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H & M Hennes & Mauritz

OM:HM B
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HM B
OM
SEK230B
Market Cap
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Last updated 2019/03/20 20:34
Company description

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, and cosmetics for women, men, teenagers, children, and babies worldwide. The last earnings update was 48 days ago. More info.

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HM B Share Price and Events
7 Day Returns
0.8%
OM:HM B
2.1%
SE Specialty Retail
2.6%
SE Market
1 Year Returns
8.4%
OM:HM B
3.6%
SE Specialty Retail
4%
SE Market
HM B Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
H & M Hennes & Mauritz (HM B) 0.8% 1.6% 5.6% 8.4% -48.5% -52%
SE Specialty Retail 2.1% 1.7% 1.3% 3.6% -46.1% -51.2%
SE Market 2.6% 2% 11.9% 4% 12.8% 22.5%
1 Year Return vs Industry and Market
  • HM B outperformed the Specialty Retail industry which returned 3.6% over the past year.
  • HM B outperformed the Market in Sweden which returned 4% over the past year.
Price Volatility
HM B
Industry
5yr Volatility vs Market

HM B Value

 Is H & M Hennes & Mauritz undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of H & M Hennes & Mauritz to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for H & M Hennes & Mauritz.

OM:HM B Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 23 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.1%
Perpetual Growth Rate 10-Year SE Government Bond Rate 0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OM:HM B
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year SE Govt Bond Rate 0.4%
Equity Risk Premium S&P Global 6%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.857 (1 + (1- 22%) (8.59%)) 		0.943
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 0.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.43% + (0.943 * 5.96%) 		6.05%

Discounted Cash Flow Calculation for OM:HM B using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for H & M Hennes & Mauritz is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OM:HM B DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SEK, Millions) Source Present Value
Discounted (@ 6.05%)
2019 12,494.52 Analyst x13 11,781.47
2020 14,160.30 Analyst x12 12,590.19
2021 14,983.07 Analyst x9 12,561.46
2022 13,300.00 Analyst x1 10,514.07
2023 12,208.56 Est @ -8.21% 9,100.46
2024 11,523.15 Est @ -5.61% 8,099.35
2025 11,085.31 Est @ -3.8% 7,346.95
2026 10,804.92 Est @ -2.53% 6,752.43
2027 10,627.68 Est @ -1.64% 6,262.63
2028 10,519.50 Est @ -1.02% 5,845.12
Present value of next 10 years cash flows SEK90,854.13
OM:HM B DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= SEK10,519.50 × (1 + 0.43%) ÷ (6.05% – 0.43%) 		SEK188,058.93
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SEK188,058.93 ÷ (1 + 6.05%)10 		SEK104,494.22
OM:HM B Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SEK90,854.13 + SEK104,494.22 		SEK195,348.35
Equity Value per Share
(SEK)		 = Total value / Shares Outstanding
= SEK195,348.35 / 1,655.07 		SEK118.03
OM:HM B Discount to Share Price
Calculation Result
Value per share (SEK) From above. SEK118.03
Current discount Discount to share price of SEK139.18
= -1 x (SEK139.18 - SEK118.03) / SEK118.03 		-17.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of H & M Hennes & Mauritz is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for H & M Hennes & Mauritz's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are H & M Hennes & Mauritz's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OM:HM B PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-11-30) in SEK SEK7.64
OM:HM B Share Price ** OM (2019-03-20) in SEK SEK139.18
Sweden Specialty Retail Industry PE Ratio Median Figure of 10 Publicly-Listed Specialty Retail Companies 12.98x
Sweden Market PE Ratio Median Figure of 322 Publicly-Listed Companies 17.04x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of H & M Hennes & Mauritz.

