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Hermes International SCA Unsponsored ADR (HESAY)
:HESAY
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Hermes International SCA Unsponsored ADR
(OTC:HESAY)
81Outperform
Hermes International SCA Unsponsored ADR (HESAY) vs. S&P 500 (SPY)
Market Cap
$290.84B
Dividend Yield0.67%
Average Volume (3M)3.75K
Price to Earnings (P/E)58.7
Beta (1Y)0.99
Revenue Growth13.04%
EPS Growth6.67%
CountryUS
Employees24,203
SectorConsumer Cyclical
Sector Strength59
IndustryLuxury Goods
Share Statistics
EPS (TTM)4.75
Shares Outstanding1,055,694,100
10 Day Avg. Volume0
30 Day Avg. Volume3,745
Financial Highlights & Ratios
PEG Ratio8.80
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$310.00Price Target Upside11.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Hermes International SCA Unsponsored ADR Business Overview & Revenue Model
Company DescriptionHermes International SCA, often referred to simply as Hermes, is a renowned French luxury goods manufacturer. Founded in 1837, the company is well recognized for its high-quality craftsmanship and exclusive products, which span across sectors including leather goods, lifestyle accessories, home furnishings, perfumery, jewelry, watches, and ready-to-wear clothing. Hermes operates both through its own retail stores and an extensive global network, maintaining a prestigious position in the luxury market.
How the Company Makes MoneyHermes International SCA generates revenue primarily through the sale of its luxury goods across several key categories: leather goods and saddlery, ready-to-wear and accessories, silk and textiles, perfumes, watches, and other Hermes products. The company has a strong retail presence, operating over 300 stores worldwide, which serve as a primary revenue stream. Additionally, Hermes benefits from its strong brand equity and pricing power, allowing it to command premium prices for its products. The company also engages in strategic collaborations and partnerships to expand its brand reach and product offerings, though its core focus remains on maintaining the exclusivity and high quality of its products to drive sales.
Hermes International SCA Unsponsored ADR Financial Statement Overview
Summary
Hermes International SCA's financial performance is characterized by strong revenue growth, high profitability, and excellent cash flow generation. The company maintains a conservative balance sheet with low leverage, enhancing its financial resilience. These strengths position Hermes well within the retail discretionary industry, allowing it to capitalize on growth opportunities while maintaining financial stability.Income Statement
Hermes International SCA has demonstrated strong revenue growth with a 12.96% increase over the last year, accompanied by robust profitability metrics. The company maintains a high gross profit margin of 70.25% and a net profit margin of 30.33% in 2024, indicating efficient cost management and strong pricing power. EBIT and EBITDA margins are also impressive at 40.54% and 46.08%, respectively, reflecting operational efficiency. The consistent growth trajectory and high profitability metrics are indicative of a strong competitive position in the retail discretionary sector.92
Very Positive
Balance Sheet
The balance sheet of Hermes International SCA is solid, characterized by a low debt-to-equity ratio of 0.13, indicating low financial leverage and a conservative capital structure. The return on equity (ROE) is strong at 26.56%, showcasing effective utilization of equity to generate profits. The equity ratio stands at 75.08%, reflecting a high proportion of equity in the asset base, which enhances financial stability. Overall, the balance sheet reflects a healthy financial position with low risk.85
Very Positive
Cash Flow
Hermes International SCA exhibits strong cash flow performance with a 43.48% growth in free cash flow in 2024. The operating cash flow to net income ratio is 1.12, indicating efficient cash generation relative to reported earnings. The free cash flow to net income ratio is also favorable at 1.12, demonstrating the company's ability to convert earnings into cash effectively. The positive cash flow metrics suggest strong liquidity and financial flexibility.88
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 15.17B | 13.43B | 11.60B | 8.98B | 6.39B | Gross Profit |
| 10.66B | 9.71B | 7.66B | 5.89B | 3.91B | EBIT |
| 6.15B | 5.65B | 4.88B | 3.59B | 2.06B | EBITDA |
| 6.99B | 6.67B | 5.29B | 4.03B | 2.53B | Net Income Common Stockholders |
| 4.60B | 4.31B | 3.37B | 2.44B | 1.39B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 11.64B | 10.63B | 9.22B | 6.70B | 4.73B | Total Assets |
| 23.08B | 20.45B | 17.46B | 13.85B | 11.05B | Total Debt |
| 2.17B | 2.06B | 1.93B | 1.80B | 1.69B | Net Debt |
| -9.47B | -8.56B | -7.29B | -4.89B | -3.05B | Total Liabilities |
| 5.75B | 5.24B | 5.00B | 4.43B | 3.66B | Stockholders Equity |
| 17.33B | 15.20B | 12.44B | 9.40B | 7.38B |
| Cash Flow | Free Cash Flow | |||
| 5.14B | 3.58B | 3.73B | 2.92B | 1.22B | Operating Cash Flow |
| 5.14B | 4.33B | 4.25B | 3.45B | 1.66B | Investing Cash Flow |
| -1.20B | -995.00M | -646.00M | -716.00M | -453.60M | Financing Cash Flow |
| -3.05B | -1.79B | -1.24B | -869.00M | -810.20M |
Hermes International SCA Unsponsored ADR Technical Analysis
Positive
278.77
Price Trends
269.25
Positive
264.17
Positive
244.51
Positive
Market Momentum
2.38
Negative
61.79
Neutral
88.40
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HESAY, the sentiment is Positive. The current price of 278.77 is above the 20-day moving average (MA) of 262.60, above the 50-day MA of 269.25, and above the 200-day MA of 244.51, indicating a bullish trend. The MACD of 2.38 indicates Negative momentum. The RSI at 61.79 is Neutral, neither overbought nor oversold. The STOCH value of 88.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HESAY.
