(RMS) Hermes International SCA - Overview
Sector: Consumer Cyclical | Industry: Luxury Goods | Exchange: PA (France) | Market Cap: 174.918m EUR | Total Return: -31.9% in 12m
Avg Trading Vol: 146M EUR
Peers RS (IBD): 8.9
Hermès International SCA (RMS) is a French luxury goods company founded in 1837. It operates in the production, wholesale, and retail sectors.
The companys product portfolio is diverse, encompassing leather goods, ready-to-wear apparel, accessories (jewelry, belts, hats, gloves, IoT products, shoes), silk and textiles, art de vivre items, beauty and perfume products, and watches. This broad luxury product offering is characteristic of many high-end brands aiming to capture various consumer spending categories.
Beyond product creation, Hermès is involved in several manufacturing processes, including weaving, engraving, printing, dyeing, finishing, and textile production. It also handles the purchasing, tanning, dyeing, finishing, and sale of tanneries and precious leathers, as well as the creation and production of metal parts. This vertical integration is a common strategy in the luxury sector to maintain quality control and brand exclusivity.
Distribution occurs through a global network of company-owned stores across France, Europe, Japan, Asia Pacific, the Americas, and the Middle East. Additionally, specialized stores sell watches, perfumes, and tableware. This direct-to-consumer model allows for greater control over brand image and customer experience.
Further analysis of RMSs financial performance and market position can be found on ValueRay.
- Luxury consumer spending drives global revenue growth
- Asia Pacific sales performance impacts overall profitability
- Supply chain disruptions affect leather goods production
- Brand exclusivity and pricing power maintain high margins
| Net Income: 6.76b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.39 > 0.02 and ΔFCF/TA 24.07 > 1.0 |
| NWC/Revenue: 53.76% < 20% (prev 48.66%; Δ 5.10% < -1%) |
| CFO/TA 0.44 > 3% & CFO 10.59b > Net Income 6.76b |
| Net Debt (-9.89b) to EBITDA (11.98b): -0.83 < 3 |
| Current Ratio: 4.99 > 1.5 & < 3 |
| Outstanding Shares: last quarter (105.0m) vs 12m ago 0.12% < -2% |
| Gross Margin: 69.23% > 18% (prev 0.70%; Δ 6.85k% > 0.5%) |
| Asset Turnover: 105.6% > 50% (prev 102.1%; Δ 3.52% > 0%) |
| Interest Coverage Ratio: 185.1 > 6 (EBITDA TTM 11.98b / Interest Expense TTM 56.0m) |
| A: 0.52 (Total Current Assets 15.91b - Total Current Liabilities 3.19b) / Total Assets 24.32b |
| B: 0.19 (Retained Earnings 4.52b / Total Assets 24.32b) |
| C: 0.46 (EBIT TTM 10.37b / Avg Total Assets 22.41b) |
| D: 0.90 (Book Value of Equity 4.94b / Total Liabilities 5.47b) |
| Altman-Z'' Score: 8.09 = AAA |
| DSRI: 1.38 (Receivables 833.0m/535.0m, Revenue 23.67b/20.93b) |
| GMI: 1.01 (GM 69.23% / 70.21%) |
| AQI: 0.89 (AQ_t 0.12 / AQ_t-1 0.14) |
| SGI: 1.13 (Revenue 23.67b / 20.93b) |
| TATA: -0.16 (NI 6.76b - CFO 10.59b) / TA 24.32b) |
| Beneish M-Score: -2.84 (Cap -4..+1) = A |
Over the past week, the price has changed by -1.67%, over one month by -20.84%, over three months by -23.38% and over the past year by -31.94%.
