HENNES & MAURITZ AB-B SHS (HMSB.DE) Stock Fundamental Analysis
Europe - FRA:HMSB - SE0000106270 - Common Stock
14.065 EUR
+0.25 (+1.85%)
Taking everything into account, HMSB scores 5 out of 10 in our fundamental rating. HMSB was compared to 53 industry peers in the Specialty Retail industry. HMSB scores excellent on profitability, but there are concerns on its financial health. HMSB is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Each year in the past 5 years HMSB has been profitable.
In the past 5 years HMSB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.92%, HMSB is in the better half of the industry, outperforming 79.25% of the companies in the same industry.
Looking at the Return On Equity, with a value of 27.34%, HMSB belongs to the top of the industry, outperforming 88.68% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.79%, HMSB belongs to the top of the industry, outperforming 83.02% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HMSB is in line with the industry average of 9.49%.
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
Looking at the Profit Margin, with a value of 4.27%, HMSB is in the better half of the industry, outperforming 75.47% of the companies in the same industry.
In the last couple of years the Profit Margin of HMSB has declined.
Looking at the Operating Margin, with a value of 6.80%, HMSB is in the better half of the industry, outperforming 75.47% 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.
With a decent Gross Margin value of 52.61%, HMSB is doing good in the industry, outperforming 77.36% 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HMSB 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 has a Debt to FCF ratio of 4.62. This is in the better half of the industry: HMSB outperforms 67.92% of its industry peers.
HMSB has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external financing.
HMSB has a Debt to Equity ratio of 1.54. This is in the lower half of the industry: HMSB underperforms 77.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 4.62 | ||
| Altman-Z | N/A |
ROIC/WACC3.78
WACC3.12%
2.3 Liquidity
HMSB has a Current 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 worse Current ratio (1.00) than 69.81% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.46, HMSB is doing worse than 60.38% of the companies in the same industry.
| 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%.
The Earnings Per Share has been decreasing by -2.32% on average over the past years.
The Revenue has decreased by -1.51% in the past year.
HMSB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.15% yearly.
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 9.17% on average over the next years. This is quite good.
Based on estimates for the next years, HMSB will show a small growth in Revenue. The Revenue will grow by 0.75% on average per year.
EPS Next Y-3.27%
EPS Next 2Y5.49%
EPS Next 3Y6.43%
EPS Next 5Y9.17%
Revenue Next Year-2.57%
Revenue Next 2Y-0.37%
Revenue Next 3Y0.66%
Revenue Next 5Y0.75%
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
The Price/Earnings ratio is 24.68, which indicates a rather expensive current valuation of HMSB.
HMSB's Price/Earnings ratio is a bit cheaper when compared to the industry. HMSB is cheaper than 64.15% of the companies in the same industry.
When comparing the Price/Earnings ratio of HMSB to the average of the S&P500 Index (27.41), we can say HMSB is valued inline with the index average.
A Price/Forward Earnings ratio of 19.24 indicates a rather expensive valuation of HMSB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HMSB is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.87. HMSB is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.68 | ||
| Fwd PE | 19.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HMSB is valued a bit cheaper than the industry average as 64.15% of the companies are valued more expensively.
HMSB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.74 | ||
| EV/EBITDA | 7.24 |
4.3 Compensation for Growth
HMSB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.49%
EPS Next 3Y6.43%
5. Dividend
5.1 Amount
HMSB has a Yearly Dividend Yield of 4.40%, which is a nice return.
HMSB's Dividend Yield is rather good when compared to the industry average which is at 3.47. HMSB pays more dividend than 88.68% of the companies in the same industry.
HMSB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
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
HMSB pays out 107.07% of its income as dividend. This is not a sustainable payout ratio.
DP107.07%
EPS Next 2Y5.49%
EPS Next 3Y6.43%
FRA:HMSB (9/23/2025, 7:00:00 PM)
14.065
+0.25 (+1.85%)
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 Cap19.83B
Analysts50
Price Target12.96 (-7.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
Yearly Dividend0.59
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)1.45%
PT rev (3m)-0.96%
EPS NQ rev (1m)-2.6%
EPS NQ rev (3m)-17.93%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.92%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)-3.81%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.68 | ||
| Fwd PE | 19.24 | ||
| P/S | 0.93 | ||
| P/FCF | 13.74 | ||
| P/OCF | 7.81 | ||
| P/B | 5.97 | ||
| P/tB | 7.73 | ||
| EV/EBITDA | 7.24 |
EPS(TTM)0.57
EY4.05%
EPS(NY)0.73
Fwd EY5.2%
FCF(TTM)1.02
FCFY7.28%
OCF(TTM)1.8
OCFY12.81%
SpS15.05
BVpS2.35
TBVpS1.82
PEG (NY)N/A
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
WACC3.12%
ROIC/WACC3.78
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 Y-3.27%
EPS Next 2Y5.49%
EPS Next 3Y6.43%
EPS Next 5Y9.17%
Revenue 1Y (TTM)-1.51%
Revenue growth 3Y5.63%
Revenue growth 5Y0.15%
Sales Q2Q%-4.85%
Revenue Next Year-2.57%
Revenue Next 2Y-0.37%
Revenue Next 3Y0.66%
Revenue Next 5Y0.75%
EBIT growth 1Y-13.34%
EBIT growth 3Y5.03%
EBIT growth 5Y0.38%
EBIT Next Year125.36%
EBIT Next 3Y35.98%
EBIT Next 5Y19.42%
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%