Industry

Consumer Discretionary

Sector

Textiles, Apparel & Luxury Goods

Country

Sweden

Company description

H&M is a multinational retail-clothing company with stores in more than 60 countries. The company was founded in 1947 with a single women's wear shop in Vasteras, Sweden. Today the clothing lines spans several different brands which is sold in more than 3,900 stores worldwide. The company now employs more than 100,000 people worldwide.

Market cap.

SEKm 326,215

Share price

SEK 197

Earnings per share (EPS)

SEK 10

Dividend per share (DPS)

SEK 10

Price / earnings

20.2x

Price / sales

1.4x

Price / book value

5.5x

Enterprise value / EBITDA

11.0x

CEO

Karl-Johan Persson

Chairman of the Board of Directors

Stefan Persson

CFO

Jyrki Tervonen

Investor relations

Nils Vinge

Ticker symbol

HM

Stock exchange

Nasdaq Stockholm

ISIN code

SE0000106270

Phone

0046 8796 5500

Website

hm.com

Address

Master Samuelsgatan 46A, 106 38 Stockholm

Income statements

SEKm 200620072008200920102011201220132014201520162017
Sales 80,08192,123104,041118,697126,966128,810140,948150,090176,620209,921222,865231,771
Other income 000000000000
Total income 80,08192,123104,041118,697126,966128,810140,948150,090176,620209,921222,865231,771
Total expenses -63,159-71,927-81,701-94,223-99,246-105,169-115,489-123,809-145,992-176,580-191,663-202,987
EBITDA 16,92220,19622,34024,47427,72023,64125,45926,28130,62833,34131,20228,784
Depreciation tangible assets -1,579-1,764-2,093-2,648-2,871-3,079-3,520-3,982-4,811-6,090-6,990-7,743
Write-downs tangible assets 000000000000
EBITA 15,34318,43220,24721,82624,84920,56221,93922,29925,81727,25124,21221,041
Amortisation intangible assets -45-50-109-182-190-183-185-209-234-309-389-472
Income from associated companies 000000000000
Earnings before interest and taxes (EBIT) 15,29818,38220,13821,64424,65920,37921,75422,09025,58326,94223,82320,569
Financial income 5157931,060467356568536367328310224281
Financial expenses -5-5-8-8-7-5-5-9-16-10-8-41
Income from associated companies 000000000000
Earnings before taxes (EBT) 15,80819,17021,19022,10325,00820,94222,28522,44825,89527,24224,03920,809
Taxes -5,011-5,582-5,896-5,719-6,327-5,121-5,418-5,355-5,919-6,344-5,403-4,625
Profit from continuing operations 10,79713,58815,29416,38418,68115,82116,86717,09319,97620,89818,63616,184
Discontinued operations 000000000000
Minorities 000000000000
Net profit or loss 10,79713,58815,29416,38418,68115,82116,86717,09319,97620,89818,63616,184

Cash flow statements

SEKm 200620072008200920102011201220132014201520162017
EBITDA 16,92220,19622,34024,47427,72023,64125,45926,28130,62833,34131,20228,784
Net interest paid 5157931,060467356568536367312300216220
Taxes paid -5,565-5,557-5,940-6,468-5,451-5,666-7,021-3,059-5,971-7,022-4,470-6,051
Investments in working capital 136-109442-518-783-1,238-79250-793-2,580-3,390-648
Other operating cash items 47586418-411551-20283,607930
Cash flow from operations (CFFO) 12,05515,38117,96617,97321,83817,42018,90023,84024,15624,06727,16523,235
Capital expenditures (capex) -4,395144-1,090-8,755-10,129-4,056-2,901-8,369-8,708-9,610-13,498-12,496
Acquisitions 000000000000
Disposals 000000000000
Other investing cash items 000000000000
Cash flow from investing activities -4,395144-1,090-8,755-10,129-4,056-2,901-8,369-8,708-9,610-13,498-12,496
Free cash flow to equity holders (FCFE) 7,66015,52516,8769,21811,70913,36415,99915,47115,44814,45713,66710,739
Dividends paid -7,861-9,515-11,584-12,825-13,239-15,723-15,723-15,723-15,723-16,137-16,137-16,137
Share buy-backs 000000000000
New share issues 000000000000
Increase/(decrease) in debt 00000000002,0687,620
Other financing cash flows 1771,370-95-803-13-44722448539-3,102-1,950
Cash flow from financing activities (CFFF) -7,861-9,338-10,214-12,920-14,042-15,736-16,170-15,701-15,275-15,598-17,171-10,467
Discontinued activities and other 00000000000
Net cash flow / Change in cash position 6,1876,662-3,702-2,333-2,372-171-230173-1,141-3,504272

