HENNES & MAURITZ AB-B SHS (HMSB.DE) Stock Fundamental Analysis
FRA:HMSB - SE0000106270 - Common Stock
12.74 EUR
+0.18 (+1.43%)
We assign a fundamental rating of 5 out of 10 to HMSB. HMSB was compared to 51 industry peers in the Specialty Retail industry. HMSB has an excellent profitability rating, but there are concerns on its financial health. HMSB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HMSB was profitable.
HMSB had a positive operating cash flow in the past year.
Each year in the past 5 years HMSB has been profitable.
In the past 5 years HMSB always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.92%, HMSB belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
With an excellent Return On Equity value of 27.34%, HMSB belongs to the best of the industry, outperforming 92.16% of the companies in the same industry.
HMSB's Return On Invested Capital of 11.79% is amongst the best of the industry. HMSB outperforms 86.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HMSB is in line with the industry average of 8.49%.
The last Return On Invested Capital (11.79%) for HMSB is above the 3 year average (7.98%), which is a sign of increasing profitability.
| 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 belongs to the top of the industry, outperforming 80.39% of the companies in the same industry.
In the last couple of years the Profit Margin of HMSB has declined.
HMSB has a Operating Margin of 6.80%. This is amongst the best in the industry. HMSB outperforms 80.39% of its industry peers.
In the last couple of years the Operating Margin of HMSB has remained more or less at the same level.
HMSB has a Gross Margin of 52.61%. This is amongst the best in the industry. HMSB outperforms 82.35% of its industry peers.
HMSB's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 5 years ago, HMSB has less shares outstanding
Compared to 1 year ago, HMSB has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of HMSB is 4.62, which is a neutral value as it means it would take HMSB, 4.62 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HMSB (4.62) is better than 66.67% of its industry peers.
A Debt/Equity ratio of 1.54 is on the high side and indicates that HMSB has dependencies on debt financing.
The Debt to Equity ratio of HMSB (1.54) is worse than 80.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 4.62 | ||
| Altman-Z | N/A |
ROIC/WACC3.82
WACC3.09%
2.3 Liquidity
HMSB has a Current Ratio of 1.00. This is a bad value and indicates that HMSB is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 1.00, HMSB is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
A Quick Ratio of 0.46 indicates that HMSB may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.46, HMSB is in line with its industry, outperforming 41.18% of the companies in the same industry.
| 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.
Looking at the last year, HMSB shows a decrease in Revenue. The Revenue has decreased by -1.51% in the last 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
The Earnings Per Share is expected to grow by 9.36% on average over the next years. This is quite good.
HMSB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.94% yearly.
EPS Next Y-3.27%
EPS Next 2Y5.49%
EPS Next 3Y6.43%
EPS Next 5Y9.36%
Revenue Next Year-2.58%
Revenue Next 2Y-0.35%
Revenue Next 3Y0.67%
Revenue Next 5Y0.94%
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 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
A Price/Earnings ratio of 22.75 indicates a rather expensive valuation of HMSB.
Based on the Price/Earnings ratio, HMSB is valued a bit cheaper than the industry average as 68.63% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.13. HMSB is around the same levels.
A Price/Forward Earnings ratio of 17.46 indicates a rather expensive valuation of HMSB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HMSB indicates a somewhat cheap valuation: HMSB is cheaper than 60.78% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HMSB to the average of the S&P500 Index (22.76), we can say HMSB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.75 | ||
| Fwd PE | 17.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HMSB indicates a somewhat cheap valuation: HMSB is cheaper than 66.67% of the companies listed in the same industry.
HMSB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HMSB is cheaper than 68.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.47 | ||
| EV/EBITDA | 6.71 |
4.3 Compensation for Growth
The excellent profitability rating of HMSB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.49%
EPS Next 3Y6.43%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.81%, HMSB is a good candidate for dividend investing.
HMSB's Dividend Yield is rather good when compared to the industry average which is at 3.32. HMSB pays more dividend than 92.16% of the companies in the same industry.
HMSB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.81% |
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
107.07% of the earnings are spent on dividend by HMSB. This is not a sustainable payout ratio.
DP107.07%
EPS Next 2Y5.49%
EPS Next 3Y6.43%
FRA:HMSB (9/1/2025, 7:00:00 PM)
12.74
+0.18 (+1.43%)
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 Cap17.96B
Analysts51.67
Price Target12.75 (0.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.81% |
Yearly Dividend0.59
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)-1.04%
PT rev (3m)-9.44%
EPS NQ rev (1m)-1.39%
EPS NQ rev (3m)-16.91%
EPS NY rev (1m)-9.92%
EPS NY rev (3m)-9.92%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-4.08%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-2.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.75 | ||
| Fwd PE | 17.46 | ||
| P/S | 0.85 | ||
| P/FCF | 12.47 | ||
| P/OCF | 7.09 | ||
| P/B | 5.42 | ||
| P/tB | 7.02 | ||
| EV/EBITDA | 6.71 |
EPS(TTM)0.56
EY4.4%
EPS(NY)0.73
Fwd EY5.73%
FCF(TTM)1.02
FCFY8.02%
OCF(TTM)1.8
OCFY14.11%
SpS15.02
BVpS2.35
TBVpS1.82
PEG (NY)N/A
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
WACC3.09%
ROIC/WACC3.82
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 Y-3.27%
EPS Next 2Y5.49%
EPS Next 3Y6.43%
EPS Next 5Y9.36%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y5.63%
Revenue growth 5Y0.15%
Sales Q2Q%-4.85%
Revenue Next Year-2.58%
Revenue Next 2Y-0.35%
Revenue Next 3Y0.67%
Revenue Next 5Y0.94%
EBIT growth 1Y-13.34%
EBIT growth 3Y5.03%
EBIT growth 5Y0.38%
EBIT Next Year125.36%
EBIT Next 3Y35.98%
EBIT Next 5Y19.63%
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%