LVMH Moet Hennessy Louis Vuitton (MC) AI Stock Analysis

• Market Cap: €268.21B
• Dividend Yield: 2.48%
• Average Volume (3M): 718.69K
• Price to Earnings (P/E): 21.4
• Beta (1Y): 1.51
• Revenue Growth: -1.71%
• EPS Growth: -17.20%
• Country: FR
• Employees: 200,518
• Sector: Consumer Cyclical
• Sector Strength: 77
• Industry: Luxury Goods
• EPS (TTM): 10.58
• Shares Outstanding: 500,141,700
• 10 Day Avg. Volume: 582,033
• 30 Day Avg. Volume: 718,691
• PEG Ratio: -1.96
• Price to Book (P/B): 3.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.96
• 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: €604.94
• Price Target Upside: 19.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

LVMH's strong financial performance is the primary driver of its positive score, with solid revenue growth, profitability, and cash flow. However, technical indicators currently show bearish momentum, which could pose short-term challenges. The valuation is fair, supported by a reasonable P/E ratio and a decent dividend yield.

Positive Factors

Brand Development

LVMH remains confident and focused on brand development, innovation, and quality to maintain its leadership in the luxury goods market.

Brand Portfolio Strength

LVMH's extensive and diversified brand portfolio, global presence, and strong brand equity have all contributed to its dominance in the industry.

Financial Performance

The company's strong financial performance and commitment to sustainability via promoting eco-friendly and socially responsible brands further bolster its competitive advantage.

Negative Factors

Consumer Confidence

LVMH's portfolio has high exposure to aspirational US consumers who may be particularly impacted by recent softness in US consumer confidence.

Earnings Visibility

The poor sales and earnings visibility for the sector in a transition year for its core Fashion & Leather division should keep a lid on the stock.

Sales Decline

LVMH recorded a 3% organic sales decline at the group level and a 5% decline for Fashion & Leather Goods, both missing consensus by 400bps.

LVMH Moet Hennessy Louis Vuitton Business Overview & Revenue Model

Company Description

LVMH Moët Hennessy - Louis Vuitton, Société Européenne operates as a luxury goods company worldwide. The company offers champagnes, wines, and spirits under the Clos des Lambrays, Château d'Yquem, Dom Pérignon, Ruinart, Moët & Chandon, Hennessy, Veuve Clicquot, Ardbeg, Château Cheval Blanc, Glenmorangie, Krug, Mercier, Chandon, Cape Mentelle, Newton Vineyard, Cloudy Bay, Belvedere, Terrazas de los Andes, Bodega Numanthia, Cheval des Andes, Woodinville, Ao Yun, Clos19, and Volcan de mi Tierra brands. It also provides fashion and leather products under the Berluti, Celine, Christian Dior, Emilio Pucci, FENDI, Givenchy, Kenzo, Loewe, Loro Piana, Louis Vuitton, Marc Jacobs, Moynat, Patou, and RIMOWA brands. In addition, the company offers perfumes and cosmetics under the Acqua di Parma, Benefit Cosmetics, Cha Ling, Fenty Beauty by Rihanna, Fresh, Givenchy Parfums, Guerlain, KVD Beauty, Kenzo Parfums, Maison Francis Kurkdjian, Make Up For Ever, Marc Jacobs Beauty, Officine Universelle Buly, Parfums Christian Dior, and Perfumes Loewe brands; watches and jewelry under the Bulgari, Chaumet, Fred, Hublot, Repossi, TAG Heuer, Tiffany & Co., and Zenith brands; and custom-designed yachts under the Feadship brand name, as well as designs and builds luxury yachts under the Royal Van Lent brand. Further, it provides daily newspapers under the Les Échos brand; Belmond, a luxury tourism service; home other activities under the Belmond, Cheval Blanc, Connaissance des Arts, Cova, Investir, Jardin d'Acclimatation, La Samaritaine, Le Parisien, and Radio Classique brands; and selective retailing products under the DFS, La Grande Epicerie de Paris, Le Bon Marché Rive Gauche, Sephora, and Starboard Cruise Services brands, as well as operates Jardin d'Acclimatation, a leisure and amusement park. The company operates 5,556 stores. LVMH Moët Hennessy - Louis Vuitton, Société Européenne was incorporated in 1923 and is headquartered in Paris, France.

