0.78%
16.37%
30.28%
33.56%
38.01%
104.93%
299.35%
AI Spotlight on RMS
Company Description
Hermès International Société en commandite par actions engages in the production, wholesale, and retail of various goods.The company offers leather goods and saddlery, such as bags for men and women, clutches, briefcases, luggage, small leather goods, diaries and writing objects, saddles, bridles, and a range of equestrian products and clothing; ready-to-wear garments for men and women; and accessories, including jewelry, belts, hats, gloves, the Internet of Things products, and shoes.It also provides silk and textiles for men and women; art of living and tableware products; perfumes; and watches.
In addition, the company is also involved in weaving, engraving, printing, dyeing, finishing, and producing textiles; and purchasing, tanning, dyeing, finishing, and selling precious leathers.It sells its products through a network of 303 stores worldwide.The company also sells watches, perfumes, and tableware through a network of specialized stores.
Hermès International Société en commandite par actions was founded in 1837 and is based in Paris, France.Hermès International Société en commandite par actions operates as a subsidiary of H51 SAS.
Market Data
| Last Price | 2702 |
| Change Percentage | 0.78% |
| Open | 2695 |
| Previous Close | 2681 |
| Market Cap ( Millions) | 282981 |
| Volume | 46027 |
| Year High | 2708 |
| Year Low | 1888 |
| M A 50 | 2311.96 |
| M A 200 | 2166.18 |
Financial Ratios
| FCF Yield | 1.30% |
| Dividend Yield | 0.56% |
| ROE | 29.44% |
| Debt / Equity | 14.49% |
| Net Debt / EBIDTA | -112.05% |
| Price To Book | 18.8 |
| Price Earnings Ratio | 63.56 |
| Price To FCF | 76.79 |
| Price To sales | 19.88 |
| EV / EBITDA | 42.33 |
News
- Jan -16 - Luxury stocks soar as Richemont sparks rally and hopes of sector turnaround
- Jan -15 - Luxury Stocks’ Recent Rally Faces High-Stakes Earnings Test
- Jan -10 - Hermès International: Situation of the liquidity contract as of December 31, 2024
- Jan -09 - Hermès International : Shares and voting rights as of 31st December 2024
- Jan -07 - Luxury retailers could see benefit from Trump 2.0 tariffs
- Dec -10 - Hermès International : Shares and voting rights as of 30th November 2024
- Nov -29 - The 2 drivers behind inflation in luxury brand prices
- Nov -20 - FTSE 100 and European-listed stocks to own in 2025, according to Barclays
- Nov -15 - Hermès International: Shares and voting rights as of 31 October 2024
- Nov -08 - Markets Shrug at China Debt Bailout
- Nov -08 - Has Luxury Lost Its Shine?
- Oct -24 - Global Earnings: Hermès Sales Rise; Barclays Stock Hits Highest in Nearly Nine Years
- Oct -24 - Hermes, Intel, SK Hynix: Stocks in focus
- Oct -24 - Gucci Has Problems. The Biggest May Be a Safe New Look
- Oct -24 - Global Earnings Thursday: Hermès Sales Rise; Barclays Stock Rallies
- Oct -24 - Hermes Sales Continue to Grow Despite Wider Luxury Slowdown
- Oct -24 - Hermès International: Third Quarter 2024 Revenue
- Oct -17 - Heard on the Street: Swiss Watches Wind Down in China
- Oct -09 - Hermès International: Shares and voting rights as of 30th September 2024
- Oct -03 - Does a ‘Status Handbag’ Still Have Status in 2024? We Investigate.
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Leather Goods
Expected Growth : 12 %
What the company do ?
Hermès International Société en commandite par actions' Leather Goods segment offers high-quality leather products, including handbags, wallets, and accessories, renowned for their exceptional craftsmanship and timeless elegance.
Why we expect these perspectives ?
Hermès' 12% growth in Leather Goods is driven by strong demand for luxury goods, particularly in Asia, and the brand's successful strategy of limited production to maintain exclusivity and scarcity. Additionally, the company's focus on quality, craftsmanship, and innovative designs has enabled it to maintain a premium pricing strategy, contributing to revenue growth.
Segment n°2 -> Clothing and Accessories
Expected Growth : 10 %
What the company do ?
Hermès International Société en commandite par actions offers luxurious clothing and accessories, including iconic silk scarves, elegant ready-to-wear, and high-quality leather goods.
Why we expect these perspectives ?
Hermès' 10% growth in Clothing and Accessories is driven by increasing demand for luxury goods, particularly in Asia, and the brand's successful strategy of limited supply and high-quality craftsmanship. Additionally, the company's investments in e-commerce and digital marketing have enhanced customer experience, contributing to the segment's growth.
Segment n°3 -> Other Hermes Trades
Expected Growth : 9 %
What the company do ?
Other Hermes Trades refers to the non-leather goods segment of Hermès International, including home furnishings, textiles, and other specialty products.
Why we expect these perspectives ?
Hermès International's 9% growth is driven by strong demand for luxury goods, particularly in Asia. The brand's iconic Birkin and Kelly handbags, as well as its high-end watches and jewelry, are in high demand. Additionally, the company's strategic expansion into new markets, such as e-commerce and digital marketing, has contributed to its growth.
Segment n°4 -> Silk and Textiles
Expected Growth : 11 %
What the company do ?
Hermès' Silk and Textiles segment offers high-quality silk scarves, carrés, and textiles, renowned for their exceptional craftsmanship and elegant designs.
Why we expect these perspectives ?
