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:81Outperform
Price Target:
$237.00
▼(-8.53% Downside)
Action:ReiteratedDate:04/20/26
The score is driven primarily by exceptional financial performance (strong growth, high margins, strong cash generation, and conservative leverage) and reinforced by a highly positive earnings update highlighting record results and a strong net cash position. Offsetting these strengths are weaker technicals versus longer-term moving averages and only moderate valuation support (P/E ~24.5 with a low dividend yield).
Positive Factors
High operating and gross margins
Hermès reports extremely high and expanding margins (recurring operating margin ~41% and gross margin ~71%), underpinned by premium pricing, tight control of distribution and a leather‑goods weighted mix. High structural margins support durable cash generation and attractive returns on invested capital even if top-line growth moderates.
Negative Factors
Perfume & beauty underperformance
A structurally weak perfume & beauty arm reduces business diversification and exposes Hermès to channel concentration (wholesale/duty‑free). Persistent underperformance here limits scope for portfolio smoothing of revenue cycles and may require sustained investment or strategic change to restore growth and margin contribution.
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Positive Factors
Negative Factors
High operating and gross margins
Hermès reports extremely high and expanding margins (recurring operating margin ~41% and gross margin ~71%), underpinned by premium pricing, tight control of distribution and a leather‑goods weighted mix. High structural margins support durable cash generation and attractive returns on invested capital even if top-line growth moderates.
Read all positive factors
Hermes International SCA Unsponsored ADR (HESAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$199.20B
Dividend Yield1.18%
Average Volume (3M)23.92K
Price to Earnings (P/E)24.5
Beta (1Y)1.06
Revenue Growth10.10%
EPS Growth2.58%
CountryUS
Employees24,203
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)2.58
Shares Outstanding1,055,694,100
10 Day Avg. Volume31,542
30 Day Avg. Volume23,916
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 Cap0.80
Enterprise Value/Revenue9.95
Enterprise Value/Gross Profit13.99
Enterprise Value/Ebitda19.81
Forecast
1Y Price Target
$300.00Price Target Upside15.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)5.25
Revenue Forecast (FY)$19.80B
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:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and financial picture: solid top-line growth (EUR 16bn+), expanding margins and robust cash generation, coupled with significant investments in production capacity, retail and employees. Challenges are manageable but notable — perfume and watches underperformed, currency headwinds and higher exceptional taxes weighed on results, and there are investor concerns around inventory dynamics, brand desirability and long-term volume expansion. Overall, the positive results, margin improvement and strong cash/financial position materially outweigh the lowlights.Positive Updates
Record Revenue Above EUR 16 Billion
Revenue exceeded EUR 16.0 billion in FY2025, up 9% at constant exchange rates and 5.5% at current exchange rates.
Negative Updates
Perfume & Beauty Underperformance
Perfume division revenue declined by 8% in 2025, noted as a weaker-performing division; management flagged dependence on wholesale and duty-free channels and indicated areas for improvement.
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Q4-2025 Updates
Positive
Negative
Record Revenue Above EUR 16 Billion
Revenue exceeded EUR 16.0 billion in FY2025, up 9% at constant exchange rates and 5.5% at current exchange rates.
Read all positive updates
Company Guidance
Management kept its outlook unchanged, emphasizing continued investment and expansion despite uncertainty: operational investments were €1.2bn in 2025 and will continue to ramp up production capacity (opening the 25th leather workshop in Gironde in 2026, integrating Loupes, with Charleville‑Mézières and Colombelles due in 2027/28 and Andelys in 2030), plus retail openings/enlargements including Beijing, Geneva and New Bond Street (London); they implemented a ~5–6% price increase in January 2026 to help offset costs (including a €120 general wage rise in France and a €3,000 bonus for each of 26,000 employees), warned of an unfavorable 2026 FX impact (c. €200m headwind to be hedged), and pointed to a strong financial position (net cash €12.8bn, recurring operating income €6.6bn and 41% recurring operating margin in 2025, gross margin 71.1%, operating cash flow €5.6bn, adjusted free cash flow €3.9bn) while proposing an ordinary dividend of €18 per share (≈39% payout ex-exceptional).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
Neutral
259.11
Price Trends
218.31
Negative
233.29
Negative
242.62
Negative
Market Momentum
-3.64
Negative
50.99
Neutral
35.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HESAY, the sentiment is Neutral. The current price of 259.11 is above the 20-day moving average (MA) of 195.59, above the 50-day MA of 218.31, and above the 200-day MA of 242.62, indicating a neutral trend. The MACD of -3.64 indicates Negative momentum. The RSI at 50.99 is Neutral, neither overbought nor oversold. The STOCH value of 35.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $199.20B | 24.47 | 25.52% | 1.18% | 10.10% | 2.58% | |
68 Neutral | $29.37B | 11.94 | 63.26% | 1.16% | 10.90% | -27.05% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $1.24B | -21.03 | 44.06% | ― | 145.88% | ― | |
51 Neutral | $2.32B | 6.45 | -244.66% | ― | -19.81% | 45.85% | |
51 Neutral | $3.57B | 12.94 | 16.38% | 1.46% | 1.64% | ― | |
46 Neutral | $1.43B | -108.42 | 11.34% | ― | 15.38% | 72.56% |
* Consumer Cyclical Sector Average
HESAY
Hermes International SCA Unsponsored ADR
191.05
-84.36
-30.63%
TPR
Tapestry
142.74
70.50
97.58%
CPRI
Capri Holdings
19.63
4.22
27.38%
SIG
Signet Jewelers
85.70
25.63
42.67%
REAL
RealReal
11.77
5.34
83.05%
LUXE
LuxExperience
9.00
1.58
21.29%
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.