HERMES INTERNATIONAL (RMS.PA) Stock Fundamental Analysis
EPA:RMS - Euronext Paris - Matif - FR0000052292 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to RMS. RMS was compared to 44 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. While showing a medium growth rate, RMS is valued expensive at the moment. These ratings would make RMS suitable for quality investing!
1. Profitability
1.1 Basic Checks
RMS had positive earnings in the past year.
In the past year RMS had a positive cash flow from operations.
Each year in the past 5 years RMS has been profitable.
RMS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 19.94%, RMS belongs to the best of the industry, outperforming 93.18% of the companies in the same industry.
The Return On Equity of RMS (26.57%) is better than 86.36% of its industry peers.
RMS has a Return On Invested Capital of 22.99%. This is amongst the best in the industry. RMS outperforms 90.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RMS is significantly above the industry average of 10.71%.
| 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 has a better Profit Margin (30.34%) than 97.73% of its industry peers.
In the last couple of years the Profit Margin of RMS has grown nicely.
RMS's Operating Margin of 41.09% is amongst the best of the industry. RMS outperforms 97.73% of its industry peers.
RMS's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 70.26%, RMS is doing good in the industry, outperforming 72.73% of the companies in the same industry.
RMS's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, RMS has an improved debt to assets ratio.
2.2 Solvency
RMS has an Altman-Z score of 29.07. This indicates that RMS is financially healthy and has little risk of bankruptcy at the moment.
RMS's Altman-Z score of 29.07 is amongst the best of the industry. RMS outperforms 100.00% 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.
With an excellent Debt to FCF ratio value of 0.54, RMS belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
RMS has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.11, RMS belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 0.54 | ||
| Altman-Z | 29.07 |
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 95.45% of the companies in the same industry.
RMS has a Quick Ratio of 3.49. This indicates that RMS is financially healthy and has no problem in meeting its short term obligations.
RMS has a Quick ratio of 3.49. This is amongst the best in the industry. RMS outperforms 97.73% 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%.
Measured over the past years, RMS shows a quite strong growth in Revenue. The Revenue has been growing by 17.12% on average per year.
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 9.75% on average per year.
Based on estimates for the next years, RMS will show a quite strong growth in Revenue. The Revenue will grow by 8.77% on average per year.
EPS Next Y5.8%
EPS Next 2Y10.88%
EPS Next 3Y11.73%
EPS Next 5Y9.75%
Revenue Next Year11.73%
Revenue Next 2Y11.17%
Revenue Next 3Y10.98%
Revenue Next 5Y8.77%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 53.39 indicates a quite expensive valuation of RMS.
68.18% of the companies in the same industry are cheaper than RMS, based on the Price/Earnings ratio.
RMS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.45.
A Price/Forward Earnings ratio of 50.46 indicates a quite expensive valuation of RMS.
RMS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RMS is more expensive than 61.36% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. RMS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.39 | ||
| Fwd PE | 50.46 |
4.2 Price Multiples
RMS's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. RMS is more expensive than 88.64% of the companies in the same industry.
RMS's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. RMS is more expensive than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.46 | ||
| EV/EBITDA | 33.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of RMS may justify a higher PE ratio.
PEG (NY)9.2
PEG (5Y)2.16
EPS Next 2Y10.88%
EPS Next 3Y11.73%
5. Dividend
5.1 Amount
RMS has a Yearly Dividend Yield of 1.16%. Purely for dividend investing, there may be better candidates out there.
RMS's Dividend Yield is comparable with the industry average which is at 3.24.
With a Dividend Yield of 1.16, RMS pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
On average, the dividend of RMS grows each year by 40.81%, which is quite nice.
Dividend Growth(5Y)40.81%
Div Incr Years4
Div Non Decr Years4
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.
The dividend of RMS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP58.77%
EPS Next 2Y10.88%
EPS Next 3Y11.73%
EPA:RMS (7/4/2025, 7:00:00 PM)
2342
-9 (-0.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners11.08%
Inst Owner ChangeN/A
Ins Owners0.34%
Ins Owner ChangeN/A
Market Cap247.24B
Analysts76
Price Target2675.19 (14.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Yearly Dividend25.85
Dividend Growth(5Y)40.81%
DP58.77%
Div Incr Years4
Div Non Decr Years4
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)-0.52%
PT rev (3m)-2.48%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.85%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.39 | ||
| Fwd PE | 50.46 | ||
| P/S | 16.3 | ||
| P/FCF | 61.46 | ||
| P/OCF | 48.11 | ||
| P/B | 14.27 | ||
| P/tB | 14.66 | ||
| EV/EBITDA | 33.97 |
EPS(TTM)43.87
EY1.87%
EPS(NY)46.41
Fwd EY1.98%
FCF(TTM)38.11
FCFY1.63%
OCF(TTM)48.68
OCFY2.08%
SpS143.7
BVpS164.13
TBVpS159.72
PEG (NY)9.2
PEG (5Y)2.16
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 | 29.07 |
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 5Y9.75%
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 5Y8.77%
EBIT growth 1Y9.89%
EBIT growth 3Y20.13%
EBIT growth 5Y21.36%
EBIT Next Year24.84%
EBIT Next 3Y15.79%
EBIT Next 5Y12.23%
FCF growth 1Y15.94%
FCF growth 3Y11.86%
FCF growth 5Y20.11%
OCF growth 1Y18.71%
OCF growth 3Y14.7%
OCF growth 5Y19.75%