Hermes International SCA Unsponsored ADR (HESAY)
OTHER OTC:HESAY
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Hermes International SCA Unsponsored ADR
(OTC:HESAY)
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Rating:71Outperform
Price Target:
$213.00
▼(-17.80% Downside)
Action:ReiteratedDate:03/14/26
The score is driven primarily by very strong financial performance (high margins, strong cash generation, and low leverage). This is meaningfully offset by weak technicals with the stock trading below key moving averages and negative momentum. Valuation is moderate-to-premium (P/E ~24.5) with a modest dividend yield, providing only limited support.
Positive Factors
High Profitability
Hermès' margin profile is elite for the sector, reflecting durable pricing power, brand premium and production efficiency. Persistently high gross and net margins generate scalable operating profit, enabling reinvestment, shareholder returns and resilience through luxury demand cycles.
Negative Factors
Free Cash Flow Volatility
Despite a multi-year uptrend, material FCF variability makes the timing of discretionary capital allocation less predictable. Periods of weak or negative FCF can constrain buybacks/dividends or force deferment of expansion, complicating planning during industry slowdowns.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Hermès' margin profile is elite for the sector, reflecting durable pricing power, brand premium and production efficiency. Persistently high gross and net margins generate scalable operating profit, enabling reinvestment, shareholder returns and resilience through luxury demand cycles.
Read all positive factors
Hermes International SCA Unsponsored ADR (HESAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$215.78B
Dividend Yield1.18%
Average Volume (3M)18.90K
Price to Earnings (P/E)48.9
Beta (1Y)1.04
Revenue Growth10.94%
EPS Growth1.12%
CountryUS
Employees24,203
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)2.58
Shares Outstanding1,055,694,100
10 Day Avg. Volume48,214
30 Day Avg. Volume18,902
Financial Highlights & Ratios
PEG Ratio-8.76
Price to Book (P/B)11.74
Price to Sales (P/S)13.83
P/FCF Ratio41.18
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue11.01
Enterprise Value/Gross Profit15.48
Enterprise Value/Ebitda21.92
Forecast
1Y Price Target
$300.00Price Target Upside15.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)5.32
Revenue Forecast (FY)$19.92B
Hermes International SCA Unsponsored ADR 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 products under the Hermès brand, with revenue largely generated from direct retail sales through its company-operated store network (boutiques) and online channels, and to a lesser extent through whol...
Hermes International SCA Unsponsored ADR Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Positive
Hermès demonstrated solid financial performance with significant growth in revenue and operating income, driven by strong geographic expansion and division performance. However, challenges such as declines in specific divisions, negative currency impacts, and temporary slowdowns in certain regions were noted.Positive Updates
Solid Growth in Revenue
Hermès recorded a solid growth in sales with revenue reaching EUR 8 billion, up by 8% at constant rate.
Negative Updates
Perfume and Beauty Division Decline
The Perfume and Beauty division saw a decline of 4%, negatively compared to a strong Q2 the previous year.
Read all updates
Q2-2025 Updates
Positive
Negative
Solid Growth in Revenue
Hermès recorded a solid growth in sales with revenue reaching EUR 8 billion, up by 8% at constant rate.
Read all positive updates
Company Guidance
In the first half of 2025, Hermès International reported robust financial performance with sales reaching EUR 8 billion, marking an 8% increase at constant exchange rates. The company's operating income rose by 6% to EUR 3.3 billion, while net profit, after accounting for a one-off tax on large French companies, also grew by 6% to EUR 2.5 billion. All regions experienced growth, with notable performances in Japan at +16% and America at +12%. The Leather and Saddles division saw remarkable progress, increasing by 12%. Hermès continued to invest significantly, with EUR 316 million allocated in the first half, and plans to exceed EUR 1 billion for the entire year. The company also expanded its workforce, adding over 500 new employees, and distributed a bonus of EUR 4,500 to employees worldwide. Despite facing a complex economic and geopolitical environment, Hermès maintained a confident outlook for the remainder of the year, with ongoing investments in production capacity and retail network expansions.Hermes International SCA Unsponsored ADR Financial Statement Overview
Summary
Income Statement
93
Very Positive
Balance Sheet
90
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 | 12.24B | 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 | 3.75B | 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 | -669.00M |
| Financing Cash Flow | -3.14B | -3.05B | -1.79B | -1.24B | -869.00M |
Hermes International SCA Unsponsored ADR Technical Analysis
Negative
259.11
Price Trends
224.76
Negative
236.81
Negative
245.06
Negative
Market Momentum
-10.65
Negative
32.10
Neutral
75.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HESAY, the sentiment is Negative. The current price of 259.11 is above the 20-day moving average (MA) of 200.39, above the 50-day MA of 224.76, and above the 200-day MA of 245.06, indicating a bearish trend. The MACD of -10.65 indicates Negative momentum. The RSI at 32.10 is Neutral, neither overbought nor oversold. The STOCH value of 75.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HESAY.
Hermes International SCA Unsponsored ADR Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $215.78B | 48.92 | 25.52% | 1.18% | 10.94% | 1.12% | |
68 Neutral | $30.49B | 11.94 | 63.26% | 1.16% | 8.14% | -65.04% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $1.17B | -21.03 | 56.42% | ― | 97.28% | ― | |
51 Neutral | $2.32B | 6.45 | -244.66% | ― | -17.66% | -223.06% | |
51 Neutral | $3.62B | 12.94 | 16.38% | 1.46% | -0.40% | -68.99% | |
46 Neutral | $1.21B | -108.42 | 11.34% | ― | 14.30% | 23.73% |
* Consumer Cyclical Sector Average
HESAY
Hermes International SCA Unsponsored ADR
206.77
-36.00
-14.83%
TPR
Tapestry
150.57
84.25
127.04%
CPRI
Capri Holdings
19.46
3.10
18.95%
SIG
Signet Jewelers
90.46
32.33
55.61%
REAL
RealReal
10.16
4.72
86.76%
LUXE
LuxExperience
8.56
0.57
7.13%
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.