HENNES & MAURITZ AB-B SHS (HMSB.DE) Stock Fundamental Analysis
FRA:HMSB - Deutsche Boerse Ag - SE0000106270 - Common Stock - Currency: EUR
Taking everything into account, HMSB scores 5 out of 10 in our fundamental rating. HMSB was compared to 51 industry peers in the Specialty Retail industry. While HMSB belongs to the best of the industry regarding profitability, there are concerns on its financial health. HMSB has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
HMSB had positive earnings in the past year.
In the past year HMSB had a positive cash flow from operations.
HMSB had positive earnings in each of the past 5 years.
Each year in the past 5 years HMSB had a positive operating cash flow.
1.2 Ratios
HMSB has a Return On Assets of 5.92%. This is amongst the best in the industry. HMSB outperforms 82.35% of its industry peers.
The Return On Equity of HMSB (27.34%) is better than 92.16% of its industry peers.
HMSB's Return On Invested Capital of 11.79% is amongst the best of the industry. HMSB outperforms 84.31% 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 8.83%.
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
With a decent Profit Margin value of 4.27%, HMSB is doing good in 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.
With a decent Operating Margin value of 6.80%, HMSB is doing good in the industry, outperforming 78.43% of the companies in the same industry.
In the last couple of years the Operating Margin of HMSB has remained more or less at the same level.
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.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HMSB is creating value.
Compared to 1 year ago, HMSB has less shares outstanding
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
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.
Looking at the Debt to FCF ratio, with a value of 4.62, HMSB is in line with its industry, outperforming 58.82% of the companies in the same industry.
A Debt/Equity ratio of 1.54 is on the high side and indicates that HMSB has dependencies on debt financing.
HMSB's Debt to Equity ratio of 1.54 is on the low side compared to the rest of the industry. HMSB is outperformed by 82.35% of its industry peers.
| 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.
With a Current ratio value of 1.00, HMSB is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
HMSB has a Quick 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.
Looking at the Quick ratio, with a value of 0.46, HMSB is doing worse than 60.78% 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%.
Measured over the past years, HMSB shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.32% on average per year.
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
The Earnings Per Share is expected to grow by 9.23% 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 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
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.89, HMSB is valued on the expensive side.
Based on the Price/Earnings ratio, HMSB is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
HMSB's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.35.
Based on the Price/Forward Earnings ratio of 16.72, the valuation of HMSB can be described as correct.
Based on the Price/Forward Earnings ratio, HMSB is valued a bit cheaper than 68.63% of the companies in the same industry.
HMSB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.54.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.89 | ||
| Fwd PE | 16.72 |
4.2 Price Multiples
HMSB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HMSB is cheaper than 70.59% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HMSB indicates a somewhat cheap valuation: HMSB is cheaper than 62.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.74 | ||
| EV/EBITDA | 6.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HMSB has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.1
PEG (5Y)N/A
EPS Next 2Y8.98%
EPS Next 3Y8.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.99%, HMSB is a good candidate for dividend investing.
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 2.36.
| 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 (7/24/2025, 7:00:00 PM)
12.82
-0.14 (-1.12%)
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 Cap18.08B
Analysts52.22
Price Target12.88 (0.47%)
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 | 22.89 | ||
| Fwd PE | 16.72 | ||
| P/S | 0.87 | ||
| P/FCF | 12.74 | ||
| P/OCF | 7.24 | ||
| P/B | 5.54 | ||
| P/tB | 7.17 | ||
| EV/EBITDA | 6.83 |
EPS(TTM)0.56
EY4.37%
EPS(NY)0.77
Fwd EY5.98%
FCF(TTM)1.01
FCFY7.85%
OCF(TTM)1.77
OCFY13.81%
SpS14.79
BVpS2.31
TBVpS1.79
PEG (NY)3.1
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%