LVMH MOET HENNESSY LOUIS VUI (MC.PA)
FR0000121014 - Common Stock
We assign a fundamental rating of 6 out of 10 to MC. MC was compared to 41 industry peers in the Textiles, Apparel & Luxury Goods industry. MC has an excellent profitability rating, but there are some minor concerns on its financial health. MC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
MC had positive earnings in the past year.
MC had a positive operating cash flow in the past year.
MC had positive earnings in each of the past 5 years.
In the past 5 years MC always reported a positive cash flow from operatings.
1.2 Ratios
MC has a Return On Assets of 11.50%. This is amongst the best in the industry. MC outperforms 82.50% of its industry peers.
MC's Return On Equity of 27.78% is amongst the best of the industry. MC outperforms 82.50% of its industry peers.
The Return On Invested Capital of MC (14.15%) is better than 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MC is in line with the industry average of 11.31%.
The last Return On Invested Capital (14.15%) for MC is above the 3 year average (10.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.5% | ||
| ROE | 27.78% | ||
| ROIC | 14.15% |
ROA(3y)8.13%
ROA(5y)8.07%
ROE(3y)21.22%
ROE(5y)20.59%
ROIC(3y)10.98%
ROIC(5y)11.1%
1.3 Margins
Looking at the Profit Margin, with a value of 18.93%, MC belongs to the top of the industry, outperforming 92.50% of the companies in the same industry.
MC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 26.41%, MC belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
MC's Operating Margin has improved in the last couple of years.
MC's Gross Margin of 68.72% is fine compared to the rest of the industry. MC outperforms 70.00% of its industry peers.
MC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.41% | ||
| PM | 18.93% | ||
| GM | 68.72% |
OM growth 3Y7.79%
OM growth 5Y6.4%
PM growth 3Y10.01%
PM growth 5Y7.17%
GM growth 3Y1.1%
GM growth 5Y0.94%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MC is still creating some value.
The number of shares outstanding for MC has been reduced compared to 1 year ago.
The number of shares outstanding for MC has been reduced compared to 5 years ago.
The debt/assets ratio for MC has been reduced compared to a year ago.
2.2 Solvency
MC has an Altman-Z score of 4.45. This indicates that MC is financially healthy and has little risk of bankruptcy at the moment.
MC has a better Altman-Z score (4.45) than 77.50% of its industry peers.
MC has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as MC would need 3.68 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.68, MC is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
MC has a Debt/Equity ratio of 0.57. This is a neutral value indicating MC is somewhat dependend on debt financing.
The Debt to Equity ratio of MC (0.57) is better than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 4.45 |
ROIC/WACC4.17
WACC7.15%
2.3 Liquidity
MC has a Current Ratio of 1.22. This is a normal value and indicates that MC is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.22, MC is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
MC has a Quick Ratio of 1.22. This is a bad value and indicates that MC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.56, MC is doing worse than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
MC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.14%, which is quite impressive.
Measured over the past years, MC shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.48% on average per year.
The Revenue has grown by 17.18% in the past year. This is quite good.
MC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.18% yearly.
EPS 1Y21.14%
EPS 3Y25.35%
EPS 5Y22.48%
EPS growth Q2Q30.33%
Revenue growth 1Y17.18%
Revenue growth 3Y13.84%
Revenue growth 5Y13.18%
Revenue growth Q2Q15%
3.2 Future
Based on estimates for the next years, MC will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.57% on average per year.
MC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.87% yearly.
EPS Next Y20.96%
EPS Next 2Y15.15%
EPS Next 3Y12.87%
EPS Next 5Y10.57%
Revenue Next Year11.41%
Revenue Next 2Y10.03%
Revenue Next 3Y9.02%
Revenue Next 5Y7.87%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
MC is valuated rather expensively with a Price/Earnings ratio of 22.91.
MC's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.92. MC is around the same levels.
MC is valuated rather expensively with a Price/Forward Earnings ratio of 19.70.
Based on the Price/Forward Earnings ratio, MC is valued a bit cheaper than the industry average as 67.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.01, MC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.91 | ||
| Fwd PE | 19.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MC is valued a bit more expensive than the industry average as 65.00% of the companies are valued more cheaply.
MC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.16 | ||
| EV/EBITDA | 13.2 |
4.3 Compensation for Growth
MC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MC has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MC's earnings are expected to grow with 12.87% in the coming years.
PEG (NY)1.09
PEG (5Y)1.02
EPS Next 2Y15.15%
EPS Next 3Y12.87%
5. Dividend
5.1 Amount
MC has a Yearly Dividend Yield of 1.71%.
