ENXTPA:MC

Stock Analysis Report

LVMH Moët Hennessy - Louis Vuitton Société Européenne

Executive Summary

LVMH Moët Hennessy - Louis Vuitton, Société Européenne operates as a luxury products company.


Snowflake Analysis

Solid track record with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has LVMH Moët Hennessy - Louis Vuitton Société Européenne's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.9%

MC

-9.9%

FR Luxury

-6.8%

FR Market


1 Year Return

-3.3%

MC

-8.7%

FR Luxury

-21.9%

FR Market

Return vs Industry: MC exceeded the French Luxury industry which returned -8% over the past year.

Return vs Market: MC exceeded the French Market which returned -21.8% over the past year.


Shareholder returns

MCIndustryMarket
7 Day-4.9%-9.9%-6.8%
30 Day-15.6%-14.9%-21.2%
90 Day-22.4%-23.9%-28.4%
1 Year-1.6%-3.3%-6.1%-8.7%-19.2%-21.9%
3 Year64.3%55.3%49.0%39.7%-3.2%-12.2%
5 Year108.2%88.5%85.6%68.1%3.4%-11.3%

Price Volatility Vs. Market

How volatile is LVMH Moët Hennessy - Louis Vuitton Société Européenne's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is LVMH Moët Hennessy - Louis Vuitton Société Européenne undervalued compared to its fair value and its price relative to the market?

9.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MC (€325.35) is trading below our estimate of fair value (€359.44)

Significantly Below Fair Value: MC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MC is poor value based on its PE Ratio (22.8x) compared to the Luxury industry average (21.1x).

PE vs Market: MC is poor value based on its PE Ratio (22.8x) compared to the French market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: MC is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: MC is overvalued based on its PB Ratio (4.5x) compared to the FR Luxury industry average (1.2x).


Next Steps

Future Growth

How is LVMH Moët Hennessy - Louis Vuitton Société Européenne forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MC's forecast earnings growth (7.4% per year) is above the savings rate (-0.1%).

Earnings vs Market: MC's earnings (7.4% per year) are forecast to grow slower than the French market (12% per year).

High Growth Earnings: MC's earnings are forecast to grow, but not significantly.

Revenue vs Market: MC's revenue (5.7% per year) is forecast to grow faster than the French market (3.5% per year).

High Growth Revenue: MC's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MC's Return on Equity is forecast to be high in 3 years time (20.6%)


Next Steps

Past Performance

How has LVMH Moët Hennessy - Louis Vuitton Société Européenne performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MC has high quality earnings.

Growing Profit Margin: MC's current net profit margins (13.4%) are lower than last year (13.6%).


Past Earnings Growth Analysis

Earnings Trend: MC's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: MC's earnings growth over the past year (12.9%) exceeds its 5-year average (9.4% per year).

Earnings vs Industry: MC earnings growth over the past year (12.9%) exceeded the Luxury industry -0.9%.


Return on Equity

High ROE: MC's Return on Equity (20.3%) is considered high.


Next Steps

Financial Health

How is LVMH Moët Hennessy - Louis Vuitton Société Européenne's financial position?


Financial Position Analysis

Short Term Liabilities: MC's short term assets (€26.5B) exceed its short term liabilities (€22.6B).

Long Term Liabilities: MC's short term assets (€26.5B) do not cover its long term liabilities (€35.5B).


Debt to Equity History and Analysis

Debt Level: MC's debt to equity ratio (33.2%) is considered satisfactory.

Reducing Debt: MC's debt to equity ratio has reduced from 39.6% to 33.2% over the past 5 years.

Debt Coverage: MC's debt is well covered by operating cash flow (91.5%).

Interest Coverage: MC's interest payments on its debt are well covered by EBIT (29.6x coverage).


Balance Sheet

Inventory Level: MC has a high level of physical assets or inventory.

Debt Coverage by Assets: MC's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

What is LVMH Moët Hennessy - Louis Vuitton Société Européenne's current dividend yield, its reliability and sustainability?

2.09%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: MC's dividend (2.09%) is higher than the bottom 25% of dividend payers in the French market (2.07%).

High Dividend: MC's dividend (2.09%) is low compared to the top 25% of dividend payers in the French market (6.44%).


Stability and Growth of Payments

Stable Dividend: MC's dividend payments have been volatile in the past 10 years.

Growing Dividend: MC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.7%), MC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MC's dividends in 3 years are forecast to be well covered by earnings (48.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

16.3yrs

Average management tenure


CEO

Bernard Arnault (70yo)

31.25s

Tenure

€7,957,623

Compensation

Mr. Bernard Arnault serves as an Executive Chairman and Chief Executive Officer at LVMH Moët Hennessy Louis Vuitton Inc. and LVMH Moët Hennessy Louis Vuitton SE since January 1989. Mr. Arnault began his ca ...


CEO Compensation Analysis

Compensation vs Market: Bernard's total compensation ($USD8.66M) is above average for companies of similar size in the French market ($USD4.00M).

