OM:HM B

Stock Analysis Report

H & M Hennes & Mauritz

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer 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


Market Performance


7 Day Return

-0.3%

HM B

-0.6%

SE Specialty Retail

1.4%

SE Market


1 Year Return

32.5%

HM B

25.1%

SE Specialty Retail

2.6%

SE Market

HM B outperformed the Specialty Retail industry which returned 25.1% over the past year.

HM B outperformed the Market in Sweden which returned 2.6% over the past year.


Share holder returns

HM BIndustryMarket
7 Day-0.3%-0.6%1.4%
30 Day7.9%6.6%5.6%
90 Day28.5%22.8%1.5%
1 Year40.8%32.5%33.1%25.1%7.0%2.6%
3 Year-13.0%-24.5%-12.4%-24.1%31.3%11.7%
5 Year-22.8%-37.1%-23.2%-37.8%54.5%21.7%

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

1 month ago | Simply Wall St

Can We See Significant Insider Ownership On The H & M Hennes & Mauritz AB (publ) (STO:HM B) Share Register?

Valuation

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

10%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

H & M Hennes & Mauritz's share price is below the future cash flow value, but not at a moderate discount (< 20%).

H & M Hennes & Mauritz's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

H & M Hennes & Mauritz is poor value based on expected growth next year.


Price Based on Value of Assets

H & M Hennes & Mauritz is overvalued based on assets compared to the SE Specialty Retail industry average.


Next Steps

Future Growth

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

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

H & M Hennes & Mauritz's revenue is expected to grow by 3.8% yearly, however this is not considered high growth (20% yearly).

H & M Hennes & Mauritz's earnings are expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).

H & M Hennes & Mauritz's revenue growth is positive but not above the Sweden market average.

H & M Hennes & Mauritz's earnings growth is positive but not above the Sweden market average.

H & M Hennes & Mauritz's earnings growth is expected to exceed the low risk savings rate of 0.4%.


Earnings per Share Growth Estimates


Future Return on Equity

H & M Hennes & Mauritz is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

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

-10.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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.


Return on Equity

H & M Hennes & Mauritz has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

H & M Hennes & Mauritz used its assets more efficiently than the SE Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

H & M Hennes & Mauritz's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

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.


Debt to Equity History and Analysis

H & M Hennes & Mauritz's level of debt (49.8%) compared to net worth is high (greater than 40%).

Unable to establish if H & M Hennes & Mauritz's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (86.8%, greater than 20% of total debt).

H & M Hennes & Mauritz earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.7x debt.


Next Steps

Dividend

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

4.83%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

H & M Hennes & Mauritz's pays a higher dividend yield than the bottom 25% of dividend payers in Sweden (1.83%).

H & M Hennes & Mauritz's dividend is above the markets top 25% of dividend payers in Sweden (4.88%).

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

Dividends paid are not well covered by earnings (0.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.1x coverage).


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Karl-Johan Persson (44yo)

10.2yrs

Tenure

kr13,800,000

Compensation

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 ...


CEO Compensation Analysis

Karl-Johan's remuneration is about average for companies of similar size in Sweden.

Karl-Johan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.9yrs

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.


Board Age and Tenure

5.4yrs

Average Tenure

50yo

Average Age

The tenure for the H & M Hennes & Mauritz board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

Buykr281,145,59002 Jul 19
Ramsbury Invest AB
EntityCompany
Shares1,767,641
Max Pricekr159.05
Buykr794,884,47217 May 19
Ramsbury Invest AB
EntityCompany
Shares5,072,521
Max Pricekr158.13
Buykr833,939,51512 Feb 19
Ramsbury Invest AB
EntityCompany
Shares6,000,000
Max Pricekr140.00
Buykr1,451,076,04605 Feb 19
Ramsbury Invest AB
EntityCompany
Shares10,377,845
Max Pricekr141.40
Buykr321,362,78321 Nov 18
Ramsbury Invest AB
EntityCompany
Shares2,041,765
Max Pricekr157.39
Buykr845,884,84216 Nov 18
Ramsbury Invest AB
EntityCompany
Shares5,456,374
Max Pricekr155.65

Ownership Breakdown


Management Team

  • Kristina Stenvinkel

    Head of Communications & Communications Director

    • Tenure: 0yrs
  • Karl-Johan Persson (44yo)

    CEO, President & MD

    • Tenure: 10.2yrs
    • Compensation: kr13.80m
  • Anders Jonasson

    Chief Accountant

    • Tenure: 0yrs
  • Madeleine Persson

    Managing Director of H&M

    • Tenure: 0yrs
  • Nils Vinge

    Head of Investor Relations/Franchise

    • Tenure: 0yrs
  • Jyrki Tervonen

    Chief Financial Officer

    • Tenure: 11yrs
  • Anna Attemark (51yo)

    Head of New Business

    • Tenure: 1.6yrs
  • Helena Helmersson

    Chief Operating Officer

    • Tenure: 1.7yrs
  • Helena Thybell

    Head of Human Resources

    • Tenure: 0yrs
  • Fredrik Björkstedt

    Head of Legal

    • Tenure: 0yrs

Board Members

  • Max Sievert (50yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: kr800.00k
  • Stefan Persson (72yo)

    Chairman of the Board

    • Tenure: 21.7yrs
    • Compensation: kr1.68m
  • Niklas Zennström (53yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: kr600.00k
  • Erica Häger (49yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: kr750.00k
  • Anders Dahlvig (62yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: kr750.00k
  • Lena Keller (50yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: kr600.00k
  • Ingrid Godin (60yo)

    Employee Representative Director

    • Tenure: 7.7yrs
  • Stina Bergfors (47yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: kr600.00k
  • Alexandra Rosenqvist (43yo)

    Employee Representative Director

    • Tenure: 1.7yrs
  • Danica Jensfelt (48yo)

    Director

    • Tenure: 0.3yrs

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: kr313.007b
  • Shares outstanding: 1.66b
  • Website: https://www.hm.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HMRZ.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDJan 1992
HM BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKJan 1992
HMBSWX (SIX Swiss Exchange)YesClass B SharesCHCHFJan 1992
0HBPLSE (London Stock Exchange)YesClass B SharesGBSEKJan 1992
HMSBXTRA (XETRA Trading Platform)YesClass B SharesDEEURJan 1992
HMSBDB (Deutsche Boerse AG)YesClass B SharesDEEURJan 1992
HMBSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKJan 1992
HNNM.YOTCPK (Pink Sheets LLC)ADRUSUSDAug 2007

Biography

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 prod ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 20:33
End of Day Share Price2019/09/19 00:00
Earnings2019/05/31
Annual Earnings2018/11/30


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.