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 50 industry peers in the Specialty Retail industry. HMSB has an excellent profitability rating, but there are some minor 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.
In the past 5 years HMSB always reported a positive cash flow from operatings.
1.2 Ratios
HMSB's Return On Assets of 6.18% is amongst the best of the industry. HMSB outperforms 82.00% of its industry peers.
HMSB has a Return On Equity of 23.89%. This is amongst the best in the industry. HMSB outperforms 88.00% of its industry peers.
HMSB has a better Return On Invested Capital (10.59%) than 82.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HMSB is below the industry average of 10.42%.
The last Return On Invested Capital (10.59%) for HMSB is above the 3 year average (7.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.18% | ||
| ROE | 23.89% | ||
| ROIC | 10.59% |
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
HMSB has a better Profit Margin (4.66%) than 80.00% of its industry peers.
HMSB's Profit Margin has declined in the last couple of years.
HMSB's Operating Margin of 7.17% is fine compared to the rest of the industry. HMSB outperforms 78.00% of its industry peers.
In the last couple of years the Operating Margin of HMSB has remained more or less at the same level.
Looking at the Gross Margin, with a value of 52.87%, HMSB belongs to the top of the industry, outperforming 84.00% 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 | 7.17% | ||
| PM (TTM) | 4.66% | ||
| GM | 52.87% |
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
The number of shares outstanding for HMSB has been reduced compared to 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 3.87. This is a good value and a sign of high solvency as HMSB would need 3.87 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.87, HMSB is doing good in the industry, outperforming 70.00% of the companies in the same industry.
HMSB has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
HMSB has a worse Debt to Equity ratio (1.40) than 78.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | N/A |
ROIC/WACC1.94
WACC5.45%
2.3 Liquidity
HMSB has a Current Ratio of 1.15. This is a normal value and indicates that HMSB is financially healthy and should not expect problems in meeting its short term obligations.
HMSB's Current ratio of 1.15 is in line compared to the rest of the industry. HMSB outperforms 44.00% of its industry peers.
HMSB has a Quick Ratio of 1.15. This is a bad value and indicates that HMSB is not financially healthy enough and could expect problems in meeting its short term obligations.
HMSB has a Quick ratio of 0.51. This is comparable to the rest of the industry: HMSB outperforms 42.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.34% over the past year.
HMSB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.32% yearly.
HMSB shows a small growth in Revenue. In the last year, the Revenue has grown by 0.56%.
The Revenue has been growing slightly by 0.15% on average over the past years.
EPS 1Y (TTM)18.34%
EPS 3Y2.83%
EPS 5Y-2.32%
EPS Q2Q%-50.67%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y5.63%
Revenue growth 5Y0.15%
Sales Q2Q%3.1%
3.2 Future
Based on estimates for the next years, HMSB will show a small growth in Earnings Per Share. The EPS will grow by 6.69% on average per year.
HMSB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.02% yearly.
EPS Next Y7.38%
EPS Next 2Y8.98%
EPS Next 3Y8.11%
EPS Next 5Y6.69%
Revenue Next Year0.21%
Revenue Next 2Y1.33%
Revenue Next 3Y1.82%
Revenue Next 5Y1.02%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.36, the valuation of HMSB can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of HMSB indicates a somewhat cheap valuation: HMSB is cheaper than 76.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.22, HMSB is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.95, the valuation of HMSB can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HMSB indicates a somewhat cheap valuation: HMSB is cheaper than 68.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.86. HMSB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 16.95 |
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 64.00% of the companies listed 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 64.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.27 | ||
| EV/EBITDA | 6.54 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.89
PEG (5Y)N/A
EPS Next 2Y8.98%
EPS Next 3Y8.11%
5. Dividend
5.1 Amount
HMSB has a Yearly Dividend Yield of 4.86%, which is a nice return.
Compared to an average industry Dividend Yield of 5.01, HMSB pays a better dividend. On top of this HMSB pays more dividend than 88.00% 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
5.2 History
The dividend of HMSB decreases each year by -7.85%.
Dividend Growth(5Y)-7.85%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
HMSB pays out 95.04% of its income as dividend. This is not a sustainable payout ratio.