How the Company Makes Money

LVMH generates revenue through a diverse range of luxury products and services sold across its various sectors. The company earns substantial income from the sale of fashion and leather goods, which represents the largest portion of its revenue, driven by brands like Louis Vuitton and Dior. The wines and spirits segment, featuring brands like Moet & Chandon and Hennessy, also contributes significantly to its earnings. Additionally, the company profits from the sale of perfumes and cosmetics under brands such as Givenchy and Fenty Beauty. The watches and jewelry sector, with names like Bulgari and TAG Heuer, along with selective retailing operations including Sephora, further bolster its revenue streams. LVMH's financial performance is also supported by strategic acquisitions and partnerships, enhancing its global presence and market share in the luxury segment.

LVMH Moet Hennessy Louis Vuitton Financial Statement Overview

Summary

LVMH exhibits strong financial health, with consistent growth in revenue and profitability, solid balance sheet metrics, and strong cash flow generation. The company effectively manages leverage and capital expenditures, positioning it well for future growth and stability.

Income Statement

LVMH has demonstrated impressive revenue growth with a CAGR of 9.34% from 2019 to 2023. The gross profit margin consistently exceeds 66%, indicating strong pricing power and cost management. Net profit margin peaked at 17.6% in 2023, reflecting efficient operations and profitability. EBIT and EBITDA margins are robust, supporting strong operating efficiency.

Balance Sheet

The company's debt-to-equity ratio is stable around 0.63, showing moderate leverage. ROE improved to 24.9% in 2023, highlighting effective utilization of equity. The equity ratio is approximately 42.5%, indicating a solid equity base and financial stability.

Cash Flow

Operating cash flow is strong, with consistent growth over the years. The free cash flow to net income ratio is over 0.7, suggesting efficient cash generation relative to earnings. Free cash flow growth is robust, though slightly impeded by capital expenditures.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
84.68B	86.15B	79.18B	64.22B	44.65B
	Gross Profit
56.77B	59.28B	54.20B	43.85B	28.76B
	EBIT
18.91B	22.56B	21.00B	17.13B	8.32B
	EBITDA
22.30B	28.55B	26.07B	22.49B	12.54B
	Net Income Common Stockholders
12.55B	15.17B	14.08B	12.04B	4.70B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.59B	11.26B	10.85B	10.56B	20.71B
	Total Assets
149.19B	143.69B	134.65B	125.31B	108.67B
	Total Debt
41.20B	38.88B	35.09B	34.45B	37.48B
	Net Debt
31.57B	31.10B	28.79B	28.26B	31.07B
	Total Liabilities
79.90B	80.99B	78.04B	76.40B	69.84B
	Stockholders Equity
67.52B	61.02B	55.11B	47.12B	37.41B
Cash Flow		Free Cash Flow
13.37B	10.60B	12.75B	15.39B	8.43B
	Operating Cash Flow
18.93B	18.40B	17.84B	18.65B	10.90B
	Investing Cash Flow
-6.54B	-8.31B	-5.92B	-15.98B	-2.94B
	Financing Cash Flow
-10.72B	-9.40B	-12.69B	-15.16B	7.40B

LVMH Moet Hennessy Louis Vuitton Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 507.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:MC, the sentiment is Negative. The current price of 507.3 is above the 20-day moving average (MA) of 496.59, below the 50-day MA of 545.25, and below the 200-day MA of 610.49, indicating a neutral trend. The MACD of -7.13 indicates Negative momentum. The RSI at 46.60 is Neutral, neither overbought nor oversold. The STOCH value of 69.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:MC.

LVMH Moet Hennessy Louis Vuitton Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MC	75 Outperform	€268.21B	21.37	19.53%	2.48%	-1.71%	-17.20%
Sector *	61 Neutral	$6.98B	11.29	2.93%	3.90%	2.60%	-21.72%