Numbers Analysis: Hennes & Mauritz AB (HM B)

Hennes & Mauritz AB is a multibrand fashion company. Its flagship is the brand H&M, which stands for the majority of the revenue. However its new brands (such as COS, & Other Stories, Monki, Weekday and Arket) are growing faster. H&M has a strong market position globally. The company was originally founded in 1947 and has its main office in Stockholm, Sweden.



Sales (MSEK)108483109999120799128562151419
EPS (SEK)11.299.5610.1910.3312.97
Equity (MSEK)4417244104438354524851556
Cash flow from current operations per share13.1910.5311.4214.414.6
Sales (MSEK)180861192267200004210400232755
EPS (SEK)12.6311.269.787.648.12
Equity (MSEK)5804961236597135854657069
Cash flow from current operations per share14.5414.3613.0412.8617.51

Growth Rates

Yearly average10 year5 year1 year
Sales Growth Rate9%7%11%
EPS Growth Rate-4%-10%6%
Equity Growth Rate3%0%-3%
Cash Flow Growth Rate3%5%36%

Calculations using historic growth rates and different P/E

Growth rates x 2Average P/EMedian P/E
Calculated future price in 10 years65253246
Calculated Price (fair value)166361
Margin of Safety (50%)83231

Current price: 137.05 SEK

ROIC-numbers are great. Sales are pretty good. EPS is not growing. The historic Equity Growth rate of 3% is on the lower side which brings down the price calculations. Above numbers suggest that H&M is overvalued.

To be considered for further analysis, as a growth stock, the requirement is that the 10 year yearly average growth rate is at least 5% in all five categories. They are not.

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