Balance sheets

SEKm 200620072008200920102011201220132014201520162017
Goodwill 004317446464646464646464
Other intangible assets 2222661,2259301,1349711,4942,2122,8984,0515,2836,979
Total intangible assets 2222661,6561,6741,1981,0351,5582,2762,9624,1155,3477,043
Fixed tangible assets 7,5549,28712,44114,81115,46917,39319,13122,18626,94832,96238,69339,818
Shares and associated companies 000000000000
Other financial assets 000000000000
Deferred tax assets 1028831,2991,2461,0651,2341,6241,3672,2372,3382,8622,916
Other non-current assets 1552534765515186086286597098621,0141,039
Total fixed assets 8,03310,68915,87218,28218,25020,27022,94126,48832,85640,27747,91650,816
Inventories 7,2207,9698,50010,24011,48713,81915,21316,69519,40324,83331,73233,712
Trade receivables 8651,1221,9911,9902,2582,3372,2073,1073,6594,0214,8815,297
Other current assets 9,5605,8902,1544,82710,4969,4435,6645,4685,5883,7324,6047,019
Cash and cash equivalents 9,87716,06422,72619,02416,69114,31914,14813,91814,09112,9509,4469,718
Total current assets 27,52231,04535,37136,08140,93239,91837,23239,18842,74145,53650,66355,746
Total assets 35,55541,73451,24354,36359,18260,18860,17365,67675,59785,81398,579106,562
Equity 27,77932,09336,95040,61344,17244,10443,83545,24851,55658,04961,23659,713
Non-controlling interests (minorities) 000000000000
Shareholders equity 27,77932,09336,95040,61344,17244,10443,83545,24851,55658,04961,23659,713
Pension liabilities 130156228254257377377309451449527445
Deferred tax liabilities 6506511,8182,0389069501,9512,7223,2874,3784,8985,331
Long-term provisions 0036836800000000
Convertible debt 000000000000
Long-term debt 0000000000213350
Other long-term liabilities 000000000000
Total long-term liabilities 7808072,4142,6601,1631,3272,3283,0313,7384,8275,6386,126
Short-term debt 000000000059125
Trade payables 1,9422,4833,6583,6673,9654,3074,2344,8705,5206,0007,2627,215
Other current liabilities 5,0546,3518,2217,4239,88210,4509,77612,52714,78316,93724,38433,383
Total current liabilities 6,9968,83411,87911,09013,84714,75714,01017,39720,30322,93731,70540,723
Total equity and liabilities 35,55541,73451,24354,36359,18260,18860,17365,67675,59785,81398,579106,562

Growth rates

[%] 200620072008200920102011201220132014201520162017
Sales growth 0.0%15.0%13.0%14.0%7.0%1.0%9.0%6.0%18.0%19.0%6.0%4.0%
EBITDA growth 0.0%19.0%11.0%10.0%13.0%-15.0%8.0%3.0%17.0%9.0%-6.0%-8.0%
EBITA growth 0.0%20.0%10.0%8.0%14.0%-17.0%7.0%2.0%16.0%6.0%-11.0%-13.0%
EBIT growth 0.0%20.0%10.0%7.0%14.0%-17.0%7.0%2.0%16.0%5.0%-12.0%-14.0%
EBT growth 0.0%21.0%11.0%4.0%13.0%-16.0%6.0%1.0%15.0%5.0%-12.0%-13.0%
Earnings growth 0.0%26.0%13.0%7.0%14.0%-15.0%7.0%1.0%17.0%5.0%-11.0%-13.0%

