Why is Hermès International SCA ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 26.45%
- Healthy long term growth as Net Sales has grown by an annual rate of 20.16% and Operating profit at 28.86%
- Company has very low debt and has enough cash to service the debt requirements
2
Flat results in Jun 25
- DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
- DIVIDEND PER SHARE(HY) Lowest at EUR 28.73
3
With ROE of 24.49%, it has a Very Expensive valuation with a 10.65 Price to Book Value
- Over the past year, while the stock has generated a return of -34.46%, its profits have fallen by -2.9%
4
Below par performance in long term as well as near term
- Along with generating -34.46% returns in the last 1 year, the stock has also underperformed France CAC 40 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Hermès International SCA 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 Hermès International SCA for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Hermès International SCA
-100.0%
4.44
27.67%
France CAC 40
0.34%
-0.10
17.53%
Quality key factors
Factor
Value
Sales Growth (5y)
20.16%
EBIT Growth (5y)
28.86%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.65
Sales to Capital Employed (avg)
0.91
Tax Ratio
28.68%
Dividend Payout Ratio
41.71%
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
109.84%
ROE (avg)
26.45%
Valuation Key Factors 
Factor
Value
P/E Ratio
43
Industry P/E
Price to Book Value
10.65
EV to EBIT
25.82
EV to EBITDA
22.91
EV to Capital Employed
28.15
EV to Sales
11.78
PEG Ratio
NA
Dividend Yield
1.18%
ROCE (Latest)
109.03%
ROE (Latest)
24.49%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bullish
No Trend
Technical Movement
9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at EUR 9,858 MM
NET SALES(Q)
Highest at EUR 8,034 MM
INTEREST COVERAGE RATIO(Q)
Highest at 14,446.15
OPERATING PROFIT(Q)
Highest at EUR 3,756 MM
PRE-TAX PROFIT(Q)
Highest at EUR 3,561 MM
-2What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 0%
DIVIDEND PER SHARE(HY)
Lowest at EUR 28.73
Here's what is working for Hermès International SCA
Operating Cash Flow
Highest at EUR 9,858 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (EUR MM)
Net Sales
Highest at EUR 8,034 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (EUR MM)
Interest Coverage Ratio
Highest at 14,446.15
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit
Highest at EUR 3,756 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (EUR MM)
Pre-Tax Profit
Highest at EUR 3,561 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (EUR MM)
Here's what is not working for Hermès International SCA
Dividend per share
Lowest at EUR 28.73
in the last five yearsMOJO Watch
Company is distributing lower dividend than previous years
DPS (EUR)
Dividend Payout Ratio
Lowest at 0%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)






