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) | 24.62 | 13.05 | 25.81 |
Price/Book Value | 6.60 | 3.29 | 8.12 |
Price/Sales | 1.16 | 0.60 | 3.90 |
Price/Cash Flow | 7.68 | 7.49 | 16.31 |
|
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
| — | Bvmt | $26.1 Bil | |||
| Hennes & Mauritz AB ADR
HNNMY
| — | Jgzkt | $26.1 Bil | |||
| Moncler SpA ADR
MONRY
| — | Gxkn | $16.4 Bil | |||
| Ralph Lauren Corp Class A
RL
| Qbrgkgmg | Wtlqpn | $10.5 Bil | |||
| Gildan Activewear Inc
GIL
| Lnksznq | Wqgh | $6.5 Bil | |||
| PVH Corp
PVH
| Thxfffyd | Zgs | $5.8 Bil | |||
| VF Corp
VFC
| Kzsgnfky | Qgnqzb | $5.1 Bil | |||
| Under Armour Inc Class A
UAA
| Ckczkwqnx | Wsdzn | $2.8 Bil | |||
| Under Armour Inc Class C
UA
| Hvbhkkpb | Zrp | $2.8 Bil | |||
| Hanesbrands Inc
HBI
| Sbwwyth | Scrbl | $1.7 Bil |
