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LVMH Moet Hennessy Louis Vuitton SE (FR:MC)
:MC

LVMH Moet Hennessy Louis Vuitton (MC) AI Stock Analysis

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LVMH Moet Hennessy Louis Vuitton

(LSE:MC)

Rating:75Outperform
Price Target:
LVMH's strong financial performance is the primary driver of its positive score, with solid revenue growth, profitability, and cash flow. However, technical indicators currently show bearish momentum, which could pose short-term challenges. The valuation is fair, supported by a reasonable P/E ratio and a decent dividend yield.
Positive Factors
Competitive Advantage
LVMH's extensive and diversified brand portfolio, emphasis on innovation, and strong financial performance bolster its competitive advantage.
Financial Performance
Profit from recurring operations reached EUR19.6bn, with an operating margin of 23.1% that significantly exceeded pre-COVID levels.
Market Leadership
LVMH remains confident in strengthening its global luxury leadership, with positive medium-term prospects intact.
Negative Factors
Consumer Demand
LVMH struggles amid global challenges, with consumers in the United States pulling back on beauty products and drinks, while sales in China stayed weak.
Earnings Performance
1Q25 revenue undershot expectations, falling by 3% y/y organically, well below market expectations of a 2% growth.
Quarterly Performance
Worse-than-feared 1Q25 performance: 4% sales miss. LVMH recorded €20.3bn revenue in 1Q25, 4% below consensus forecasts.

LVMH Moet Hennessy Louis Vuitton (MC) vs. iShares MSCI France ETF (EWQ)

LVMH Moet Hennessy Louis Vuitton Business Overview & Revenue Model

Company DescriptionLVMH 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 Pérignon, Ruinart, Moët & Chandon, Hennessy, Veuve Clicquot, Ardbeg, Château Cheval Blanc, Glenmorangie, Krug, Mercier, Chandon, Cape Mentelle, Newton Vineyard, Cloudy Bay, Belvedere, Terrazas de los Andes, Bodega Numanthia, Cheval des Andes, Woodinville, Ao Yun, Clos19, and Volcan de mi Tierra brands. It also provides fashion and leather products under the Berluti, Celine, Christian Dior, Emilio Pucci, FENDI, Givenchy, Kenzo, Loewe, Loro Piana, Louis Vuitton, Marc Jacobs, Moynat, Patou, and RIMOWA brands. In addition, the company offers perfumes and cosmetics under the Acqua di Parma, Benefit Cosmetics, Cha Ling, Fenty Beauty by Rihanna, Fresh, Givenchy Parfums, Guerlain, KVD Beauty, Kenzo Parfums, Maison Francis Kurkdjian, Make Up For Ever, Marc Jacobs Beauty, Officine Universelle Buly, Parfums Christian Dior, and Perfumes Loewe brands; watches and jewelry under the Bulgari, Chaumet, Fred, Hublot, Repossi, TAG Heuer, Tiffany & Co., and Zenith brands; and custom-designed yachts under the Feadship brand name, as well as designs and builds luxury yachts under the Royal Van Lent brand. Further, it provides daily newspapers under the Les Échos brand; Belmond, a luxury tourism service; home other activities under the Belmond, Cheval Blanc, Connaissance des Arts, Cova, Investir, Jardin d'Acclimatation, La Samaritaine, Le Parisien, and Radio Classique brands; and selective retailing products under the DFS, La Grande Epicerie de Paris, Le Bon Marché Rive Gauche, Sephora, and Starboard Cruise Services brands, as well as operates Jardin d'Acclimatation, a leisure and amusement park. The company operates 5,556 stores. LVMH Moët Hennessy - Louis Vuitton, Société Européenne was incorporated in 1923 and is headquartered in Paris, France.
How the Company Makes MoneyLVMH generates revenue through a diverse range of luxury products and services sold across its various sectors. The company earns substantial income from the sale of fashion and leather goods, which represents the largest portion of its revenue, driven by brands like Louis Vuitton and Dior. The wines and spirits segment, featuring brands like Moet & Chandon and Hennessy, also contributes significantly to its earnings. Additionally, the company profits from the sale of perfumes and cosmetics under brands such as Givenchy and Fenty Beauty. The watches and jewelry sector, with names like Bulgari and TAG Heuer, along with selective retailing operations including Sephora, further bolster its revenue streams. LVMH's financial performance is also supported by strategic acquisitions and partnerships, enhancing its global presence and market share in the luxury segment.

