# H & M Hennes & Mauritz (HM-B.ST)

Canonical: https://gigainvestors.com/s/HM-B.ST

Analysis as of: 2026-10-16T07:29:04.630Z. Financial observations: FY2004–FY2026.

Listing currency: SEK. Reporting currency: SEK.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: SEK 170.50 per share; close as of 2026-10-15.

Estimated value: low SEK 76.58 per share, central SEK 85.90 per share, high SEK 98.32 per share. Buy at or below the central value SEK 85.90 per share. Valuation as of 2026-10-16T07:29:04.630Z; scenarios are not confidence intervals.

Expected annual return: 6.3% at the stated quote. About 6.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; SE 10-year bond 3.1% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.36×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.10×

- FY2018: 0.07×

- FY2019: 0.07×

- FY2020: 0.02×

- FY2021: 0.08×

- FY2022: 0.03×

- FY2023: 0.06×

- FY2024: 0.07×

- FY2025: 0.08×

- LTM to May 2026: 0.09×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 7.3pp below the typical margin (limit 4pp)

- ROIC, median of available years: 12.1%

- ROIC, second-lowest year: 4.6%

- Typical minus recent gross margin: 7.3 pp

- Typical gross margin (annual median): 52.7%

- Recent gross margin (lower of latest and 3-year median): 45.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.2%

- ROIC including acquisitions, ten-year median: 13.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 34.2%

- FY2017: 26.6%

- FY2018: 18.8%

- FY2019: 21.5%

- FY2020: 1.7%

- FY2021: 11.8%

- FY2022: 4.6%

- FY2023: 9.9%

- FY2024: 12.4%

- FY2025: 9.6%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.24×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: SEK 59B

- Net income, five-year total: SEK 47B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -0.9 pp

- Working capital / revenue, change between three-year averages: -6.9 pp

- Working capital / revenue, final three-year average: 10.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.68×

- FY2022: 2.18×

- FY2023: 1.21×

- FY2024: 0.85×

- FY2025: 0.98×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 26.6% vs 9.9%

- Per-share earnings: 11.26 to 7.23 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.3%

- Ordinary dilution, 5-year annual growth: -0.6%

- Market cap gain: SEK -169B

- Cumulative retained earnings: SEK -19B

- Diluted shares, 10-year annual growth: -0.3%

- Diluted shares, 5-year annual growth: -0.6%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -5.4%

- Per-share value change: SEK -4.03

- Per-share value, starting three-year median: SEK 11.26

- Per-share value, ending three-year median: SEK 7.23

- Buybacks concentrated in cheaper years (correlation): -0.40

- Average buyback yield: 0.8%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Acquisition spending: SEK 7.9B

- Cumulative net income, 10 years: SEK 109B

- ROIC, first three-year median: 26.6%

- ROIC, last three-year median: 9.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: SEK 11.26

- FY2017: SEK 9.78

- FY2018: SEK 7.64

- FY2019: SEK 8.12

- FY2020: SEK 0.75

- FY2021: SEK 6.65

- FY2022: SEK 2.18

- FY2023: SEK 5.38

- FY2024: SEK 7.23

- FY2025: SEK 7.58

### accounting: pass

- Sloan accruals: -11.1%

- Receivables to sales index (DSRI): 1.17×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.56×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.18×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.2%

- FY2017: -5.1%

- FY2018: -7.3%

- FY2019: -12.9%

- FY2020: -14.1%

- FY2021: -18.7%

- FY2022: -11.5%

- FY2023: -13.9%

- FY2024: -11.2%

- FY2025: -11.1%

## Holders

## Price story

Price needs cash profits to grow 10.2% a year for ten years · sales -3.3%

Story as of 2026-10-16T09:58:53.338Z; price observation 2026-10-15.

Price needs cash profits to grow 10.2% a year for ten years

### Sales · FY2025–2026

sales -3.3%; source https://filings.xbrl.org/529900O5RR7R39FRDM42/2024-11-30/ESEF/SE/0/hm-2024-11-30-0-sv/reports/hm-2024-11-30-0-sv.xhtml; observed 2025-05-08.

- FY2017: SEK 200B 

- FY2018: SEK 210B 

- FY2019: SEK 233B 

- FY2020: SEK 187B 

- FY2021: SEK 199B 

- FY2022: SEK 224B 

- FY2023: SEK 236B 

- FY2024: SEK 234B 

- FY2025: SEK 228B 

- FY2026: SEK 221B 

### Gross margin · FY2025

gross margin 45.4%; source https://filings.xbrl.org/529900O5RR7R39FRDM42/2024-11-30/ESEF/SE/0/hm-2024-11-30-0-sv/reports/hm-2024-11-30-0-sv.xhtml; observed 2025-05-08.

