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Hermes International SCA Unsponsored ADR (HESAY)
OTHER OTC:HESAY
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Hermes International SCA Unsponsored ADR
(OTC:HESAY)
78Outperform
Hermes International SCA Unsponsored ADR (HESAY) vs. S&P 500 (SPY)
Market Cap
$279.49B
Dividend Yield0.7%
Average Volume (3M)14.74K
Price to Earnings (P/E)56.1
Beta (1Y)1.15
Revenue Growth13.04%
EPS Growth6.68%
CountryUS
Employees25,185
SectorConsumer Cyclical
Sector Strength49
IndustryLuxury Goods
Share Statistics
EPS (TTM)4.75
Shares Outstanding1,055,694,100
10 Day Avg. Volume0
30 Day Avg. Volume14,739
Financial Highlights & Ratios
PEG Ratio8.40
Price to Book (P/B)N/A
Price to Sales (P/S)18.14
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$310.00Price Target Upside17.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Hermes International SCA Unsponsored ADR Business Overview & Revenue Model
Company DescriptionHermes International SCA Unsponsored ADR (HESAY) represents the American Depositary Receipts of Hermes International SCA, a renowned French luxury goods manufacturer. The company is known for its commitment to high-quality craftsmanship and operates in sectors such as fashion, leather goods, accessories, perfumes, watches, and home furnishings. Hermes is particularly famous for its iconic products like the Birkin and Kelly bags, silk scarves, and ties.
How the Company Makes MoneyHermes International SCA generates revenue primarily through the sale of luxury goods across various categories, including leather goods, ready-to-wear apparel, accessories, watches, and perfumes. The company's revenue model is largely based on its strong brand reputation and exclusivity, which enable it to command premium pricing for its products. Hermes operates a global network of retail stores, which are strategically located in affluent markets to attract high-end consumers. Additionally, the company's limited production runs and long waiting lists for certain items, such as the Birkin bag, create a sense of scarcity and desirability, further driving demand and sales. Hermes also benefits from its diversified product portfolio and international presence, which help mitigate regional market fluctuations and currency risks.
Hermes International SCA Unsponsored ADR Financial Statement Overview
Summary
Hermes International SCA demonstrates strong revenue growth, high profitability, and excellent cash flow generation. The company maintains a conservative balance sheet with low leverage, enhancing its financial resilience.Income Statement
Hermes International SCA has demonstrated strong revenue growth with a 12.96% increase over the last year, accompanied by robust profitability metrics. The company maintains a high gross profit margin of 70.25% and a net profit margin of 30.33% in 2024, indicating efficient cost management and strong pricing power. EBIT and EBITDA margins are also impressive at 40.54% and 46.08%, respectively, reflecting operational efficiency. The consistent growth trajectory and high profitability metrics are indicative of a strong competitive position in the retail discretionary sector.92
Very Positive
Balance Sheet
The balance sheet of Hermes International SCA is solid, characterized by a low debt-to-equity ratio of 0.13, indicating low financial leverage and a conservative capital structure. The return on equity (ROE) is strong at 26.56%, showcasing effective utilization of equity to generate profits. The equity ratio stands at 75.08%, reflecting a high proportion of equity in the asset base, which enhances financial stability. Overall, the balance sheet reflects a healthy financial position with low risk.85
Very Positive
Cash Flow
Hermes International SCA exhibits strong cash flow performance with a 43.48% growth in free cash flow in 2024. The operating cash flow to net income ratio is 1.12, indicating efficient cash generation relative to reported earnings. The free cash flow to net income ratio is also favorable at 1.12, demonstrating the company's ability to convert earnings into cash effectively. The positive cash flow metrics suggest strong liquidity and financial flexibility.88
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 14.23B | 15.17B | 13.43B | 11.60B | 8.98B | 6.39B |
| Gross Profit | |||||
| 9.86B | 10.66B | 9.71B | 8.21B | 6.40B | 4.38B |
| EBIT | |||||
| 5.92B | 6.15B | 5.65B | 4.70B | 3.53B | 2.07B |
| EBITDA | |||||
| 6.51B | 6.99B | 6.67B | 5.41B | 4.03B | 2.53B |
| Net Income Common Stockholders | |||||
| 4.45B | 4.60B | 4.31B | 3.37B | 2.44B | 1.39B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 10.81B | 11.64B | 10.63B | 9.22B | 6.70B | 4.73B |
| Total Assets | |||||
| 20.45B | 23.08B | 20.45B | 17.46B | 13.85B | 11.05B |
| Total Debt | |||||
| 2.06B | 2.17B | 2.06B | 1.93B | 1.80B | 1.69B |
| Net Debt | |||||
| -8.56B | -9.47B | -8.56B | -7.29B | -4.89B | -3.05B |
| Total Liabilities | |||||
| 5.24B | 5.75B | 5.24B | 5.00B | 4.43B | 3.66B |
| Stockholders Equity | |||||
| 15.20B | 17.33B | 15.20B | 12.44B | 9.40B | 7.38B |
| Cash Flow | Free Cash Flow | ||||
| 3.69B | 5.14B | 3.58B | 3.67B | 2.87B | 1.19B |
| Operating Cash Flow | |||||
| 4.55B | 5.14B | 4.33B | 4.18B | 3.40B | 1.64B |
| Investing Cash Flow | |||||
| -1.39B | -1.20B | -995.00M | -579.00M | -669.00M | -432.20M |
| Financing Cash Flow | |||||
| -3.08B | -3.05B | -1.79B | -1.24B | -869.00M | -810.20M |
Hermes International SCA Unsponsored ADR Technical Analysis
Neutral
263.65
Price Trends
277.77
Negative
253.83
Positive
240.57
Positive
Market Momentum
-2.99
Positive
38.39
Neutral
3.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HESAY, the sentiment is Neutral. The current price of 263.65 is below the 20-day moving average (MA) of 272.89, below the 50-day MA of 277.77, and above the 200-day MA of 240.57, indicating a neutral trend. The MACD of -2.99 indicates Positive momentum. The RSI at 38.39 is Neutral, neither overbought nor oversold. The STOCH value of 3.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HESAY.
Hermes International SCA Unsponsored ADR Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $13.91B | 20.85 | 27.57% | 1.43% | 5.23% | 24.63% | |
78 Outperform | $279.49B | 56.09 | 28.67% | 0.70% | 13.04% | 6.68% | |
74 Outperform | $317.70B | 23.33 | 19.77% | 1.55% | -1.65% | -17.16% | |
71 Outperform | $15.06B | 21.39 | 39.82% | 1.90% | 0.74% | -12.69% | |
67 Neutral | $3.70B | 5.45 | 13.79% | 0.23% | -4.83% | 45.23% | |
59 Neutral | $12.27B | 11.11 | -0.54% | 3.71% | 1.45% | -20.42% | |
48 Neutral | $2.43B | ― | -67.22% | ― | -12.34% | -574.65% |
* Consumer Cyclical Sector Average
Performance Comparison
HESAY
Hermes International SCA Unsponsored ADR
263.65
11.43
4.53%
TPR
Tapestry
70.25
23.40
49.95%
CPRI
Capri Holdings
20.30
-25.06
-55.25%
PVH
PVH
64.69
-74.82
-53.63%
RL
Ralph Lauren
215.68
34.01
18.72%
LVMUY
LVMH Moet Hennessy Louis Vuitton SE
126.48
-50.92
-28.70%
Hermes International SCA Unsponsored ADR Earnings Call Summary
Earnings Call Date: Feb 14, 2025 | % Change Since: -10.19% | Next Earnings Date: Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong growth and financial performance across most regions and divisions, alongside environmental achievements. However, challenges remain in the Watches division and in the Greater China market, with some pressure on gross margins.Highlights
Record-Breaking Revenue and Growth
Hermès achieved a revenue of EUR 15.2 billion in 2024, representing a 15% increase at constant exchange rates and a 13% increase at current exchange rates. Q4 revenue stood at EUR 4 billion, up 18% at both constant and current exchange rates.
Strong Regional Performance
All regions showed solid performance: France (+13%), Europe (+19%), Japan (+23%), Asia excluding Japan (+7%), and America (+15%).
Successful Product Launches
Notable successes included the launch of the new feminine fragrance Barénia, and the Apple Watch 10 series. The leather collections and the Ready-to-wear divisions also received a strong positive reception.
Environmental Achievements
Hermès achieved a 64% reduction in Scope 1 and 2 emissions compared to 2018, and a 50% reduction in intensity for Scope 3 emissions.
Strong Financial Position
Current operating income stood at EUR 6.2 billion, up 9%, and available adjusted cash flow reached EUR 3.8 billion, up 18%. Net cash increased by EUR 900 million to reach EUR 12 billion.
Lowlights
Watches Division Decline
The Watches division saw a 4% decline due to a difficult context and high comparison basis.
Challenges in Greater China
Although Greater China saw growth, it was less than other regions, reflecting broader economic challenges and uncertainties in the region.
Gross Margin Contraction
The gross margin rate decreased to 70.3% from 72.3% in 2023 due to negative currency impacts and increased costs.
Company Guidance
In the 2024 fiscal year, Hermès demonstrated robust financial performance, with revenue reaching EUR 15.2 billion, marking a 15% increase at constant exchange rates. The company's current operating income rose by 9% to EUR 6.2 billion, while available adjusted cash flow increased by 18% to EUR 3.8 billion. Hermès continued its strategic investments, totaling EUR 2.5 billion over three years, with over 60% in France. The company surpassed a workforce threshold of 25,000 employees, with 62% based in France, and distributed a EUR 4,500 bonus to all employees. Hermès also made significant strides in sustainability, achieving a 64% reduction in Scope 1 and 2 emissions since 2018 and a 50% reduction in Scope 3 emissions intensity. Additionally, the brand expanded its network with new store openings in the U.S. and Asia, while strengthening its production capabilities with new leather workshops in France.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.