LVMH Moet Hennessy Louis Vuitton (MC) AI Stock Analysis

• Market Cap: €227.64B
• Dividend Yield: 2.06%
• Average Volume (3M): 519.77K
• Price to Earnings (P/E): 29.5
• Beta (1Y): 1.34
• Revenue Growth: -3.24%
• EPS Growth: -21.24%
• Country: FR
• Employees: 200,518
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 10.42
• Shares Outstanding: 497,686,950
• 10 Day Avg. Volume: 638,513
• 30 Day Avg. Volume: 519,773
• PEG Ratio: -2.27
• Price to Book (P/B): 4.76
• Price to Sales (P/S): 3.97
• P/FCF Ratio: 21.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €636.25
• Price Target Upside: 38.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 22.84
• Revenue Forecast (FY): €81.65B

• Rating: 63 Neutral
• Price Target: €488.00 ▲(6.56% Upside)
• Action: Downgraded Date: 01/30/26
• Date: Action: Downgraded 01/30/26

The score is supported by strong underlying profitability and cash flow, but is pulled down by a clear technical downtrend with very weak momentum and by moderating fundamentals (negative 2025 revenue growth, lower margins/ROE, and higher leverage). Valuation is neither especially cheap nor extreme, with the dividend providing some support.

Positive Factors

Diversified premium brand portfolio & owned distribution

LVMH's multi-category brand portfolio and control of retail and e‑commerce distribution create durable pricing power and channel control. This structure supports long-term premium positioning, protects margins, and lets the group manage launches, inventory and customer experience across cycles.

High gross and operating margins

Sustained high gross and operating margins reflect strong brand premium, scale in sourcing and pricing discipline. These structural margins provide a cushion against slower sales, fund marketing/craftsmanship investments, and underpin the group's ability to generate consistent profitability over the medium term.

Robust cash generation and FCF

Strong and stable operating cash flow and high free cash flow conversion enable investment in brands, store networks, and shareholder returns. Reliable FCF supports strategic flexibility—funding capex, bolt-on M&A or dividends—helping the company weather demand swings over months to years.

Negative Factors

Recent revenue softening

A decline in revenue signals moderating end‑market demand or weaker sell‑through in key regions. If top-line weakness persists, it can erode operating leverage, slow inventory turnover and constrain the group's ability to absorb fixed costs, weighing on growth and strategic investments.

Net margin and ROE deterioration

Falling net margin and reduced ROE indicate lower capital efficiency and profitability versus recent peaks. This structural erosion limits retained earnings for reinvestment, raises the bar for earnings recovery, and may constrain the firm's ability to sustain historical returns to shareholders.

Rising leverage and incremental balance‑sheet gearing

An increase in leverage reduces financial flexibility and raises interest‑rate sensitivity. Higher gearing can limit scope for large acquisitions or aggressive buybacks, and in a less robust revenue environment elevates refinancing and covenant risks over the medium term.

LVMH Moet Hennessy Louis Vuitton Business Overview & Revenue Model

Company Description

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 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 Money

LVMH primarily makes money by selling branded luxury products and experiences through a mix of directly operated retail networks, wholesale/select distribution, and travel retail. Its core revenue streams are organized by business groups: (1) Fashion & Leather Goods generates revenue from the sale of luxury handbags, small leather goods, accessories, footwear, ready-to-wear, and related items sold largely via directly operated boutiques and brand e-commerce, capturing retail margins and enabling pricing control and brand presentation. (2) Wines & Spirits earns revenue from the production and sale of champagne, wines, and spirits to distributors, retailers, hospitality customers, and via select direct-to-consumer channels where permitted; performance is influenced by brand positioning, global distribution reach, and demand in gift and celebratory occasions. (3) Perfumes & Cosmetics generates revenue from fragrances, makeup, and skincare sold through a combination of branded counters in department stores, specialty beauty retailers, travel retail, and brand-owned stores/e-commerce; scale and repeat purchasing support volumes while brand equity supports pricing. (4) Watches & Jewelry makes money from sales of jewelry and timepieces through directly operated boutiques and selected retail partners, often emphasizing high-value pieces and brand-led merchandising. (5) Selective Retailing generates revenue through retail sales and services from group-owned retail chains (notably duty-free and beauty retail), benefiting from store traffic, tourism flows, and negotiated brand assortments. Across segments, key earnings drivers include the strength of its brand portfolio, premium pricing supported by marketing and craftsmanship, control of distribution via owned stores, global geographic reach, and product innovation/launch cycles. Significant partnerships or specific commercial terms beyond these general distribution relationships are null.

