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

Fundamentals

Solid track record with adequate 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


Market Performance


7 Day Return

-0.8%

MC

0.3%

FR Luxury

1.6%

FR Market


1 Year Return

42.5%

MC

33.9%

FR Luxury

9.6%

FR Market

Return vs Industry: MC exceeded the French Luxury industry which returned 33.9% over the past year.

Return vs Market: MC exceeded the French Market which returned 9.6% over the past year.


Shareholder returns

MCIndustryMarket
7 Day-0.8%0.3%1.6%
30 Day2.8%1.8%0.6%
90 Day-1.9%-2.5%0.6%
1 Year45.2%42.5%36.2%33.9%13.4%9.6%
3 Year137.9%124.4%110.6%99.0%42.9%29.1%
5 Year259.5%192.4%207.3%165.9%71.1%45.2%

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?

28.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: MC (€375.05) is trading above our estimate of fair value (€287.05)

Significantly Undervalued: MC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MC is poor value based on its PE Ratio (28.5x) compared to the Luxury industry average (28.5x).

PE vs Market: MC is poor value based on its PE Ratio (28.5x) compared to the French market (17.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: MC is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: MC is overvalued based on its PB Ratio (5.6x) compared to the FR Luxury industry average (1.6x).


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 27 analysts?

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MC's forecast earnings growth (8.1% per year) is above the savings rate (0.7%).

Earnings vs Market: MC's earnings (8.1% per year) are forecast to grow slower than the French market (11.4% per year).

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

Revenue vs Market: MC's revenue (6.6% per year) is forecast to grow faster than the French market (4.5% per year).

High Growth Revenue: MC's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MC's Return on Equity is forecast to be low in 3 years time (19.1%).


Next Steps

Past Performance

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

8.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MC's earnings have grown by 8.5% per year over the past 5 years.

Accelerating Growth: MC's earnings growth over the past year (6%) is below its 5-year average (8.5% per year).

Earnings vs Industry: MC earnings growth over the past year (6%) exceeded the Luxury industry 4.3%.


Return on Equity

High ROE: MC's Return on Equity (20.6%) is considered high.


Return on Assets

ROA vs Industry: MC has a higher Return on Assets than the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: MC has improved its Return on Capital Employed over the past 3 years.


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 (€24.1B) exceeds its short term liabilities (€21.0B)

Long Term Liabilities: MC's short term assets (24.1B) do not cover its long term liabilities (34.5B)


Debt to Equity History and Analysis

Debt Level: MC's debt to equity ratio (38.1%) is considered satisfactory

Reducing Debt: MC's debt to equity ratio has increased from 30.7% to 38.1% over the past 5 years.

Debt Coverage: MC's debt is well covered by operating cash flow (70.6%).

Interest Coverage: MC's interest payments on its debt are well covered by EBIT (42.3x 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 1.786820x debt).


Next Steps

Dividend

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

1.65%

Current Dividend Yield


Upcoming Dividend Payment

Purchase LVMH Moët Hennessy - Louis Vuitton Société Européenne before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.7%marketbottom25%1.5%markettop25%4.6%industryaverage1.5%forecastin3Years2.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MC's dividend (1.65%) is higher than the bottom 25% of dividend payers in the French market (1.53%).

High Dividend: MC's dividend (1.65%) is low compared to the top 25% of dividend payers in the French market (4.64%).

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 (47.1%), 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 (49.7% payout ratio).


Next Steps

Management

What is the CEO of LVMH Moët Hennessy - Louis Vuitton Société Européenne's salary, the management and board of directors tenure and is there insider trading?

15.8yrs

Average management tenure


CEO

Bernard Arnault (70yo)

30.8yrs

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 ($USD8.86M) is about average for companies of similar size in the French market ($USD3.59M).

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


Management Age and Tenure

15.8yrs

Average Tenure

60yo

Average Age

Experienced Management: MC's management team is seasoned and experienced (15.8 years average tenure).


Board Age and Tenure

15.8yrs

Average Tenure

68yo

Average Age

Experienced Board: MC's board of directors are seasoned and experienced ( 15.8 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Bernard Arnault (70yo)

    Chairman & CEO

    • Tenure: 30.8yrs
    • Compensation: €7.96m
  • Nicolas Bazire (62yo)

    Senior VP of Development & Acquisitions and Director

    • Tenure: 20.4yrs
    • Compensation: €3.99m
  • Toni Belloni (65yo)

    Group MD & Director

    • Tenure: 17.4yrs
    • Compensation: €7.59m
  • Jean-Jacques Guiony (58yo)

    Chief Financial Officer

    • Tenure: 15.8yrs
  • Delphine Gancia (44yo)

    Director

    • Tenure: 16.1yrs
    • Compensation: €1.65m
  • Chantal Gaemperle (57yo)

    Executive Vice President of Human Resources & Synergies

    • Tenure: 0yrs
  • Shantanu Mukherji

    Managing Director od L Catterton

    • Tenure: 0yrs
  • Yann Bouillonnec

    Vice President of Sales

    • Tenure: 0yrs
  • Bruno Villeneuve

    Managing Director of Franck & Fils

    • Tenure: 8.8yrs
  • Bernard Kuhn

    General Counsel

    • Tenure: 0yrs

Board Members

  • Bernard Arnault (70yo)

    Chairman & CEO

    • Tenure: 30.8yrs
    • Compensation: €7.96m
  • Nicolas Bazire (62yo)

    Senior VP of Development & Acquisitions and Director

    • Tenure: 20.4yrs
    • Compensation: €3.99m
  • Charles de Croisset (76yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: €112.50k
  • Toni Belloni (65yo)

    Group MD & Director

    • Tenure: 17.4yrs
    • Compensation: €7.59m
  • Yves-Thibault de Silguy (71yo)

    Independent Director

    • Tenure: 10.4yrs
    • Compensation: €157.50k
  • Diego Della Valle (66yo)

    Independent Director

    • Tenure: 17.4yrs
    • Compensation: €45.00k
  • Delphine Gancia (44yo)

    Director

    • Tenure: 16.1yrs
    • Compensation: €1.65m
  • Michael Burke

    Chairman & CEO of Louis Vuitton

    • Tenure: 6.8yrs
  • M. Védrine (72yo)

    Independent Director

    • Tenure: 15.4yrs
    • Compensation: €60.00k
  • Pietro Beccari

    Chairman & CEO of Christian Dior Couture

    • Tenure: 1.7yrs

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: 1923
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: €188.788b
  • Shares outstanding: 503.37m
  • 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
MOHXTRA (XETRA Trading Platform)YesCommon SharesDEEURNov 1987
MC NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNNov 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
LVMH.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 1987
MOHDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1987
MCWBAG (Wiener Boerse AG)YesCommon SharesATEURNov 1987
MCPBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURNov 1987
MOHFDB (Deutsche Boerse AG)ADR EACH EACH CNV INTO 0.2 ORD EUR0.30DEEURFeb 2003
LVMU.YOTCPK (Pink Sheets LLC)ADR EACH EACH CNV INTO 0.2 ORD EUR0.30USUSDFeb 2003

Biography

LVMH Moët Hennessy - Louis Vuitton, Société Européenne operates as a luxury products company. The company operates through Wines and Spirits; Fashion and Leather Goods; Perfumes and Cosmetics; Watches and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 20:56
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.