LVMH MOET HENNESSY LOUIS VUI (MC.PA) Stock Fundamental Analysis
EPA:MC - Euronext Paris - Matif - FR0000121014 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to MC. MC was compared to 42 industry peers in the Textiles, Apparel & Luxury Goods industry. MC scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, MC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year MC was profitable.
MC had a positive operating cash flow in the past year.
MC had positive earnings in each of the past 5 years.
In the past 5 years MC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.41%, MC is in the better half of the industry, outperforming 79.55% of the companies in the same industry.
MC has a Return On Equity of 18.59%. This is in the better half of the industry: MC outperforms 75.00% of its industry peers.
The Return On Invested Capital of MC (11.52%) is better than 65.91% of its industry peers.
MC had an Average Return On Invested Capital over the past 3 years of 13.10%. This is above the industry average of 10.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 18.59% | ||
| ROIC | 11.52% |
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
MC has a Profit Margin of 14.82%. This is amongst the best in the industry. MC outperforms 88.64% of its industry peers.
In the last couple of years the Profit Margin of MC has grown nicely.
Looking at the Operating Margin, with a value of 23.12%, MC belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
MC's Operating Margin has improved in the last couple of years.
The Gross Margin of MC (67.03%) is better than 70.45% of its industry peers.
In the last couple of years the Gross Margin of MC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.12% | ||
| PM (TTM) | 14.82% | ||
| GM | 67.03% |
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
MC 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, MC has about the same amount of shares outstanding.
The number of shares outstanding for MC has been reduced compared to 5 years ago.
MC has a worse debt/assets ratio than last year.
2.2 Solvency
MC has an Altman-Z score of 4.04. This indicates that MC is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.04, MC is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
MC has a debt to FCF ratio of 3.05. This is a good value and a sign of high solvency as MC would need 3.05 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.05, MC is doing good in the industry, outperforming 70.45% of the companies in the same industry.
MC has a Debt/Equity ratio of 0.52. This is a neutral value indicating MC is somewhat dependend on debt financing.
MC has a Debt to Equity ratio of 0.52. This is comparable to the rest of the industry: MC outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.05 | ||
| Altman-Z | 4.04 |
ROIC/WACC1.59
WACC7.26%
2.3 Liquidity
A Current Ratio of 1.41 indicates that MC should not have too much problems paying its short term obligations.
MC has a Current ratio of 1.41. This is comparable to the rest of the industry: MC outperforms 50.00% of its industry peers.
MC has a Quick Ratio of 1.41. This is a bad value and indicates that MC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of MC (0.71) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
MC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.19%.
The Earnings Per Share has been growing by 12.03% on average over the past years. This is quite good.
Looking at the last year, MC shows a decrease in Revenue. The Revenue has decreased by -1.71% in the last year.
MC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.55% yearly.
EPS 1Y (TTM)-17.19%
EPS 3Y1.68%
EPS 5Y12.03%
EPS Q2Q%-21.02%
Revenue 1Y (TTM)-1.71%
Revenue growth 3Y9.66%
Revenue growth 5Y9.55%
Sales Q2Q%-2.07%
3.2 Future
MC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.68% yearly.
The Revenue is expected to grow by 6.31% on average over the next years.
EPS Next Y3.38%
EPS Next 2Y7.18%
EPS Next 3Y8.39%
EPS Next 5Y11.68%
Revenue Next Year6.28%
Revenue Next 2Y6.27%
Revenue Next 3Y6.55%
Revenue Next 5Y6.31%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.27, MC can be considered very expensive at the moment.
MC's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.35, MC is valued at the same level.
A Price/Forward Earnings ratio of 21.89 indicates a rather expensive valuation of MC.
MC's Price/Forward Earnings ratio is in line with the industry average.
MC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.27 | ||
| Fwd PE | 21.89 |
4.2 Price Multiples
MC's Enterprise Value to EBITDA ratio is in line with the industry average.
63.64% of the companies in the same industry are cheaper than MC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.74 | ||
| EV/EBITDA | 12.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MC does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of MC may justify a higher PE ratio.
