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Hermes International SCA Unsponsored ADR (HESAY) AI Stock Analysis
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Hermes International SCA Unsponsored ADR
(Other OTC:HESAY)
The score is driven primarily by exceptional financial strength (high profitability, strong cash generation, and conservative leverage) and a positive earnings outlook with robust H1 margins and maintained guidance. These positives are tempered by clearly bearish technical momentum (price below key moving averages with negative MACD) and a premium P/E that is only partly supported by the dividend yield.
Hermes International SCA Unsponsored ADR (HESAY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $151.22B
- Dividend Yield
- 3.22%
- Average Volume (3M)
- 77.53K
- Price to Earnings (P/E)
- 30.0
- Beta (1Y)
- 0.99
- Revenue Growth
- 10.20%
- EPS Growth
- 8.12%
- Country
- US
- Employees
- 25,414
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Luxury Goods
Hermes International SCA Unsponsored ADR Business Overview & Revenue Model
Company Description
Hermès International Société en commandite par actions engages in the production, wholesale, and retail of various goods. The company offers leather goods and saddlery, such as bags for men and women, travel articles, small leather goods and accessor...
How the Company Makes Money
Hermès makes money primarily by selling luxury products under the Hermès brand, with revenue generated across several product categories and geographies. Its largest revenue stream is typically the direct sale of goods through its own retail boutique...
Hermes International SCA Unsponsored ADR Earnings Call Summary
The call presented a largely positive commercial and operational performance: solid revenue growth (accelerating in Q2), very high operating margin (41%), strong cash generation and disciplined inventory management, supported by continued investments in production capacity, retail expansion and sustainability. Key positives (revenue acceleration, margin, cash, regional strength in Americas/Japan/Europe ex France, job creation and vertical integration) outweigh the challenges. The main headwinds are material currency and hedging impacts that reduced reported growth, weaker perfume/travel-retail performance, a one-off exceptional tax contribution, and some supply-quality and regional geopolitical uncertainties. On balance, management conveyed confidence, reiterated medium-term revenue ambitions and committed to continued investment and quality preservation.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Hermès kept its outlook unchanged, reiterating an “ambitious” medium‑term objective of revenue growth at constant exchange rates and giving quantitative guideposts: H1 revenue €8.2bn (+6% at constant exchange rates, +2% reported) with Q2 €4.1bn (+7%), operating income €3.4bn and operating margin 41%, gross margin 71.1% (+0.4ppt), adjusted available cash flow €2.2bn (up 18%) and total cash flow €2.7bn (up 16%); H1 bore a negative FX translation headwind of ~€360m (reducing growth ~4.5ppt) and ~€100m of hedging costs (management flagged hedging could rise toward ~€210m across the year) while the exceptional corporate contribution is estimated at €360m for the year (H1 ~€270m), restated net cash stood at €12.9bn and equity at €19bn (cash ≈50% of equity). Management said operating investments will accelerate (H1 €344m; full‑year target €1bn), they will add ~1 leather workshop per year through 2030 (≈300 jobs each), continue selective store openings and recruitment (600 hires in the quarter; >27,000 employees, 61% in France), and expect the conversion/translation effect to be close to neutral over the full year.
Hermes International SCA Unsponsored ADR Financial Statement Overview
Summary
Financial statements indicate elite quality: strong multi-year revenue expansion, exceptional and steady margins (gross ~66–72% and net ~27–32% in 2021–2024), strong cash generation with solid cash conversion (operating cash flow exceeding net income in 2021–2024), and a conservatively levered balance sheet with consistently high ROE. Minor watch items include slight net income softness in 2024 vs 2023 and some free cash flow growth volatility.
Income Statement
93Very PositiveBalance Sheet
90Very PositiveCash Flow
88Very Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.13B | 16.00B | 15.17B | 13.43B | 11.60B | 8.98B |
| Gross Profit | 11.12B | 11.38B | 10.66B | 9.71B | 7.66B | 5.89B |
| EBITDA | 8.18B | 7.63B | 6.99B | 6.56B | 5.29B | 4.03B |
| Net Income | 4.51B | 4.52B | 4.60B | 4.31B | 3.37B | 2.44B |
Balance Sheet | ||||||
| Total Assets | 24.80B | 24.32B | 23.08B | 20.45B | 17.46B | 13.85B |
| Cash, Cash Equivalents and Short-Term Investments | 12.31B | 12.50B | 11.64B | 10.63B | 9.22B | 6.70B |
| Total Debt | 2.28B | 2.35B | 2.17B | 2.06B | 1.93B | 1.80B |
| Total Liabilities | 5.77B | 5.47B | 5.75B | 5.24B | 5.00B | 4.43B |
| Stockholders Equity | 19.02B | 18.84B | 17.33B | 15.20B | 12.44B | 9.40B |
Cash Flow | ||||||
| Free Cash Flow | 4.74B | 4.42B | 4.23B | 3.70B | 3.84B | 3.05B |
| Operating Cash Flow | 5.81B | 5.45B | 5.17B | 4.44B | 4.25B | 3.45B |
| Investing Cash Flow | -1.43B | -1.35B | -1.23B | -1.11B | -646.00M | -716.00M |
| Financing Cash Flow | -2.46B | -3.14B | -3.05B | -1.79B | -1.24B | -869.00M |
Hermes International SCA Unsponsored ADR Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HESAY, the sentiment is Negative. The current price of 144.39 is below the 20-day moving average (MA) of 144.89, below the 50-day MA of 157.07, and below the 200-day MA of 191.54, indicating a bearish trend. The MACD of -3.80 indicates Negative momentum. The RSI at 43.82 is Neutral, neither overbought nor oversold. The STOCH value of 24.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HESAY.
Hermes International SCA Unsponsored ADR Peers Comparison
Overall Rating
- HESAY73Outperform
RL71Outperform
TPR70Outperform
LULU66Neutral
REAL64Neutral
ZGN64Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HESAY | 73Outperform | $151.68B | 30.02 | 23.85% | 3.22% | 10.20% | 8.12% |
| RL | 71Outperform | $23.39B | 24.42 | 35.64% | 0.97% | 14.68% | 26.22% |
| TPR | 70Outperform | $23.08B | 15.51 | 262.81% | 1.43% | 14.17% | 956.15% |
| LULU | 66Neutral | $12.42B | 8.81 | 29.73% | ― | 1.74% | -16.55% |
| REAL | 64Neutral | $1.49B | -119.60 | 2.94% | ― | 18.05% | 84.37% |
| ZGN | 64Neutral | $5.72B | 42.03 | 7.60% | 1.02% | 10.78% | -15.63% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HESAY | Hermes International SCA Unsponsored ADR | 144.39 | -97.79 | -40.38% | |
| TPR | Tapestry | 116.29 | 11.31 | 10.78% | |
| LULU | Lululemon Athletica | 107.24 | -58.23 | -35.19% | |
| RL | Ralph Lauren | 392.87 | 81.23 | 26.06% | |
| REAL | Realreal | 11.96 | 0.05 | 0.42% | |
| ZGN | Ermenegildo Zegna Group | 13.49 | 3.63 | 36.87% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 30, 2026