H & M Hennes & Mauritz AB (publ)
H & M Hennes & Mauritz AB (publ) Fundamental Analysis
H & M Hennes & Mauritz AB (publ) (HMSB.DE) shows moderate financial fundamentals with a PE ratio of 22.74, profit margin of 5.52%, and ROE of 30.74%. The company generates $223.3B in annual revenue with weak year-over-year growth of -2.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HMSB.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakHMSB.DE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHMSB.DE trades at attractive valuation levels.
Growth Score
WeakHMSB.DE faces weak or negative growth trends.
Financial Health Score
ModerateHMSB.DE shows balanced financial health with some risks.
Profitability Score
ModerateHMSB.DE maintains healthy but balanced margins.
Key Financial Metrics
Is HMSB.DE Expensive or Cheap?
P/E Ratio
HMSB.DE trades at 22.74 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HMSB.DE's PEG of 1.97 indicates fair valuation.
Price to Book
The market values H & M Hennes & Mauritz AB (publ) at 6.76 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.62 times EBITDA. This is generally considered low.
How Well Does HMSB.DE Make Money?
Net Profit Margin
For every $100 in sales, H & M Hennes & Mauritz AB (publ) keeps $5.52 as profit after all expenses.
Operating Margin
Core operations generate 8.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $30.74 in profit for every $100 of shareholder equity.
ROA
H & M Hennes & Mauritz AB (publ) generates $7.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
H & M Hennes & Mauritz AB (publ) produces operating cash flow of $31.05B, showing steady but balanced cash generation.
Free Cash Flow
H & M Hennes & Mauritz AB (publ) produces free cash flow of $20.60B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $12.83 in free cash annually.
FCF Yield
HMSB.DE converts 7.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.97
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.87
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How HMSB.DE Stacks Against Its Sector Peers
| Metric | HMSB.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.74 | 23.78 | Neutral |
| ROE | 30.74% | 1098.00% | Weak |
| Net Margin | 5.52% | -626.00% (disorted) | Weak |
| Debt/Equity | 1.87 | 0.86 | Weak (High Leverage) |
| Current Ratio | 1.18 | 2.64 | Neutral |
| ROA | 7.51% | -8081.00% (disorted) | Weak |
HMSB.DE outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews H & M Hennes & Mauritz AB (publ)'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.94%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
909.24%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
23.98%
Industry Style: Cyclical, Growth, Discretionary
High Growth