LVMH Moët Hennessy - Louis Vuitton, Société Européenne
LVMH Moët Hennessy - Louis Vuitton, Société Européenne Fundamental Analysis
LVMH Moët Hennessy - Louis Vuitton, Société Européenne (MC.PA) shows moderate financial fundamentals with a PE ratio of 21.55, profit margin of 13.46%, and ROE of 16.39%. The company generates $80.6B in annual revenue with weak year-over-year growth of -1.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MC.PA's fundamental strength across five key dimensions:
Efficiency Score
WeakMC.PA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMC.PA trades at attractive valuation levels.
Growth Score
WeakMC.PA faces weak or negative growth trends.
Financial Health Score
ExcellentMC.PA maintains a strong and stable balance sheet.
Profitability Score
ModerateMC.PA maintains healthy but balanced margins.
Key Financial Metrics
Is MC.PA Expensive or Cheap?
P/E Ratio
MC.PA trades at 21.55 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MC.PA's PEG of -31.62 indicates potential undervaluation.
Price to Book
The market values LVMH Moët Hennessy - Louis Vuitton, Société Européenne at 3.47 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 7.81 times EBITDA. This is generally considered low.
How Well Does MC.PA Make Money?
Net Profit Margin
For every $100 in sales, LVMH Moët Hennessy - Louis Vuitton, Société Européenne keeps $13.46 as profit after all expenses.
Operating Margin
Core operations generate 21.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.39 in profit for every $100 of shareholder equity.
ROA
LVMH Moët Hennessy - Louis Vuitton, Société Européenne generates $7.66 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
LVMH Moët Hennessy - Louis Vuitton, Société Européenne produces operating cash flow of $18.85B, showing steady but balanced cash generation.
Free Cash Flow
LVMH Moët Hennessy - Louis Vuitton, Société Européenne generates strong free cash flow of $15.01B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $30.23 in free cash annually.
FCF Yield
MC.PA converts 6.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-31.62
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.89
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How MC.PA Stacks Against Its Sector Peers
| Metric | MC.PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.55 | 23.72 | Neutral |
| ROE | 16.39% | 1091.00% | Weak |
| Net Margin | 13.46% | -627.00% (disorted) | Strong |
| Debt/Equity | 0.74 | 0.72 | Neutral |
| Current Ratio | 1.58 | 2.64 | Neutral |
| ROA | 7.66% | 1053.00% | Weak |
MC.PA outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews LVMH Moët Hennessy - Louis Vuitton, Société Européenne's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
58.99%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
76.34%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
63.73%
Industry Style: Cyclical, Growth, Discretionary
High Growth