HENNES & MAURITZ AB-B SHS (HMSB.DE) Stock Fundamental Analysis
FRA:HMSB - Deutsche Boerse Ag - SE0000106270 - Common Stock - Currency: EUR
HMSB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 51 industry peers in the Specialty Retail industry. While HMSB has a great profitability rating, there are quite some concerns on its financial health. HMSB has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year HMSB was profitable.
In the past year HMSB had a positive cash flow from operations.
In the past 5 years HMSB has always been profitable.
HMSB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HMSB's Return On Assets of 5.92% is amongst the best of the industry. HMSB outperforms 82.35% of its industry peers.
HMSB has a Return On Equity of 27.34%. This is amongst the best in the industry. HMSB outperforms 92.16% of its industry peers.
With an excellent Return On Invested Capital value of 11.79%, HMSB belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
HMSB had an Average Return On Invested Capital over the past 3 years of 7.98%. This is in line with the industry average of 8.83%.
The 3 year average ROIC (7.98%) for HMSB is below the current ROIC(11.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.92% | ||
| ROE | 27.34% | ||
| ROIC | 11.79% |
ROA(3y)4.41%
ROA(5y)4.01%
ROE(3y)16.88%
ROE(5y)14.25%
ROIC(3y)7.98%
ROIC(5y)6.98%
1.3 Margins
Looking at the Profit Margin, with a value of 4.27%, HMSB is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
In the last couple of years the Profit Margin of HMSB has declined.
HMSB has a better Operating Margin (6.80%) than 78.43% of its industry peers.
HMSB's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 52.61%, HMSB belongs to the best of the industry, outperforming 80.39% of the companies in the same industry.
In the last couple of years the Gross Margin of HMSB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.8% | ||
| PM (TTM) | 4.27% | ||
| GM | 52.61% |
OM growth 3Y-0.56%
OM growth 5Y0.23%
PM growth 3Y-3.61%
PM growth 5Y-3.01%
GM growth 3Y0.42%
GM growth 5Y0.31%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HMSB is creating value.
HMSB has less shares outstanding than it did 1 year ago.
HMSB has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HMSB has an improved debt to assets ratio.
2.2 Solvency
HMSB has a debt to FCF ratio of 4.62. This is a neutral value as HMSB would need 4.62 years to pay back of all of its debts.
HMSB has a Debt to FCF ratio (4.62) which is comparable to the rest of the industry.
HMSB has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.54, HMSB is doing worse than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 4.62 | ||
| Altman-Z | N/A |
ROIC/WACC3.87
WACC3.05%
2.3 Liquidity
A Current Ratio of 1.00 indicates that HMSB may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.00, HMSB is doing worse than 64.71% of the companies in the same industry.
A Quick Ratio of 0.46 indicates that HMSB may have some problems paying its short term obligations.
The Quick ratio of HMSB (0.46) is worse than 60.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
HMSB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.61%.
HMSB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.32% yearly.
The Revenue has decreased by -1.51% in the past year.
Measured over the past years, HMSB shows a small growth in Revenue. The Revenue has been growing by 0.15% on average per year.
EPS 1Y (TTM)-9.61%
EPS 3Y2.83%
EPS 5Y-2.32%
EPS Q2Q%-20.26%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y5.63%
Revenue growth 5Y0.15%
Sales Q2Q%-4.85%
3.2 Future
HMSB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.23% yearly.
HMSB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.70% yearly.
EPS Next Y7.38%
EPS Next 2Y8.98%
EPS Next 3Y8.11%
EPS Next 5Y9.23%
Revenue Next Year0.16%
Revenue Next 2Y1.28%
Revenue Next 3Y1.81%
Revenue Next 5Y1.7%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.15, HMSB is valued on the expensive side.
HMSB's Price/Earnings ratio is a bit cheaper when compared to the industry. HMSB is cheaper than 68.63% of the companies in the same industry.
HMSB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.69.
With a Price/Forward Earnings ratio of 16.88, HMSB is valued correctly.
66.67% of the companies in the same industry are more expensive than HMSB, based on the Price/Forward Earnings ratio.
HMSB is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.15 | ||
| Fwd PE | 16.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HMSB is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HMSB is valued a bit cheaper than 62.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.86 | ||
| EV/EBITDA | 6.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HMSB does not grow enough to justify the current Price/Earnings ratio.
HMSB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.14
PEG (5Y)N/A
EPS Next 2Y8.98%
EPS Next 3Y8.11%
5. Dividend
5.1 Amount
HMSB has a Yearly Dividend Yield of 4.99%, which is a nice return.
Compared to an average industry Dividend Yield of 3.00, HMSB pays a better dividend. On top of this HMSB pays more dividend than 94.12% of the companies listed in the same industry.
HMSB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.99% |
5.2 History
The dividend of HMSB decreases each year by -7.85%.
Dividend Growth(5Y)-7.85%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
HMSB pays out 107.07% of its income as dividend. This is not a sustainable payout ratio.
