HENNES & MAURITZ AB-B SHS (HMSB.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HMSB - SE0000106270 - Common Stock
16.695 EUR
+0.3 (+1.8%)
HMSB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 56 industry peers in the Specialty Retail industry. While HMSB has a great profitability rating, there are some minor 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.
- HMSB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.33%, HMSB is in the better half of the industry, outperforming 75.41% of the companies in the same industry.
- The Return On Equity of HMSB (27.78%) is better than 83.61% of its industry peers.
- With an excellent Return On Invested Capital value of 12.24%, HMSB belongs to the best of the industry, outperforming 80.33% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for HMSB is below the industry average of 10.20%.
- The 3 year average ROIC (7.98%) for HMSB is below the current ROIC(12.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.33% | ||
| ROE | 27.78% | ||
| ROIC | 12.24% |
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's Profit Margin of 4.71% is fine compared to the rest of the industry. HMSB outperforms 77.05% of its industry peers.
- HMSB's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 7.49%, HMSB is in the better half of the industry, outperforming 73.77% 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.
- HMSB's Gross Margin of 53.07% is fine compared to the rest of the industry. HMSB outperforms 78.69% of its industry peers.
- 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 | 7.49% | ||
| PM (TTM) | 4.71% | ||
| GM | 53.07% |
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.
- The number of shares outstanding for HMSB has been reduced compared to 1 year ago.
- Compared to 5 years ago, HMSB has less shares outstanding
- The debt/assets ratio for HMSB has been reduced compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of HMSB is 4.12, which is a neutral value as it means it would take HMSB, 4.12 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of HMSB (4.12) is better than 62.30% of its industry peers.
- HMSB has a Debt/Equity ratio of 1.49. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.49, HMSB is doing worse than 70.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.49 | ||
| Debt/FCF | 4.12 | ||
| Altman-Z | N/A |
ROIC/WACC3.19
WACC3.84%
2.3 Liquidity
- A Current Ratio of 1.05 indicates that HMSB should not have too much problems paying its short term obligations.
- HMSB's Current ratio of 1.05 is on the low side compared to the rest of the industry. HMSB is outperformed by 67.21% of its industry peers.
- A Quick Ratio of 0.51 indicates that HMSB may have some problems paying its short term obligations.
- With a Quick ratio value of 0.51, HMSB perfoms like the industry average, outperforming 40.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
- HMSB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.13%, which is quite good.
- The Earnings Per Share has been decreasing by -2.32% on average over the past years.
- The Revenue has decreased by -1.57% 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)8.13%
EPS 3Y2.83%
EPS 5Y-2.32%
EPS Q2Q%39.58%
Revenue 1Y (TTM)-1.57%
Revenue growth 3Y5.63%
Revenue growth 5Y0.15%
Sales Q2Q%-3.38%
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 11.01% yearly.
- The Revenue is expected to grow by 0.89% on average over the next years.
EPS Next Y0.91%
EPS Next 2Y8.01%
EPS Next 3Y8.75%
EPS Next 5Y11.01%
Revenue Next Year-3.1%
Revenue Next 2Y-0.86%
Revenue Next 3Y0.28%
Revenue Next 5Y0.89%
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
- A Price/Earnings ratio of 26.09 indicates a quite expensive valuation of HMSB.
- Based on the Price/Earnings ratio, HMSB is valued a bit cheaper than the industry average as 63.93% of the companies are valued more expensively.
- HMSB is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 20.95 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 60.66% 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 (25.98), we can say HMSB is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.09 | ||
| Fwd PE | 20.95 |
4.2 Price Multiples
- 65.57% of the companies in the same industry are more expensive than HMSB, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HMSB indicates a somewhat cheap valuation: HMSB is cheaper than 60.66% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.78 | ||
| EV/EBITDA | 7.73 |
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.
- The decent profitability rating of HMSB may justify a higher PE ratio.
PEG (NY)28.78
PEG (5Y)N/A
EPS Next 2Y8.01%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
- HMSB has a Yearly Dividend Yield of 3.85%.
- Compared to an average industry Dividend Yield of 1.47, HMSB pays a better dividend. On top of this HMSB pays more dividend than 90.16% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, HMSB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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
- 98.12% of the earnings are spent on dividend by HMSB. This is not a sustainable payout ratio.
DP98.12%
EPS Next 2Y8.01%
EPS Next 3Y8.75%
HENNES & MAURITZ AB-B SHS / HMSB.DE FAQ
What is the ChartMill fundamental rating of HENNES & MAURITZ AB-B SHS (HMSB.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to HMSB.DE.
What is the valuation status of HENNES & MAURITZ AB-B SHS (HMSB.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to HENNES & MAURITZ AB-B SHS (HMSB.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for HENNES & MAURITZ AB-B SHS?
HENNES & MAURITZ AB-B SHS (HMSB.DE) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for HMSB stock?
The Price/Earnings (PE) ratio for HENNES & MAURITZ AB-B SHS (HMSB.DE) is 26.09 and the Price/Book (PB) ratio is 6.35.
Can you provide the expected EPS growth for HMSB stock?
The Earnings per Share (EPS) of HENNES & MAURITZ AB-B SHS (HMSB.DE) is expected to grow by 0.91% in the next year.