OM:HM B PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OM:HM B Share Price ÷ EPS (both in SEK)

= 139.18 ÷ 7.64

 18.21x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • H & M Hennes & Mauritz is overvalued based on earnings compared to the SE Specialty Retail industry average.
  • H & M Hennes & Mauritz is overvalued based on earnings compared to the Sweden market.
Price based on expected Growth
Does H & M Hennes & Mauritz's expected growth come at a high price?
Raw Data
OM:HM B PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.21x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts		 2.1%per year
Sweden Specialty Retail Industry PEG Ratio Median Figure of 8 Publicly-Listed Specialty Retail Companies 1.4x
Sweden Market PEG Ratio Median Figure of 234 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

OM:HM B PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.21x ÷ 2.1%

 8.57x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • H & M Hennes & Mauritz is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on H & M Hennes & Mauritz's assets?
Raw Data
OM:HM B PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-11-30) in SEK SEK35.37
OM:HM B Share Price * OM (2019-03-20) in SEK SEK139.18
Sweden Specialty Retail Industry PB Ratio Median Figure of 13 Publicly-Listed Specialty Retail Companies 1.93x
Sweden Market PB Ratio Median Figure of 562 Publicly-Listed Companies 2.48x
OM:HM B PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OM:HM B Share Price ÷ Book Value per Share (both in SEK)

= 139.18 ÷ 35.37

 3.93x

* Primary Listing of H & M Hennes & Mauritz.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • H & M Hennes & Mauritz is overvalued based on assets compared to the SE Specialty Retail industry average.
X
Value checks
We assess H & M Hennes & Mauritz's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
    5. H & M Hennes & Mauritz has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HM B Future Performance

 How is H & M Hennes & Mauritz expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is H & M Hennes & Mauritz expected to grow at an attractive rate?
  • H & M Hennes & Mauritz's earnings growth is expected to exceed the low risk savings rate of 0.4%.
Growth vs Market Checks
  • H & M Hennes & Mauritz's earnings growth is positive but not above the Sweden market average.
  • H & M Hennes & Mauritz's revenue growth is positive but not above the Sweden market average.
Annual Growth Rates Comparison
Raw Data
OM:HM B Future Growth Rates Data Sources
Data Point Source Value (per year)
OM:HM B Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts 2.1%
OM:HM B Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 23 Analysts 3.7%
Sweden Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 4%
Sweden Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
Sweden Market Earnings Growth Rate Market Cap Weighted Average 8.5%
Sweden Market Revenue Growth Rate Market Cap Weighted Average 4.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OM:HM B Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below
All numbers in SEK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OM:HM B Future Estimates Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-11-30 257,236 1
2022-11-30 250,859 2
2021-11-30 236,149 26,044 13,310 19
2020-11-30 229,351 24,755 13,060 21
2019-11-30 222,033 23,660 12,244 23
OM:HM B Past Financials Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income *
2018-11-30 210,400 21,287 12,652
2018-08-31 204,393 20,268 13,102
2018-05-31 199,801 19,778 13,840
2018-02-28 199,200 20,533 15,099
2017-11-30 200,004 21,587 16,184
2017-08-31 202,317 22,465 18,105
2017-05-31 200,070 22,151 19,088
2017-02-28 195,561 21,814 18,548
2016-11-30 192,267 23,775 18,636
2016-08-31 188,241 23,803 18,248
2016-05-31 185,283 23,037 18,734
2016-02-29 184,276 23,449 19,830

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • H & M Hennes & Mauritz's earnings are expected to grow by 2.1% yearly, however this is not considered high growth (20% yearly).
  • H & M Hennes & Mauritz's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OM:HM B Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below

All data from H & M Hennes & Mauritz Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:HM B Future Estimates Data
Date (Data in SEK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-11-30
2022-11-30
2021-11-30 7.97 10.00 6.08 10.00
2020-11-30 7.87 9.40 6.25 13.00
2019-11-30 7.42 8.00 6.64 14.00
OM:HM B Past Financials Data
Date (Data in SEK Millions) EPS *
2018-11-30 7.64
2018-08-31 7.92
2018-05-31 8.36
2018-02-28 9.12
2017-11-30 9.78
2017-08-31 10.94
2017-05-31 11.53
2017-02-28 11.21
2016-11-30 11.26
2016-08-31 11.03
2016-05-31 11.32
2016-02-29 11.98