Hermès' Silk and Textiles segment growth is driven by increasing demand for luxury goods, particularly in Asia, and the company's successful strategy of maintaining exclusivity and craftsmanship. The segment also benefits from the brand's strong reputation, high-quality products, and effective distribution network.
Segment n°5 -> Watchmaking
Expected Growth : 13 %
What the company do ?
Hermès' watchmaking segment crafts luxurious timepieces that combine traditional Swiss expertise with French elegance, showcasing intricate mechanics and sleek designs.
Why we expect these perspectives ?
Hermès International's 13% growth in watchmaking is driven by increasing demand for luxury timepieces, strategic expansion into Asia, and innovative product designs. The brand's rich heritage, exceptional craftsmanship, and high-quality materials also contribute to its success. Furthermore, the company's ability to balance tradition with modernity and its strong distribution network have enabled it to capitalize on the growing appetite for luxury watches.
Segment n°6 -> Perfume and Beauty
Expected Growth : 12 %
What the company do ?
Hermès International Société en commandite par actions' Perfume and Beauty segment offers luxurious fragrances and cosmetics under the Hermès brand, blending French elegance with high-quality ingredients.
Why we expect these perspectives ?
Hermès' Perfume and Beauty segment growth is driven by increasing demand for luxury goods, particularly in Asia, and the success of new product launches such as Hermès' fragrance, H24. Additionally, the segment benefits from the brand's strong reputation, high-quality products, and strategic retail expansion.
Segment n°7 -> Other
Expected Growth : 8 %
What the company do ?
The 'Other' segment from Hermès International Société en commandite par actions includes sales from Hermès' retail and wholesale operations of watches, perfumes, and other miscellaneous products.
Why we expect these perspectives ?
Hermès International's 8% growth is driven by strong demand for luxury goods, particularly in Asia. The brand's iconic Birkin and Kelly handbags, as well as its high-end watches and jewelry, continue to attract affluent consumers. Additionally, the company's strategic expansion into new markets, such as e-commerce and menswear, has contributed to its growth momentum.
Hermès International Société En Commandite Par Actions Products
| Product Range | What is it ? |
|---|---|
| Silk and Textiles | High-quality silk scarves, shawls, and textiles with iconic designs and vibrant colors |
| Leather Goods and Saddlery | Exquisite leather handbags, wallets, and accessories crafted with precision and attention to detail |
| Ready-to-Wear and Fashion Accessories | Timeless and sophisticated clothing, shoes, and accessories for men and women |
| Perfumes and Beauty | Luxurious fragrances and beauty products with unique scents and formulas |
| Watches and Jewelry | Exquisite timepieces and fine jewelry with intricate designs and precious materials |
| Home and Furniture | Luxurious home decor and furniture with elegant designs and premium materials |
Hermès International Société en commandite par actions's Porter Forces
Threat Of Substitutes
Hermès International Société en commandite par actions has a medium threat of substitutes due to the presence of other luxury fashion brands, but its strong brand image and high-quality products help to differentiate it from competitors.
Bargaining Power Of Customers
Hermès International Société en commandite par actions has a low bargaining power of customers due to its premium pricing strategy and strong brand loyalty, making customers less likely to switch to competitors.
Bargaining Power Of Suppliers
Hermès International Société en commandite par actions has a medium bargaining power of suppliers due to its dependence on high-quality raw materials and skilled labor, but its strong relationships with suppliers help to mitigate this risk.
Threat Of New Entrants
Hermès International Société en commandite par actions has a low threat of new entrants due to the high barriers to entry in the luxury fashion industry, including the need for significant capital investment and a strong brand reputation.
Intensity Of Rivalry
Hermès International Société en commandite par actions operates in a highly competitive luxury fashion industry, with intense rivalry among established brands, making it essential to maintain a strong brand image and competitive pricing strategy.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 2.19% |
| Debt Cost | 3.95% |
| Equity Weight | 97.81% |
| Equity Cost | 7.65% |
| WACC | 7.57% |
| Leverage | 2.24% |
Hermès International Société en commandite par actions : Quality Control
Hermès International Société en commandite par actions passed 9 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| MC.PA | LVMH Moët Hennessy - Louis Vuitton, Société Européenne operates as a luxury goods company worldwide. The company offers champagnes, wines, and spirits under the Clos des Lambrays, Château d'Yquem, Dom … |
| CDI.PA | Christian Dior SE, through its subsidiaries, engages in the production, distribution, and retail of fashion and leather goods, wines and spirits, perfumes and cosmetics, and watches and jewelry worldwide. The … |
| CFR.SW | Compagnie Financière Richemont SA engages in the luxury goods business in Europe, the Middle East, Africa, Asia, and the Americas. The company operates through Jewellery Maisons, Specialist Watchmakers, and Online … |
| ML.PA | Compagnie Générale des Établissements Michelin Société en commandite par actions manufactures and sells tires worldwide. The company offers tires for private use covering cars, racing, biking, motorcycles, scooters, and mopeds; … |
| KER.PA | Kering SA develops, designs, manufactures, markets, and sells apparel and accessories. The company offers shoes; leather goods, including handbags and wallets, purses, and other leather products; eyewear, textile accessories, etc.; … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Michelin
A-Score
1-Year Total Return ->
🥈
Richemont
A-Score
1-Year Total Return ->
🥉
Hermès
A-Score
1-Year Total Return ->
4
Dior
A-Score
1-Year Total Return ->
5
LVMH
A-Score
1-Year Total Return ->
6
