HERMES INTERNATIONAL (HMI.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HMI - FR0000052292 - Common Stock
2130 EUR
+41 (+1.96%)
We assign a fundamental rating of 7 out of 10 to HMI. HMI was compared to 51 industry peers in the Textiles, Apparel & Luxury Goods industry. HMI gets an excellent profitability rating and is at the same time showing great financial health properties. HMI is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make HMI suitable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year HMI was profitable.
- In the past year HMI had a positive cash flow from operations.
- In the past 5 years HMI has always been profitable.
- Each year in the past 5 years HMI had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 20.53%, HMI belongs to the top of the industry, outperforming 92.16% of the companies in the same industry.
- With an excellent Return On Equity value of 26.99%, HMI belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
- The Return On Invested Capital of HMI (24.91%) is better than 90.20% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HMI is significantly above the industry average of 12.94%.
- The 3 year average ROIC (23.47%) for HMI 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
- Looking at the Profit Margin, with a value of 28.54%, HMI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- HMI's Profit Margin has improved in the last couple of years.
- The Operating Margin of HMI (41.21%) is better than 100.00% of its industry peers.
- HMI's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 70.31%, HMI is doing good in the industry, outperforming 72.55% of the companies in the same industry.
- In the last couple of years the Gross Margin of HMI has remained more or less at the same level.
| 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 HMI is creating value.
- HMI has more shares outstanding than it did 1 year ago.
- HMI has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, HMI has an improved debt to assets ratio.
2.2 Solvency
- HMI has an Altman-Z score of 29.19. This indicates that HMI is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 29.19, HMI belongs to the best of the industry, outperforming 98.04% of the companies in the same industry.
- The Debt to FCF ratio of HMI is 0.49, which is an excellent value as it means it would take HMI, only 0.49 years of fcf income to pay off all of its debts.
- HMI has a better Debt to FCF ratio (0.49) than 90.20% of its industry peers.
- A Debt/Equity ratio of 0.10 indicates that HMI is not too dependend on debt financing.
- With an excellent Debt to Equity ratio value of 0.10, HMI belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.49 | ||
| Altman-Z | 29.19 |
ROIC/WACC3.05
WACC8.16%
2.3 Liquidity
- A Current Ratio of 4.50 indicates that HMI has no problem at all paying its short term obligations.
- HMI's Current ratio of 4.50 is amongst the best of the industry. HMI outperforms 98.04% of its industry peers.
- A Quick Ratio of 3.65 indicates that HMI has no problem at all paying its short term obligations.
- HMI has a better Quick ratio (3.65) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.5 | ||
| Quick Ratio | 3.65 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 0.57% over the past year.
- Measured over the past years, HMI shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.70% on average per year.
- The Revenue has grown by 10.31% in the past year. This is quite good.
- Measured over the past years, HMI shows a quite strong growth in Revenue. The Revenue has been growing by 17.12% on average per year.
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
- HMI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.25% yearly.
- Based on estimates for the next years, HMI will show a quite strong growth in Revenue. The Revenue will grow by 8.94% on average per year.
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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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, HMI can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, HMI is valued a bit more expensive than 64.71% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.30. HMI is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 43.80, the valuation of HMI can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of HMI indicates a slightly more expensive valuation: HMI is more expensive than 68.63% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of HMI to the average of the S&P500 Index (24.32), we can say HMI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.91 | ||
| Fwd PE | 43.8 |
4.2 Price Multiples
- 78.43% of the companies in the same industry are cheaper than HMI, based on the Enterprise Value to EBITDA ratio.
- 72.55% of the companies in the same industry are cheaper than HMI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.99 | ||
| EV/EBITDA | 29.29 |
4.3 Compensation for Growth
- HMI 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
- HMI has a Yearly Dividend Yield of 1.16%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.98, HMI has a dividend in line with its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.82, HMI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
- The dividend of HMI is nicely growing with an annual growth rate of 40.81%!
Dividend Growth(5Y)40.81%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
- HMI pays out 62.91% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of HMI 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 / HMI.DE FAQ
What is the ChartMill fundamental rating of HERMES INTERNATIONAL (HMI.DE) stock?
ChartMill assigns a fundamental rating of 7 / 10 to HMI.DE.
What is the valuation status for HMI stock?
ChartMill assigns a valuation rating of 1 / 10 to HERMES INTERNATIONAL (HMI.DE). This can be considered as Overvalued.
What is the profitability of HMI stock?
HERMES INTERNATIONAL (HMI.DE) has a profitability rating of 9 / 10.
Can you provide the expected EPS growth for HMI stock?
The Earnings per Share (EPS) of HERMES INTERNATIONAL (HMI.DE) is expected to decline by -2.31% in the next year.
Can you provide the dividend sustainability for HMI stock?
The dividend rating of HERMES INTERNATIONAL (HMI.DE) is 3 / 10 and the dividend payout ratio is 62.91%.