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • H & M Hennes & Mauritz is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess H & M Hennes & Mauritz's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Sweden market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Sweden market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
H & M Hennes & Mauritz has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HM B Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare H & M Hennes & Mauritz's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • H & M Hennes & Mauritz's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • H & M Hennes & Mauritz's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • H & M Hennes & Mauritz's 1-year earnings growth is negative, it can't be compared to the SE Specialty Retail industry average.
Earnings and Revenue History
H & M Hennes & Mauritz's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from H & M Hennes & Mauritz Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:HM B Past Revenue, Cash Flow and Net Income Data
Date (Data in SEK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-11-30 210,400.00 12,652.00 95,394.00
2018-08-31 204,393.00 13,102.00 92,212.00
2018-05-31 199,801.00 13,840.00 89,508.00
2018-02-28 199,200.00 15,099.00 88,046.00
2017-11-30 200,004.00 16,184.00 87,521.00
2017-08-31 202,317.00 18,105.00 87,086.00
2017-05-31 200,070.00 19,088.00 85,899.00
2017-02-28 195,561.00 18,548.00 84,232.00
2016-11-30 192,267.00 18,636.00 82,354.00
2016-08-31 188,241.00 18,248.00 80,594.00
2016-05-31 185,283.00 18,734.00 79,213.00
2016-02-29 184,276.00 19,830.00 78,078.00
2015-11-30 180,861.00 20,898.00 76,225.00
2015-08-31 174,811.00 21,594.00 73,355.00
2015-05-31 167,592.00 21,584.00 70,253.00
2015-02-28 159,552.00 20,940.00 66,805.00
2014-11-30 151,419.00 19,976.00 63,469.00
2014-08-31 145,270.00 19,303.00 60,425.00
2014-05-31 138,505.00 18,438.00 57,757.00
2014-02-28 132,313.00 17,343.00 55,556.00
2013-11-30 128,562.00 17,093.00 53,935.00
2013-08-31 124,569.00 16,831.00 52,420.00
2013-05-31 121,335.00 16,022.00 51,316.00
2013-02-28 121,359.00 16,586.00 50,655.00
2012-11-30 120,799.00 16,867.00 50,117.00
2012-08-31 119,249.00 16,937.00 49,118.00
2012-05-31 117,355.00 16,904.00 48,208.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • H & M Hennes & Mauritz has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • H & M Hennes & Mauritz used its assets more efficiently than the SE Specialty Retail industry average last year based on Return on Assets.
  • H & M Hennes & Mauritz's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess H & M Hennes & Mauritz's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
H & M Hennes & Mauritz has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HM B Health

 How is H & M Hennes & Mauritz's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up H & M Hennes & Mauritz's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • H & M Hennes & Mauritz is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • H & M Hennes & Mauritz's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of H & M Hennes & Mauritz's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from H & M Hennes & Mauritz Company Filings, last reported 3 months ago.

