Hermes International (FR:RMS)
:RMS
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Hermes International
(RMS)
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Rating:68Neutral
Price Target:
€1,767.00
▲(8.97% Upside)
Action:DowngradedDate:03/15/26
The score is anchored by exceptional financial performance (elite margins, strong growth, and solid cash conversion). However, the stock’s current technical trend is notably bearish (below major moving averages with negative MACD and weak RSI/Stoch), and valuation is rich (high P/E with only a modest dividend yield), which together pull the overall score down.
Positive Factors
Exceptional margins
Hermès's 2024 gross (~70%), operating (~41%) and net (~30%) margins are best-in-class, reflecting durable pricing power from brand equity and premium product mix. High structural margins provide long-term earnings resilience across business cycles and support reinvestment.
Negative Factors
Increased leverage
A material rise in total debt in 2025 weakens an otherwise conservative balance sheet, reducing financial flexibility. Higher leverage increases interest and refinancing exposure, potentially constraining capital allocation choices if rates or funding costs rise over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional margins
Hermès's 2024 gross (~70%), operating (~41%) and net (~30%) margins are best-in-class, reflecting durable pricing power from brand equity and premium product mix. High structural margins provide long-term earnings resilience across business cycles and support reinvestment.
Read all positive factors
Hermes International (RMS) vs. iShares MSCI France ETF (EWQ)
Market Cap
€169.68B
Dividend Yield1.24%
Average Volume (3M)83.39K
Price to Earnings (P/E)49.2
Beta (1Y)1.36
Revenue Growth10.31%
EPS Growth0.54%
CountryFR
Employees24,203
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)21.68
Shares Outstanding105,569,410
10 Day Avg. Volume117,694
30 Day Avg. Volume83,389
Financial Highlights & Ratios
PEG Ratio-27.69
Price to Book (P/B)11.80
Price to Sales (P/S)13.90
P/FCF Ratio41.39
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€2,398.61Price Target Upside47.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)46.13
Revenue Forecast (FY)€17.15B
Hermes International Business Overview & Revenue Model
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 g...
How the Company Makes Money
Hermès makes money primarily by selling luxury goods at premium price points, supported by brand equity, craftsmanship positioning, and tightly controlled supply and distribution.
Key revenue streams:
1) Direct retail sales (primary): The largest...
Hermes International Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong regional growth and solid performance in key segments like Leather Goods, but faced challenges such as a decline in the Perfume and Beauty segment and headwinds in China. Financial robustness and strategic investments indicate a positive outlook despite certain economic and geopolitical challenges.Positive Updates
Solid Growth in Sales and Operating Income
Hermès recorded a solid growth in sales, reaching EUR 8 billion, up by 8% at constant rates, and the current operating income increased by 6%.
Negative Updates
Perfume and Beauty Segment Decline
The Perfume and Beauty division experienced a 4% decline, negatively impacted by a strong Q2 comparison with previous product launches.
Read all updates
Q2-2025 Updates
Positive
Negative
Solid Growth in Sales and Operating Income
Hermès recorded a solid growth in sales, reaching EUR 8 billion, up by 8% at constant rates, and the current operating income increased by 6%.
Read all positive updates
Company Guidance
In the first half of 2025, Hermès reported a robust performance with sales reaching EUR 8 billion, marking an 8% increase at constant exchange rates. The current operating income rose by 6%, while all regions demonstrated growth, notably Japan with a 16% increase and America with a 12% rise. The leather goods division saw a 12% growth, aligning with its annual trajectory due to expanded production capacity. However, the Perfume and Beauty division experienced a 4% decline. The group's operating income was EUR 3.3 billion, and the net profit stood at EUR 2.5 billion, both up by 6%. Hermès invested EUR 316 million in the first half, with projections to exceed EUR 1 billion for the year. The financial outlook remains confident despite geopolitical and economic complexities, with plans to enhance investments across divisions and geographies in the second half.Hermes International Financial Statement Overview
Summary
Income Statement
93
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
88
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 16.00B | 15.17B | 13.43B | 11.60B | 8.98B |
| Gross Profit | 11.38B | 10.66B | 9.71B | 7.66B | 5.89B |
| EBITDA | 7.50B | 6.99B | 6.67B | 5.29B | 4.03B |
| Net Income | 4.52B | 4.60B | 4.31B | 3.37B | 2.44B |
Balance Sheet | |||||
| Total Assets | 24.32B | 23.08B | 20.45B | 17.46B | 13.85B |
| Cash, Cash Equivalents and Short-Term Investments | 12.50B | 11.64B | 10.63B | 9.22B | 6.70B |
| Total Debt | 2.35B | 2.17B | 2.06B | 1.93B | 1.80B |
| Total Liabilities | 5.47B | 5.75B | 5.24B | 5.00B | 4.43B |
| Stockholders Equity | 18.84B | 17.33B | 15.20B | 12.44B | 9.40B |
Cash Flow | |||||
| Free Cash Flow | 5.37B | 5.14B | 3.58B | 3.73B | 2.92B |
| Operating Cash Flow | 5.37B | 5.14B | 4.33B | 4.25B | 3.45B |
| Investing Cash Flow | -1.28B | -1.20B | -995.00M | -646.00M | -716.00M |
| Financing Cash Flow | -3.14B | -3.05B | -1.79B | -1.24B | -869.00M |
Hermes International Technical Analysis
Negative
1621.50
Price Trends
1974.46
Negative
2051.27
Negative
2114.06
Negative
Market Momentum
-104.52
Positive
20.78
Positive
11.32
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:RMS, the sentiment is Negative. The current price of 1621.5 is below the 20-day moving average (MA) of 1817.25, below the 50-day MA of 1974.46, and below the 200-day MA of 2114.06, indicating a bearish trend. The MACD of -104.52 indicates Positive momentum. The RSI at 20.78 is Positive, neither overbought nor oversold. The STOCH value of 11.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:RMS.
Hermes International Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | €169.68B | 49.17 | 25.52% | 1.24% | 10.31% | 0.54% | |
64 Neutral | €78.26B | 23.71 | 19.54% | 2.33% | -3.24% | -21.65% | |
63 Neutral | €226.55B | 29.51 | 16.39% | 2.06% | -3.24% | -21.24% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | €401.78M | 29.90 | 1.30% | ― | 1.78% | ― | |
48 Neutral | €30.44B | -23.01 | 0.49% | 2.03% | -14.56% | -64.91% |
* Consumer Cyclical Sector Average
FR:RMS
Hermes International
1,621.50
-761.81
-31.96%
FR:CDI
Christian Dior
433.80
-79.97
-15.56%
FR:KER
Kering SA
248.30
62.26
33.46%
FR:MC
LVMH Moet Hennessy Louis Vuitton
455.75
-102.56
-18.37%
FR:SMCP
SMCP S.A.S.
5.14
2.06
67.15%
FR:DPT
ST Dupont SA
0.09
-0.01
-13.59%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.