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 some minor concerns on its financial health. HMSB has a correct valuation and a medium growth rate.
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.
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
With an excellent Return On Assets value of 6.18%, HMSB belongs to the best of the industry, outperforming 80.39% of the companies in the same industry.
The Return On Equity of HMSB (23.89%) is better than 88.24% of its industry peers.
HMSB has a better Return On Invested Capital (10.59%) than 80.39% of its industry peers.
HMSB had an Average Return On Invested Capital over the past 3 years of 7.98%. This is in line with the industry average of 9.50%.
The 3 year average ROIC (7.98%) for HMSB is below the current ROIC(10.59%), indicating increased profibility in the last year.
| 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's Profit Margin of 4.66% is fine compared to the rest of the industry. HMSB outperforms 78.43% 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 76.47% 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 52.87%, HMSB belongs to the top of the industry, outperforming 82.35% 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 | 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.
Looking at the Debt to FCF ratio, with a value of 3.87, HMSB is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 1.40 is on the high side and indicates that HMSB has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.40, HMSB is doing worse than 78.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | N/A |
ROIC/WACC2.01
WACC5.26%
2.3 Liquidity
A Current Ratio of 1.15 indicates that HMSB should not have too much problems paying its short term obligations.
HMSB has a Current ratio (1.15) which is comparable to the rest of the industry.
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 (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.
HMSB shows a small growth in Revenue. In the last year, the Revenue has grown by 0.56%.
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 6.69% on average over the next years.
The Revenue is expected to grow by 1.02% on average over the next years.
EPS Next Y7.38%
EPS Next 2Y8.98%
EPS Next 3Y8.11%
EPS Next 5Y6.69%
Revenue Next Year0.16%
Revenue Next 2Y1.28%
Revenue Next 3Y1.81%
Revenue Next 5Y1.02%
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.
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 20.39 indicates a rather expensive valuation of HMSB.
Based on the Price/Earnings ratio, HMSB is valued a bit cheaper than 72.55% of the companies in the same industry.
When comparing the Price/Earnings ratio of HMSB to the average of the S&P500 Index (25.82), we can say HMSB is valued slightly cheaper.
HMSB is valuated correctly with a Price/Forward Earnings ratio of 16.23.
HMSB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HMSB is cheaper than 62.75% of the companies in the same industry.
HMSB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.39 | ||
| Fwd PE | 16.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HMSB is valued a bit cheaper than 66.67% of the companies in the same industry.
HMSB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HMSB is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.83 | ||
| EV/EBITDA | 6.57 |
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)2.76
PEG (5Y)N/A
EPS Next 2Y8.98%
EPS Next 3Y8.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.82%, HMSB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.63, HMSB pays a better dividend. On top of this HMSB pays more dividend than 92.16% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, HMSB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.82% |
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
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 (5/23/2025, 7:00:00 PM)
12.845
+0.02 (+0.16%)
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 Cap18.19B
Analysts51.67
Price Target14.08 (9.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.82% |
Yearly Dividend0.6
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)0.74%
PT rev (3m)-4.83%
EPS NQ rev (1m)-0.89%
EPS NQ rev (3m)-16.62%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.84%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-4.6%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-3.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.39 | ||
| Fwd PE | 16.23 | ||
| P/S | 0.83 | ||
| P/FCF | 9.83 | ||
| P/OCF | 6.16 | ||
| P/B | 4.28 | ||
| P/tB | 5.25 | ||
| EV/EBITDA | 6.57 |
EPS(TTM)0.63
EY4.9%
EPS(NY)0.79
Fwd EY6.16%
FCF(TTM)1.31
FCFY10.17%
OCF(TTM)2.08
OCFY16.23%
SpS15.39
BVpS3
TBVpS2.45
PEG (NY)2.76
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
WACC5.26%
ROIC/WACC2.01
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 Year0.16%
Revenue Next 2Y1.28%
Revenue Next 3Y1.81%
Revenue Next 5Y1.02%
EBIT growth 1Y6.19%
EBIT growth 3Y5.03%
EBIT growth 5Y0.38%
EBIT Next Year125.36%
EBIT Next 3Y35.98%
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%