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Hermes International SCA Unsponsored ADR (HESAY)
OTHER OTC:HESAY
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Hermes International SCA Unsponsored ADR
(OTC:HESAY)
Rating:71Outperform
Price Target:
$288.00
▲(16.77% Upside)
Hermes International SCA Unsponsored ADR (HESAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$255.60B
Dividend Yield1.12%
Average Volume (3M)3.42K
Price to Earnings (P/E)52.1
Beta (1Y)0.98
Revenue Growth10.94%
EPS Growth1.12%
CountryUS
Employees24,203
SectorConsumer Cyclical
Sector Strength74
IndustryLuxury Goods
Share Statistics
EPS (TTM)2.46
Shares Outstanding1,055,694,100
10 Day Avg. Volume3,138
30 Day Avg. Volume3,424
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 Cap1.07
Enterprise Value/Revenue18.04
Enterprise Value/Gross Profit25.68
Enterprise Value/Ebitda39.15
Forecast
1Y Price Target
$300.00Price Target Upside21.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 MoneyHermes International generates revenue primarily through the sale of luxury goods across various product categories. The company's key revenue streams include leather goods and saddlery, which make up a significant portion of its sales, followed by apparel, accessories, and fragrances. Hermes operates its own network of exclusive retail stores worldwide, allowing it to maintain direct relationships with customers and control over its brand image. Additionally, the company benefits from strategic pricing, brand loyalty, and limited product availability, which help sustain its high-margin business model. Hermes' commitment to quality and craftsmanship, coupled with its strong brand identity, ensures a consistent demand for its products, contributing to its financial success.
Hermes International SCA Unsponsored ADR Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: -9.99%|
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment overall with strong sales growth, notable progress in key segments like Leather Goods, and robust financial performance. However, challenges in specific divisions and regions, alongside currency impacts and tax burdens, slightly tempered the optimism.Q2-2025 Updates
Positive Updates
Solid Sales Growth
Sales reached EUR 8 billion, up by 8% at constant rates, with all regions showing progress.
Strong Leather Goods Performance
Leather and Saddles division showed remarkable progress with sales increasing by 12%.
Geographic Expansion and Investment
Investments in production capacity and retail network expansion, including new leather workshops and store inaugurations in the U.S. and Asia.
Significant Staff Increase
The group strengthened its staff by over 500 people in the first half of 2025.
Robust Financial Performance
Operating income stood at EUR 3.3 billion, up 6%, with net profit at EUR 2.5 billion.
Negative Updates
Perfume and Beauty Decline
Perfume and Beauty division decreased by 4%, impacted by a strong Q2 comparison.
Challenging Conditions in China
Chinese clients showing conservative buying patterns due to economic and geopolitical concerns.
Currency Impact
Negative currency impact close to EUR 80 million due to depreciation of CNY, USD, and Korean won.
One-off Tax Impact
A one-off tax on large French companies impacted net financial results, costing EUR 260 million.
Company Guidance
In the first half of 2025, Hermès International reported a 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 adjusted for a one-off tax stood at EUR 2.5 billion, also up by 6%. Hermès recorded growth across all regions, with Japan leading at a 16% increase and America at 12%. Leather and Saddles saw a notable 12% growth due to expanded production capacities. Investments in production capacity and distribution networks were emphasized, with EUR 316 million invested in the first half, and plans for over EUR 1 billion in investments by year-end. The company also enhanced its workforce, adding over 500 employees, and continued its commitment to sustainability and responsible employer practices. Despite a challenging geopolitical and economic backdrop, Hermès maintained strong cash flow with EUR 1.8 billion in adjusted available cash flow and a robust financial position, with restated net cash flow at EUR 10.7 billion. The outlook for the remainder of 2025 remains positive, with Hermès planning to continue its strategic investments and growth initiatives across all divisions and regions.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
246.63
Price Trends
268.67
Negative
268.86
Negative
258.81
Negative
Market Momentum
-7.99
Positive
33.19
Neutral
12.29
Positive
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 246.63 is below the 20-day moving average (MA) of 266.44, below the 50-day MA of 268.67, and below the 200-day MA of 258.81, indicating a bearish trend. The MACD of -7.99 indicates Positive momentum. The RSI at 33.19 is Neutral, neither overbought nor oversold. The STOCH value of 12.29 is Positive, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $23.16B | 29.34 | 40.27% | 1.29% | 2.67% | 1.31% | |
71 Outperform | $255.60B | 52.13 | 27.36% | 1.12% | 10.94% | 1.12% | |
63 Neutral | $3.13B | 82.47 | 2.04% | 1.62% | -3.98% | -93.50% | |
63 Neutral | $691.51M | ― | -8.75% | ― | 7.08% | -42.22% | |
61 Neutral | $16.55B | 10.17 | -9.03% | 3.33% | 1.46% | -22.85% | |
51 Neutral | $2.15B | ― | -142.38% | ― | -16.69% | -279.61% | |
50 Neutral | $650.30M | ― | 32.94% | ― | 11.89% | 66.22% |
* Consumer Cyclical Sector Average
Performance Comparison
HESAY
Hermes International SCA Unsponsored ADR
246.63
29.00
13.33%
TPR
Tapestry
108.48
71.40
192.56%
CPRI
Capri Holdings
20.77
-11.33
-35.30%
SIG
Signet Jewelers
75.25
1.17
1.58%
REAL
RealReal
5.51
3.05
123.98%
LUXE
LuxExperience
7.94
4.31
118.73%
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.