HENNES & MAURITZ AB-B SHS (HMSB.DE) Stock Fundamental Analysis
Europe - FRA:HMSB - SE0000106270 - Common Stock
14.035 EUR
-0.06 (-0.43%)
We assign a fundamental rating of 5 out of 10 to HMSB. HMSB was compared to 53 industry peers in the Specialty Retail industry. While HMSB belongs to the best of the industry regarding profitability, there are concerns on its financial health. HMSB has a decent growth rate and is not valued too expensively.
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.
In the past 5 years HMSB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.92%, HMSB belongs to the top of the industry, outperforming 83.02% of the companies in the same industry.
The Return On Equity of HMSB (27.34%) is better than 94.34% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.79%, HMSB belongs to the top of the industry, outperforming 86.79% of the companies in the same industry.
HMSB had an Average Return On Invested Capital over the past 3 years of 7.98%. This is in line with the industry average of 8.43%.
The 3 year average ROIC (7.98%) for HMSB is below the current ROIC(11.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.92% | ||
| ROE | 27.34% | ||
| ROIC | 11.79% |
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
Looking at the Profit Margin, with a value of 4.27%, 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 Profit Margin of HMSB has declined.
Looking at the Operating Margin, with a value of 6.80%, HMSB belongs to the top of the industry, outperforming 81.13% of the companies in the same industry.
HMSB's Operating Margin has been stable in the last couple of years.
HMSB has a better Gross Margin (52.61%) than 84.91% 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 | 6.8% | ||
| PM (TTM) | 4.27% | ||
| GM | 52.61% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HMSB is creating value.
HMSB has less shares outstanding than it did 1 year ago.
HMSB has less shares outstanding than it did 5 years ago.
HMSB has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of HMSB is 4.62, which is a neutral value as it means it would take HMSB, 4.62 years of fcf income to pay off all of its debts.
HMSB has a Debt to FCF ratio of 4.62. This is in the better half of the industry: HMSB outperforms 69.81% of its industry peers.
HMSB has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.54, HMSB is not doing good in the industry: 75.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 4.62 | ||
| Altman-Z | N/A |
ROIC/WACC3.89
WACC3.03%
2.3 Liquidity
HMSB has a Current Ratio of 1.00. This is a bad value and indicates that HMSB is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of HMSB (1.00) is worse than 66.04% of its industry peers.
A Quick Ratio of 0.46 indicates that HMSB may have some problems paying its short term obligations.
HMSB has a Quick ratio (0.46) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The earnings per share for HMSB have decreased by -9.61% in the last year.
The Earnings Per Share has been decreasing by -2.32% on average over the past years.
The Revenue has decreased by -1.51% in the past year.
The Revenue has been growing slightly by 0.15% on average over the past years.
EPS 1Y (TTM)-9.61%
EPS 3Y2.83%
EPS 5Y-2.32%
EPS Q2Q%-20.26%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y5.63%
Revenue growth 5Y0.15%
Sales Q2Q%-4.85%
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 9.17% yearly.
HMSB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.75% yearly.
EPS Next Y-3.27%
EPS Next 2Y5.49%
EPS Next 3Y6.43%
EPS Next 5Y9.17%
Revenue Next Year-2.57%
Revenue Next 2Y-0.37%
Revenue Next 3Y0.66%
Revenue Next 5Y0.75%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
HMSB is valuated rather expensively with a Price/Earnings ratio of 24.62.
Based on the Price/Earnings ratio, HMSB is valued a bit cheaper than 66.04% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. HMSB is around the same levels.
A Price/Forward Earnings ratio of 19.15 indicates a rather expensive valuation of HMSB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HMSB indicates a somewhat cheap valuation: HMSB is cheaper than 60.38% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HMSB to the average of the S&P500 Index (22.88), we can say HMSB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.62 | ||
| Fwd PE | 19.15 |
4.2 Price Multiples
HMSB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HMSB is cheaper than 66.04% of the companies in the same industry.
