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 Analysis

Solid track record with reasonable growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

19.7%

HM B

19.0%

SE Specialty Retail

7.3%

SE Market


1 Year Return

-15.8%

HM B

-15.5%

SE Specialty Retail

-6.6%

SE Market

Return vs Industry: HM B matched the Swedish Specialty Retail industry which returned -15.7% over the past year.

Return vs Market: HM B underperformed the Swedish Market which returned -6.9% over the past year.


Shareholder returns

HM BIndustryMarket
7 Day19.7%19.0%7.3%
30 Day-9.0%-9.3%-2.6%
90 Day-26.2%-26.5%-17.3%
1 Year-11.1%-15.8%-11.1%-15.5%-4.7%-6.6%
3 Year-26.3%-37.6%-27.4%-37.9%7.0%-8.2%
5 Year-50.8%-60.9%-48.1%-58.7%15.3%-8.3%

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?

8.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HM B (SEK136.5) is trading below our estimate of fair value (SEK149.25)

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


Price To Earnings Ratio

PE vs Industry: HM B is poor value based on its PE Ratio (15.5x) compared to the Specialty Retail industry average (13.9x).

PE vs Market: HM B is good value based on its PE Ratio (15.5x) compared to the Swedish market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: HM B is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: HM B is overvalued based on its PB Ratio (3.8x) compared to the SE Specialty Retail industry average (1.1x).


Next Steps

Future Growth

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

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HM B's forecast earnings growth (16.8% per year) is above the savings rate (-0.4%).

Earnings vs Market: HM B's earnings (16.8% per year) are forecast to grow faster than the Swedish market (8.9% per year).

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

Revenue vs Market: HM B's revenue (4.9% per year) is forecast to grow faster than the Swedish market (4.2% per year).

High Growth Revenue: HM B's revenue (4.9% 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 (26.3%)


Next Steps

Past Performance

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

-12.1%

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 (6.2%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: HM B's earnings have declined by -12.1% per year over the past 5 years.

Accelerating Growth: HM B's earnings growth over the past year (20.6%) exceeds its 5-year average (-12.1% per year).

Earnings vs Industry: HM B earnings growth over the past year (20.6%) exceeded the Specialty Retail industry -1.6%.


Return on Equity

High ROE: HM B's Return on Equity (24.6%) is considered high.


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 (SEK62.4B) exceed its short term liabilities (SEK54.9B).

Long Term Liabilities: HM B's short term assets (SEK62.4B) do not cover its long term liabilities (SEK72.7B).


Debt to Equity History and Analysis

Debt Level: HM B's debt to equity ratio (26.3%) 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 (218.4%).

Interest Coverage: HM B's interest payments on its debt are well covered by EBIT (106.3x coverage).


Balance Sheet


Next Steps

Dividend

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

4.94%

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 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 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?

0.3yrs

Average management tenure


CEO

Helena Helmersson (46yo)

0.25

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

NamePositionTenureCompensationOwnership
Karl-Johan Persson
Executive Officer0.25yrkr13.80m0.73% SEK1.7b
Helena Helmersson
Chief Executive Officer0.25yrno datano data
Adam Karlsson
Chief Financial Officer0.25yrno datano data
Anders Jonasson
Chief Accountantno datano datano data
Joel Ankarberg
Head of IT & Acting CTOno datano datano data
Nils Vinge
Head of Investor Relations/Franchiseno datano datano data
Fredrik Björkstedt
Head of Legalno datano datano data
Kristina Stenvinkel
Head of Communications & Communications Directorno datano datano data
Doris Klein
Head of HRno datano datano data
Madeleine Persson
Managing Director of H&Mno datano datano data

0.3yrs

Average Tenure

44yo

Average Age

Experienced Management: HM B's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Christian Sievert
Independent Director10yrskr800.00k0.0013% SEK2.9m
Stefan Persson
Chairman of the Board22.25yrskr1.68m1.47% SEK3.3b
Niklas Zennström
Independent Director6yrskr600.00k0.037% SEK84.0m
Erica Häger
Independent Director3.92yrskr750.00kno data
Anders Dahlvig
Independent Director10yrskr750.00k0.00036% SEK813.3k
Lena Keller
Independent Director6yrskr600.00k0.0058% SEK13.1m
Ingrid Godin
Employee Representative Director8.25yrsno datano data
Stina Bergfors
Independent Director3.92yrskr600.00k0.00091% SEK2.1m
Alexandra Rosenqvist
Employee Representative Director2.25yrsno datano data
Danica Jensfelt
Independent Director0.92yrno data0.00057% SEK1.3m

6.0yrs

Average Tenure

50yo

Average Age

Experienced Board: HM B's board of directors are considered experienced (6 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: kr225.917b
  • 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 products, stationery, ready-to-wear, jeans, home textiles, and homeware; and interior products for living rooms, kitchens, bedrooms, bathrooms, and kids’ rooms. The company provides its products under the H&M, COS, Weekday, Cheap Monday, Monki, H&M Home, & Other Stories, ARKET, and Afound. As of December 16, 2019, it had approximately 5,000 stores in 74 markets, including franchise markets; and 51 online markets. H & M Hennes & Mauritz AB (publ) was founded in 1947 and is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 00:24
End of Day Share Price2020/04/09 00:00
Earnings2020/02/29
Annual Earnings2019/11/30


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.