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 gets an excellent profitability rating and is at the same time showing great financial health properties. RMS is quite expensive at the moment. It does show a decent growth rate. These ratings would make RMS suitable for quality investing!
1. Profitability
1.1 Basic Checks
RMS had positive earnings in the past year.
RMS had a positive operating cash flow in the past year.
Each year in the past 5 years RMS has been profitable.
Each year in the past 5 years RMS had a positive operating cash flow.
1.2 Ratios
RMS has a better Return On Assets (19.94%) than 97.62% of its industry peers.
With an excellent Return On Equity value of 26.57%, RMS belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
RMS has a better Return On Invested Capital (22.99%) than 95.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RMS is significantly above the industry average of 10.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.94% | ||
| ROE | 26.57% | ||
| ROIC | 22.99% |
ROA(3y)20.1%
ROA(5y)18.1%
ROE(3y)27.33%
ROE(5y)25.35%
ROIC(3y)23.47%
ROIC(5y)21.82%
1.3 Margins
RMS's Profit Margin of 30.34% is amongst the best of the industry. RMS outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of RMS has grown nicely.
RMS has a better Operating Margin (41.09%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of RMS has grown nicely.
RMS has a better Gross Margin (70.26%) than 73.81% of its industry peers.
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 | 41.09% | ||
| PM (TTM) | 30.34% | ||
| GM | 70.26% |
OM growth 3Y0.88%
OM growth 5Y3.62%
PM growth 3Y3.69%
PM growth 5Y6.45%
GM growth 3Y-0.48%
GM growth 5Y0.33%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RMS is creating value.
RMS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RMS has more shares outstanding
The debt/assets ratio for RMS has been reduced compared to a year ago.
2.2 Solvency
RMS has an Altman-Z score of 29.40. This indicates that RMS is financially healthy and has little risk of bankruptcy at the moment.
RMS has a Altman-Z score of 29.40. This is amongst the best in the industry. RMS outperforms 97.62% of its industry peers.
RMS has a debt to FCF ratio of 0.54. This is a very positive value and a sign of high solvency as it would only need 0.54 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.54, RMS belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
A Debt/Equity ratio of 0.11 indicates that RMS is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.11, RMS belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.54 | ||
| Altman-Z | 29.4 |
ROIC/WACC2.91
WACC7.9%
2.3 Liquidity
RMS has a Current Ratio of 4.26. This indicates that RMS is financially healthy and has no problem in meeting its short term obligations.
RMS has a Current ratio of 4.26. This is amongst the best in the industry. RMS outperforms 97.62% of its industry peers.
A Quick Ratio of 3.49 indicates that RMS has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.49, RMS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.26 | ||
| Quick Ratio | 3.49 |
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%.
Measured over the past years, RMS shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.70% on average per year.
The Revenue has grown by 12.98% in the past year. This is quite good.
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)12.98%
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 8.93% on average per year.
The Revenue is expected to grow by 9.40% on average over the next years. This is quite good.
EPS Next Y5.8%
EPS Next 2Y10.88%
EPS Next 3Y11.73%
EPS Next 5Y8.93%
Revenue Next Year11.73%
Revenue Next 2Y11.17%
Revenue Next 3Y10.98%
Revenue Next 5Y9.4%
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.
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
With a Price/Earnings ratio of 54.86, RMS can be considered very expensive at the moment.
RMS's Price/Earnings ratio is a bit more expensive when compared to the industry. RMS is more expensive than 69.05% of the companies in the same industry.
RMS is valuated expensively when we compare the Price/Earnings ratio to 26.17, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 51.85 indicates a quite expensive valuation of RMS.
RMS's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. RMS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.86 | ||
| Fwd PE | 51.85 |
4.2 Price Multiples
85.71% of the companies in the same industry are cheaper than RMS, based on the Enterprise Value to EBITDA ratio.
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 | 63.15 | ||
| EV/EBITDA | 34.42 |
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.
PEG (NY)9.46
PEG (5Y)2.22
EPS Next 2Y10.88%
EPS Next 3Y11.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.04%, RMS has a reasonable but not impressive dividend return.
RMS's Dividend Yield is comparable with the industry average which is at 3.44.
With a Dividend Yield of 1.04, RMS pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
The dividend of RMS is nicely growing with an annual growth rate of 40.81%!
Dividend Growth(5Y)40.81%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
RMS pays out 58.77% of its income as dividend. This is a bit on the high side, but may be sustainable.
RMS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP58.77%
EPS Next 2Y10.88%
EPS Next 3Y11.73%
EPA:RMS (5/29/2025, 11:57:49 AM)
2406.5
+25.5 (+1.07%)
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 Cap254.05B
Analysts76
Price Target2689.06 (11.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend25.85
Dividend Growth(5Y)40.81%
DP58.77%
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%
PT rev (3m)0.42%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-4.09%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.86 | ||
| Fwd PE | 51.85 | ||
| P/S | 16.75 | ||
| P/FCF | 63.15 | ||
| P/OCF | 49.44 | ||
| P/B | 14.66 | ||
| P/tB | 15.07 | ||
| EV/EBITDA | 34.42 |
EPS(TTM)43.87
EY1.82%
EPS(NY)46.41
Fwd EY1.93%
FCF(TTM)38.11
FCFY1.58%
OCF(TTM)48.68
OCFY2.02%
SpS143.7
BVpS164.13
TBVpS159.72
PEG (NY)9.46
PEG (5Y)2.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.94% | ||
| ROE | 26.57% | ||
| ROCE | 32.04% | ||
| ROIC | 22.99% | ||
| ROICexc | 47.14% | ||
| ROICexgc | 49.57% | ||
| OM | 41.09% | ||
| PM (TTM) | 30.34% | ||
| GM | 70.26% | ||
| FCFM | 26.52% |
ROA(3y)20.1%
ROA(5y)18.1%
ROE(3y)27.33%
ROE(5y)25.35%
ROIC(3y)23.47%
ROIC(5y)21.82%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)32.7%
ROCE(5y)30.42%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y0.88%
OM growth 5Y3.62%
PM growth 3Y3.69%
PM growth 5Y6.45%
GM growth 3Y-0.48%
GM growth 5Y0.33%
F-Score6
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.54 | ||
| Debt/EBITDA | 0.26 | ||
| Cap/Depr | 132.23% | ||
| Cap/Sales | 7.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.62% | ||
| Profit Quality | 87.4% | ||
| Current Ratio | 4.26 | ||
| Quick Ratio | 3.49 | ||
| Altman-Z | 29.4 |
F-Score6
WACC7.9%
ROIC/WACC2.91
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 Y5.8%
EPS Next 2Y10.88%
EPS Next 3Y11.73%
EPS Next 5Y8.93%
Revenue 1Y (TTM)12.98%
Revenue growth 3Y19.09%
Revenue growth 5Y17.12%
Sales Q2Q%13.92%
Revenue Next Year11.73%
Revenue Next 2Y11.17%
Revenue Next 3Y10.98%
Revenue Next 5Y9.4%
EBIT growth 1Y9.89%
EBIT growth 3Y20.13%
EBIT growth 5Y21.36%
EBIT Next Year24.84%
EBIT Next 3Y15.79%
EBIT Next 5Y11.46%
FCF growth 1Y15.94%
FCF growth 3Y11.86%
FCF growth 5Y20.11%
OCF growth 1Y18.71%
OCF growth 3Y14.7%
OCF growth 5Y19.75%