PEG (NY)7.47
PEG (5Y)2.1
EPS Next 2Y7.18%
EPS Next 3Y8.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.99%, MC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.02, MC has a dividend in line with its industry peers.
MC's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
5.2 History
On average, the dividend of MC grows each year by 15.93%, which is quite nice.
Dividend Growth(5Y)15.93%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
MC pays out 53.79% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of MC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP53.79%
EPS Next 2Y7.18%
EPS Next 3Y8.39%
EPA:MC (3/7/2025, 7:00:00 PM)
634.7
-18.3 (-2.8%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners18.84%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap317.44B
Analysts76.1
Price Target774.61 (22.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend13.52
Dividend Growth(5Y)15.93%
DP53.79%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)5.65%
PT rev (3m)7.75%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.36%
EPS NY rev (3m)-3.48%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.44%
Revenue NY rev (3m)1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.27 | ||
| Fwd PE | 21.89 | ||
| P/S | 3.75 | ||
| P/FCF | 23.74 | ||
| P/OCF | 16.77 | ||
| P/B | 4.7 | ||
| P/tB | 15.38 | ||
| EV/EBITDA | 12.15 |
EPS(TTM)25.12
EY3.96%
EPS(NY)29
Fwd EY4.57%
FCF(TTM)26.74
FCFY4.21%
OCF(TTM)37.84
OCFY5.96%
SpS169.32
BVpS135
TBVpS41.26
PEG (NY)7.47
PEG (5Y)2.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.41% | ||
| ROE | 18.59% | ||
| ROCE | 16.95% | ||
| ROIC | 11.52% | ||
| ROICexc | 12.95% | ||
| ROICexgc | 22.58% | ||
| OM | 23.12% | ||
| PM (TTM) | 14.82% | ||
| GM | 67.03% | ||
| FCFM | 15.79% |
ROA(3y)9.81%
ROA(5y)8.67%
ROE(3y)23%
ROE(5y)21.42%
ROIC(3y)13.1%
ROIC(5y)11.61%
ROICexc(3y)14.57%
ROICexc(5y)13.15%
ROICexgc(3y)27.51%
ROICexgc(5y)25.78%
ROCE(3y)19.31%
ROCE(5y)17.1%
ROICexcg growth 3Y-9.7%
ROICexcg growth 5Y1.46%
ROICexc growth 3Y-1.68%
ROICexc growth 5Y2.71%
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%
F-Score5
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 3.05 | ||
| Debt/EBITDA | 1.28 | ||
| Cap/Depr | 71.22% | ||
| Cap/Sales | 6.56% | ||
| Interest Coverage | 23.31 | ||
| Cash Conversion | 69.13% | ||
| Profit Quality | 106.55% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 4.04 |
F-Score5
WACC7.26%
ROIC/WACC1.59
Cap/Depr(3y)87.21%
Cap/Depr(5y)69.61%
Cap/Sales(3y)7.35%
Cap/Sales(5y)6.34%
Profit Quality(3y)88.97%
Profit Quality(5y)115.81%
High Growth Momentum
Growth
EPS 1Y (TTM)-17.19%
EPS 3Y1.68%
EPS 5Y12.03%
EPS Q2Q%-21.02%
EPS Next Y3.38%
EPS Next 2Y7.18%
EPS Next 3Y8.39%
EPS Next 5Y11.68%
Revenue 1Y (TTM)-1.71%
Revenue growth 3Y9.66%
Revenue growth 5Y9.55%
Sales Q2Q%-2.07%
Revenue Next Year6.28%
Revenue Next 2Y6.27%
Revenue Next 3Y6.55%
Revenue Next 5Y6.31%
EBIT growth 1Y-14.06%
EBIT growth 3Y4.57%
EBIT growth 5Y11.48%
EBIT Next Year34.38%
EBIT Next 3Y20.36%
EBIT Next 5Y14.47%
FCF growth 1Y26.23%
FCF growth 3Y-5.77%
FCF growth 5Y10.11%
OCF growth 1Y2.85%
OCF growth 3Y0.49%
OCF growth 5Y10.19%