OM:HM B Past Debt and Equity Data
Date (Data in SEK Millions) Total Equity Total Debt Cash & Short Term Investments
2018-11-30 58,546.00 19,781.00 11,590.00
2018-08-31 55,029.00 16,375.00 13,963.00
2018-05-31 51,889.00 16,537.00 11,107.00
2018-02-28 61,720.00 11,716.00 10,003.00
2017-11-30 59,713.00 10,220.00 9,718.00
2017-08-31 54,521.00 4,411.00 9,665.00
2017-05-31 52,469.00 7,046.00 10,655.00
2017-02-28 63,395.00 2,050.00 8,437.00
2016-11-30 61,236.00 2,340.00 9,446.00
2016-08-31 54,146.00 3,724.00 8,680.00
2016-05-31 48,907.00 4,915.00 8,387.00
2016-02-29 59,401.00 0.00 14,571.00
2015-11-30 58,049.00 0.00 12,950.00
2015-08-31 52,030.00 0.00 10,963.00
2015-05-31 47,239.00 0.00 10,293.00
2015-02-28 56,933.00 0.00 20,026.00
2014-11-30 51,556.00 0.00 16,693.00
2014-08-31 44,576.00 0.00 13,451.00
2014-05-31 38,516.00 0.00 9,592.00
2014-02-28 47,586.00 0.00 18,226.00
2013-11-30 45,248.00 0.00 17,224.00
2013-08-31 39,203.00 0.00 10,953.00
2013-05-31 34,747.00 0.00 9,061.00
2013-02-28 45,625.00 0.00 18,959.00
2012-11-30 43,835.00 0.00 17,143.00
2012-08-31 38,275.00 0.00 13,552.00
2012-05-31 36,516.00 0.00 13,543.00
  • H & M Hennes & Mauritz's level of debt (33.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 33.8% today).
  • Debt is well covered by operating cash flow (107.6%, greater than 20% of total debt).
  • H & M Hennes & Mauritz earns more interest than it pays, coverage of interest payments is not a concern.
Show me more healthy companies in the Specialty Retail industry
X
Financial health checks
We assess H & M Hennes & Mauritz's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. H & M Hennes & Mauritz has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HM B Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.01%
Current annual income from H & M Hennes & Mauritz dividends. Estimated to be 6.35% next year.
If you bought SEK2,000 of H & M Hennes & Mauritz shares you are expected to receive SEK140 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • H & M Hennes & Mauritz's pays a higher dividend yield than the bottom 25% of dividend payers in Sweden (1.93%).
  • H & M Hennes & Mauritz's dividend is above the markets top 25% of dividend payers in Sweden (4.45%).
Upcoming dividend payment

Purchase H & M Hennes & Mauritz on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OM:HM B Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below
Sweden Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 6.7%
Sweden Market Average Dividend Yield Market Cap Weighted Average of 247 Stocks 3.6%
Sweden Minimum Threshold Dividend Yield 10th Percentile 1.2%
Sweden Bottom 25% Dividend Yield 25th Percentile 1.9%
Sweden Top 25% Dividend Yield 75th Percentile 4.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OM:HM B Future Dividends Estimate Data
Date (Data in SEK) Dividend per Share (annual) Avg. No. Analysts
2023-11-30
2022-11-30
2021-11-30 8.79 17.00
2020-11-30 8.86 20.00
2019-11-30 8.88 22.00
OM:HM B Past Annualized Dividends Data
Date (Data in SEK) Dividend per share (annual) Avg. Yield (%)
2019-01-31 9.750 7.025
2018-02-12 9.750 6.948
2017-05-10 9.750 4.956
2016-05-03 9.750 3.914
2015-04-29 9.750 3.151
2014-04-30 9.500 3.086
2013-03-22 9.500 3.681
2012-03-26 9.500 4.104
2011-04-28 9.500 4.416
2010-03-24 8.000 3.517
2009-03-23 7.750 3.927

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of H & M Hennes & Mauritz's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.9x coverage).
Show me more dividend paying companies in the Specialty Retail industry
X
Income/ dividend checks
We assess H & M Hennes & Mauritz's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can H & M Hennes & Mauritz afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. H & M Hennes & Mauritz has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HM B Management

 What is the CEO of H & M Hennes & Mauritz's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Karl-Johan Persson
COMPENSATION SEK13,700,000
AGE 43
TENURE AS CEO 9.7 years
CEO Bio

Mr. Karl-johan Persson is a Co-founder at NS Intressenter AB. Mr. Persson has been the Chief Executive Officer and Managing Director of H & M Hennes & Mauritz AB (publ) since July 1, 2009 and serves as its President. Mr. Persson served as the Head of Expansion and Head of Expansion Business development brand and New Business of H & M Hennes & Mauritz AB (publ) until July 1, 2009. He was responsible for business development at H&M since 2005. Mr. Persson served as Managing Director of European Network from 2001 to 2004. He serves as a Director of H&M’s subsidiaries in Denmark, the USA, the UK and Germany. He served as a Director of H & M Hennes & Mauritz AB (publ) since 2006. He is a Member of The Swedish Chamber of Commerce in the UK and the GoodCause Foundation. Mr. Persson studied at European Business School, London, from 1996 to 2000.

