HERMES INTERNATIONAL (RMS.PA) Stock Fundamental Analysis
EPA:RMS - Euronext Paris - Matif - FR0000052292 - Common Stock - Currency: EUR
RMS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 42 industry peers in the Textiles, Apparel & Luxury Goods industry. RMS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. RMS is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, RMS could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year RMS was profitable.
RMS had a positive operating cash flow in the past year.
RMS had positive earnings in each of the past 5 years.
In the past 5 years RMS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RMS (21.71%) is better than 97.62% of its industry peers.
The Return On Equity of RMS (29.58%) is better than 90.48% of its industry peers.
RMS has a better Return On Invested Capital (24.42%) than 97.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.71% | ||
| ROE | 29.58% | ||
| ROIC | 24.42% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RMS's Profit Margin of 31.29% is amongst the best of the industry. RMS outperforms 100.00% of its industry peers.
RMS's Profit Margin has improved in the last couple of years.
RMS's Operating Margin of 41.19% is amongst the best of the industry. RMS outperforms 100.00% of its industry peers.
RMS's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 71.45%, RMS is doing good in the industry, outperforming 73.81% of the companies in the same industry.
In the last couple of years the Gross Margin of RMS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.19% | ||
| PM (TTM) | 31.29% | ||
| GM | 71.45% |
OM growth 3Y0.43%
OM growth 5Y3.34%
PM growth 3Y3.69%
PM growth 5Y6.45%
GM growth 3Y-0.48%
GM growth 5Y0.33%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RMS is creating value.
There is no outstanding debt for RMS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
RMS has an Altman-Z score of 31.95. This indicates that RMS is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 31.95, RMS belongs to the best of the industry, outperforming 97.62% of the companies in the same industry.
The Debt to FCF ratio of RMS is 0.63, which is an excellent value as it means it would take RMS, only 0.63 years of fcf income to pay off all of its debts.
RMS has a Debt to FCF ratio of 0.63. This is amongst the best in the industry. RMS outperforms 95.24% of its industry peers.
RMS has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RMS (0.12) is better than 95.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.63 | ||
| Altman-Z | 31.95 |
ROIC/WACC3.14
WACC7.77%
2.3 Liquidity
RMS has a Current Ratio of 4.11. This indicates that RMS is financially healthy and has no problem in meeting its short term obligations.
RMS's Current ratio of 4.11 is amongst the best of the industry. RMS outperforms 100.00% of its industry peers.
RMS has a Quick Ratio of 3.26. This indicates that RMS is financially healthy and has no problem in meeting its short term obligations.
RMS has a better Quick ratio (3.26) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.11 | ||
| Quick Ratio | 3.26 |
3. Growth
3.1 Past
RMS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.69%.
RMS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.70% yearly.
The Revenue has grown by 68.87% in the past year. This is a very strong growth!
The Revenue has been growing by 17.12% on average over the past years. This is quite good.
EPS 1Y (TTM)6.69%
EPS 3Y23.48%
EPS 5Y24.7%
EPS Q2Q%7.2%
Revenue 1Y (TTM)68.87%
Revenue growth 3Y19.09%
Revenue growth 5Y17.12%
Sales Q2Q%13.92%
3.2 Future
Based on estimates for the next years, RMS will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.83% on average per year.
The Revenue is expected to grow by 10.34% on average over the next years. This is quite good.
EPS Next Y10.32%
EPS Next 2Y12.23%
EPS Next 3Y12.19%
EPS Next 5Y9.83%
Revenue Next Year13.99%
Revenue Next 2Y12.44%
Revenue Next 3Y12.05%
Revenue Next 5Y10.34%
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 decreasing.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 56.23 indicates a quite expensive valuation of RMS.
Compared to the rest of the industry, the Price/Earnings ratio of RMS is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.89, RMS is valued quite expensively.
Based on the Price/Forward Earnings ratio of 50.97, the valuation of RMS can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RMS is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.98, RMS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.23 | ||
| Fwd PE | 50.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RMS is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RMS indicates a rather expensive valuation: RMS more expensive than 80.95% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.03 | ||
| EV/EBITDA | 35.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RMS does not grow enough to justify the current Price/Earnings ratio.