- FY2016: 55.2% 

- FY2017: 54.0% 

- FY2018: 52.7% 

- FY2019: 52.6% 

- FY2020: 50.0% 

- FY2021: 52.8% 

- FY2022: 50.7% 

- FY2023: 51.2% 

- FY2024: 53.4% 

- FY2025: 45.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in apparel manufacturing; annual sales are SEK 228.3 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2025: revenue 228285000000; grossProfit 103566000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HM-B.ST: H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, accessories, ready-to-wear, activewear, and jeans; interior products, including bed linens, towels and tablecloths, tableware, furniture, and lighting; and beauty products, such as make-up and fragrance collections. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Cheap Monday, Weekday, Monki, & Other Stories, ARKET, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; Smartex.ai, a platform that detects faults in real time and helps in textile production; Syre, a platform which focuses on scaling textile-to-textile recycling primarily polyester; and A Retro Tale offers selected vintage and secondhand accessories, as well as provides collecting and sorting solutions to extend the useful life of no longer used garments through reuse and recycling under Looper Textile name. Further, the company operates seasonal vegetarian cafés and coffee shops. It offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.

### Why customers stay

Margins ranged from 45.4% to 53.4% during 2023–25; it earns 12.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2023: grossProfit / revenue = 51.2%.

- Source: https://filings.xbrl.org/529900O5RR7R39FRDM42/2024-11-30/ESEF/SE/0/hm-2024-11-30-0-sv/reports/hm-2024-11-30-0-sv.xhtml (filed 2025-05-08); FY2024: grossProfit / revenue = 53.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2025: grossProfit / revenue = 45.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); 10-year return on capital observations [[2016,0.3415926480472451],[2017,0.26595305653789386],[2018,0.18799042404802352],[2019,0.21490624655436685],[2020,0.0170586192879645],[2021,0.11843107282940303],[2022,0.045855187412050656],[2023,0.09937834620295234],[2024,0.1239363118782956],[2025,0.09634506091167157]]; median 0.12118369235384932. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back SEK 254 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2016: growth capex 2035759601.3738995; upkeep 11310240398.6261; owner earnings 14930759601.3739. Growth capex / owner earnings = 0.13634668668743236.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2017: growth capex 1443914270.3070488; upkeep 11027085729.692951; owner earnings 13644914270.307049. Growth capex / owner earnings = 0.10582069199578464.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2018: growth capex 2000728232.6246433; upkeep 10827271767.375357; owner earnings 11495728232.624643. Growth capex / owner earnings = 0.17404101698808583.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2019: growth capex 0; upkeep 10340000000; owner earnings 14154000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2020: growth capex 0; upkeep 5102000000; owner earnings 9347400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2021: growth capex 0; upkeep 3464000000; owner earnings 18450600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2022: growth capex 0; upkeep 6011000000; owner earnings 7762600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2023: growth capex 0; upkeep 8964000000; owner earnings 10565400000. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/529900O5RR7R39FRDM42/2024-11-30/ESEF/SE/0/hm-2024-11-30-0-sv/reports/hm-2024-11-30-0-sv.xhtml (filed 2025-05-08); FY2024: growth capex 0; upkeep 11448000000; owner earnings 9857600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2025: growth capex 0; upkeep 9240000000; owner earnings 11969600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); Dividend observations: [[2016,16137000000],[2017,16137000000],[2018,16137000000],[2019,16137000000],[2020,10758000000],[2021,10758000000],[2022,10687000000],[2023,10577000000],[2024,10456000000],[2025,10906000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2025: cash repurchases 254000000 SEK.

### Are managers owners

Insiders own 71.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HM-B.ST SharesStats.PercentInsiders = 71.098 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 10.2% yearly over ten years; actual decline was 4.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); Ten-year compound average after fade. Initial solved rate 0.1341688439308809. Price 170.5; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 12.22841354362929 → FY2025 7.46545319372407. Closing-price date 2026-10-15.