CEO Compensation
  • Karl-Johan's compensation has been consistent with company performance over the past year.
  • Karl-Johan's remuneration is lower than average for companies of similar size in Sweden.
Management Team Tenure

Average tenure of the H & M Hennes & Mauritz management team in years:

9.7
Average Tenure
  • The average tenure for the H & M Hennes & Mauritz management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Karl-Johan Persson

TITLE
CEO, President & MD
COMPENSATION
SEK14M
AGE
43
TENURE
9.7 yrs

Jyrki Tervonen

TITLE
Chief Financial Officer
TENURE
10.5 yrs

Helena Helmersson

TITLE
Chief Operating Officer
TENURE
1.2 yrs

Anders Jonasson

TITLE
Chief Accountant

Nils Vinge

TITLE
Head of Investor Relations/Franchise

Fredrik Björkstedt

TITLE
Head of Legal

Daniel Herrmann

TITLE
Head of Marketing and Communications

Helena Thybell

TITLE
Head of Human Resources

Kristina Stenvinkel

TITLE
Head of Communications

Madeleine Persson

TITLE
Managing Director of H&M
Board of Directors Tenure

Average tenure and age of the H & M Hennes & Mauritz board of directors in years:

4.9
Average Tenure
50.5
Average Age
  • The tenure for the H & M Hennes & Mauritz board of directors is about average.
Board of Directors

