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 quite expensive at the moment. It does show a decent growth rate. With these ratings, RMS could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
RMS had positive earnings in the past year.
RMS had a positive operating cash flow in the past year.
Each year in the past 5 years RMS has been profitable.
Each year in the past 5 years RMS had a positive operating cash flow.
1.2 Ratios
RMS has a Return On Assets of 21.71%. This is amongst the best in the industry. RMS outperforms 97.50% of its industry peers.
RMS has a Return On Equity of 29.58%. This is amongst the best in the industry. RMS outperforms 92.50% of its industry peers.
The Return On Invested Capital of RMS (24.51%) is better than 97.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RMS is significantly above the industry average of 11.32%.
The last Return On Invested Capital (24.51%) for RMS is above the 3 year average (23.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.71% | ||
| ROE | 29.58% | ||
| ROIC | 24.51% |
ROA(3y)19.34%
ROA(5y)17.21%
ROE(3y)27.14%
ROE(5y)24.69%
ROIC(3y)23.52%
ROIC(5y)21.62%
1.3 Margins
The Profit Margin of RMS (31.29%) is better than 100.00% of its industry peers.
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.
RMS's Operating Margin has improved in the last couple of years.
The Gross Margin of RMS (71.45%) is better than 72.50% 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 3Y9.72%
OM growth 5Y3.19%
PM growth 3Y13.98%
PM growth 5Y6.39%
GM growth 3Y1.82%
GM growth 5Y0.66%
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 reduced compared to 1 year ago.
Compared to 5 years ago, RMS has more shares outstanding
RMS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 34.80 indicates that RMS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 34.80, RMS belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
RMS has a debt to FCF ratio of 0.63. This is a very positive value and a sign of high solvency as it would only need 0.63 years to pay back of all of its debts.
RMS's Debt to FCF ratio of 0.63 is amongst the best of the industry. RMS outperforms 92.50% 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 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 34.8 |
ROIC/WACC3.22
WACC7.62%
2.3 Liquidity
A Current Ratio of 4.11 indicates that RMS has no problem at all paying its short term obligations.
RMS has a Current ratio of 4.11. This is amongst the best in the industry. RMS outperforms 95.00% of its industry peers.
A Quick Ratio of 3.26 indicates that RMS has no problem at all paying its short term obligations.
The Quick ratio of RMS (3.26) is better than 95.00% of its industry peers.
| 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 nice 12.10% over the past year.
RMS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.16% yearly.
The Revenue has grown by 10.98% in the past year. This is quite good.
The Revenue has been growing by 17.61% on average over the past years. This is quite good.
EPS 1Y (TTM)12.1%
EPS 3Y46.01%
EPS 5Y25.16%
EPS Q2Q%6.21%
Revenue 1Y (TTM)10.98%
Revenue growth 3Y28.09%
Revenue growth 5Y17.61%
Sales Q2Q%12.03%
3.2 Future
RMS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.85% yearly.
Based on estimates for the next years, RMS will show a quite strong growth in Revenue. The Revenue will grow by 11.05% on average per year.
EPS Next Y5.52%
EPS Next 2Y8.41%
EPS Next 3Y9.96%
EPS Next 5Y9.85%
Revenue Next Year11.54%
Revenue Next 2Y11.56%
Revenue Next 3Y11.35%
Revenue Next 5Y11.05%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 64.16, which means the current valuation is very expensive for RMS.
The rest of the industry has a similar Price/Earnings ratio as RMS.
RMS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.47.
Based on the Price/Forward Earnings ratio of 56.34, the valuation of RMS can be described as expensive.
Based on the Price/Forward Earnings ratio, RMS is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
RMS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.16 | ||
| Fwd PE | 56.34 |
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 85.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RMS is valued expensively inside the industry as 87.50% of the companies are valued cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 82.82 | ||
| EV/EBITDA | 39.44 |
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.