Hermes International SCA Unsponsored ADR Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $290.84B | 58.67 | 28.67% | 0.67% | 13.04% | 6.67% | |
70 Outperform | $15.06B | 21.12 | 39.82% | 1.92% | 0.74% | -12.69% | |
61 Neutral | $2.63B | 5.56 | 2.62% | 1.94% | -6.52% | -104.24% | |
61 Neutral | $6.65B | 11.64 | 3.00% | 3.98% | 2.61% | -21.41% | |
55 Neutral | $639.49M | ― | -8.28% | ― | 12.01% | -23.53% | |
51 Neutral | $697.79M | ― | 32.94% | ― | 9.32% | 25.94% | |
49 Neutral | $1.83B | ― | -67.22% | ― | -12.34% | -574.65% |
* Consumer Cyclical Sector Average
Performance Comparison
HESAY
Hermes International SCA Unsponsored ADR
278.77
33.82
13.81%
TPR
Tapestry
72.76
34.31
89.23%
CPRI
Capri Holdings
15.55
-20.18
-56.48%
SIG
Signet Jewelers
61.24
-34.32
-35.91%
REAL
RealReal
6.17
1.96
46.56%
MYTE
MYT Netherlands
7.50
3.00
66.67%
Hermes International SCA Unsponsored ADR Earnings Call Summary
Earnings Call Date:Feb 14, 2025
(Q4-2024)
| % Change Since: -5.04%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong growth and financial performance across most regions and divisions, alongside environmental achievements. However, challenges remain in the Watches division and in the Greater China market, with some pressure on gross margins.Q4-2024 Updates
Positive Updates
Record-Breaking Revenue and Growth
Hermès achieved a revenue of EUR 15.2 billion in 2024, representing a 15% increase at constant exchange rates and a 13% increase at current exchange rates. Q4 revenue stood at EUR 4 billion, up 18% at both constant and current exchange rates.
Strong Regional Performance
All regions showed solid performance: France (+13%), Europe (+19%), Japan (+23%), Asia excluding Japan (+7%), and America (+15%).
Successful Product Launches
Notable successes included the launch of the new feminine fragrance Barénia, and the Apple Watch 10 series. The leather collections and the Ready-to-wear divisions also received a strong positive reception.
Environmental Achievements
Hermès achieved a 64% reduction in Scope 1 and 2 emissions compared to 2018, and a 50% reduction in intensity for Scope 3 emissions.
Strong Financial Position
Current operating income stood at EUR 6.2 billion, up 9%, and available adjusted cash flow reached EUR 3.8 billion, up 18%. Net cash increased by EUR 900 million to reach EUR 12 billion.
Negative Updates
Watches Division Decline
The Watches division saw a 4% decline due to a difficult context and high comparison basis.
Challenges in Greater China
Although Greater China saw growth, it was less than other regions, reflecting broader economic challenges and uncertainties in the region.
Gross Margin Contraction
The gross margin rate decreased to 70.3% from 72.3% in 2023 due to negative currency impacts and increased costs.
Company Guidance
In the 2024 fiscal year, Hermès demonstrated robust financial performance, with revenue reaching EUR 15.2 billion, marking a 15% increase at constant exchange rates. The company's current operating income rose by 9% to EUR 6.2 billion, while available adjusted cash flow increased by 18% to EUR 3.8 billion. Hermès continued its strategic investments, totaling EUR 2.5 billion over three years, with over 60% in France. The company surpassed a workforce threshold of 25,000 employees, with 62% based in France, and distributed a EUR 4,500 bonus to all employees. Hermès also made significant strides in sustainability, achieving a 64% reduction in Scope 1 and 2 emissions since 2018 and a 50% reduction in Scope 3 emissions intensity. Additionally, the brand expanded its network with new store openings in the U.S. and Asia, while strengthening its production capabilities with new leather workshops in France.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.