Stefan Persson

TITLE
Chairman of the Board
COMPENSATION
SEK2M
AGE
71
TENURE
21.2 yrs

Max Sievert

TITLE
Independent Director
COMPENSATION
SEK750K
AGE
49
TENURE
8.9 yrs

Anders Dahlvig

TITLE
Independent Director
COMPENSATION
SEK700K
AGE
61
TENURE
8.9 yrs

Ingrid Godin

TITLE
Employee Representative Director
AGE
59
TENURE
7.2 yrs

Lena Keller

TITLE
Independent Director
COMPENSATION
SEK575K
AGE
49
TENURE
4.9 yrs

Niklas Zennström

TITLE
Independent Director
COMPENSATION
SEK575K
AGE
52
TENURE
4.9 yrs

Alexandra Rosenqvist

TITLE
Employee Representative Director
AGE
42
TENURE
1.2 yrs

Stina Bergfors

TITLE
Independent Director
COMPENSATION
SEK575K
AGE
46
TENURE
2.8 yrs

Erica Häger

TITLE
Independent Director
COMPENSATION
SEK700K
AGE
48
TENURE
2.8 yrs

Margareta Welinder

TITLE
Deputy Employee Representative Director
AGE
56
TENURE
1.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SEK) Value (SEK)
12. Feb 19 Buy Ramsbury Invest AB Company 07. Feb 19 11. Feb 19 6,000,000 SEK140.00 SEK833,939,515
05. Feb 19 Buy Ramsbury Invest AB Company 31. Jan 19 04. Feb 19 10,377,845 SEK141.40 SEK1,451,076,046
21. Nov 18 Buy Ramsbury Invest AB Company 16. Nov 18 16. Nov 18 2,041,765 SEK157.39 SEK321,362,783
16. Nov 18 Buy Ramsbury Invest AB Company 13. Nov 18 15. Nov 18 5,456,374 SEK155.65 SEK845,884,842
13. Jul 18 Buy Ramsbury Invest AB Company 11. Jul 18 12. Jul 18 1,500,000 SEK140.62 SEK210,763,619
11. Jul 18 Buy Ramsbury Invest AB Company 06. Jul 18 10. Jul 18 3,413,238 SEK142.47 SEK482,703,393
06. Jul 18 Buy Ramsbury Invest AB Company 03. Jul 18 05. Jul 18 5,250,000 SEK138.80 SEK725,002,393
03. Jul 18 Buy Ramsbury Invest AB Company 28. Jun 18 02. Jul 18 8,125,753 SEK135.36 SEK1,092,780,773
25. May 18 Buy Ramsbury Invest AB Company 22. May 18 24. May 18 4,350,000 SEK146.03 SEK631,499,420
22. May 18 Buy Ramsbury Invest AB Company 17. May 18 21. May 18 3,200,000 SEK145.65 SEK461,776,263
17. May 18 Buy Ramsbury Invest AB Company 14. May 18 16. May 18 7,102,566 SEK140.89 SEK988,297,748
14. May 18 Buy Ramsbury Invest AB Company 08. May 18 11. May 18 6,000,000 SEK144.83 SEK857,311,992
08. May 18 Buy Ramsbury Invest AB Company 03. May 18 07. May 18 10,000,000 SEK149.20 SEK1,467,391,351
03. May 18 Buy Ramsbury Invest AB Company 27. Apr 18 02. May 18 4,000,200 SEK152.40 SEK606,926,989
26. Apr 18 Buy Ramsbury Invest AB Company 23. Apr 18 25. Apr 18 5,503,561 SEK141.86 SEK766,535,460
20. Apr 18 Buy Ramsbury Invest AB Company 17. Apr 18 19. Apr 18 6,000,000 SEK136.91 SEK819,178,525
16. Apr 18 Buy Ramsbury Invest AB Company 11. Apr 18 13. Apr 18 6,665,016 SEK134.85 SEK884,438,873
X
Management checks
We assess H & M Hennes & Mauritz's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. H & M Hennes & Mauritz has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HM B News

Simply Wall St News

HM B Company Info

Description

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, and cosmetics for women, men, teenagers, children, and babies worldwide. It offers sportswear, underwear, shoes, bags, beauty products, stationery, ready-to-wear, and jeans wear; and decorations and interior products for living rooms, kitchens, bedrooms, bathrooms, and children’s rooms. The company provides its products under the H&M, H&M Home, COS, Monki, Weekday, Cheap Monday, H&M HOME, ARKET, and & Other Stories brands. As of March 15, 2018, it had approximately 4,700 stores in 69 markets, including franchise markets; and 44 online markets. H & M Hennes & Mauritz AB (publ) was founded in 1947 and is headquartered in Stockholm, Sweden.

Details
Name: H & M Hennes & Mauritz AB (publ)
HM B
Exchange: OM
Founded: 1947
SEK230,352,920,960
1,655,072,000
Website: http://www.hm.com
Address: H & M Hennes & Mauritz AB (publ)
Mäster Samuelsgatan 46A,
Stockholm,
Stockholm County, 106 38,
Sweden
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OM HM B Class B Shares OMX Nordic Exchange Stockholm SE SEK 02. Jan 1992
OTCPK HMRZ.F Class B Shares Pink Sheets LLC US USD 02. Jan 1992
DB HMSB Class B Shares Deutsche Boerse AG DE EUR 02. Jan 1992
XTRA HMSB Class B Shares XETRA Trading Platform DE EUR 02. Jan 1992
LSE 0HBP Class B Shares London Stock Exchange GB SEK 02. Jan 1992
SWX HMB Class B Shares SIX Swiss Exchange CH CHF 02. Jan 1992
BATS-CHIXE HMBS Class B Shares BATS 'Chi-X Europe' GB SEK 02. Jan 1992
OTCPK HNNM.Y ADR Pink Sheets LLC US USD 28. Aug 2007
Number of employees
Current staff
Staff numbers
177,000
H & M Hennes & Mauritz employees.
Industry
Apparel Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 20:34
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/20
Last earnings filing: 2019/01/31
Last earnings reported: 2018/11/30
Last annual earnings reported: 2018/11/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

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