Margins

[%] 200620072008200920102011201220132014201520162017
EBITDA-margin 21.0%22.0%21.0%21.0%22.0%18.0%18.0%18.0%17.0%16.0%14.0%12.0%
EBITA-margin 19.0%20.0%19.0%18.0%20.0%16.0%16.0%15.0%15.0%13.0%11.0%9.0%
EBIT-margin 19.0%20.0%19.0%18.0%19.0%16.0%15.0%15.0%14.0%13.0%11.0%9.0%
EBT-margin 20.0%21.0%20.0%19.0%20.0%16.0%16.0%15.0%15.0%13.0%11.0%9.0%
Earnings-margin 13.0%15.0%15.0%14.0%15.0%12.0%12.0%11.0%11.0%10.0%8.0%7.0%

Other key figures

SEKm 200620072008200920102011201220132014201520162017
Tax rate 32.0%29.0%28.0%26.0%25.0%24.0%24.0%24.0%23.0%23.0%22.0%22.0%
Net working capital balance (NWC) 10,6496,1477665,96710,39410,8429,0747,8738,3479,6499,5715,430
Net interest bearing debt (NIBD) -9,747-15,908-22,498-18,770-16,434-13,942-13,771-13,609-13,640-12,501-8,647-8,798
Invested capital (including goodwill) 18,03216,18514,45221,84327,73830,16230,06431,63937,91645,54852,58950,915
Invested capital (excluding goodwill) 18,03216,18514,02121,09927,67430,09830,00031,57537,85245,48452,52550,851
Enterprise value (EV) 254,237314,279224,108322,423376,480340,243343,559446,501514,990522,915434,747317,417

Share data

200620072008200920102011201220132014201520162017
Shares outstanding, millions (excl. treasury) 1,6551,6551,6551,6551,6551,6551,6551,6551,6551,6551,6551,655
Market capitalisation (SEKm) 263,984330,187246,606341,193392,914354,185357,330460,110528,630535,416443,394326,215
Market capitalisation (SEKm) 263,984330,187246,606341,193392,914354,185357,330460,110528,630535,416443,394326,215
Share price (SEK) 159.5199.5149.0206.2237.4214.0215.9278.0319.4323.5267.9197.1
Earnings per share (EPS), (SEK) 6.58.29.29.911.39.610.210.312.112.611.39.8
Dividend per share (DPS), (SEK) 5.87.07.88.09.59.59.59.59.89.89.89.8

Price multiples

200620072008200920102011201220132014201520162017
Price/Earnings (P/E) 24.5x24.3x16.1x20.8x21.0x22.4x21.2x26.9x26.5x25.6x23.8x20.2x
Price/Sales (P/S) 3.3x3.6x2.4x2.9x3.1x2.8x2.5x3.1x3.0x2.6x2.0x1.4x
Price/Book value (P/B) 9.5x10.3x6.7x8.4x8.9x8.0x8.2x10.2x10.3x9.2x7.2x5.5x

Enterprise value (EV) multiples

200620072008200920102011201220132014201520162017
Enterprise value/Sales (EV/Sales) 3.2x3.4x2.2x2.7x3.0x2.6x2.4x3.0x2.9x2.5x2.0x1.4x
Enterprise value/EBITDA (EV/EBITDA) 15.0x15.6x10.0x13.2x13.6x14.4x13.5x17.0x16.8x15.7x13.9x11.0x
Enterprise value/EBITA (EV/EBITA) 16.6x17.1x11.1x14.8x15.2x16.6x15.7x20.0x20.0x19.2x18.0x15.1x
Enterprise value/EBIT (EV/EBIT) 16.6x17.1x11.1x14.9x15.3x16.7x15.8x20.2x20.1x19.4x18.3x15.4x