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

• Market Cap: kr220.48B
• Dividend Yield: 4.69%
• Average Volume (3M): 3.48M
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.99
• Revenue Growth: 0.56%
• EPS Growth: 18.11%
• Country: SE
• Employees: 140,000
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.37
• Shares Outstanding: 1,416,142,200
• 10 Day Avg. Volume: 2,026,499
• 30 Day Avg. Volume: 3,480,668
• PEG Ratio: -3.90
• Price to Book (P/B): 4.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.25
• 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: kr138.23
• Price Target Upside: -0.48% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 14

H&M stands out with strong financial performance, supported by stable revenue and profitability, effective capital management, and robust cash flow. Technical analysis shows moderate momentum with potential for upward movement. Valuation metrics, including a reasonable P/E ratio and strong dividend yield, make the stock appealing for income-oriented investors. While there are slight concerns over declining equity levels and maintaining cash flow growth, the company remains well-positioned in its industry.

H&M Hennes & Mauritz AB Class B Business Overview & Revenue Model

Company Description

H&M Hennes & Mauritz AB Class B (HM.B) is a leading global fashion retailer known for offering trendy and affordable clothing, accessories, and home goods. Founded in Sweden, H&M operates in the fashion and apparel industry, with a strong presence in Europe, Asia, and America. Its core product offerings include a wide range of women's, men's, and children's clothing, alongside an expanding home decor line. H&M is committed to sustainability, integrating eco-friendly practices into its production and supply chain.

How the Company Makes Money

H&M makes money primarily through the sale of clothing, accessories, and home goods across its global network of retail stores and online platforms. The company's revenue streams are driven by its diverse product lines, which cater to various demographics and fashion preferences. H&M operates a multi-brand strategy, including other brands such as COS, Monki, Weekday, & Other Stories, and ARKET, each targeting different market segments. The company also generates revenue through collaborations with high-profile designers and influencers, which help to elevate brand visibility and attract new customers. Additionally, H&M invests in digital and technological advancements to enhance the shopping experience, increase online sales, and streamline supply chain operations. Sustainability initiatives also play a role in the company's business model, appealing to environmentally conscious consumers and potentially reducing costs in the long term.

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

Summary

H&M exhibits strong financial health with stable revenue and profitability metrics. The company maintains a solid balance sheet with moderate leverage and effective capital management. While cash flow generation remains strong, attention is needed on equity levels and maintaining free cash flow growth.

Income Statement

H&M's income statement shows a stable revenue base with a slight increase in TTM revenue compared to the previous year. The gross profit margin is consistently strong, indicating effective cost management. However, the net profit margin declined slightly in the TTM period, suggesting increased operational costs or expenses. Despite this, EBIT and EBITDA margins are healthy, reflecting good operational efficiency.

Balance Sheet

The balance sheet is robust with a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. The equity ratio shows a healthy level of equity financing. However, there is a noticeable decline in stockholders' equity over the recent periods, which could be a point of concern if this trend continues. Return on equity remains solid, showcasing effective utilization of equity capital.

Cash Flow

Operating cash flow remains strong, supporting the company's ability to finance its operations and investments. Free cash flow has shown stability, although there is a slight decrease in the TTM. The free cash flow to net income ratio is favorable, indicating efficient cash generation from earnings. However, the growth rate of free cash flow is slightly negative, suggesting potential challenges in maintaining cash flow growth.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
236.14B	234.48B	236.03B	223.55B	198.97B	187.03B
	Gross Profit
119.94B	125.30B	120.90B	113.28B	105.01B	93.54B
	EBIT
16.46B	17.31B	14.54B	7.17B	15.26B	3.10B
	EBITDA
35.90B	40.53B	37.14B	29.91B	37.78B	29.30B
	Net Income Common Stockholders
11.00B	11.62B	8.75B	3.57B	11.01B	1.24B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.58B	17.34B	26.40B	21.71B	27.47B	16.54B
	Total Assets
177.96B	180.21B	181.27B	182.05B	179.78B	174.37B
	Total Debt
63.24B	76.95B	77.97B	72.64B	66.69B	80.06B
	Net Debt
46.66B	59.61B	51.57B	50.93B	39.22B	63.52B
	Total Liabilities
131.84B	134.00B	133.67B	131.29B	119.76B	119.75B
	Stockholders Equity
46.06B	46.14B	47.52B	50.76B	60.02B	54.62B
Cash Flow		Free Cash Flow
20.04B	20.31B	24.98B	18.46B	41.16B	20.80B
	Operating Cash Flow
31.99B	31.76B	33.95B	24.48B	44.62B	25.90B
	Investing Cash Flow
-11.97B	-11.57B	-9.62B	-6.81B	-4.08B	-5.24B
	Financing Cash Flow
-24.22B	-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: 138.90
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 138.9 is above the 20-day moving average (MA) of 134.65, above the 50-day MA of 133.69, and below the 200-day MA of 148.39, indicating a neutral trend. The MACD of 1.28 indicates Negative momentum. The RSI at 59.38 is Neutral, neither overbought nor oversold. The STOCH value of 16.72 is Positive, 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
CLAS.B	78 Outperform	kr17.24B	20.48	40.56%	1.56%	16.35%	89.30%
HM.B	72 Outperform	kr220.48B	20.03	23.75%	4.69%	0.56%	18.11%
NELLY	72 Outperform	kr1.17B	11.47	45.93%	―	6.78%	217.60%
NEWA.B	72 Outperform	kr15.48B	17.13	12.85%	2.83%	3.68%	-11.21%
FOI.B	62 Neutral	$7.75B	48.45	2.00%	2.50%	-6.37%	-72.36%
Sector *	61 Neutral	$6.68B	11.75	3.01%	3.94%	2.61%	-21.96%
BOOZT	59 Neutral	kr5.42B	16.37		―	5.58%	―