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Hermes International SCA Unsponsored ADR (HESAY)
:HESAY
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Hermes International SCA Unsponsored ADR
(OTC:HESAY)
Rating:71Outperform
Price Target:
$288.00
▲(17.24% Upside)
Hermes International SCA Unsponsored ADR (HESAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$252.50B
Dividend Yield1.13%
Average Volume (3M)5.55K
Price to Earnings (P/E)52.0
Beta (1Y)0.95
Revenue Growth10.94%
EPS Growth1.12%
CountryUS
Employees24,203
SectorConsumer Cyclical
Sector Strength80
IndustryLuxury Goods
Share Statistics
EPS (TTM)2.46
Shares Outstanding1,055,694,100
10 Day Avg. Volume4,298
30 Day Avg. Volume5,547
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue18.04
Enterprise Value/Gross Profit25.68
Enterprise Value/Ebitda39.15
Forecast
1Y Price Target
$294.00Price Target Upside19.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Hermes International SCA Unsponsored ADR Business Overview & Revenue Model
Company DescriptionHermès 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 MoneyHermès generates revenue through the sale of its wide range of luxury products, with key revenue streams coming from leather goods, fashion accessories, ready-to-wear clothing, and fragrances. The company's business model is heavily focused on exclusivity and brand prestige, allowing it to command high price points for its products. Additionally, Hermès benefits from a robust retail network, with an extensive number of boutiques worldwide, as well as a growing online presence that caters to a digitally savvy luxury market. Strategic partnerships with select retailers and collaborations with artists or designers also enhance brand visibility and drive sales. The company’s emphasis on maintaining quality and limited production helps preserve its brand value, contributing to steady demand and revenue growth.
Hermes International SCA Unsponsored ADR Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 12, 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.Q2-2025 Updates
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.
Strong Operating Income
Current operating income increased by 6%, demonstrating the strength of Hermès' business model.
Geographical Expansion
All regions reported growth with Europe (excluding France) up 13%, Japan up 16%, and America up 12%.
Leather and Saddles Division Performance
The Leather and Saddles division made remarkable progress with a 12% increase, thanks to increased production capacity.
Job Creation and Staff Expansion
The group created over 500 new jobs in the first half of 2025, with 300 in France, reflecting a commitment to employment.
Strong Net Profit
Net profit, after accounting for a one-off tax, reached EUR 2.5 billion, up 6%.
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.
Currency Impact
Hermès faced a negative currency impact close to EUR 80 million due to the depreciation of the CNY, USD, and Korean won.
Temporary Slowdown in France
France experienced a slowdown in growth from 14% to 4% in the second half due to reduced tourist flows.
One-off Tax Impact
The company's tax expense was strongly impacted by a one-off tax on large French companies, contributing to a significant increase in tax rate.
Challenges in New Customer Acquisition
There was a noted decrease in first-time customers, particularly for aspirational products like belts, perfumes, and silk.
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
Hermes International SCA shows robust financial health with strong revenue growth, high profitability, and excellent cash flow generation. The conservative balance sheet with low leverage enhances financial resilience.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 |
| EBITDA | 6.99B | 6.67B | 5.29B | 4.03B | 2.53B |
| Net Income | 4.60B | 4.31B | 3.37B | 2.44B | 1.39B |
Balance Sheet | |||||
| Total Assets | 23.08B | 20.45B | 17.46B | 13.85B | 11.05B |
| Cash, Cash Equivalents and Short-Term Investments | 11.64B | 10.63B | 9.22B | 6.70B | 4.73B |
| Total Debt | 2.17B | 2.06B | 1.93B | 1.80B | 1.69B |
| 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
Negative
245.66
Price Trends
261.18
Negative
265.58
Negative
260.04
Negative
Market Momentum
-5.41
Negative
44.60
Neutral
56.03
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 245.66 is above the 20-day moving average (MA) of 243.06, below the 50-day MA of 261.18, and below the 200-day MA of 260.04, indicating a neutral trend. The MACD of -5.41 indicates Negative momentum. The RSI at 44.60 is Neutral, neither overbought nor oversold. The STOCH value of 56.03 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $252.50B | 51.95 | 27.36% | 1.13% | 10.94% | 1.12% | |
71 Outperform | $3.61B | 92.45 | 2.04% | 1.31% | -3.98% | -93.50% | |
63 Neutral | $706.00M | ― | -8.75% | ― | 7.08% | -42.22% | |
61 Neutral | $17.75B | 12.56 | -5.49% | 3.02% | 1.43% | -14.12% | |
60 Neutral | $20.96B | 119.59 | 9.76% | 1.39% | 5.09% | -80.06% | |
58 Neutral | $871.19M | ― | 32.94% | ― | 12.68% | 62.96% | |
49 Neutral | $2.55B | ― | -142.38% | ― | -16.69% | -279.61% |
* Consumer Cyclical Sector Average
Performance Comparison
HESAY
Hermes International SCA Unsponsored ADR
245.66
7.46
3.13%
TPR
Tapestry
100.98
61.37
154.94%
CPRI
Capri Holdings
21.55
-14.33
-39.94%
SIG
Signet Jewelers
93.37
10.41
12.55%
REAL
RealReal
7.63
5.00
190.11%
LUXE
LuxExperience
8.44
4.54
116.41%
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.