) is better than 75.47% of its industry peers.
HMSB has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
HMSB's Debt to Equity ratio of 1.40 is on the low side compared to the rest of the industry. HMSB is outperformed by 73.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | N/A |
ROIC/WACC1.85
WACC6.08%
2.3 Liquidity
A Current Ratio of 1.14 indicates that HMSB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.14, HMSB is in line with its industry, outperforming 45.28% of the companies in the same industry.
HMSB has a Quick Ratio of 1.14. This is a bad value and indicates that HMSB is not financially healthy enough and could expect problems in meeting its short term obligations.
HMSB has a Quick ratio of 0.53. This is comparable to the rest of the industry: HMSB outperforms 43.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.70% over the past year.
The Earnings Per Share has been decreasing by -2.32% on average over the past years.
HMSB shows a decrease in Revenue. In the last year, the revenue decreased by -0.66%.
The Revenue has been growing slightly by 0.15% on average over the past years.
EPS 1Y (TTM)34.7%
EPS 3Y2.83%
EPS 5Y-2.32%
EPS Q2Q%97.94%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y5.63%
Revenue growth 5Y0.15%
Sales Q2Q%-0.73%
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 16.18% yearly.
Based on estimates for the next years, HMSB will show a small growth in Revenue. The Revenue will grow by 3.33% on average per year.
EPS Next Y20.43%
EPS Next 2Y15.04%
EPS Next 3Y11.85%
EPS Next 5Y16.18%
Revenue Next Year3.33%
Revenue Next 2Y3.21%
Revenue Next 3Y3.22%
Revenue Next 5Y3.33%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.23, the valuation of HMSB can be described as rather expensive.
Based on the Price/Earnings ratio, HMSB is valued a bit cheaper than 77.36% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, HMSB is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.84, which indicates a correct valuation of HMSB.
Based on the Price/Forward Earnings ratio, HMSB is valued a bit cheaper than 67.92% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HMSB to the average of the S&P500 Index (22.10), we can say HMSB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.23 | ||
| Fwd PE | 16.84 |
4.2 Price Multiples
64.15% of the companies in the same industry are more expensive than HMSB, based on the Enterprise Value to EBITDA ratio.
HMSB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HMSB is cheaper than 66.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.21 | ||
| EV/EBITDA | 6.63 |
4.3 Compensation for Growth
HMSB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of HMSB may justify a higher PE ratio.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y15.04%
EPS Next 3Y11.85%
5. Dividend
5.1 Amount
HMSB has a Yearly Dividend Yield of 4.75%, which is a nice return.
Compared to an average industry Dividend Yield of 5.08, HMSB pays a better dividend. On top of this HMSB pays more dividend than 88.68% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, HMSB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
5.2 History
The dividend of HMSB decreases each year by -7.78%.
Dividend Growth(5Y)-7.78%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
HMSB pays out 89.98% of its income as dividend. This is not a sustainable payout ratio.
DP89.98%
EPS Next 2Y15.04%
EPS Next 3Y11.85%
FRA:HMSB (3/7/2025, 7:00:00 PM)
13.35
+0.13 (+0.98%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners22.84%
Inst Owner ChangeN/A
Ins Owners0.87%
Ins Owner ChangeN/A
Market Cap18.91B
Analysts55.14
Price Target14.77 (10.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
Yearly Dividend0.59
Dividend Growth(5Y)-7.78%
DP89.98%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-9.97%
Min EPS beat(2)-25.97%
Max EPS beat(2)6.03%
EPS beat(4)2
Avg EPS beat(4)4.55%
Min EPS beat(4)-25.97%
Max EPS beat(4)44.18%
EPS beat(8)5
Avg EPS beat(8)16.88%
EPS beat(12)6
Avg EPS beat(12)-10.45%
EPS beat(16)10
Avg EPS beat(16)-5.98%
Revenue beat(2)0
Avg Revenue beat(2)-3.94%
Min Revenue beat(2)-3.95%
Max Revenue beat(2)-3.94%
Revenue beat(4)0
Avg Revenue beat(4)-2.77%
Min Revenue beat(4)-3.95%
Max Revenue beat(4)-1.16%
Revenue beat(8)0
Avg Revenue beat(8)-2.36%
Revenue beat(12)0
Avg Revenue beat(12)-2.23%
Revenue beat(16)0
Avg Revenue beat(16)-2.19%
PT rev (1m)-0.36%
PT rev (3m)-2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.62%
EPS NY rev (1m)0.16%
EPS NY rev (3m)-6.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.23 | ||
| Fwd PE | 16.84 | ||
| P/S | 0.88 | ||
| P/FCF | 10.21 | ||
| P/OCF | 6.53 | ||
| P/B | 4.5 | ||
| P/tB | 5.54 | ||
| EV/EBITDA | 6.63 |
EPS(TTM)0.66
EY4.94%
EPS(NY)0.79
Fwd EY5.94%
FCF(TTM)1.31
FCFY9.79%
OCF(TTM)2.04
OCFY15.31%
SpS15.09
BVpS2.97
TBVpS2.41
PEG (NY)0.99
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.45% | ||
| ROE | 25.19% | ||
| ROCE | 15.87% | ||
| ROIC | 11.27% | ||
| ROICexc | 13.31% | ||
| ROICexgc | 14.63% | ||
| OM | 7.69% | ||
| PM (TTM) | 4.96% | ||
| GM | 53.47% | ||
| FCFM | 8.66% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y0.11%
OM growth 5Y0.64%
PM growth 3Y-3.61%
PM growth 5Y-3.01%
GM growth 3Y0.44%
GM growth 5Y0.33%
F-Score6
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 3.79 | ||
| Debt/EBITDA | 1.6 | ||
| Cap/Depr | 51.45% | ||
| Cap/Sales | 4.88% | ||
| Interest Coverage | 23.72 | ||
| Cash Conversion | 78.84% | ||
| Profit Quality | 174.75% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | N/A |
F-Score6
WACC6.08%
ROIC/WACC1.85
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)34.7%
EPS 3Y2.83%
EPS 5Y-2.32%
EPS Q2Q%97.94%
EPS Next Y20.43%
EPS Next 2Y15.04%
EPS Next 3Y11.85%
EPS Next 5Y16.18%
Revenue 1Y (TTM)-0.66%
Revenue growth 3Y5.63%
Revenue growth 5Y0.15%
Sales Q2Q%-0.73%
Revenue Next Year3.33%
Revenue Next 2Y3.21%
Revenue Next 3Y3.22%
Revenue Next 5Y3.33%
EBIT growth 1Y32.87%
EBIT growth 3Y5.74%
EBIT growth 5Y0.79%
EBIT Next Year152.16%
EBIT Next 3Y40.5%
EBIT Next 5Y21.76%
FCF growth 1Y-18.72%
FCF growth 3Y-20.98%
FCF growth 5Y1.72%
OCF growth 1Y-6.46%
OCF growth 3Y-10.72%
OCF growth 5Y1.84%