DP95.04%
EPS Next 2Y8.98%
EPS Next 3Y8.11%
FRA:HMSB (5/2/2025, 7:00:00 PM)
13.245
+0.63 (+4.95%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners22.84%
Inst Owner ChangeN/A
Ins Owners0.87%
Ins Owner ChangeN/A
Market Cap18.76B
Analysts51.67
Price Target13.75 (3.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
Yearly Dividend0.59
Dividend Growth(5Y)-7.85%
DP95.04%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-20.38%
Min EPS beat(2)-46.79%
Max EPS beat(2)6.03%
EPS beat(4)1
Avg EPS beat(4)-18.19%
Min EPS beat(4)-46.79%
Max EPS beat(4)6.03%
EPS beat(8)4
Avg EPS beat(8)-8.17%
EPS beat(12)6
Avg EPS beat(12)-8.44%
EPS beat(16)9
Avg EPS beat(16)-9.37%
Revenue beat(2)0
Avg Revenue beat(2)-3.42%
Min Revenue beat(2)-3.95%
Max Revenue beat(2)-2.88%
Revenue beat(4)0
Avg Revenue beat(4)-3.2%
Min Revenue beat(4)-3.95%
Max Revenue beat(4)-2.01%
Revenue beat(8)0
Avg Revenue beat(8)-2.47%
Revenue beat(12)0
Avg Revenue beat(12)-2.31%
Revenue beat(16)0
Avg Revenue beat(16)-2.24%
PT rev (1m)-6.94%
PT rev (3m)-6.85%
EPS NQ rev (1m)-10.57%
EPS NQ rev (3m)-17.47%
EPS NY rev (1m)-5.2%
EPS NY rev (3m)-16.32%
Revenue NQ rev (1m)-3.77%
Revenue NQ rev (3m)-2.94%
Revenue NY rev (1m)-3.02%
Revenue NY rev (3m)-3.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 16.95 | ||
| P/S | 0.87 | ||
| P/FCF | 10.27 | ||
| P/OCF | 6.43 | ||
| P/B | 4.47 | ||
| P/tB | 5.48 | ||
| EV/EBITDA | 6.54 |
EPS(TTM)0.62
EY4.68%
EPS(NY)0.78
Fwd EY5.9%
FCF(TTM)1.29
FCFY9.74%
OCF(TTM)2.06
OCFY15.54%
SpS15.2
BVpS2.96
TBVpS2.42
PEG (NY)2.89
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.18% | ||
| ROE | 23.89% | ||
| ROCE | 14.92% | ||
| ROIC | 10.59% | ||
| ROICexc | 12.41% | ||
| ROICexgc | 13.6% | ||
| OM | 7.17% | ||
| PM (TTM) | 4.66% | ||
| GM | 52.87% | ||
| FCFM | 8.49% |
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 Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 3.87 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 53.43% | ||
| Cap/Sales | 5.06% | ||
| Interest Coverage | 25.29 | ||
| Cash Conversion | 81.44% | ||
| Profit Quality | 182.17% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | N/A |
F-Score6
WACC5.45%
ROIC/WACC1.94
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)18.34%
EPS 3Y2.83%
EPS 5Y-2.32%
EPS Q2Q%-50.67%
EPS Next Y7.38%
EPS Next 2Y8.98%
EPS Next 3Y8.11%
EPS Next 5Y6.69%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y5.63%
Revenue growth 5Y0.15%
Sales Q2Q%3.1%
Revenue Next Year0.21%
Revenue Next 2Y1.33%
Revenue Next 3Y1.82%
Revenue Next 5Y1.02%
EBIT growth 1Y6.19%
EBIT growth 3Y5.03%
EBIT growth 5Y0.38%
EBIT Next Year136.16%
EBIT Next 3Y36.99%
EBIT Next 5Y21.37%
FCF growth 1Y3.37%
FCF growth 3Y-20.98%
FCF growth 5Y1.72%
OCF growth 1Y22.53%
OCF growth 3Y-10.72%
OCF growth 5Y1.84%