ENXTPA:RMS

Stock Analysis Report

Hermès International Société en commandite par actions

Executive Summary

Hermès International Société en commandite par actions engages in the production, wholesale, and retail of various goods.

Rewards

Earnings are forecast to grow 10.12% per year

Earnings grew by 9.8% over the past year

Risk Analysis

No risks detected for RMS from our risk checks.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Hermès International Société en commandite par actions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RMS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

RMS

-0.2%

FR Luxury

0.4%

FR Market


1 Year Return

28.3%

RMS

28.1%

FR Luxury

16.7%

FR Market

Return vs Industry: RMS underperformed the French Luxury industry which returned 30.1% over the past year.

Return vs Market: RMS exceeded the French Market which returned 17% over the past year.


Shareholder returns

RMSIndustryMarket
7 Day0.5%-0.2%0.4%
30 Day-3.5%-6.3%-0.5%
90 Day5.5%1.4%3.6%
1 Year29.4%28.3%31.6%28.1%20.8%16.7%
3 Year77.2%71.5%108.8%95.7%43.2%29.7%
5 Year163.9%147.0%159.3%134.3%54.8%32.9%

Price Volatility Vs. Market

How volatile is Hermès International Société en commandite par actions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hermès International Société en commandite par actions undervalued compared to its fair value and its price relative to the market?

50.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RMS (€700) is trading above our estimate of fair value (€404.83)

Significantly Below Fair Value: RMS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RMS is poor value based on its PE Ratio (50.2x) compared to the Luxury industry average (28.1x).

PE vs Market: RMS is poor value based on its PE Ratio (50.2x) compared to the French market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: RMS is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: RMS is overvalued based on its PB Ratio (12.7x) compared to the FR Luxury industry average (1.7x).


Next Steps

Future Growth

How is Hermès International Société en commandite par actions forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RMS's forecast earnings growth (10.1% per year) is above the savings rate (-0.1%).

Earnings vs Market: RMS's earnings (10.1% per year) are forecast to grow slower than the French market (13.4% per year).

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

Revenue vs Market: RMS's revenue (7.5% per year) is forecast to grow faster than the French market (4.5% per year).

High Growth Revenue: RMS's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RMS's Return on Equity is forecast to be high in 3 years time (22.7%)


Next Steps

Past Performance

How has Hermès International Société en commandite par actions performed over the past 5 years?

11.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RMS has high quality earnings.

Growing Profit Margin: RMS's current net profit margins (22.7%) are lower than last year (23.2%).


Past Earnings Growth Analysis

Earnings Trend: RMS's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: RMS's earnings growth over the past year (9.8%) is below its 5-year average (11.7% per year).

Earnings vs Industry: RMS earnings growth over the past year (9.8%) exceeded the Luxury industry 4.3%.


Return on Equity

High ROE: RMS's Return on Equity (25.3%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hermès International Société en commandite par actions's financial position?


Financial Position Analysis

Short Term Liabilities: RMS's short term assets (€5.2B) exceed its short term liabilities (€1.8B).

Long Term Liabilities: RMS's short term assets (€5.2B) exceed its long term liabilities (€1.2B).


Debt to Equity History and Analysis

Debt Level: RMS's debt to equity ratio (0.9%) is considered satisfactory.

Reducing Debt: RMS's debt to equity ratio has reduced from 1.4% to 0.9% over the past 5 years.

Debt Coverage: RMS's debt is well covered by operating cash flow (3223.7%).

Interest Coverage: RMS earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: RMS's debt is covered by short term assets (assets are 96x debt).


Next Steps

Dividend

What is Hermès International Société en commandite par actions's current dividend yield, its reliability and sustainability?

0.65%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.5%markettop25%4.4%industryaverage1.5%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: RMS's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the French market (1.52%).

High Dividend: RMS's dividend (0.65%) is low compared to the top 25% of dividend payers in the French market (4.49%).


Stability and Growth of Payments

Stable Dividend: RMS is not paying a notable dividend for the French market, therefore no need to check if payments are stable.

Growing Dividend: RMS is not paying a notable dividend for the French market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: RMS is not paying a notable dividend for the French market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RMS's dividend in 3 years as they are not forecast to pay a notable one for the French market.


