HERMES INTERNATIONAL (RMS.PA) Stock Fundamental Analysis
EPA:RMS - Euronext Paris - Matif - FR0000052292 - Common Stock - Currency: EUR
RMS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 42 industry peers in the Textiles, Apparel & Luxury Goods industry. RMS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. RMS is valued quite expensive, but it does show an excellent growth. These ratings would make RMS suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year RMS was profitable.
RMS had a positive operating cash flow in the past year.
Each year in the past 5 years RMS has been profitable.
RMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RMS has a Return On Assets of 21.71%. This is amongst the best in the industry. RMS outperforms 97.73% of its industry peers.
RMS has a Return On Equity of 29.58%. This is amongst the best in the industry. RMS outperforms 93.18% of its industry peers.
RMS has a better Return On Invested Capital (24.42%) than 97.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.71% | ||
| ROE | 29.58% | ||
| ROIC | 24.42% |
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 31.29%, RMS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of RMS has grown nicely.
With an excellent Operating Margin value of 41.19%, RMS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of RMS has grown nicely.
The Gross Margin of RMS (71.45%) is better than 79.55% of its industry peers.
In the last couple of years the Gross Margin of RMS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.19% | ||
| PM (TTM) | 31.29% | ||
| GM | 71.45% |
OM growth 3Y0.43%
OM growth 5Y3.34%
PM growth 3Y3.69%
PM growth 5Y6.45%
GM growth 3Y-0.48%
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 RMS is creating value.
There is no outstanding debt for RMS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
RMS has an Altman-Z score of 32.56. This indicates that RMS is financially healthy and has little risk of bankruptcy at the moment.
RMS has a Altman-Z score of 32.56. This is amongst the best in the industry. RMS outperforms 97.73% of its industry peers.
The Debt to FCF ratio of RMS is 0.63, which is an excellent value as it means it would take RMS, only 0.63 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RMS (0.63) is better than 95.45% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that RMS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.12, RMS belongs to the top of the industry, outperforming 93.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 32.56 |
ROIC/WACC3.08
WACC7.94%
2.3 Liquidity
RMS has a Current Ratio of 4.11. This indicates that RMS is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 4.11, RMS belongs to the best of the industry, outperforming 97.73% of the companies in the same industry.
A Quick Ratio of 3.26 indicates that RMS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.26, RMS belongs to the top of the industry, outperforming 97.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.11 | ||
| Quick Ratio | 3.26 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 61.60% over the past year.
RMS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.70% yearly.
The Revenue has grown by 68.87% in the past year. This is a very strong growth!
The Revenue has been growing by 17.12% on average over the past years. This is quite good.
EPS 1Y (TTM)61.6%
EPS 3Y23.5%
EPS 5Y24.7%
EPS Q2Q%120.9%
Revenue 1Y (TTM)68.87%
Revenue growth 3Y19.09%
Revenue growth 5Y17.12%
Sales Q2Q%125.44%
3.2 Future
The Earnings Per Share is expected to grow by 10.89% on average over the next years. This is quite good.
RMS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.86% yearly.
EPS Next Y11.54%
EPS Next 2Y12.85%
EPS Next 3Y12.6%
EPS Next 5Y10.89%
Revenue Next Year13.99%
Revenue Next 2Y12.44%
Revenue Next 3Y12.05%
Revenue Next 5Y10.86%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
RMS is valuated quite expensively with a Price/Earnings ratio of 37.98.
Based on the Price/Earnings ratio, RMS is valued a bit more expensive than 61.36% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, RMS is valued a bit more expensive.
RMS is valuated quite expensively with a Price/Forward Earnings ratio of 52.15.
Based on the Price/Forward Earnings ratio, RMS is valued a bit more expensive than 63.64% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RMS to the average of the S&P500 Index (22.10), we can say RMS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.98 | ||
| Fwd PE | 52.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RMS indicates a rather expensive valuation: RMS more expensive than 86.36% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RMS is valued a bit more expensive than the industry average as 79.55% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 76.77 | ||
| EV/EBITDA | 36.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RMS does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of RMS may justify a higher PE ratio.