RMS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)11.63
PEG (5Y)2.55
EPS Next 2Y8.41%
EPS Next 3Y9.96%
5. Dividend
5.1 Amount
RMS has a yearly dividend return of 0.56%, which is pretty low.
Compared to an average industry Dividend Yield of 2.87, RMS is paying slightly less dividend.
With a Dividend Yield of 0.56, RMS pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
5.2 History
On average, the dividend of RMS grows each year by 7.50%, which is quite nice.
Dividend Growth(5Y)7.5%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
RMS pays out 59.56% of its income as dividend. 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 2Y8.41%
EPS Next 3Y9.96%
HERMES INTERNATIONAL
EPA:RMS (2/5/2025, 5:35:30 PM)
2723
+6 (+0.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners10.87%
Inst Owner ChangeN/A
Ins Owners0.34%
Ins Owner ChangeN/A
Market Cap287.47B
Analysts74.67
Price Target2493.35 (-8.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
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)5.67%
PT rev (3m)7.97%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.08%
EPS NY rev (3m)1.08%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.16 | ||
| Fwd PE | 56.34 | ||
| P/S | 20.2 | ||
| P/FCF | 82.82 | ||
| P/OCF | 64.34 | ||
| P/B | 19.1 | ||
| P/tB | 19.71 | ||
| EV/EBITDA | 39.44 |
EPS(TTM)42.44
EY1.56%
EPS(NY)48.33
Fwd EY1.77%
FCF(TTM)32.88
FCFY1.21%
OCF(TTM)42.32
OCFY1.55%
SpS134.82
BVpS142.58
TBVpS138.14
PEG (NY)11.63
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.71% | ||
| ROE | 29.58% | ||
| ROCE | 34.03% | ||
| ROIC | 24.51% | ||
| ROICexc | 16242% | ||
| ROICexgc | N/A | ||
| OM | 41.19% | ||
| PM (TTM) | 31.29% | ||
| GM | 71.45% | ||
| FCFM | 24.39% |
ROA(3y)19.34%
ROA(5y)17.21%
ROE(3y)27.14%
ROE(5y)24.69%
ROIC(3y)23.52%
ROIC(5y)21.62%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)32.66%
ROCE(5y)30.04%
ROICexcg growth 3Y22.8%
ROICexcg growth 5YN/A
ROICexc growth 3Y23.41%
ROICexc growth 5YN/A
OM growth 3Y9.72%
OM growth 5Y3.19%
PM growth 3Y13.98%
PM growth 5Y6.39%
GM growth 3Y1.82%
GM growth 5Y0.66%
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 | 34.8 |
F-Score7
WACC7.62%
ROIC/WACC3.22
Cap/Depr(3y)97.03%
Cap/Depr(5y)97.01%
Cap/Sales(3y)5.6%
Cap/Sales(5y)6.15%
Profit Quality(3y)102.32%
Profit Quality(5y)99.69%
High Growth Momentum
Growth
EPS 1Y (TTM)12.1%
EPS 3Y46.01%
EPS 5Y25.16%
EPS Q2Q%6.21%
EPS Next Y5.52%
EPS Next 2Y8.41%
EPS Next 3Y9.96%
EPS Next 5Y9.85%
Revenue 1Y (TTM)10.98%
Revenue growth 3Y28.09%
Revenue growth 5Y17.61%
Sales Q2Q%12.03%
Revenue Next Year11.54%
Revenue Next 2Y11.56%
Revenue Next 3Y11.35%
Revenue Next 5Y11.05%
EBIT growth 1Y8.29%
EBIT growth 3Y40.53%
EBIT growth 5Y21.37%
EBIT Next Year21.44%
EBIT Next 3Y14.83%
EBIT Next 5Y13.3%
FCF growth 1Y12.01%
FCF growth 3Y42.71%
FCF growth 5Y16.4%
OCF growth 1Y24.31%
OCF growth 3Y38.14%
OCF growth 5Y17.41%