H&M Hennes & Mauritz AB Class B (HM.B) AI Stock Analysis

• Market Cap: kr274.93B
• Dividend Yield: 3.74%
• Average Volume (3M): 2.59M
• Price to Earnings (P/E): 25.3
• Beta (1Y): 1.07
• Revenue Growth: -1.57%
• EPS Growth: 8.06%
• Country: SE
• Employees: 140,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 2.01
• Shares Outstanding: 1,410,091,400
• 10 Day Avg. Volume: 1,985,885
• 30 Day Avg. Volume: 2,592,286
• PEG Ratio: 0.61
• Price to Book (P/B): 5.28
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 12.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr142.55
• Price Target Upside: -21.63% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: kr180.00 ▼(-1.04% Downside)

H&M's overall stock score reflects strong financial performance with robust gross margins, but challenges in revenue growth and cash flow generation. The technical analysis indicates a strong upward trend, though overbought conditions suggest caution. Valuation metrics imply the stock may be overvalued, which tempers the overall score.

H&M Hennes & Mauritz AB Class B Business Overview & Revenue Model

Company Description

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, teenagers, children, and babies worldwide. It offers sportswear, shoes, bags, beauty products, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, COS, & Other Stories, Monki, Weekday, ARKET, Afound, Singular Society, Treadler, Creator Studio, and Sellpy brands. As of November 30, 2021, the company had 54 online markets and approximately 4,801 stores in 75 markets, including franchise markets. H & M Hennes & Mauritz AB (publ) was founded in 1947 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

H&M generates revenue primarily through the sale of its apparel and accessories across its various brands. The company's main revenue stream comes from retail sales, both in physical stores and online, where customers can purchase products directly. H&M also benefits from a strong supply chain and efficient inventory management, allowing for rapid turnover of fashion trends and cost-effective pricing. Additionally, the company has capitalized on e-commerce growth, expanding its online sales channels, which have become increasingly significant to its revenue model. Strategic partnerships with suppliers and a focus on sustainable practices also enhance brand loyalty and attract environmentally-conscious consumers, further contributing to its earnings.

H&M Hennes & Mauritz AB Class B Financial Statement Overview

Summary

H&M displays strong gross margins and profitability metrics, but faces challenges with declining revenue growth and free cash flow generation. The balance sheet is stable with moderate leverage, though vigilance is needed on debt levels. Cash flow signals potential liquidity constraints, suggesting a need for strategic focus on cash management.

Income Statement

H&M's income statement reveals a strong gross profit margin of 52.6% TTM, indicating efficient cost management. However, net profit margin decreased from 5% in 2024 to 4.3% TTM, suggesting reduced profitability. The revenue growth rate is negative, with a slight dip in revenue compared to the previous year. EBIT and EBITDA margins are stable but show slight compression, which indicates potential efficiency improvements are needed.

Balance Sheet

The balance sheet shows a manageable debt-to-equity ratio of 1.54 TTM, reflecting moderate leverage. Return on equity stands at 27.3%, demonstrating strong profitability relative to equity. The equity ratio has decreased slightly, indicating increased liabilities. Overall, the balance sheet is stable with a solid equity base but could face challenges if debt levels rise further.

Cash Flow

H&M's cash flow statement shows a decline in free cash flow growth at -21.9%, indicating potential challenges in generating cash. The operating cash flow to net income ratio of 2.8 TTM underscores strong cash generation from operations. However, free cash flow to net income ratio has decreased due to lower free cash flow, pointing to potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	233.25B	234.48B	236.03B	223.55B	198.97B	187.03B
Gross Profit	122.67B	125.30B	120.90B	113.28B	105.01B	93.54B
EBITDA	37.77B	40.53B	38.11B	29.91B	37.58B	29.05B
Net Income	9.97B	11.62B	8.75B	3.57B	11.01B	1.24B
Balance Sheet
Total Assets	168.29B	180.21B	181.27B	182.05B	179.78B	174.37B
Cash, Cash Equivalents and Short-Term Investments	16.26B	17.34B	26.40B	21.71B	27.47B	16.54B
Total Debt	56.41B	76.95B	77.97B	72.64B	66.69B	80.06B
Total Liabilities	131.77B	134.00B	133.67B	131.29B	119.76B	119.75B
Stockholders Equity	36.52B	46.14B	47.52B	50.76B	60.02B	54.62B
Cash Flow
Free Cash Flow	15.87B	20.31B	24.98B	18.46B	41.16B	20.80B
Operating Cash Flow	27.92B	31.76B	33.95B	24.48B	44.62B	25.90B
Investing Cash Flow	-11.96B	-11.57B	-9.62B	-6.81B	-4.08B	-5.24B
Financing Cash Flow	-22.99B	-29.20B	-18.61B	-25.15B	-30.18B	-15.16B

H&M Hennes & Mauritz AB Class B Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 181.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:HM.B, the sentiment is Positive. The current price of 181.9 is above the 20-day moving average (MA) of 175.94, above the 50-day MA of 166.80, and above the 200-day MA of 142.63, indicating a bullish trend. The MACD of 3.70 indicates Negative momentum. The RSI at 66.09 is Neutral, neither overbought nor oversold. The STOCH value of 89.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:HM.B.

H&M Hennes & Mauritz AB Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NELLY	74 Outperform	€2.70B	18.42	51.02%	―	12.45%	118.98%
BORG	74 Outperform	€1.58B	18.68	25.24%	4.77%	10.32%	13.49%
BOOZT	72 Outperform	kr6.37B	18.22	―	―	1.54%	72.94%
NEWA.B	64 Neutral	€14.74B	17.13	12.33%	3.10%	2.80%	-8.84%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HM.B	61 Neutral	kr274.93B	25.28	26.43%	3.74%	-1.57%	8.06%
FOI.B	59 Neutral	kr6.68B	79.53	2.04%	2.45%	-2.98%	-30.48%