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 | 13.68 | ||
| EV/EBITDA | 7.24 |
4.3 Compensation for Growth
The excellent profitability rating of HMSB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.49%
EPS Next 3Y6.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.60%, HMSB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.39, HMSB pays a better dividend. On top of this HMSB pays more dividend than 90.57% 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 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
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
HMSB pays out 107.07% of its income as dividend. This is not a sustainable payout ratio.
DP107.07%
EPS Next 2Y5.49%
EPS Next 3Y6.43%
FRA:HMSB (9/18/2025, 7:00:00 PM)
14.035
-0.06 (-0.43%)
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 Cap19.79B
Analysts50
Price Target12.96 (-7.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
Yearly Dividend0.59
Dividend Growth(5Y)-7.85%
DP107.07%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-25.22%
Min EPS beat(2)-46.79%
Max EPS beat(2)-3.66%
EPS beat(4)1
Avg EPS beat(4)-17.6%
Min EPS beat(4)-46.79%
Max EPS beat(4)6.03%
EPS beat(8)3
Avg EPS beat(8)-10.15%
EPS beat(12)5
Avg EPS beat(12)-10.49%
EPS beat(16)8
Avg EPS beat(16)-9.65%
Revenue beat(2)0
Avg Revenue beat(2)-2.68%
Min Revenue beat(2)-2.88%
Max Revenue beat(2)-2.48%
Revenue beat(4)0
Avg Revenue beat(4)-3.31%
Min Revenue beat(4)-3.95%
Max Revenue beat(4)-2.48%
Revenue beat(8)0
Avg Revenue beat(8)-2.54%
Revenue beat(12)0
Avg Revenue beat(12)-2.35%
Revenue beat(16)0
Avg Revenue beat(16)-2.25%
PT rev (1m)1.45%
PT rev (3m)-4.85%
EPS NQ rev (1m)-2.6%
EPS NQ rev (3m)-17.93%
EPS NY rev (1m)-9.92%
EPS NY rev (3m)-9.92%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-3.81%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.62 | ||
| Fwd PE | 19.15 | ||
| P/S | 0.93 | ||
| P/FCF | 13.68 | ||
| P/OCF | 7.77 | ||
| P/B | 5.95 | ||
| P/tB | 7.7 | ||
| EV/EBITDA | 7.24 |
EPS(TTM)0.57
EY4.06%
EPS(NY)0.73
Fwd EY5.22%
FCF(TTM)1.03
FCFY7.31%
OCF(TTM)1.81
OCFY12.87%
SpS15.09
BVpS2.36
TBVpS1.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.92% | ||
| ROE | 27.34% | ||
| ROCE | 16.6% | ||
| ROIC | 11.79% | ||
| ROICexc | 14.21% | ||
| ROICexgc | 15.87% | ||
| OM | 6.8% | ||
| PM (TTM) | 4.27% | ||
| GM | 52.61% | ||
| FCFM | 6.8% |
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 Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 4.62 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 54.51% | ||
| Cap/Sales | 5.17% | ||
| Interest Coverage | 23.5 | ||
| Cash Conversion | 73.53% | ||
| Profit Quality | 159.11% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | N/A |
F-Score6
WACC3.03%
ROIC/WACC3.89
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)-9.61%
EPS 3Y2.83%
EPS 5Y-2.32%
EPS Q2Q%-20.26%
EPS Next Y-3.27%
EPS Next 2Y5.49%
EPS Next 3Y6.43%
EPS Next 5Y9.17%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y5.63%
Revenue growth 5Y0.15%
Sales Q2Q%-4.85%
Revenue Next Year-2.57%
Revenue Next 2Y-0.37%
Revenue Next 3Y0.66%
Revenue Next 5Y0.75%
EBIT growth 1Y-13.34%
EBIT growth 3Y5.03%
EBIT growth 5Y0.38%
EBIT Next Year125.36%
EBIT Next 3Y35.98%
EBIT Next 5Y19.42%
FCF growth 1Y-8.57%
FCF growth 3Y-20.98%
FCF growth 5Y1.72%
OCF growth 1Y13.31%
OCF growth 3Y-10.72%
OCF growth 5Y1.84%