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) | 23.99 | 12.57 | 25.56 |
Price/Book Value | 6.43 | 3.17 | 8.04 |
Price/Sales | 1.13 | 0.58 | 3.87 |
Price/Cash Flow | 7.48 | 7.21 | 16.15 |
|
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
| — | Vvynrv | $25.0 Bil | |||
| Hennes & Mauritz AB ADR
HNNMY
| — | Lklddzh | $25.0 Bil | |||
| Moncler SpA ADR
MONRY
| — | Hytscp | $16.5 Bil | |||
| Ralph Lauren Corp Class A
RL
| Wtzpnljlh | Gwltqs | $10.6 Bil | |||
| Gildan Activewear Inc
GIL
| Vnjmcltf | Gfqg | $6.4 Bil | |||
| PVH Corp
PVH
| Zbnlwpbk | Rymqs | $5.8 Bil | |||
| VF Corp
VFC
| Gysbfzxw | Rqxbzs | $5.0 Bil | |||
| Under Armour Inc Class A
UAA
| Smxqtrtq | Bwb | $2.8 Bil | |||
| Under Armour Inc Class C
UA
| Rjhdqftx | Vhcx | $2.8 Bil | |||
| Hanesbrands Inc
HBI
| Lndxxcvn | Vzgcwmv | $1.7 Bil |
