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 has a great profitability rating, there are quite some concerns on its financial health. HMSB has a decent growth rate and is not valued too expensively.
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 has a better Return On Assets (5.92%) than 84.31% of its industry peers.
The Return On Equity of HMSB (27.34%) is better than 94.12% of its industry peers.
The Return On Invested Capital of HMSB (11.79%) is better than 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 8.81%.
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
The Profit Margin of HMSB (4.27%) is better than 76.47% of its industry peers.
HMSB's Profit Margin has declined in the last couple of years.
HMSB's Operating Margin of 6.80% is amongst the best of the industry. HMSB outperforms 80.39% of its industry peers.
HMSB's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 52.61%, 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 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
HMSB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
HMSB has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HMSB has been reduced compared to 5 years ago.
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 4.62, 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.
HMSB's Debt to FCF ratio of 4.62 is fine compared to the rest of the industry. HMSB outperforms 60.78% 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.
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 78.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 4.62 | ||
| Altman-Z | N/A |
ROIC/WACC3.96
WACC2.98%
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 62.75% of the companies in the same industry.
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.
HMSB has a Quick ratio (0.46) which is in line with 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%.
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.
HMSB shows a decrease in Revenue. In the last year, the revenue decreased by -1.51%.
The Revenue has been growing slightly by 0.15% on average over the past years.
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.
The Revenue is expected to grow by 1.70% on average over the next years.
EPS Next Y7.38%
EPS Next 2Y8.98%
EPS Next 3Y8.11%
EPS Next 5Y9.23%
Revenue Next Year-2.35%
Revenue Next 2Y-0.1%
Revenue Next 3Y0.92%
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.
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
HMSB is valuated rather expensively with a Price/Earnings ratio of 20.85.
74.51% of the companies in the same industry are more expensive than HMSB, based on the Price/Earnings ratio.
HMSB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.82.
Based on the Price/Forward Earnings ratio of 14.97, the valuation of HMSB can be described as correct.
Based on the Price/Forward Earnings ratio, HMSB is valued a bit cheaper than 70.59% 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 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.85 | ||
| Fwd PE | 14.97 |
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 the industry average as 64.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.41 | ||
| EV/EBITDA | 6.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of HMSB may justify a higher PE ratio.
PEG (NY)2.82
PEG (5Y)N/A
EPS Next 2Y8.98%
EPS Next 3Y8.11%
5. Dividend
5.1 Amount
HMSB has a Yearly Dividend Yield of 5.14%, which is a nice return.
HMSB's Dividend Yield is rather good when compared to the industry average which is at 3.18. HMSB pays more dividend than 94.12% of the companies in the same industry.
HMSB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.14% |
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 2Y8.98%
EPS Next 3Y8.11%
FRA:HMSB (8/1/2025, 7:00:00 PM)
11.465
-0.37 (-3.17%)
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 Cap16.17B
Analysts52.22
Price Target12.88 (12.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.14% |
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)-1.56%
PT rev (3m)-6.29%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)-15.74%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-4.06%
Revenue NY rev (1m)-2.51%
Revenue NY rev (3m)-2.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.85 | ||
| Fwd PE | 14.97 | ||
| P/S | 0.78 | ||
| P/FCF | 11.41 | ||
| P/OCF | 6.48 | ||
| P/B | 4.96 | ||
| P/tB | 6.42 | ||
| EV/EBITDA | 6.27 |
EPS(TTM)0.55
EY4.8%
EPS(NY)0.77
Fwd EY6.68%
FCF(TTM)1
FCFY8.76%
OCF(TTM)1.77
OCFY15.42%
SpS14.77
BVpS2.31
TBVpS1.79
PEG (NY)2.82
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
WACC2.98%
ROIC/WACC3.96
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 Year-2.35%
Revenue Next 2Y-0.1%
Revenue Next 3Y0.92%
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%