Next Steps

Management

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

6.7yrs

Average management tenure


CEO

Hermès International Société en commandite par actions has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Éric de Seynes
EVP & Chairman of the Supervisory Board8.9yrs€143.00k0.00019% 140.5k
Axel Dumas
Executive Chairman6.7yrs€3.09m0.010% 7.4m
Henri-Louis Bauer
Executive Chairman13.8yrs€1.26mno data
Eric du Halgouët
Executive Vice President of Finance4.3yrsno data0.0020% 1.5m
Carole Dupont-Pietri
Group Financial Operations & Investor Relations Director0yrsno datano data
Nathalie Besombes
Company Law & Stock Market Director0yrsno datano data
Charlotte David
Executive Vice President of Communication4.3yrsno datano data
Florian Craen
Executive Vice President of Sales & Distribution6.1yrsno data0.0029% 2.2m
Pierre-Alexis Dumas
Artistic Executive Vice President14.3yrsno data0.089% 66.1m
Guillaume de Seynes
Executive Vice-President of Manufacturing Division & Equity Investments14.1yrsno data0.0088% 6.5m

6.7yrs

Average Tenure

53yo

Average Age

Experienced Management: RMS's management team is seasoned and experienced (6.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Éric de Seynes
EVP & Chairman of the Supervisory Board8.9yrs€143.00k0.00019% 140.5k
Dominique Marie Senequier
Vice-Chairwoman of the Supervisory Board0yrs€51.65k0.00019% 140.5k
Monique Cohen
Vice-Chairwoman of the Supervisory Board0yrs€53.93k0.00024% 177.5k
Charles-Éric Bauer
Member of the Supervisory Board11.7yrs€35.35k0.071% 52.2m
Julie Guerrand
Member of the Supervisory Board14.7yrs€28.20k0.0056% 4.1m
Renaud Momméja
Member of the Supervisory Board14.7yrs€42.90k0.17% 124.2m
Matthieu Dumas
Member of the Supervisory Board11.7yrs€44.20k0.00020% 147.9k
Blaise Guerrand
Member of the Supervisory Board7.8yrs€31.20k0.00019% 140.5k
Frederic Afriat
Employee Representative Member of the Supervisory Board3.3yrsno data0.000090% 66.6k
Olympia Guerrand
Member of the Supervisory Board2.7yrs€31.20k0.29% 217.3m

10.3yrs

Average Tenure

52yo

Average Age

Experienced Board: RMS's board of directors are seasoned and experienced ( 10.3 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

Hermès International Société en commandite par actions's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hermès International Société en commandite par actions
  • Ticker: RMS
  • Exchange: ENXTPA
  • Founded: 1837
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: €73.947b
  • Shares outstanding: 104.24m
  • Website: https://finance.hermes.com

Number of Employees


Location

  • Hermès International Société en commandite par actions
  • 24, rue du Faubourg-Saint-Honoré
  • Paris
  • Ile-de-France
  • 75008
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HESA.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDAug 1993
RMSENXTPA (Euronext Paris)YesRegistered SharesFREURAug 1993
0HV2LSE (London Stock Exchange)YesRegistered SharesGBEURAug 1993
HMIDB (Deutsche Boerse AG)YesRegistered SharesDEEURAug 1993
RMSPBATS-CHIXE (BATS 'Chi-X Europe')YesRegistered SharesGBEURAug 1993
RMSWBAG (Wiener Boerse AG)YesRegistered SharesATEURAug 1993
HESA.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

Hermès International Société en commandite par actions engages in the production, wholesale, and retail of various goods. The company offers leather goods and saddlery, such as bags for men and women, clutches, briefcases, luggage, small leather goods, diaries and writing objects, saddles, bridles, and a range of equestrian products and clothing; ready-to-wear garments for men and women; and accessories, including jewelry, belts, hats, gloves, the Internet of Things products, and shoes. It also provides silk and textiles for men and women; art of living products comprising furniture, lighting, plaids, decorative objects, tableware, birth gifts, beach fabrics, furnishing fabrics, and wallpapers; perfumes; and watches. In addition, the company is also involved in weaving, engraving, printing, dyeing, finishing, and producing textiles; and purchasing, tanning, dyeing, finishing, and selling precious hides. It sells its products through a network of 310 stores, including 219 directly operated stores worldwide. The company also sells watches, perfumes, and tableware through a network of specialized stores and in airport duty-free stores. Hermès International Société en commandite par actions was founded in 1837 and is based in Paris, France. Hermès International Société en commandite par actions is a subsidiary of H51 SAS. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 20:55
End of Day Share Price2020/02/18 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.