LVMH Moet Hennessy Louis Vuitton Financial Statement Overview

Summary
LVMH exhibits strong financial health, with consistent growth in revenue and profitability, solid balance sheet metrics, and strong cash flow generation. The company effectively manages leverage and capital expenditures, positioning it well for future growth and stability.
Income Statement
92
Very Positive
LVMH has demonstrated impressive revenue growth with a CAGR of 9.34% from 2019 to 2023. The gross profit margin consistently exceeds 66%, indicating strong pricing power and cost management. Net profit margin peaked at 17.6% in 2023, reflecting efficient operations and profitability. EBIT and EBITDA margins are robust, supporting strong operating efficiency.
Balance Sheet
88
Very Positive
The company's debt-to-equity ratio is stable around 0.63, showing moderate leverage. ROE improved to 24.9% in 2023, highlighting effective utilization of equity. The equity ratio is approximately 42.5%, indicating a solid equity base and financial stability.
Cash Flow
85
Very Positive
Operating cash flow is strong, with consistent growth over the years. The free cash flow to net income ratio is over 0.7, suggesting efficient cash generation relative to earnings. Free cash flow growth is robust, though slightly impeded by capital expenditures.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
84.68B86.15B79.18B64.22B44.65B
Gross Profit
56.77B59.28B54.20B43.85B28.76B
EBIT
18.91B22.56B21.00B17.13B8.32B
EBITDA
22.30B28.55B26.07B22.49B12.54B
Net Income Common Stockholders
12.55B15.17B14.08B12.04B4.70B
Balance SheetCash, Cash Equivalents and Short-Term Investments
13.59B11.26B10.85B10.56B20.71B
Total Assets
149.19B143.69B134.65B125.31B108.67B
Total Debt
41.20B38.88B35.09B34.45B37.48B
Net Debt
31.57B31.10B28.79B28.26B31.07B
Total Liabilities
79.90B80.99B78.04B76.40B69.84B
Stockholders Equity
67.52B61.02B55.11B47.12B37.41B
Cash FlowFree Cash Flow
13.37B10.60B12.75B15.39B8.43B
Operating Cash Flow
18.93B18.40B17.84B18.65B10.90B
Investing Cash Flow
-6.54B-8.31B-5.92B-15.98B-2.94B
Financing Cash Flow
-10.72B-9.40B-12.69B-15.16B7.40B

LVMH Moet Hennessy Louis Vuitton Technical Analysis

Technical Analysis Sentiment
Negative
Last Price470.10
Price Trends
50DMA
506.95
Negative
100DMA
586.11
Negative
200DMA
599.63
Negative
Market Momentum
MACD
-10.92
Positive
RSI
35.55
Neutral
STOCH
23.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:MC, the sentiment is Negative. The current price of 470.1 is below the 20-day moving average (MA) of 493.34, below the 50-day MA of 506.95, and below the 200-day MA of 599.63, indicating a bearish trend. The MACD of -10.92 indicates Positive momentum. The RSI at 35.55 is Neutral, neither overbought nor oversold. The STOCH value of 23.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:MC.

LVMH Moet Hennessy Louis Vuitton Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
FRMC
75
Outperform
€236.58B18.8519.53%2.73%-1.71%-17.20%
62
Neutral
$6.94B11.292.95%3.87%2.70%-24.49%
$284.56B56.7828.67%1.03%
€80.14B15.2122.73%2.93%
€111.66B47.096.00%1.61%
€2.84B20.6319.41%3.12%
€21.58B18.977.52%3.41%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:MC
LVMH Moet Hennessy Louis Vuitton
470.10
-274.19
-36.84%
HESAF
Hermes International
2,680.78
308.51
13.00%
GB:0NPL
Christian Dior
439.00
-269.63
-38.05%
GB:0OMK
EssilorLuxottica SA
245.50
40.66
19.85%
GB:0IUJ
Interparfums
36.80
-6.38
-14.78%
GB:0IIH
Kering SA
175.24
-140.01
-44.41%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.