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H & M Hennes & Mauritz AB (publ)

HMSB.DE
63
Apparel - Manufacturers · Consumer Cyclical
Price
€16.57
-0.07 (-0.42%)
Market Cap
€26.44B
Exchange
Frankfurt Stock Exchange
Winston Score
63
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through May 31, 2026
How the score breaks down
Quality
Good
Growth
Mixed
Cash Flow
Strong
Stability
Good
Valuation
Good
Dividends
Strong

Share count falling — buybacks

3.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 1.66B (2021) → 1.60B (2025)

Winston Score History

The full picture

H&M is a Swedish clothing retailer that sells affordable fashion for men, women, and children. It owns several brands, including H&M, COS, Arket, and & Other Stories, and sells everything from everyday basics to home goods. The company is one of the largest fashion retailers in the world by store count and revenue.

H&M makes money primarily by selling clothes and accessories directly to shoppers through its roughly 4,300 stores and its growing online channel, which now accounts for a meaningful share of sales. It operates in over 70 countries, with Europe being its largest market. Its main competitive advantage is its ability to move designs from concept to store shelves quickly at low prices, though it faces constant pressure from ultra-fast-fashion rivals like Shein and Zara. The key challenge ahead is improving profit margins while managing unsold inventory and the rising costs of making its supply chain more sustainable.

Score breakdown

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Quality

Profit per sale
Gross Margin
48.9%
Healthy — 48.9% gross margin
Profit after running costs
Operating Margin
11.0%
Modest — 11.0% operating margin
Return on the money invested
ROCE
34.5%
Exceptional — 34.5% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth
Sales YoY
-5.5%
Shrinking sales (-5.5% YoY)
Profit growth
EPS YoY
+23.3%
Earnings growing fast (+23.3% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
268%
Turns 268% of profit into real cash
Spare cash per sale
FCF Margin
10.7%
Modest free cash flow (10.7%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
0.61
Moderate — manageable debt (0.61)
Covers its interest
Interest Cover
7.58x
Adequate interest coverage (7.6x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
23.8x
Growth-priced — P/E 23.8

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+3.5
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (23.8 → 20.3)

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Dividends

Dividend
Dividend Yield
3.85%
Moderate income — 3.85% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
+11.5%
Dividend growing fast (11.5% YoY)

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