| ISSUER | TARGET | UP/DOWN |
|---|---|---|
| Wallstreet Target Price | 2342 | 44.4% |
| Analysts Target Price | - | - |
P/E Trailing = 38.7573
P/E Forward = 36.2319
P/S = 10.931
P/B = 9.2139
P/EG = 3.7861
Revenue TTM = 23.67b EUR
EBIT TTM = 10.37b EUR
EBITDA TTM = 11.98b EUR
Long Term Debt = 34.0m EUR (from longTermDebt, last quarter)
Short Term Debt = 325.0m EUR (from shortTermDebt, last quarter)
Debt = 2.35b EUR (from shortLongTermDebtTotal, last quarter)
Net Debt = -9.89b EUR (from netDebt column, last quarter)
Enterprise Value = 165.03b EUR (174.92b + Debt 2.35b - CCE 12.24b)
Interest Coverage Ratio = 185.1 (Ebit TTM 10.37b / Interest Expense TTM 56.0m)
EV/FCF = 17.51x (Enterprise Value 165.03b / FCF TTM 9.43b)
FCF Yield = 5.71% (FCF TTM 9.43b / Enterprise Value 165.03b)
FCF Margin = 39.83% (FCF TTM 9.43b / Revenue TTM 23.67b)
Net Margin = 28.55% (Net Income TTM 6.76b / Revenue TTM 23.67b)
Gross Margin = 69.23% ((Revenue TTM 23.67b - Cost of Revenue TTM 7.28b) / Revenue TTM)
Gross Margin QoQ = 71.55% (prev 66.27%)
Tobins Q-Ratio = 6.79 (Enterprise Value 165.03b / Total Assets 24.32b)
Interest Expense / Debt = 1.11% (Interest Expense 26.0m / Debt 2.35b)
Taxrate = 31.11% (1.03b / 3.32b)
NOPAT = 7.14b (EBIT 10.37b * (1 - 31.11%))
Current Ratio = 4.99 (Total Current Assets 15.91b / Total Current Liabilities 3.19b)
Debt / Equity = 0.12 (Debt 2.35b / totalStockholderEquity, last quarter 18.84b)
Debt / EBITDA = -0.83 (Net Debt -9.89b / EBITDA 11.98b)
Debt / FCF = -1.05 (Net Debt -9.89b / FCF TTM 9.43b)
Total Stockholder Equity = 16.96b (last 4 quarters mean from totalStockholderEquity)
RoA = 30.15% (Net Income 6.76b / Total Assets 24.32b)
RoE = 39.86% (Net Income TTM 6.76b / Total Stockholder Equity 16.96b)
RoCE = 61.02% (EBIT 10.37b / Capital Employed (Equity 16.96b + L.T.Debt 34.0m))
RoIC = 40.51% (NOPAT 7.14b / Invested Capital 17.63b)
WACC = 7.90% (E(174.92b)/V(177.26b) * Re(8.0%) + D(2.35b)/V(177.26b) * Rd(1.11%) * (1-Tc(0.31)))
Discount Rate = 8.0% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.01%
[DCF] Terminal Value 81.90% ; FCFF base≈6.86b ; Y1≈8.46b ; Y5≈14.44b
[DCF] Fair Price = 2.51k (EV 253.15b - Net Debt -9.89b = Equity 263.04b / Shares 104.8m; r=7.90% [WACC]; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 0.65 | EPS CAGR: 0.0% | SUE: 0.0 | # QB: 0
Revenue Correlation: 97.70 | Revenue CAGR: 32.43% | SUE: 0.01 | # QB: 0
EPS current Year (2026-12-31): EPS=46.33 | Chg7d=-0.144 | Chg30d=-0.428 | Revisions Net=-1 | Growth EPS=+7.6% | Growth Revenue=+7.3%
EPS next Year (2027-12-31): EPS=53.43 | Chg7d=-0.156 | Chg30d=-0.139 | Revisions Net=-2 | Growth EPS=+15.3% | Growth Revenue=+9.8%
[Analyst] Revisions Ratio: -0.20 (2 Up / 3 Down within 30d for Current Year)
[Growth] Implied Growth Rate = 5.4% (Discount Rate 8.0% - Earnings Yield 2.6%)
[Growth] Growth Spread = +4.4% (Analyst 9.8% - Implied 5.4%)