DP107.07%
EPS Next 2Y8.98%
EPS Next 3Y8.11%
FRA:HMSB (7/23/2025, 7:00:00 PM)
12.965
+0.37 (+2.9%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners22.46%
Inst Owner ChangeN/A
Ins Owners0.88%
Ins Owner ChangeN/A
Market Cap18.28B
Analysts52.22
Price Target12.88 (-0.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.99% |
Yearly Dividend0.58
Dividend Growth(5Y)-7.85%
DP107.07%
Div Incr Years1
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-25.22%
Min EPS beat(2)-46.79%
Max EPS beat(2)-3.66%
EPS beat(4)1
Avg EPS beat(4)-17.6%
Min EPS beat(4)-46.79%
Max EPS beat(4)6.03%
EPS beat(8)3
Avg EPS beat(8)-10.15%
EPS beat(12)5
Avg EPS beat(12)-10.49%
EPS beat(16)8
Avg EPS beat(16)-9.65%
Revenue beat(2)0
Avg Revenue beat(2)-2.68%
Min Revenue beat(2)-2.88%
Max Revenue beat(2)-2.48%
Revenue beat(4)0
Avg Revenue beat(4)-3.31%
Min Revenue beat(4)-3.95%
Max Revenue beat(4)-2.48%
Revenue beat(8)0
Avg Revenue beat(8)-2.54%
Revenue beat(12)0
Avg Revenue beat(12)-2.35%
Revenue beat(16)0
Avg Revenue beat(16)-2.25%
PT rev (1m)-5.42%
PT rev (3m)-7.82%
EPS NQ rev (1m)-15.37%
EPS NQ rev (3m)-15.37%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-3.62%
Revenue NQ rev (3m)-3.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.15 | ||
| Fwd PE | 16.88 | ||
| P/S | 0.88 | ||
| P/FCF | 12.86 | ||
| P/OCF | 7.31 | ||
| P/B | 5.6 | ||
| P/tB | 7.24 | ||
| EV/EBITDA | 6.88 |
EPS(TTM)0.56
EY4.32%
EPS(NY)0.77
Fwd EY5.92%
FCF(TTM)1.01
FCFY7.77%
OCF(TTM)1.77
OCFY13.68%
SpS14.82
BVpS2.32
TBVpS1.79
PEG (NY)3.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.92% | ||
| ROE | 27.34% | ||
| ROCE | 16.6% | ||
| ROIC | 11.79% | ||
| ROICexc | 14.21% | ||
| ROICexgc | 15.87% | ||
| OM | 6.8% | ||
| PM (TTM) | 4.27% | ||
| GM | 52.61% | ||
| FCFM | 6.8% |
ROA(3y)4.41%
ROA(5y)4.01%
ROE(3y)16.88%
ROE(5y)14.25%
ROIC(3y)7.98%
ROIC(5y)6.98%
ROICexc(3y)9.84%
ROICexc(5y)8.7%
ROICexgc(3y)10.94%
ROICexgc(5y)9.68%
ROCE(3y)11.28%
ROCE(5y)9.86%
ROICexcg growth 3Y2.73%
ROICexcg growth 5Y-9.12%
ROICexc growth 3Y3.25%
ROICexc growth 5Y-7.29%
OM growth 3Y-0.56%
OM growth 5Y0.23%
PM growth 3Y-3.61%
PM growth 5Y-3.01%
GM growth 3Y0.42%
GM growth 5Y0.31%
F-Score6
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 4.62 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 54.51% | ||
| Cap/Sales | 5.17% | ||
| Interest Coverage | 23.5 | ||
| Cash Conversion | 73.53% | ||
| Profit Quality | 159.11% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | N/A |
F-Score6
WACC3.05%
ROIC/WACC3.87
Cap/Depr(3y)39.04%
Cap/Depr(5y)30.46%
Cap/Sales(3y)3.79%
Cap/Sales(5y)3.17%
Profit Quality(3y)328.53%
Profit Quality(5y)606.52%
High Growth Momentum
Growth
EPS 1Y (TTM)-9.61%
EPS 3Y2.83%
EPS 5Y-2.32%
EPS Q2Q%-20.26%
EPS Next Y7.38%
EPS Next 2Y8.98%
EPS Next 3Y8.11%
EPS Next 5Y9.23%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y5.63%
Revenue growth 5Y0.15%
Sales Q2Q%-4.85%
Revenue Next Year0.16%
Revenue Next 2Y1.28%
Revenue Next 3Y1.81%
Revenue Next 5Y1.7%
EBIT growth 1Y-13.34%
EBIT growth 3Y5.03%
EBIT growth 5Y0.38%
EBIT Next Year125.36%
EBIT Next 3Y35.98%
EBIT Next 5Y19.65%
FCF growth 1Y-8.57%
FCF growth 3Y-20.98%
FCF growth 5Y1.72%
OCF growth 1Y13.31%
OCF growth 3Y-10.72%
OCF growth 5Y1.84%