Compensation vs Earnings: Bernard's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bernard Arnault
Chairman & CEO31.25yrs€7.96m0.13% 207.7m
Nicolas Bazire
Senior VP of Development & Acquisitions and Director20.92yrs€3.99m0.024% 38.5m
Antonio Belloni
Group MD & Director17.92yrs€7.59m0.085% 139.2m
Delphine Gancia
Director16.58yrs€1.65m0.095% 155.2m
Jean-Jacques Guiony
Chief Financial Officer16.25yrsno datano data
Bernard Kuhn
General Counselno datano datano data
Yann Bouillonnec
Vice President of Salesno datano datano data
Chantal Gaemperle
Executive Vice President of Human Resources & Synergiesno datano datano data
Shantanu Mukherji
Managing Director od L Cattertonno datano datano data
Bruno Villeneuve
Managing Director of Franck & Fils9.25yrsno datano data

16.3yrs

Average Tenure

60yo

Average Age

Experienced Management: MC's management team is seasoned and experienced (16.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bernard Arnault
Chairman & CEO31.25yrs€7.96m0.13% 207.7m
Nicolas Bazire
Senior VP of Development & Acquisitions and Director20.92yrs€3.99m0.024% 38.5m
Antonio Belloni
Group MD & Director17.92yrs€7.59m0.085% 139.2m
Delphine Gancia
Director16.58yrs€1.65m0.095% 155.2m
Pietro Beccari
Chairman & CEO of Christian Dior Couture2.17yrsno datano data
Michael Burke
Chairman & CEO of Louis Vuitton7.33yrsno datano data
Charles de Croisset
Independent Director11.92yrs€112.50k0.00020% 327.4k
Yves-Thibault de Silguy
Independent Director10.92yrs€157.50k0.00010% 163.7k
Diego Della Valle
Independent Director17.92yrs€45.00k0.00010% 163.7k
M. Védrine
Independent Director15.92yrs€60.00k0.00010% 163.7k

16.3yrs

Average Tenure

68yo

Average Age

Experienced Board: MC's board of directors are seasoned and experienced ( 16.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

LVMH Moët Hennessy - Louis Vuitton, Société Européenne's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LVMH Moët Hennessy - Louis Vuitton, Société Européenne
  • Ticker: MC
  • Exchange: ENXTPA
  • Founded: 1854
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: €163.712b
  • Shares outstanding: 503.65m
  • Website: https://www.lvmh.com

Number of Employees


Location

  • LVMH Moët Hennessy - Louis Vuitton, Société Européenne
  • 22, Avenue Montaigne
  • Paris
  • Ile-de-France
  • 75008
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LVMH.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 1987
MCENXTPA (Euronext Paris)YesCommon SharesFREURNov 1987
MCSWX (SIX Swiss Exchange)YesCommon SharesCHCHFNov 1987
0HAULSE (London Stock Exchange)YesCommon SharesGBEURNov 1987
LVMHBIT (Borsa Italiana)YesCommon SharesITEURNov 1987
MOHXTRA (XETRA Trading Platform)YesCommon SharesDEEURNov 1987
MOHDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1987
MCPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURNov 1987
MCWBAG (Wiener Boerse AG)YesCommon SharesATEURNov 1987
MC NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNNov 1987
LVMU.YOTCPK (Pink Sheets LLC)ADR EACH EACH CNV INTO 0.2 ORD EUR0.30USUSDFeb 2003
MOHFDB (Deutsche Boerse AG)ADR EACH EACH CNV INTO 0.2 ORD EUR0.30DEEURFeb 2003

Biography

LVMH Moët Hennessy - Louis Vuitton, Société Européenne operates as a luxury products company. The company offers champagnes, wines, and spirits under the Ao Yun, Ardbeg, Belvedere, Bodega Numanthia, Cape Mentelle, Chandon, Château Cheval Blanc, Château d'Yquem, Cheval des Andes, Clos des Lambrays, Clos19, Cloudy Bay, Dom Pérignon, Glenmorangie, Hennessy, Krug, Mercier, Moët & Chandon, Newton, Vineyard, Ruinart, Terrazas de los Andes, Veuve Clicquot, Volcan de mi Tierra, and Woodinville brands. It also provides fashion and leather products under the Berluti, Celine, Christian Dior, Emilio Pucci, Fendi, Givenchy, Kenzo, Loewe, Loro Piana, Louis Vuitton, Marc Jacobs, Moynat, Nicholas Kirkwood, Pink Shirtmaker, and Rimowa brands. In addition, the company offers perfumes and cosmetics under the Acqua di Parma, Benefit Cosmetics, Fenty Beauty by Rihanna, Fresh, Parfums Givenchy, Guerlain, Kat Von D Beauty, Kenzo Parfums, Maison Francis Kurkdjian, Make Up For Ever, Marc Jacobs Beauty, Parfums Christian Dior, and Perfumes Loewe brands; watches and jewelry under the Bvlgari, Chaumet, Fred, Hublot, TAG Heuerand Zenith brands; and custom-designed yachts under the Feadship brand name, as well as designs and builds luxury yachts under the Royal Van Lent brand. Further, it provides daily newspapers under the Les Échos brand; Belmond, a luxury tourism service; home other activities under the Belmond, Cheval Blanc, Connaissance des Arts, Cova, Investir, Jardin d'Acclimatation, La Samaritaine, Le Parisien, and Radio Classique brands; and selective retailing products under the DFS, La Grande Epicerie de Paris, Le Bon Marché Rive Gauche, Sephora, and Starboard Cruise brands, as well as operates Jardin d’Acclimatation, a leisure and amusement park. As of December 31, 2019, the company operated 4,915 stores worldwide. The company was founded in 1854 and is headquartered in Paris, France. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 21:26
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.