HERMES INTERNATIONAL (RMS.PA) Stock Fundamental Analysis
EPA:RMS - Euronext Paris - Matif - FR0000052292 - Common Stock - Currency: EUR
Overall RMS gets a fundamental rating of 7 out of 10. We evaluated RMS against 39 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the health and profitability get an excellent rating, making RMS a very profitable company, without any liquidiy or solvency issues. RMS is quite expensive at the moment. 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
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.
In the past 5 years RMS always reported a positive cash flow from operatings.
1.2 Ratios
RMS has a better Return On Assets (19.94%) than 95.00% of its industry peers.
RMS has a Return On Equity of 26.57%. This is amongst the best in the industry. RMS outperforms 85.00% of its industry peers.
RMS has a Return On Invested Capital of 22.99%. This is amongst the best in the industry. RMS outperforms 92.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RMS is significantly above the industry average of 10.52%.
| 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
The Profit Margin of RMS (30.34%) is better than 97.50% of its industry peers.
In the last couple of years the Profit Margin of RMS has grown nicely.
Looking at the Operating Margin, with a value of 41.09%, RMS belongs to the top of the industry, outperforming 97.50% of the companies in the same industry.
RMS's Operating Margin has improved in the last couple of years.
The Gross Margin of RMS (70.26%) is better than 75.00% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RMS is creating value.
The number of shares outstanding for RMS has been increased compared to 1 year ago.
The number of shares outstanding for RMS has been increased compared to 5 years ago.
The debt/assets ratio for RMS has been reduced compared to a year ago.
2.2 Solvency
RMS has an Altman-Z score of 30.18. This indicates that RMS is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 30.18, RMS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
RMS's Debt to FCF ratio of 0.54 is amongst the best of the industry. RMS outperforms 92.50% of its industry peers.
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 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.54 | ||
| Altman-Z | 30.18 |
ROIC/WACC2.86
WACC8.03%
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.
Looking at the Current ratio, with a value of 4.26, RMS belongs to the top of the industry, outperforming 97.50% of the companies in the same industry.
A Quick Ratio of 3.49 indicates that RMS has no problem at all paying its short term obligations.
RMS has a Quick ratio of 3.49. This is amongst the best in the industry. RMS outperforms 97.50% of its industry peers.
| 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%.
RMS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.70% yearly.
RMS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.98%.
RMS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.12% yearly.
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
The Earnings Per Share is expected to grow by 8.93% on average over the next years. This is quite good.
RMS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.40% yearly.
EPS Next Y5.8%
EPS Next 2Y10.88%
EPS Next 3Y11.73%
EPS Next 5Y8.93%
Revenue Next Year12.14%
Revenue Next 2Y11.43%
Revenue Next 3Y11.21%
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
Based on the Price/Earnings ratio of 55.89, the valuation of RMS can be described as expensive.
Based on the Price/Earnings ratio, RMS is valued a bit more expensive than 70.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.18, RMS is valued quite expensively.
Based on the Price/Forward Earnings ratio of 52.83, the valuation of RMS can be described as expensive.
RMS's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of RMS to the average of the S&P500 Index (20.81), we can say RMS is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.89 | ||
| Fwd PE | 52.83 |
4.2 Price Multiples
RMS's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. RMS is more expensive than 87.50% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RMS indicates a rather expensive valuation: RMS more expensive than 82.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.34 | ||
| EV/EBITDA | 35.48 |
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)9.64
PEG (5Y)2.26
EPS Next 2Y10.88%
EPS Next 3Y11.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.09%, RMS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.49, RMS is paying slightly less dividend.
With a Dividend Yield of 1.09, RMS pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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
58.77% 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 slower than its dividend. This means the dividend growth is not sustainable.
DP58.77%
EPS Next 2Y10.88%
EPS Next 3Y11.73%
EPA:RMS (5/2/2025, 7:00:00 PM)
2452
+61 (+2.55%)
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 Cap258.86B
Analysts76
Price Target2700.96 (10.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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)-1.54%
PT rev (3m)8.33%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.85%
EPS NY rev (3m)-3.96%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.62%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.89 | ||
| Fwd PE | 52.83 | ||
| P/S | 17.06 | ||
| P/FCF | 64.34 | ||
| P/OCF | 50.37 | ||
| P/B | 14.94 | ||
| P/tB | 15.35 | ||
| EV/EBITDA | 35.48 |
EPS(TTM)43.87
EY1.79%
EPS(NY)46.41
Fwd EY1.89%
FCF(TTM)38.11
FCFY1.55%
OCF(TTM)48.68
OCFY1.99%
SpS143.7
BVpS164.13
TBVpS159.72
PEG (NY)9.64
PEG (5Y)2.26
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 | 30.18 |
F-Score6
WACC8.03%
ROIC/WACC2.86
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 Year12.14%
Revenue Next 2Y11.43%
Revenue Next 3Y11.21%
Revenue Next 5Y9.4%
EBIT growth 1Y9.89%
EBIT growth 3Y20.13%
EBIT growth 5Y21.36%
EBIT Next Year27.36%
EBIT Next 3Y16.86%
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%