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

Excellent balance sheet established dividend payer.


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

3.8%

HM B

3.5%

SE Specialty Retail

2.9%

SE Market


1 Year Return

25.0%

HM B

21.3%

SE Specialty Retail

9.0%

SE Market

Return vs Industry: HM B exceeded the Swedish Specialty Retail industry which returned 21.3% over the past year.

Return vs Market: HM B exceeded the Swedish Market which returned 9% over the past year.


Share holder returns

HM BIndustryMarket
7 Day3.8%3.5%2.9%
30 Day5.1%4.3%-0.4%
90 Day18.0%15.4%0.3%
1 Year32.8%25.0%28.4%21.3%13.7%9.0%
3 Year-10.9%-22.6%-10.9%-22.8%30.5%11.1%
5 Year-12.8%-28.9%-9.6%-26.8%66.0%30.7%

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

Valuation

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

7%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: HM B (SEK199.96) is trading below our estimate of fair value (SEK214.37)

Significantly Undervalued: HM B is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: HM B is poor value based on its PE Ratio (25.9x) compared to the Specialty Retail industry average (12.5x).

PE vs Market: HM B is poor value based on its PE Ratio (25.9x) compared to the Swedish market (16.7x).


Price Based on Expected Growth

Low PEG Ratio: HM B is poor value based on its PEG Ratio (3.5x)


Price Based on Value of Assets

PB vs Industry: HM B is overvalued based on its PB Ratio (6.2x) compared to the SE Specialty Retail industry average (2.4x).


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?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: HM B's forecast earnings growth (7.3% per year) is above the savings rate (0.4%).

Earnings vs Market: HM B's earnings (7.3% per year) are forecast to grow slower than the Swedish market (8.7% per year).

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

Revenue vs Market: HM B's revenue (4.4% per year) is forecast to grow slower than the Swedish market (4.5% per year).

High Growth Revenue: HM B's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: HM B's Return on Equity is forecast to be high in 3 years time (27.3%)


Next Steps

Past Performance

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

-11.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HM B's earnings have declined by -11.5% 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 (-2.5%) over the past year, making it difficult to compare to the Specialty Retail industry average (-3.8%).


Return on Equity

High ROE: HM B's Return on Equity (23.9%) is considered high.


Return on Assets

ROA vs Industry: HM B has a higher Return on Assets than the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: HM B's Return on Capital Employed has declined over the past 3 years.


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 (SEK69.8B) exceeds its short term liabilities (SEK58.6B)

Long Term Liabilities: HM B's short term assets (69.8B) exceeds its long term liabilities (15.9B)


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 (125.7%).

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


Balance Sheet

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

Debt Coverage by Assets: HM B's debt is covered by short term assets (assets are 3.709910x debt).


Next Steps

Dividend

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

4.76%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company4.9%marketbottom25%1.8%markettop25%4.8%industryaverage6.4%forecastin3Years4.8%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: HM B's dividend (4.88%) is higher than the bottom 25% of dividend payers in the Swedish market (1.8%).

High Dividend: HM B's dividend (4.88%) is in the top 25% of dividend payers in the Swedish market (4.84%)

Stable Dividend: HM B's dividends per share have been stable in the past 10 years.

Growing Dividend: HM B's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (126.3%), HM B's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HM B's dividends in 3 years are forecast to be covered by earnings (85.3% payout ratio).


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?

6.0yrs

Average management tenure


CEO

Karl-Johan Persson (44yo)

10.3yrs

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

Compensation vs. Market: Karl-Johan's total compensation ($USD1.41M) is about average for companies of similar size in the Swedish market ($USD1.77M).

Compensation vs Earnings: Karl-Johan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.0yrs

Average Tenure

Experienced Management: HM B's management team is seasoned and experienced (6 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

50yo

Average Age

Experienced Board: HM B's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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
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Shares5,072,521
Max Pricekr158.13
Buykr833,939,51512 Feb 19
Ramsbury Invest AB
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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: 10.3yrs
    • 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: 11.1yrs
  • Anna Attemark (51yo)

    Head of New Business

    • Tenure: 1.7yrs
  • Helena Helmersson

    Chief Operating Officer

    • Tenure: 1.8yrs
  • Helena Thybell

    Head of Human Resources

    • Tenure: 0yrs
  • Fredrik Björkstedt

    Head of Legal

    • Tenure: 0yrs

Board Members

  • Max Sievert (50yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: kr800.00k
  • Stefan Persson (72yo)

    Chairman of the Board

    • Tenure: 21.8yrs
    • Compensation: kr1.68m
  • Niklas Zennström (53yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: kr600.00k
  • Erica Häger (49yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: kr750.00k
  • Anders Dahlvig (62yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: kr750.00k
  • Lena Keller (50yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: kr600.00k
  • Ingrid Godin (60yo)

    Employee Representative Director

    • Tenure: 7.8yrs
  • Stina Bergfors (47yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: kr600.00k
  • Alexandra Rosenqvist (43yo)

    Employee Representative Director

    • Tenure: 1.8yrs
  • Danica Jensfelt (48yo)

    Director

    • Tenure: 0.4yrs

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: kr330.948b
  • 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 Analysis2019/10/13 20:36
End of Day Share Price2019/10/11 00:00
Earnings2019/08/31
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.

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