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

• Market Cap: kr309.19B
• Dividend Yield: 3.69%
• Average Volume (3M): 2.59M
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.90
• Revenue Growth: -1.57%
• EPS Growth: 8.06%
• Country: SE
• Employees: 140,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 2.72
• Shares Outstanding: 1,410,091,400
• 10 Day Avg. Volume: 1,985,885
• 30 Day Avg. Volume: 2,592,286
• PEG Ratio: 4.53
• Price to Book (P/B): 6.58
• Price to Sales (P/S): 1.24
• P/FCF Ratio: 12.91
• 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: kr156.50
• Price Target Upside: -18.79% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 10
• EPS Forecast (FY): 8.43
• Revenue Forecast (FY): kr222.87B

• Rating: 55 Neutral
• Price Target: kr183.00 ▼(-5.03% Downside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score reflects mixed financials: profitability has improved and free cash flow is solid, but the sharp revenue decline and higher leverage are meaningful constraints. Technicals are broadly neutral with slightly negative momentum, while valuation is balanced by a good dividend yield but a moderate P/E.

Positive Factors

Consistent free cash flow generation

Sustained positive free cash flow across 2024–2025 provides an enduring internal funding source for operations, dividends and selective reinvestment. This FCF base helps absorb retail cyclicality and funds strategic initiatives without immediate reliance on external capital.

Margin recovery and improved profitability

A rebound in operating and net margins versus the weak 2022–2023 period indicates improved cost control and pricing execution. Higher operating leverage supports cash generation and resilience, making earnings more durable if management sustains these efficiencies over coming quarters.

Broad multi-channel global footprint and scale

A large global store base combined with a robust e-commerce platform and scale advantages underpins competitive pricing, supplier leverage, and diversified demand exposure. Scale and sustainability initiatives also enhance brand resilience and long-term customer loyalty.

Negative Factors

Sharp revenue decline in 2025

A ~20.8% revenue drop materially weakens the top-line base that supports margins and fixed-cost absorption. Prolonged or recurring top-line weakness would challenge the durability of the recent margin recovery and compress store economics and investment capacity over the medium term.

Marked increase in leverage and shrinking equity

Rising debt and declining equity reduce balance-sheet flexibility, increase fixed interest obligations, and limit capacity to fund growth or weather demand shocks. Elevated leverage also amplifies earnings volatility and constrains strategic optionality over the next several quarters.

Weaker cash conversion and declining FCF trend

Declining free cash flow and lower conversion of net income into cash reduce the firm's ability to self-fund investments, dividends, or deleveraging. If conversion does not improve, management may face trade-offs between capex, dividends and debt reduction over the medium term.

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 clothing and accessories in over 70 countries worldwide, leveraging a multi-channel retail model that includes both physical stores and a robust e-commerce platform. Key revenue streams include direct sales from stores, online sales, and collaborations with designers and celebrities, which create exclusive collections that attract customers. Additionally, H&M's commitment to sustainability has led to partnerships with organizations focused on eco-friendly practices, enhancing brand loyalty and appealing to environmentally conscious consumers. The company also benefits from economies of scale, allowing it to maintain competitive pricing while optimizing supply chain efficiencies.

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

Summary

Margins have recovered (net margin ~5.3% and operating margin ~8.3% in 2025) and free cash flow remains positive (~21.9B in 2025). Offsetting this, revenue fell sharply in 2025 (~-20.8% YoY) and leverage increased materially (debt-to-equity ~2.85x), making overall financial quality mixed.

Income Statement

Profitability has improved versus the weak 2022–2023 period, with net margin rising to ~5.3% in 2025 (from ~3.7% in 2023 and ~1.6% in 2022) and operating margin improving to ~8.3% in 2025. Gross margin remains solid but compressed in 2025 (~45.4%) versus 2024 (~53.4%). The key weakness is growth: revenue has been flat to down recently and fell sharply in 2025 (about -20.8% year over year), which creates uncertainty around the durability of the earnings recovery.

Balance Sheet

Leverage has increased meaningfully: debt-to-equity moved up to ~2.85x in 2025 from ~1.67x in 2024 and ~1.11x in 2021, reducing balance-sheet flexibility. Equity has trended down since 2021, while total debt jumped in 2025. A positive offset is that returns on equity are currently strong (~28% in 2025), but that level is likely being boosted by higher leverage and may be more volatile if profitability or demand softens.

Cash Flow

Cash generation is generally solid with positive free cash flow each year, including ~21.9B in 2025 and ~20.3B in 2024. However, free cash flow has been declining recently (down ~13.5% in 2025 after a slight decline in 2024), and free cash flow is below net income in the latest year (about 70% of net income), suggesting earnings are not converting to cash as strongly as in prior periods (e.g., ~92% in 2021). Operating cash flow relative to accounting earnings is moderate and not consistently improving.

Breakdown	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	228.28B	234.48B	236.03B	223.55B	198.97B
Gross Profit	103.57B	125.30B	120.90B	113.28B	105.01B
EBITDA	39.41B	40.53B	38.11B	29.91B	37.58B
Net Income	12.16B	11.62B	8.75B	3.57B	11.01B
Balance Sheet
Total Assets	170.27B	180.21B	181.27B	182.05B	179.78B
Cash, Cash Equivalents and Short-Term Investments	20.91B	17.34B	26.40B	21.71B	27.47B
Total Debt	122.45B	76.95B	77.97B	72.64B	66.69B
Total Liabilities	127.33B	134.00B	133.67B	131.29B	119.76B
Stockholders Equity	42.92B	46.14B	47.52B	50.76B	60.02B
Cash Flow
Free Cash Flow	21.88B	20.31B	24.98B	18.46B	41.16B
Operating Cash Flow	31.12B	31.76B	33.95B	24.48B	44.62B
Investing Cash Flow	-10.62B	-11.57B	-9.62B	-6.81B	-4.08B
Financing Cash Flow	-16.31B	-29.20B	-18.61B	-25.15B	-30.18B

H&M Hennes & Mauritz AB Class B Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 192.70
• 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 192.7 is above the 20-day moving average (MA) of 185.67, above the 50-day MA of 182.42, and above the 200-day MA of 158.71, indicating a bullish trend. The MACD of 2.82 indicates Negative momentum. The RSI at 62.76 is Neutral, neither overbought nor oversold. The STOCH value of 92.35 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	71 Outperform	kr3.84B	22.77	51.02%	―	12.45%	118.98%
BORG	70 Outperform	kr1.72B	18.66	23.44%	4.95%	9.20%	11.72%
BOOZT	68 Neutral	kr5.72B	18.76	―	―	1.54%	72.94%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HM.B	55 Neutral	kr309.19B	25.42	26.43%	3.69%	-1.57%	8.06%
FOI.B	54 Neutral	kr6.30B	116.83	2.04%	6.24%	-2.98%	-30.48%
NEWA.B	52 Neutral	kr13.67B	17.45	12.33%	3.12%	2.80%	-8.84%