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
Risk Analysis
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 not significantly more volatile than the rest of Swedish stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: HM B's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
4.1%
HM B
5.1%
SE Specialty Retail
0.6%
SE Market
1 Year Return
-1.2%
HM B
2.0%
SE Specialty Retail
17.1%
SE Market
Return vs Industry: HM B underperformed the Swedish Specialty Retail industry which returned 2% over the past year.
Return vs Market: HM B underperformed the Swedish Market which returned 17.1% over the past year.
Shareholder returns
| HM B | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.1% | 5.1% | 0.6% |
| 30 Day | 28.0% | 20.4% | 8.0% |
| 90 Day | 29.9% | 25.4% | 8.3% |
| 1 Year | -1.2%-1.2% | 2.1%2.0% | 18.9%17.1% |
| 3 Year | 5.3%-6.6% | 4.6%-7.1% | 41.5%26.2% |
| 5 Year | -29.4%-42.3% | -26.3%-39.7% | 63.2%31.7% |
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
5 months ago | Simply Wall St
What Kind Of Shareholder Appears On The H & M Hennes & Mauritz AB (publ)'s (STO:HM B) Shareholder Register?8 months ago | Simply Wall St
How Does H & M Hennes & Mauritz's (STO:HM B) P/E Compare To Its Industry, After The Share Price Drop?8 months ago | Simply Wall St
Boasting A 24% Return On Equity, Is H & M Hennes & Mauritz AB (publ) (STO:HM B) A Top Quality Stock?Valuation
Is H & M Hennes & Mauritz undervalued compared to its fair value and its price relative to the market?
101.73x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: HM B (SEK182.55) is trading above our estimate of fair value (SEK129.19)
Significantly Below Fair Value: HM B is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: HM B is poor value based on its PE Ratio (101.7x) compared to the SE Specialty Retail industry average (14.6x).
PE vs Market: HM B is poor value based on its PE Ratio (101.7x) compared to the Swedish market (22.8x).
Price to Earnings Growth Ratio
PEG Ratio: HM B is poor value based on its PEG Ratio (2.3x)
Price to Book Ratio
PB vs Industry: HM B is overvalued based on its PB Ratio (5.7x) compared to the SE Specialty Retail industry average (3.3x).
Next Steps
Future Growth
How is H & M Hennes & Mauritz forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
43.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HM B's forecast earnings growth (43.7% per year) is above the savings rate (0.5%).
Earnings vs Market: HM B's earnings (43.7% per year) are forecast to grow faster than the Swedish market (11.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: HM B's revenue (7.7% per year) is forecast to grow faster than the Swedish market (3.4% per year).
High Growth Revenue: HM B's revenue (7.7% 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 (27.7%)
Next Steps
Past Performance
How has H & M Hennes & Mauritz performed over the past 5 years?
-18.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HM B has high quality earnings.
Growing Profit Margin: HM B's current net profit margins (1.5%) are lower than last year (5.6%).
Past Earnings Growth Analysis
Earnings Trend: HM B's earnings have declined by 18.3% per year over the past 5 years.
Accelerating Growth: HM B's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HM B had negative earnings growth (-76.8%) over the past year, making it difficult to compare to the Specialty Retail industry average (2.1%).
Return on Equity
High ROE: HM B's Return on Equity (5.6%) is considered low.
Next Steps
Financial Health
How is H & M Hennes & Mauritz's financial position?
Financial Position Analysis
Short Term Liabilities: HM B's short term assets (SEK64.8B) exceed its short term liabilities (SEK54.8B).
Long Term Liabilities: HM B's short term assets (SEK64.8B) do not cover its long term liabilities (SEK73.2B).
Debt to Equity History and Analysis
Debt Level: HM B's debt to equity ratio (35.2%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if HM B's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: HM B's debt is well covered by operating cash flow (149.3%).
Interest Coverage: HM B's interest payments on its debt are well covered by EBIT (5.8x coverage).
Balance Sheet
Next Steps
Dividend
What is H & M Hennes & Mauritz current dividend yield, its reliability and sustainability?
3.27%
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?
2.8yrs
Average management tenure
CEO
Helena Helmersson (47 yo)
0.83
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 0.83yr | no data | no data | |
| Chief Financial Officer | 0.83yr | no data | no data | |
| Chief Accountant | no data | no data | no data | |
| Head of Investor Relations/Franchise | no data | no data | no data | |
| Head of Legal | no data | no data | no data | |
| Head of Communications & Communications Director | no data | no data | no data | |
| Head of HR | no data | no data | no data | |
| MD of H&M and H&M HOME | no data | no data | no data | |
| Head of New Business | 2.75yrs | no data | no data | |
| MD of H&M and H&M HOME | 11yrs | no data | no data | |
| Head of Security | no data | no data | no data | |
| Head of Steering & Strategic Planning | 5.83yrs | no data | no data |
2.8yrs
Average Tenure
47yo
Average Age
Experienced Management: HM B's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Director | 10.58yrs | kr815.00k | 0.0013% SEK 3.9m | |
| Independent Director | 6.58yrs | kr615.00k | 0.037% SEK 113.7m | |
| Chairman of the Board | 0.50yr | kr13.80m | 0.73% SEK 2.2b | |
| Independent Director | 4.5yrs | kr765.00k | 0.000050% SEK 153.0k | |
| Independent Director | 10.58yrs | kr765.00k | 0.00036% SEK 1.1m | |
| Deputy Member | 2.83yrs | no data | no data | |
| Independent Director | 6.58yrs | kr615.00k | 0.0058% SEK 17.7m | |
| Employee Representative Director | 8.83yrs | no data | 0% SEK 0 | |
| Independent Director | 4.5yrs | kr615.00k | 0.00091% SEK 2.8m | |
| Employee Representative Director | 2.83yrs | no data | no data | |
| Independent Director | 1.5yrs | no data | 0.00057% SEK 1.7m | |
| Deputy Member | 1.83yrs | no data | no data |
4.5yrs
Average Tenure
50.5yo
Average Age
Experienced Board: HM B's board of directors are considered experienced (4.5 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: kr305.940b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HMRZ.F | OTCPK (Pink Sheets LLC) | Yes | Class B Shares | US | USD | Jan 1992 |
| HM B | OM (OMX Nordic Exchange Stockholm) | Yes | Class B Shares | SE | SEK | Jan 1992 |
| HMB | SWX (SIX Swiss Exchange) | Yes | Class B Shares | CH | CHF | Jan 1992 |
| 0HBP | LSE (London Stock Exchange) | Yes | Class B Shares | GB | SEK | Jan 1992 |
| HMSB | XTRA (XETRA Trading Platform) | Yes | Class B Shares | DE | EUR | Jan 1992 |
| HMSB | DB (Deutsche Boerse AG) | Yes | Class B Shares | DE | EUR | Jan 1992 |
| HMBS | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Class B Shares | GB | SEK | Jan 1992 |
| HNNM.Y | OTCPK (Pink Sheets LLC) | ADR | US | USD | Aug 2007 | |
| HMSA | DB (Deutsche Boerse AG) | ADR | DE | EUR | Aug 2007 |
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/27 19:42 |
| End of Day Share Price | 2020/11/27 00:00 |
| Earnings | 2020/08/31 |
| Annual Earnings | 2019/11/30 |
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.