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

• Market Cap: kr274.93B
• Dividend Yield: 3.85%
• 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: kr145.75
• Price Target Upside: -17.47% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: kr183.00 ▲(3.62% Upside)

H&M's overall stock score reflects strong financial performance with robust profitability and cash flow, balanced by high leverage and valuation concerns. Technical indicators suggest a neutral outlook, with no significant earnings call or corporate events impacting the score.

Positive Factors

Cash Generation

Strong cash flow growth enhances H&M's financial flexibility and operational efficiency, supporting long-term investments and stability.

Profitability

High profitability margins indicate efficient operations and the ability to sustain competitive pricing while maintaining financial health.

Sustainability Initiatives

Commitment to sustainability enhances brand loyalty and appeals to environmentally conscious consumers, supporting long-term growth.

Negative Factors

Revenue Growth Decline

Declining revenue growth may signal challenges in market expansion or consumer demand, potentially impacting future profitability.

High Leverage

High leverage can strain financial resources and limit strategic flexibility, posing risks to long-term financial stability.

Revenue Growth Challenges

Ongoing revenue growth challenges may hinder H&M's ability to capitalize on market opportunities and sustain competitive positioning.

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

H&M shows strong profitability with healthy margins and robust cash flow generation. However, challenges include a slight decline in revenue growth and high leverage, which pose potential financial risks.

Income Statement

H&M's income statement shows mixed results. The TTM data indicates a slight decline in revenue growth, with a negative growth rate of -0.86%. However, the company maintains a healthy gross profit margin of 52.59% and a net profit margin of 4.27%, suggesting strong profitability. The EBIT and EBITDA margins are also solid at 6.74% and 16.22%, respectively, indicating efficient operations. Despite the recent revenue decline, the company has shown resilience in maintaining profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.54, which indicates significant leverage and potential financial risk. However, the return on equity (ROE) is strong at 23.20%, reflecting effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure. While leverage is a concern, the company's ability to generate returns on equity is a positive aspect.

Cash Flow

H&M's cash flow statement is robust, with a notable free cash flow growth rate of 13.80% in the TTM period. The operating cash flow to net income ratio is 0.38, and the free cash flow to net income ratio is 0.57, indicating healthy cash generation relative to profits. The company's ability to grow free cash flow and maintain strong cash flow ratios highlights its financial flexibility and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	576.55B	234.48B	236.03B	223.55B	198.97B	187.03B
Gross Profit	305.64B	125.30B	120.90B	113.28B	105.01B	93.54B
EBITDA	98.50B	40.53B	38.11B	29.91B	37.58B	29.05B
Net Income	28.22B	11.62B	8.75B	3.57B	11.01B	1.24B
Balance Sheet
Total Assets	171.86B	180.21B	181.27B	182.05B	179.78B	174.37B
Cash, Cash Equivalents and Short-Term Investments	20.36B	17.34B	26.40B	21.71B	27.47B	16.54B
Total Debt	57.27B	76.95B	77.97B	72.64B	66.69B	80.06B
Total Liabilities	132.64B	134.00B	133.67B	131.29B	119.76B	119.75B
Stockholders Equity	39.16B	46.14B	47.52B	50.76B	60.02B	54.62B
Cash Flow
Free Cash Flow	50.57B	20.31B	24.98B	18.46B	41.16B	20.80B
Operating Cash Flow	79.35B	31.76B	33.95B	24.48B	44.62B	25.90B
Investing Cash Flow	-28.27B	-11.57B	-9.62B	-6.81B	-4.08B	-5.24B
Financing Cash Flow	-48.05B	-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: 176.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 176.6 is above the 20-day moving average (MA) of 176.30, above the 50-day MA of 173.99, and above the 200-day MA of 145.12, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 53.64 is Neutral, neither overbought nor oversold. The STOCH value of 66.82 is Neutral, 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
BOOZT	77 Outperform	kr6.37B	18.22	―	―	1.54%	72.94%
NELLY	72 Outperform	€2.70B	18.42	51.02%	―	12.45%	118.98%
BORG	69 Neutral	€1.58B	18.68	23.44%	4.90%	9.20%	11.72%
NEWA.B	66 Neutral	€14.74B	17.13	12.33%	3.14%	2.80%	-8.84%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HM.B	60 Neutral	kr274.93B	25.28	26.43%	3.85%	-1.57%	8.06%
FOI.B	59 Neutral	kr6.75B	80.32	2.04%	5.93%	-2.98%	-30.48%