HENNES & MAURITZ AB-B SHS (HMSB.DE) Stock Fundamental Analysis
FRA:HMSB - Deutsche Boerse Ag - SE0000106270 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to HMSB. HMSB was compared to 56 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 correct valuation and a medium 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.
Each year in the past 5 years HMSB had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.18%, HMSB belongs to the top of the industry, outperforming 83.93% of the companies in the same industry.
The Return On Equity of HMSB (23.89%) is better than 92.86% of its industry peers.
HMSB has a better Return On Invested Capital (10.59%) than 83.93% 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 8.99%.
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
With an excellent Profit Margin value of 4.66%, HMSB belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
In the last couple of years the Profit Margin of HMSB has declined.
HMSB has a better Operating Margin (7.17%) than 80.36% of its industry peers.
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 52.87%, HMSB belongs to the best of the industry, outperforming 82.14% 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
HMSB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for HMSB has been reduced compared to 1 year ago.
HMSB has less shares outstanding than it did 5 years ago.
HMSB has a better debt/assets ratio than last year.
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.
The Debt to FCF ratio of HMSB (3.87) is better than 69.64% of its industry peers.
A Debt/Equity ratio of 1.40 is on the high side and indicates that HMSB has dependencies on debt financing.
HMSB has a Debt to Equity ratio of 1.40. This is in the lower half of the industry: HMSB underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | N/A |
ROIC/WACC3.43
WACC3.09%
2.3 Liquidity
A Current Ratio of 1.15 indicates that HMSB should not have too much problems paying its short term obligations.
With a Current ratio value of 1.15, HMSB perfoms like the industry average, outperforming 48.21% of the companies in the same industry.
A Quick Ratio of 0.51 indicates that HMSB may have some problems paying its short term obligations.
HMSB has a Quick ratio (0.51) which is in line with 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.
The Earnings Per Share has been decreasing by -2.32% on average over the past years.
Looking at the last year, HMSB shows a small growth in Revenue. The Revenue has grown by 0.56% 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)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
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 1.82% yearly.
EPS Next Y7.38%
EPS Next 2Y8.98%
EPS Next 3Y8.11%
EPS Next 5Y9.36%
Revenue Next Year0.16%
Revenue Next 2Y1.28%
Revenue Next 3Y1.81%
Revenue Next 5Y1.82%
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 19.36.
78.57% of the companies in the same industry are more expensive than HMSB, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HMSB to the average of the S&P500 Index (26.57), we can say HMSB is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.35, 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 71.43% 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 (22.41), we can say HMSB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.36 | ||
| Fwd PE | 15.35 |
4.2 Price Multiples
69.64% 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 73.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.3 | ||
| EV/EBITDA | 6.3 |
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)2.62
PEG (5Y)N/A
EPS Next 2Y8.98%
EPS Next 3Y8.11%
5. Dividend
5.1 Amount
HMSB has a Yearly Dividend Yield of 5.12%, which is a nice return.
Compared to an average industry Dividend Yield of 4.89, HMSB pays a better dividend. On top of this HMSB pays more dividend than 92.86% 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
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
95.04% of the earnings are spent on dividend by HMSB. This is not a sustainable payout ratio.
DP95.04%
EPS Next 2Y8.98%
EPS Next 3Y8.11%
FRA:HMSB (6/13/2025, 7:00:00 PM)
12.005
-0.12 (-1.03%)
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 Cap17.00B
Analysts51.43
Price Target13.62 (13.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.12% |
Yearly Dividend0.59
Dividend Growth(5Y)-7.85%
DP95.04%
Div Incr Years1
Div Non Decr Years4
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)-3.25%
PT rev (3m)-7.8%
EPS NQ rev (1m)-0.97%
EPS NQ rev (3m)-11.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.84%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-3.88%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.36 | ||
| Fwd PE | 15.35 | ||
| P/S | 0.79 | ||
| P/FCF | 9.3 | ||
| P/OCF | 5.83 | ||
| P/B | 4.05 | ||
| P/tB | 4.96 | ||
| EV/EBITDA | 6.3 |
EPS(TTM)0.62
EY5.16%
EPS(NY)0.78
Fwd EY6.51%
FCF(TTM)1.29
FCFY10.75%
OCF(TTM)2.06
OCFY17.16%
SpS15.21
BVpS2.97
TBVpS2.42
PEG (NY)2.62
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
WACC3.09%
ROIC/WACC3.43
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 5Y9.36%
Revenue 1Y (TTM)0.56%
Revenue growth 3Y5.63%
Revenue growth 5Y0.15%
Sales Q2Q%3.1%
Revenue Next Year0.16%
Revenue Next 2Y1.28%
Revenue Next 3Y1.81%
Revenue Next 5Y1.82%
EBIT growth 1Y6.19%
EBIT growth 3Y5.03%
EBIT growth 5Y0.38%
EBIT Next Year125.36%
EBIT Next 3Y35.98%
EBIT Next 5Y19.79%
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%