Rankings Food, drinks & restaurants Hermès
Hermès
77
15070100
A view of the same findings, not a new score. How it works
A strong score: the model found few serious problems, but analysts see limited upside from here.
Biggest deductions
- Absolute price level−5
- Quality of growth−3
- Demand in China and the Middle East−3
Strengths
- Pricing power and margin+3
- Net cash+2
- Rising cash flow+1
How the score is built
From 100 to 77, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 1,312 EUR
- Median analyst target
- 1,535 EUR
- Upside to median
- +17.0%
- Analysts
- 24
- Target range
- 1,150 – 1,920 EUR
- 52-week change
- −39%
- P/E (trailing)
- 30.5
- Forward P/E
- 28.1
- PEG
- 3.47
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 2 findings−4 of −30
- −3Quality of growthEPS has largely stalled: EUR 41.12 in 2023, 43.87 in 2024, 43.07 in 2025 and expected 44.46 in 2026. Revenue growth has fallen from 13–16% in 2023–2024 to 6% at constant exchange rates in H1 2026 (2% reported), and Q2 came in below consensus.
- −1Weak categoriesOnly leather goods and silk are really growing: ready-to-wear and accessories have fallen from 4.53 to 4.47bn EUR (TTM), watches from 611 to 537m since 2023, and perfume and beauty fell 4% in Q2.
Price
Today's multiples against the company's own history and its peers. · 3 findings−8 of −35
- −1Multiples vs own historyForward P/E 29.2 vs 43.9–64.8 in 2021–2025 and EV/EBITDA 18.0 vs 28.7–41.0 – far below its own history, but the history was set in a period of 13–40% annual growth.
- −2PeersForward P/E 29.2 is about 1.7 times LVMH (17.0) and slightly above L'Oréal (27.0); the premium to luxury peers is justified by the margin, but hard to defend when growth is down at single digits and EPS has stood still since 2024.
- −5Absolute price levelTrailing P/E 32.1, P/FCF 28.6 and FCF yield only 3.5% (3.3% after leasing); dividend yield 1.3%. The price assumes that growth returns to double-digit levels.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings−5 of −35
- −3Demand in China and the Middle EastAsia excluding Japan grew only 2% in Q2 due to a stagnant China, the Middle East fell 4% and France only 2%; the share fell 7.9% on the results.
- −1Pricing power and costsAlphaValue/Baader downgraded to 'add' on 12 Sep and cut the 2027 EPS estimate from EUR 48.9 to 46.4, citing weaker pricing power in luxury and rising energy costs.
- −1CurrencyCurrency headwind took about 4 percentage points off growth in H1 2026 (6% at constant rates vs. 2% reported) and pressed the operating margin from 41.4% to 41.0%.
Plus
Only documented strengths. · 3 findings+6 of +15
- +3Pricing power and marginThe operating margin has held steady at 40–43% in 2021–2026 and the gross margin at about 71%; leather goods grew 10% in Q2 and the Americas 15%, and ROIC is 50%.
- +2Net cashNet cash of EUR 10.0bn (about 7% of market value), debt/EBITDA 0.3 and current ratio 4.5.
- +1Rising cash flowAdjusted free cash flow rose 18% in H1 2026; FCF has grown from EUR 3.75bn (2023) to 5.06bn TTM, and the dividend (1.9bn) is far below FCF.
Caveats
What the score does not capture, or where the data is weak.
Luxury does not fit the industry list: placed under 'Consumer: food, beverages & restaurants' as the nearest consumer category. Forward P/E and EPS estimates are adjusted figures; reported and adjusted EPS are close. Hermès reports only semi-annually, with revenue per quarter (Q3 revenue about 22 Oct. 2026). The Hermès family (H51) owns about two thirds, and free float is only about 34m of 105m shares – mentioned, but no points without documented impact. Net cash is EUR 10.0bn per stockanalysis and 12.9bn in the company's own figures. Insider trades and lawsuits have not been examined.
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