RMS's earnings are expected to grow with 12.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.29
PEG (5Y)1.54
EPS Next 2Y12.85%
EPS Next 3Y12.6%
5. Dividend
5.1 Amount
RMS has a Yearly Dividend Yield of 1.00%. Purely for dividend investing, there may be better candidates out there.
RMS's Dividend Yield is slightly below the industry average, which is at 3.02.
Compared to an average S&P500 Dividend Yield of 2.33, RMS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
The dividend of RMS is nicely growing with an annual growth rate of 7.50%!
Dividend Growth(5Y)7.5%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
59.56% of the earnings are spent on dividend by RMS. This is a bit on the high side, but may be sustainable.
RMS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP59.56%
EPS Next 2Y12.85%
EPS Next 3Y12.6%
EPA:RMS (3/7/2025, 7:00:00 PM)
2524
-64 (-2.47%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners11.19%
Inst Owner ChangeN/A
Ins Owners0.34%
Ins Owner ChangeN/A
Market Cap266.46B
Analysts72.26
Price Target2738.87 (8.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend13.2
Dividend Growth(5Y)7.5%
DP59.56%
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)9.85%
PT rev (3m)17.12%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.14%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.19%
Revenue NY rev (3m)3.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.98 | ||
| Fwd PE | 52.15 | ||
| P/S | 18.72 | ||
| P/FCF | 76.77 | ||
| P/OCF | 59.64 | ||
| P/B | 17.7 | ||
| P/tB | 18.27 | ||
| EV/EBITDA | 36.4 |
EPS(TTM)66.45
EY2.63%
EPS(NY)48.4
Fwd EY1.92%
FCF(TTM)32.88
FCFY1.3%
OCF(TTM)42.32
OCFY1.68%
SpS134.82
BVpS142.58
TBVpS138.14
PEG (NY)3.29
PEG (5Y)1.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.71% | ||
| ROE | 29.58% | ||
| ROCE | 34.03% | ||
| ROIC | 24.42% | ||
| ROICexc | 16182.4% | ||
| ROICexgc | N/A | ||
| OM | 41.19% | ||
| PM (TTM) | 31.29% | ||
| GM | 71.45% | ||
| FCFM | 24.39% |
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 3Y0.43%
OM growth 5Y3.34%
PM growth 3Y3.69%
PM growth 5Y6.45%
GM growth 3Y-0.48%
GM growth 5Y0.33%
F-Score7
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.63 | ||
| Debt/EBITDA | 0.28 | ||
| Cap/Depr | 119.69% | ||
| Cap/Sales | 7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.73% | ||
| Profit Quality | 77.95% | ||
| Current Ratio | 4.11 | ||
| Quick Ratio | 3.26 | ||
| Altman-Z | 32.56 |
F-Score7
WACC7.94%
ROIC/WACC3.08
Cap/Depr(3y)109.61%
Cap/Depr(5y)102.11%
Cap/Sales(3y)6.07%
Cap/Sales(5y)6.23%
Profit Quality(3y)92.27%
Profit Quality(5y)96.1%
High Growth Momentum
Growth
EPS 1Y (TTM)61.6%
EPS 3Y23.5%
EPS 5Y24.7%
EPS Q2Q%120.9%
EPS Next Y11.54%
EPS Next 2Y12.85%
EPS Next 3Y12.6%
EPS Next 5Y10.89%
Revenue 1Y (TTM)68.87%
Revenue growth 3Y19.09%
Revenue growth 5Y17.12%
Sales Q2Q%125.44%
Revenue Next Year13.99%
Revenue Next 2Y12.44%
Revenue Next 3Y12.05%
Revenue Next 5Y10.86%
EBIT growth 1Y8.29%
EBIT growth 3Y19.6%
EBIT growth 5Y21.04%
EBIT Next Year24.51%
EBIT Next 3Y14.75%
EBIT Next 5Y13.95%
FCF growth 1Y-12.77%
FCF growth 3Y11.86%
FCF growth 5Y20.11%
OCF growth 1Y-1.8%
OCF growth 3Y14.7%
OCF growth 5Y19.75%