RMS has an outstanding profitability rating, which may justify a higher PE ratio.
RMS's earnings are expected to grow with 12.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.45
PEG (5Y)2.28
EPS Next 2Y12.23%
EPS Next 3Y12.19%
5. Dividend
5.1 Amount
RMS has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.99, RMS has a dividend in line with its industry peers.
With a Dividend Yield of 1.05, RMS pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
The dividend of RMS is nicely growing with an annual growth rate of 7.50%!
Dividend Growth(5Y)7.5%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
59.56% of the earnings are spent on dividend by RMS. This is a bit on the high side, but may be sustainable.
RMS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP59.56%
EPS Next 2Y12.23%
EPS Next 3Y12.19%
EPA:RMS (3/27/2025, 12:16:16 PM)
2467
-5 (-0.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners11.19%
Inst Owner ChangeN/A
Ins Owners0.34%
Ins Owner ChangeN/A
Market Cap260.44B
Analysts72.26
Price Target2738.87 (11.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend13.2
Dividend Growth(5Y)7.5%
DP59.56%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.28%
PT rev (3m)17.12%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)3.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.23 | ||
| Fwd PE | 50.97 | ||
| P/S | 18.3 | ||
| P/FCF | 75.03 | ||
| P/OCF | 58.29 | ||
| P/B | 17.3 | ||
| P/tB | 17.86 | ||
| EV/EBITDA | 35.58 |
EPS(TTM)43.87
EY1.78%
EPS(NY)48.4
Fwd EY1.96%
FCF(TTM)32.88
FCFY1.33%
OCF(TTM)42.32
OCFY1.72%
SpS134.82
BVpS142.58
TBVpS138.14
PEG (NY)5.45
PEG (5Y)2.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.71% | ||
| ROE | 29.58% | ||
| ROCE | 34.03% | ||
| ROIC | 24.42% | ||
| ROICexc | 16182.4% | ||
| ROICexgc | N/A | ||
| OM | 41.19% | ||
| PM (TTM) | 31.29% | ||
| GM | 71.45% | ||
| FCFM | 24.39% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y0.43%
OM growth 5Y3.34%
PM growth 3Y3.69%
PM growth 5Y6.45%
GM growth 3Y-0.48%
GM growth 5Y0.33%
F-Score7
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.63 | ||
| Debt/EBITDA | 0.28 | ||
| Cap/Depr | 119.69% | ||
| Cap/Sales | 7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.73% | ||
| Profit Quality | 77.95% | ||
| Current Ratio | 4.11 | ||
| Quick Ratio | 3.26 | ||
| Altman-Z | 31.95 |
F-Score7
WACC7.77%
ROIC/WACC3.14
Cap/Depr(3y)109.61%
Cap/Depr(5y)102.11%
Cap/Sales(3y)6.07%
Cap/Sales(5y)6.23%
Profit Quality(3y)92.27%
Profit Quality(5y)96.1%
High Growth Momentum
Growth
EPS 1Y (TTM)6.69%
EPS 3Y23.48%
EPS 5Y24.7%
EPS Q2Q%7.2%
EPS Next Y10.32%
EPS Next 2Y12.23%
EPS Next 3Y12.19%
EPS Next 5Y9.83%
Revenue 1Y (TTM)68.87%
Revenue growth 3Y19.09%
Revenue growth 5Y17.12%
Sales Q2Q%13.92%
Revenue Next Year13.99%
Revenue Next 2Y12.44%
Revenue Next 3Y12.05%
Revenue Next 5Y10.34%
EBIT growth 1Y8.29%
EBIT growth 3Y19.6%
EBIT growth 5Y21.04%
EBIT Next Year24.51%
EBIT Next 3Y14.75%
EBIT Next 5Y13.11%
FCF growth 1Y-12.77%
FCF growth 3Y11.86%
FCF growth 5Y20.11%
OCF growth 1Y-1.8%
OCF growth 3Y14.7%
OCF growth 5Y19.75%