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H & M Hennes & Mauritz

Market Cap

kr341.9b

Last Updated

2021/05/12 18:36 UTC

Data Sources

Company Financials +

Executive Summary

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, teenagers, children, and babies worldwide. More Details

Rewards

Earnings are forecast to grow 23.78% per year

Risk Analysis

No risks detected for HM B from our risk checks.


Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has H & M Hennes & Mauritz's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HM B is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: HM B's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-4.5%

HM B

-4.2%

SE Specialty Retail

-2.2%

SE Market


1 Year Return

63.5%

HM B

65.4%

SE Specialty Retail

51.9%

SE Market

Return vs Industry: HM B exceeded the Swedish Specialty Retail industry which returned 58.5% over the past year.

Return vs Market: HM B exceeded the Swedish Market which returned 47.4% over the past year.


Shareholder returns

HM BIndustryMarket
7 Day-4.5%-4.2%-2.2%
30 Day2.2%2.3%-1.4%
90 Day12.1%12.9%8.0%
1 Year63.5%63.5%65.7%65.4%57.0%51.9%
3 Year58.7%45.6%58.9%46.0%62.7%44.6%
5 Year-9.7%-23.6%-5.0%-19.7%102.1%62.0%

Long-Term Price Volatility Vs. Market

How volatile is H & M Hennes & Mauritz's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is H & M Hennes & Mauritz undervalued compared to its fair value and its price relative to the market?

6.27x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: HM B (SEK202.3) is trading above our estimate of fair value (SEK177.86)

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


Price To Earnings Ratio

PE vs Industry: HM B is unprofitable, so we can't compare its PE Ratio to the Swedish Specialty Retail industry average.

PE vs Market: HM B is unprofitable, so we can't compare its PE Ratio to the Swedish market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HM B's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HM B is overvalued based on its PB Ratio (6.3x) compared to the SE Specialty Retail industry average (3.9x).


Future Growth

How is H & M Hennes & Mauritz forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

23.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HM B is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.3%).

Earnings vs Market: HM B is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: HM B's is expected to become profitable in the next 3 years.

Revenue vs Market: HM B's revenue (6.8% per year) is forecast to grow faster than the Swedish market (0.6% per year).

High Growth Revenue: HM B's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HM B's Return on Equity is forecast to be high in 3 years time (27%)


Past Performance

How has H & M Hennes & Mauritz performed over the past 5 years?

-26.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HM B is currently unprofitable.

Growing Profit Margin: HM B is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HM B is unprofitable, and losses have increased over the past 5 years at a rate of 26.9% per year.

Accelerating Growth: Unable to compare HM B's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HM B is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (33.7%).


Return on Equity

High ROE: HM B has a negative Return on Equity (-3.29%), as it is currently unprofitable.


Financial Health

How is H & M Hennes & Mauritz's financial position?


Financial Position Analysis

Short Term Liabilities: HM B's short term assets (SEK66.2B) exceed its short term liabilities (SEK50.8B).

Long Term Liabilities: HM B's short term assets (SEK66.2B) exceed its long term liabilities (SEK65.9B).


Debt to Equity History and Analysis

Debt Level: HM B's debt to equity ratio (29.5%) is considered satisfactory.

Reducing Debt: HM B's debt to equity ratio has increased from 0.09% to 29.5% over the past 5 years.

Debt Coverage: HM B's debt is well covered by operating cash flow (159%).

Interest Coverage: Insufficient data to determine if HM B's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is H & M Hennes & Mauritz current dividend yield, its reliability and sustainability?

3.57%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HM B's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HM B's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HM B's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HM B's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HM B is not paying a notable dividend for the Swedish market.


Future Payout to Shareholders

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


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Helena Helmersson (47 yo)

1.33yrs

Tenure

Ms. Helena Helmersson has been Chief Executive Officer of H & M Hennes & Mauritz AB (publ) since January 30, 2020. She served as Chief Operating Officer of H & M Hennes & Mauritz AB (publ) since 2018 until...


Leadership Team

Experienced Management: HM B's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: HM B's board of directors are considered experienced (5 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

H & M Hennes & Mauritz AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: H & M Hennes & Mauritz AB (publ)
  • Ticker: HM B
  • Exchange: OM
  • Founded: 1947
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: kr341.855b
  • Shares outstanding: 1.66b
  • Website: https://www.hmgroup.com

Number of Employees


Location

  • H & M Hennes & Mauritz AB (publ)
  • MAester Samuelsgatan 46A
  • Stockholm
  • Stockholm County
  • 106 38
  • Sweden

Listings


Biography

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, teenagers, children, and babies worldwide. It offers sportswear, shoes, bag...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/12 18:36
End of Day Share Price2021/05/12 00:00
Earnings2021/02/28
Annual Earnings2020/11/30


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.