MC's Dividend Yield is comparable with the industry average which is at 3.04.
MC's Dividend Yield is slightly below the S&P500 average, which is at 2.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
5.2 History
On average, the dividend of MC grows each year by 24.68%, which is quite nice.
Dividend Growth(5Y)24.68%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
MC pays out 39.41% of its income as dividend. This is a sustainable payout ratio.
The dividend of MC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.41%
EPS Next 2Y15.15%
EPS Next 3Y12.87%
LVMH MOET HENNESSY LOUIS VUI
EPA:MC (9/22/2023, 7:00:00 PM)
732.3
+3 (+0.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap365.72B
Analysts83.08
Price Target958.09 (30.83%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
Dividend Growth(5Y)24.68%
DP39.41%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.3%
Min EPS beat(2)4.3%
Max EPS beat(2)4.3%
EPS beat(4)1
Avg EPS beat(4)-1.05%
Min EPS beat(4)-6.4%
Max EPS beat(4)4.3%
Revenue beat(2)1
Avg Revenue beat(2)97034.7%
Min Revenue beat(2)97034.7%
Max Revenue beat(2)97034.7%
Revenue beat(4)2
Avg Revenue beat(4)97555.1%
Min Revenue beat(4)97034.7%
Max Revenue beat(4)98075.5%
PT rev (1m)-0.37%
PT rev (3m)0.27%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.73%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.91 | ||
| Fwd PE | 19.7 | ||
| P/S | 4.32 | ||
| P/FCF | 35.16 | ||
| P/OCF | 21.12 | ||
| P/B | 6.34 | ||
| P/tB | 52.18 | ||
| EV/EBITDA | 13.2 |
EPS(TTM)31.97
EY4.37%
EPS(NY)37.16
Fwd EY5.07%
FCF(TTM)20.83
FCFY2.84%
OCF(TTM)34.67
OCFY4.74%
SpS169.59
BVpS115.57
TBVpS14.03
PEG (NY)1.09
PEG (5Y)1.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.5% | ||
| ROE | 27.78% | ||
| ROCE | 21.28% | ||
| ROIC | 14.15% | ||
| ROICexc | 15.53% | ||
| ROICexgc | 29.8% | ||
| OM | 26.41% | ||
| PM | 18.93% | ||
| GM | 68.72% | ||
| FCFM | 12.28% |
ROA(3y)8.13%
ROA(5y)8.07%
ROE(3y)21.22%
ROE(5y)20.59%
ROIC(3y)10.98%
ROIC(5y)11.1%
ROICexc(3y)12.6%
ROICexc(5y)12.48%
ROICexgc(3y)26.1%
ROICexgc(5y)25.79%
ROCE(3y)15.98%
ROCE(5y)16.14%
ROICexcg growth 3Y13.79%
ROICexcg growth 5Y2.91%
ROICexc growth 3Y10.52%
ROICexc growth 5Y6.21%
OM growth 3Y7.79%
OM growth 5Y6.4%
PM growth 3Y10.01%
PM growth 5Y7.17%
GM growth 3Y1.1%
GM growth 5Y0.94%
F-Score8
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 1.15 | ||
| Cap/Depr | 109.8% | ||
| Cap/Sales | 8.17% | ||
| Profit Quality | 64.87% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 4.45 |
F-Score8
WACC7.15%
ROIC/WACC4.17
Cap/Depr(3y)56.02%
Cap/Depr(5y)74.17%
Cap/Sales(3y)5.36%
Cap/Sales(5y)5.82%
Profit Quality(3y)134.22%
Profit Quality(5y)120.41%
Growth
EPS 1Y21.14%
EPS 3Y25.35%
EPS 5Y22.48%
EPS growth Q2Q30.33%
EPS Next Y20.96%
EPS Next 2Y15.15%
EPS Next 3Y12.87%
EPS Next 5Y10.57%
Revenue growth 1Y17.18%
Revenue growth 3Y13.84%
Revenue growth 5Y13.18%
Revenue growth Q2Q15%
Revenue Next Year11.41%
Revenue Next 2Y10.03%
Revenue Next 3Y9.02%
Revenue Next 5Y7.87%
EBIT growth 1Y13.52%
EBIT growth 3Y22.71%
EBIT growth 5Y20.42%
EBIT Next Year36.42%
EBIT Next 3Y18.05%
EBIT Next 5YN/A
FCF growth 1Y-32.11%
FCF growth 3Y15.57%
FCF growth 5Y22.48%
OCF growth 1Y-2.32%
OCF growth 3Y15.25%
OCF growth 5Y20.66%