We are maintaining our fair value estimate for no-moat H&M as the company reported flat revenue at constant exchange rates and operating margin came under pressure somewhat due to higher sales, general, and administrative expenses. Gross margin improved slightly.
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
|
GAP
|
URBN
|
|---|---|---|---|
Price/Earnings (Normalized) | 26.70 | 10.47 | 10.60 |
Price/Book Value | 6.34 | 2.75 | 1.53 |
Price/Sales | 1.17 | 0.53 | 0.66 |
Price/Cash Flow | 7.79 | 6.27 | 4.84 |
|
Metric
|
HM B
|
GAP
|
URBN
|
|---|---|---|---|
Quick Ratio | 0.55 | 0.67 | 0.63 |
Current Ratio | 1.11 | 1.49 | 1.46 |
Interest Coverage | 9.78 | 9.92 | — |
|
Metric
|
HM B
|
GAP
|
URBN
|
|---|---|---|---|
Return on Assets (Normalized) | 5.64% | 7.60% | 8.20% |
Return on Equity (Normalized) | 22.48% | 32.54% | 16.08% |
Return on Invested Capital (Normalized) | 10.13% | 10.28% | 10.59% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Hennes & Mauritz AB Class B
HMRZF
| — | Qfwkyvt | $26.5 Bil | |||
| Hennes & Mauritz AB ADR
HNNMY
| — | Dqsxv | $26.5 Bil | |||
| Moncler SpA ADR
MONRY
| — | Bdzxxw | $16.1 Bil | |||
| Ralph Lauren Corp Class A
RL
| Sprtqmbk | Xddjw | $12.2 Bil | |||
| VF Corp
VFC
| Tzndhdyhv | Xtrf | $8.3 Bil | |||
| Gildan Activewear Inc
GIL
| Ptwlbsym | Hhntjmk | $7.7 Bil | |||
| PVH Corp
PVH
| Glyhltt | Dfjkb | $5.5 Bil | |||
| Under Armour Inc Class A
UAA
| Tkkqqcd | Gspyy | $3.7 Bil | |||
| Under Armour Inc Class C
UA
| Bzcblgc | Fpjzq | $3.7 Bil | |||
| Hanesbrands Inc
HBI
| Rnlykgs | Jqzmb | $2.5 Bil |
United States