LVMH Moet Hennessy Louis Vuitton Financial Statement Overview

Summary

Profitability and cash generation remain strong (gross margin ~66%, operating margin ~22%, FCF ~€15.0B), but fundamentals have softened versus 2022–2023: revenue declined in 2025 (-2.4%), net margin fell to ~13.5%, ROE cooled to ~16%, and leverage increased (debt-to-equity ~0.74).

Income Statement

Revenue has softened recently (2025: -2.4% after essentially flat 2024), but profitability remains strong for the sector. Gross margin stayed high (~66% in 2025), and operating profitability remains solid (2025 operating margin ~22%). That said, earnings have stepped down from the 2022–2023 peak: net margin declined to ~13.5% in 2025 from ~17.6% in 2023, reflecting weaker operating leverage and/or cost pressure.

Balance Sheet

The balance sheet is broadly solid with sizable equity (€67.5B in 2025) and moderate leverage for a global luxury leader. Debt-to-equity rose to ~0.74 in 2025 (from ~0.61 in 2024), indicating incremental balance-sheet gearing. Returns on equity remain healthy but have cooled with profitability (ROE ~16% in 2025 vs ~25% in 2022–2023), suggesting less efficient capital generation versus the recent high-water mark.

Cash Flow

Cash generation is strong and stable: operating cash flow was ~€18.9B in 2025, and free cash flow improved to ~€15.0B (+4.7% in 2025). Conversion is reasonable but not exceptional—free cash flow was ~80% of net income in 2025 (up from ~71% in 2024). A watch item is that cash conversion vs operating profit is not especially high (operating cash flow about ~62% of operating profit in 2025), which can signal working-capital or timing headwinds.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	80.81B	84.68B	86.15B	79.18B	64.22B
Gross Profit	53.53B	56.77B	59.28B	54.20B	43.85B
EBITDA	24.40B	22.30B	28.55B	26.07B	22.49B
Net Income	10.88B	12.55B	15.17B	14.08B	12.04B
Balance Sheet
Total Assets	142.04B	149.19B	143.69B	134.65B	125.31B
Cash, Cash Equivalents and Short-Term Investments	13.50B	13.59B	11.26B	10.85B	10.56B
Total Debt	49.66B	41.20B	38.88B	35.15B	34.84B
Total Liabilities	73.09B	79.90B	80.99B	78.04B	76.40B
Stockholders Equity	67.47B	67.52B	61.02B	55.11B	47.12B
Cash Flow
Free Cash Flow	15.04B	13.37B	10.60B	12.75B	15.39B
Operating Cash Flow	18.89B	18.93B	18.40B	17.84B	18.65B
Investing Cash Flow	-5.75B	-6.54B	-8.31B	-5.92B	-15.98B
Financing Cash Flow	-13.80B	-10.72B	-9.40B	-12.69B	-15.16B

LVMH Moet Hennessy Louis Vuitton Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 457.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 457.95 is below the 20-day moving average (MA) of 505.79, below the 50-day MA of 539.98, and below the 200-day MA of 539.90, indicating a bearish trend. The MACD of -22.61 indicates Positive momentum. The RSI at 24.07 is Positive, neither overbought nor oversold. The STOCH value of 5.93 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMS	68 Neutral	€173.29B	49.17	25.52%	1.24%	10.31%	0.54%
ITP	65 Neutral	€1.87B	15.96	20.31%	3.66%	9.68%	19.46%
CDI	64 Neutral	€77.94B	23.71	19.54%	2.33%	-3.24%	-21.65%
MC	63 Neutral	€227.64B	29.51	16.39%	2.06%	-3.24%	-21.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
EL	61 Neutral	€89.99B	53.52	6.19%	1.46%	5.45%	2.86%
KER	48 Neutral	€28.70B	-23.01	0.49%	2.03%	-14.56%	-64.91%