HERMES INTERNATIONAL (RMS.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:RMS - FR0000052292 - Common Stock
2130 EUR
-1 (-0.05%)
Overall RMS gets a fundamental rating of 7 out of 10. We evaluated RMS against 51 industry peers in the Textiles, Apparel & Luxury Goods industry. RMS gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, RMS is valued expensive at the moment. These ratings would make RMS suitable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year RMS was profitable.
- In the past year RMS had a positive cash flow from operations.
- RMS had positive earnings in each of the past 5 years.
- In the past 5 years RMS always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 20.53%, RMS belongs to the top of the industry, outperforming 90.20% of the companies in the same industry.
- RMS's Return On Equity of 26.99% is amongst the best of the industry. RMS outperforms 82.35% of its industry peers.
- With an excellent Return On Invested Capital value of 24.91%, RMS belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for RMS is significantly above the industry average of 12.94%.
- The 3 year average ROIC (23.47%) for RMS is below the current ROIC(24.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.53% | ||
| ROE | 26.99% | ||
| ROIC | 24.91% |
ROA(3y)20.1%
ROA(5y)18.1%
ROE(3y)27.33%
ROE(5y)25.35%
ROIC(3y)23.47%
ROIC(5y)21.82%
1.3 Margins
- RMS's Profit Margin of 28.54% is amongst the best of the industry. RMS outperforms 98.04% of its industry peers.
- In the last couple of years the Profit Margin of RMS has grown nicely.
- RMS has a Operating Margin of 41.21%. This is amongst the best in the industry. RMS outperforms 98.04% of its industry peers.
- RMS's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 70.31%, RMS is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
- RMS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.21% | ||
| PM (TTM) | 28.54% | ||
| GM | 70.31% |
OM growth 3Y0.88%
OM growth 5Y3.62%
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.
- The number of shares outstanding for RMS has been increased compared to 1 year ago.
- The number of shares outstanding for RMS has been increased compared to 5 years ago.
- Compared to 1 year ago, RMS has an improved debt to assets ratio.
2.2 Solvency
- RMS has an Altman-Z score of 29.20. This indicates that RMS is financially healthy and has little risk of bankruptcy at the moment.
- RMS's Altman-Z score of 29.20 is amongst the best of the industry. RMS outperforms 100.00% of its industry peers.
- RMS has a debt to FCF ratio of 0.49. This is a very positive value and a sign of high solvency as it would only need 0.49 years to pay back of all of its debts.
- RMS has a Debt to FCF ratio of 0.49. This is amongst the best in the industry. RMS outperforms 88.24% of its industry peers.
- A Debt/Equity ratio of 0.10 indicates that RMS is not too dependend on debt financing.
- RMS has a better Debt to Equity ratio (0.10) than 84.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.49 | ||
| Altman-Z | 29.2 |
ROIC/WACC3.05
WACC8.16%
2.3 Liquidity
- A Current Ratio of 4.50 indicates that RMS has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 4.50, RMS belongs to the top of the industry, outperforming 96.08% of the companies in the same industry.
- A Quick Ratio of 3.65 indicates that RMS has no problem at all paying its short term obligations.
- RMS's Quick ratio of 3.65 is amongst the best of the industry. RMS outperforms 98.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.5 | ||
| Quick Ratio | 3.65 |
3. Growth
3.1 Past
- RMS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.57%.
- The Earnings Per Share has been growing by 24.70% on average over the past years. This is a very strong growth
- RMS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.31%.
- RMS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.12% yearly.
EPS 1Y (TTM)0.57%
EPS 3Y23.48%
EPS 5Y24.7%
EPS Q2Q%-5.27%
Revenue 1Y (TTM)10.31%
Revenue growth 3Y19.09%
Revenue growth 5Y17.12%
Sales Q2Q%7.06%
3.2 Future
- Based on estimates for the next years, RMS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.25% on average per year.
- RMS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.94% yearly.
EPS Next Y-2.31%
EPS Next 2Y5.29%
EPS Next 3Y7.46%
EPS Next 5Y9.25%
Revenue Next Year7.12%
Revenue Next 2Y7.86%
Revenue Next 3Y8.29%
Revenue Next 5Y8.94%
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 decreasing.
- 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 49.91, RMS can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, RMS is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, RMS is valued quite expensively.
- The Price/Forward Earnings ratio is 43.80, which means the current valuation is very expensive for RMS.
- 70.59% of the companies in the same industry are cheaper than RMS, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, RMS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.91 | ||
| Fwd PE | 43.8 |
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 80.39% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, RMS is valued a bit more expensive than 74.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.99 | ||
| EV/EBITDA | 29.31 |
4.3 Compensation for Growth
- RMS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.02
EPS Next 2Y5.29%
EPS Next 3Y7.46%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.22%, RMS has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.97, RMS has a dividend in line with its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.81, RMS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
- On average, the dividend of RMS grows each year by 40.81%, which is quite nice.
Dividend Growth(5Y)40.81%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- RMS pays out 62.91% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of RMS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP62.91%
EPS Next 2Y5.29%
EPS Next 3Y7.46%
HERMES INTERNATIONAL / RMS.PA FAQ
Can you provide the ChartMill fundamental rating for HERMES INTERNATIONAL?
ChartMill assigns a fundamental rating of 7 / 10 to RMS.PA.
What is the valuation status for RMS stock?
ChartMill assigns a valuation rating of 1 / 10 to HERMES INTERNATIONAL (RMS.PA). This can be considered as Overvalued.
Can you provide the profitability details for HERMES INTERNATIONAL?
HERMES INTERNATIONAL (RMS.PA) has a profitability rating of 9 / 10.
What is the expected EPS growth for HERMES INTERNATIONAL (RMS.PA) stock?
The Earnings per Share (EPS) of HERMES INTERNATIONAL (RMS.PA) is expected to decline by -2.31% in the next year.
Can you provide the dividend sustainability for RMS stock?
The dividend rating of HERMES INTERNATIONAL (RMS.PA) is 3 / 10 and the dividend payout ratio is 62.91%.