We are maintaining our fair value estimate for no-moat H&M as the company reported solid improvement in profitability in the second quarter and first half of the year, even as sales remained subdued.
H&M benefits from scale advantages against smaller peers as one of the largest global apparel suppliers.
H&M may be too slow in trimming its store base, which could present a drag on profitability as business shifts online and store productivity falls.
|
Metric
|
HM B
|
GPS
|
ITX
|
|---|---|---|---|
Price/Earnings (Normalized) | 24.10 | 11.72 | 25.39 |
Price/Book Value | 6.47 | 2.96 | 7.99 |
Price/Sales | 1.13 | 0.54 | 3.84 |
Price/Cash Flow | 7.52 | 6.72 | 16.05 |
|
Metric
|
HM B
|
GPS
|
ITX
|
|---|---|---|---|
Quick Ratio | 0.55 | 0.62 | 1.10 |
Current Ratio | 1.08 | 1.50 | 1.47 |
Interest Coverage | 10.84 | 8.81 | — |
|
Metric
|
HM B
|
GPS
|
ITX
|
|---|---|---|---|
Return on Assets (Normalized) | 6.19% | 6.85% | 17.13% |
Return on Equity (Normalized) | 24.55% | 30.74% | 32.77% |
Return on Invested Capital (Normalized) | 10.89% | 9.22% | 24.36% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Hennes & Mauritz AB Class B
HMRZF
| — | Cqdpsmf | $24.7 Bil | |||
| Hennes & Mauritz AB ADR
HNNMY
| — | Bvrvwlh | $24.7 Bil | |||
| Moncler SpA ADR
MONRY
| — | Tdscl | $16.6 Bil | |||
| Ralph Lauren Corp Class A
RL
| Hzqmbsxl | Yzbxzqs | $10.5 Bil | |||
| Gildan Activewear Inc
GIL
| Yrkvcpxn | Scz | $6.7 Bil | |||
| VF Corp
VFC
| Mkmvpgn | Fdjl | $6.4 Bil | |||
| PVH Corp
PVH
| Rmyqvxxtd | Tqnx | $5.6 Bil | |||
| Under Armour Inc Class A
UAA
| Xqwmhrq | Ghbg | $3.0 Bil | |||
| Under Armour Inc Class C
UA
| Zjrblpfxs | Vmnx | $3.0 Bil | |||
| Hanesbrands Inc
HBI
| Xjbxjmzjz | Xyhqqd | $2.2 Bil |
