Hermes International (RMS) AI Stock Analysis

• Market Cap: $235.45B
• Dividend Yield: 1.19%
• Average Volume (3M): 60.07K
• Price to Earnings (P/E): 52.6
• Beta (1Y): 1.40
• Revenue Growth: 10.31%
• EPS Growth: 0.54%
• Country: FR
• Employees: 24,203
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 21.39
• Shares Outstanding: 105,569,410
• 10 Day Avg. Volume: 75,456
• 30 Day Avg. Volume: 60,070
• PEG Ratio: 7.98
• Price to Book (P/B): 14.04
• Price to Sales (P/S): 16.04
• P/FCF Ratio: 47.34
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 14.85
• Enterprise Value/Gross Profit: 21.82
• Enterprise Value/Ebitda: 30.81
• 1Y Price Target: $2,401.23
• Price Target Upside: 9.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 78 Outperform
• Price Target: €2,480.00 ▲(13.04% Upside)

Hermes International's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. Despite a high valuation and technical indicators suggesting potential short-term weakness, the company's robust growth and strategic investments support a favorable long-term outlook.

Positive Factors

Revenue Growth

The consistent revenue growth reflects Hermès' strong market position and demand for its luxury products, supporting long-term business expansion.

Cash Generation

Strong cash flow generation enhances Hermès' ability to invest in growth opportunities and return value to shareholders, ensuring financial stability.

Investment in Production Capacity

Expanding production capacity supports future growth and strengthens Hermès' competitive advantage in the luxury goods market.

Negative Factors

Perfume and Beauty Segment Decline

A decline in this segment could impact overall growth and profitability if not addressed, highlighting the need for strategic adjustments.

Challenges in the Chinese Market

Slow growth in a key market like China could hinder Hermès' expansion efforts, necessitating strategies to overcome economic uncertainties.

Impact of One-off Tax

Such tax impacts can reduce profitability and affect financial planning, requiring Hermès to manage costs effectively to maintain margins.

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 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.

How the Company Makes Money

Hermes International generates revenue primarily through the sale of its luxury products, which include iconic items such as handbags, scarves, and watches. The company's revenue model is centered around direct retail sales through its own boutiques, online platforms, and select high-end department stores. Key revenue streams include the sale of leather goods, apparel, home goods, and fragrances. Additionally, Hermes benefits from a strong brand reputation that allows it to maintain premium pricing. The company has established significant partnerships with luxury retailers and engages in exclusive collaborations that enhance its market presence and drive sales. Seasonal collections and limited-edition releases also contribute significantly to its earnings, as they create demand and urgency among consumers seeking unique luxury items.

Hermes International Financial Statement Overview

Summary

Hermes International demonstrates strong financial performance with robust revenue growth, high profit margins, and a solid balance sheet. The company shows excellent cash flow generation and conversion, indicating strong liquidity and investment capacity.

Income Statement

Hermes International has shown robust revenue growth with a 12.96% increase from 2023 to 2024, reflecting strong demand in the luxury goods sector. Gross Profit Margin remains high at 70.23%, indicating efficient production and high pricing power. Net Profit Margin improved to 30.33%, showcasing enhanced profitability. EBIT and EBITDA margins are solid at 40.54% and 46.07% respectively, highlighting operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low Debt-to-Equity Ratio of 0.13, reflecting minimal leverage risk. The Equity Ratio stands at a robust 75.06%, indicating a strong equity base and financial stability. Return on Equity is impressive at 26.56%, demonstrating effective utilization of equity to generate profits.

Cash Flow

Hermes International shows a significant increase in Free Cash Flow, with growth from the previous year, supporting strategic investments and shareholder returns. The Operating Cash Flow to Net Income Ratio of 1.12 indicates strong cash generation ability. Free Cash Flow to Net Income Ratio is high at 1.12, reflecting excellent cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.70B	15.17B	13.43B	11.60B	8.98B	6.39B
Gross Profit	10.69B	10.66B	9.71B	7.66B	5.89B	3.91B
EBITDA	7.57B	6.99B	6.42B	5.29B	4.03B	2.53B
Net Income	4.48B	4.60B	4.31B	3.37B	2.44B	1.39B
Balance Sheet
Total Assets	21.83B	23.08B	20.45B	17.46B	13.85B	11.05B
Cash, Cash Equivalents and Short-Term Investments	10.32B	11.64B	10.63B	9.22B	6.70B	4.73B
Total Debt	2.06B	2.17B	2.06B	1.93B	1.80B	1.69B
Total Liabilities	5.21B	5.75B	5.24B	5.00B	4.43B	3.66B
Stockholders Equity	16.60B	17.33B	15.20B	12.44B	9.40B	7.38B
Cash Flow
Free Cash Flow	5.28B	5.14B	3.58B	3.73B	2.92B	1.22B
Operating Cash Flow	5.28B	5.14B	4.33B	4.25B	3.45B	1.66B
Investing Cash Flow	-1.00B	-1.20B	-995.00M	-646.00M	-716.00M	-453.60M
Financing Cash Flow	-3.18B	-3.05B	-1.79B	-1.24B	-869.00M	-810.20M

Hermes International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2194.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:RMS, the sentiment is Positive. The current price of 2194 is above the 20-day moving average (MA) of 2131.60, above the 50-day MA of 2105.64, and below the 200-day MA of 2347.76, indicating a neutral trend. The MACD of 25.99 indicates Negative momentum. The RSI at 56.50 is Neutral, neither overbought nor oversold. The STOCH value of 78.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:RMS.

Hermes International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MC	78 Outperform	€302.57B	27.52	16.88%	2.09%	-3.24%	-21.24%
RMS	78 Outperform	$235.45B	52.64	27.36%	1.19%	10.31%	0.54%
CDI	76 Outperform	€103.38B	22.83	19.54%	2.25%	-3.24%	-21.65%
EL	68 Neutral	€145.00B	59.89	6.19%	1.27%	5.45%	2.86%
KER	68 Neutral	€37.95B	52.06	4.91%	1.74%	-14.56%	-64.91%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Hermes International Corporate Events

Hermès Reports Strong Growth in H1 2025

Hermès International SCA, a renowned luxury goods manufacturer, is known for its high-quality leather goods, fashion accessories, and ready-to-wear apparel, operating primarily in the luxury fashion industry. In its latest earnings report for the first half of 2025, Hermès reported solid sales growth and an increase in recurring operating income by 6%. The company’s revenue reached €8 billion, marking an 8% increase at constant exchange rates, with all geographical areas showing growth. The Leather Goods and Saddlery sector led the charge with a 12% increase, while the Ready-to-wear and Accessories sector saw a 6% rise. Despite a challenging environment, Hermès continues to expand its production capacities and enhance its product offerings. Looking ahead, Hermès remains confident in its growth strategy, focusing on creativity and maintaining control over its artisanal know-how, despite global economic uncertainties.

Hermès International SCA: Strong Growth Amid Challenges

Hermès International SCA Earnings Call: Positive Growth Amidst Challenges