H&M Hennes & Mauritz AB (HM B) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

RVRC Holding AB

H&M Hennes & Mauritz AB

Rizzo Group AB

Why is H&M Hennes & Mauritz AB ?

High Management Efficiency with a high ROE of 19.16%

Positive results in Nov 25

ROCE(HY) Highest at 27.3%
RAW MATERIAL COST(Y) Fallen by -3.92% (YoY)
DIVIDEND PER SHARE(HY) Highest at SEK 16.93

With ROE of 27.66%, it has a expensive valuation with a 7.10 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 28.58%, its profits have risen by 7.6% ; the PEG ratio of the company is 3.4

Majority shareholders : FIIs

Market Beating Performance

The stock has generated a return of 28.58% in the last 1 year, much higher than market (OMX Stockholm 30) returns of 10.97%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to H&M Hennes & Mauritz AB should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is H&M Hennes & Mauritz AB for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

H&M Hennes & Mauritz AB

28.58%

25.88

26.64%

OMX Stockholm 30

10.97%

0.59

18.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.07%

EBIT Growth (5y)

31.48%

EBIT to Interest (avg)

10.08

Debt to EBITDA (avg)

0.37

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

3.27

Tax Ratio

24.74%

Dividend Payout Ratio

93.67%

Pledged Shares

Institutional Holding

0.11%

ROCE (avg)

24.23%

ROE (avg)

19.16%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

7.10

EV to EBIT

16.27

EV to EBITDA

7.43

EV to Capital Employed

5.95

EV to Sales

1.24

PEG Ratio

3.39

Dividend Yield

28.62%

ROCE (Latest)

36.57%

ROE (Latest)

27.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

ROCE(HY)

Highest at 27.3%

RAW MATERIAL COST(Y)

Fallen by -3.92% (YoY

DIVIDEND PER SHARE(HY)

Highest at SEK 16.93

OPERATING PROFIT(Q)

Highest at SEK 11,223 MM

PRE-TAX PROFIT(Q)

Highest at SEK 5,849 MM

NET PROFIT(Q)

Highest at SEK 4,362 MM

EPS(Q)

Highest at SEK 2.72

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SEK 31,120 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.29 times

INTEREST(Q)

Highest at SEK 698 MM

Here's what is working for H&M Hennes & Mauritz AB

Operating Profit

Highest at SEK 11,223 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (SEK MM)

Pre-Tax Profit

Highest at SEK 5,849 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (SEK MM)

Pre-Tax Profit

At SEK 5,849 MM has Grown at 42.69%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (SEK MM)

Net Profit

Highest at SEK 4,362 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SEK MM)

EPS

Highest at SEK 2.72

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (SEK)

Dividend per share

Highest at SEK 16.93

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (SEK)

Raw Material Cost

Fallen by -3.92% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for H&M Hennes & Mauritz AB

Operating Cash Flow

Lowest at SEK 31,120 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SEK MM)

Interest

At SEK 698 MM has Grown at 17.91%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Interest

Highest at SEK 698 MM

in the last five periods and Increased by 17.91% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Inventory Turnover Ratio

Lowest at 3.29 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio