Hennes & Mauritz AB, H & M ser.

H&M provides clothing, accessories, footwear, cosmetics, and home textiles worldwide. Products include sportswear, shoes, bags, beauty products, activewear, jeans, and ready-to-wear. The company offers products under various brand names, including H&M, COS, Weekday, and more. It also operates digital platforms Sellpy and Creator Studio. Additionally, it provides solutions for reuse and recycling of unwanted garments through Looper Textile. Products are offered through online and physical stores. The company was incorporated in 1943 and is headquartered in Stockholm, Sweden.

Overview

Sector

Clothing Manufacturing

Target Price

206.2 SEK

Current Price

133.2 SEK

Potential

55%

Strengths

With an appreciation Potential of 63.67%, based on our fundamental analysis, it suggests the stock may be undervalued.
Current Price to Earnings Ratio (18.38) is lower than the sector mean (41.03).
The company has low debt. Net Debt to EBITDA Ratio is -0.08 and it is lower than the sector mean.
The company has high returns. ROIC (52.70%) is higher than the sector mean (19.52%).
EV/EBITDA (5.20) is lower than the sector mean (10.90).
EV/EBIT (11.56) is lower than the sector mean.

Weaknesses

Price to book ratio (4.63) is significantly higher than the sector mean (3.20).

Key Financial Data

Indicator	Value
PER	18.4
EV/EBITDA	5.2
Price/Free Cash Flow'	10.5
ROIC	52.7%
Net Debt/EBITDA	-0.1