## Monthly share-price history (SEK per share)

- 2016-10: SEK 254.10 per share

- 2016-11: SEK 267.90 per share

- 2016-12: SEK 253.40 per share

- 2017-01: SEK 250.00 per share

- 2017-02: SEK 238.60 per share

- 2017-03: SEK 229.00 per share

- 2017-04: SEK 219.40 per share

- 2017-05: SEK 216.50 per share

- 2017-06: SEK 209.90 per share

- 2017-07: SEK 210.50 per share

- 2017-08: SEK 201.00 per share

- 2017-09: SEK 211.00 per share

- 2017-10: SEK 210.20 per share

- 2017-11: SEK 197.10 per share

- 2017-12: SEK 169.30 per share

- 2018-01: SEK 139.34 per share

- 2018-02: SEK 137.42 per share

- 2018-03: SEK 125.18 per share

- 2018-04: SEK 149.82 per share

- 2018-05: SEK 132.88 per share

- 2018-06: SEK 133.50 per share

- 2018-07: SEK 136.80 per share

- 2018-08: SEK 123.22 per share

- 2018-09: SEK 164.24 per share

- 2018-10: SEK 161.74 per share

- 2018-11: SEK 167.64 per share

- 2018-12: SEK 126.02 per share

- 2019-01: SEK 140.60 per share

- 2019-02: SEK 139.78 per share

- 2019-03: SEK 155.00 per share

- 2019-04: SEK 165.58 per share

- 2019-05: SEK 142.00 per share

- 2019-06: SEK 165.36 per share

- 2019-07: SEK 168.66 per share

- 2019-08: SEK 187.98 per share

- 2019-09: SEK 190.84 per share

- 2019-10: SEK 201.75 per share

- 2019-11: SEK 184.84 per share

- 2019-12: SEK 190.48 per share

- 2020-01: SEK 211.65 per share

- 2020-02: SEK 173.36 per share

- 2020-03: SEK 128.00 per share

- 2020-04: SEK 136.20 per share

- 2020-05: SEK 142.15 per share

- 2020-06: SEK 135.00 per share

- 2020-07: SEK 135.85 per share

- 2020-08: SEK 137.90 per share

- 2020-09: SEK 154.75 per share

- 2020-10: SEK 144.60 per share

- 2020-11: SEK 181.60 per share

- 2020-12: SEK 172.00 per share

- 2021-01: SEK 179.00 per share

- 2021-02: SEK 199.00 per share

- 2021-03: SEK 196.75 per share

- 2021-04: SEK 208.80 per share

- 2021-05: SEK 211.85 per share

- 2021-06: SEK 203.00 per share

- 2021-07: SEK 180.12 per share

- 2021-08: SEK 172.96 per share

- 2021-09: SEK 178.36 per share

- 2021-10: SEK 161.02 per share

- 2021-11: SEK 160.00 per share

- 2021-12: SEK 178.08 per share

- 2022-01: SEK 183.34 per share

- 2022-02: SEK 160.46 per share

- 2022-03: SEK 126.18 per share

- 2022-04: SEK 125.18 per share

- 2022-05: SEK 134.62 per share

- 2022-06: SEK 122.16 per share

- 2022-07: SEK 129.32 per share

- 2022-08: SEK 111.06 per share

- 2022-09: SEK 103.46 per share

- 2022-10: SEK 111.20 per share

- 2022-11: SEK 116.66 per share

- 2022-12: SEK 112.24 per share

- 2023-01: SEK 128.12 per share

- 2023-02: SEK 132.04 per share

- 2023-03: SEK 147.82 per share

- 2023-04: SEK 149.88 per share

- 2023-05: SEK 135.44 per share

- 2023-06: SEK 185.18 per share

- 2023-07: SEK 176.80 per share

- 2023-08: SEK 167.48 per share

- 2023-09: SEK 155.46 per share

- 2023-10: SEK 149.30 per share

- 2023-11: SEK 167.90 per share

- 2023-12: SEK 176.62 per share

- 2024-01: SEK 147.48 per share

- 2024-02: SEK 140.46 per share

- 2024-03: SEK 174.58 per share

- 2024-04: SEK 176.75 per share

- 2024-05: SEK 185.60 per share

- 2024-06: SEK 167.65 per share

- 2024-07: SEK 166.25 per share

- 2024-08: SEK 162.50 per share

- 2024-09: SEK 172.80 per share

- 2024-10: SEK 158.25 per share

- 2024-11: SEK 151.25 per share

- 2024-12: SEK 149.10 per share

- 2025-01: SEK 148.20 per share

- 2025-02: SEK 144.15 per share

- 2025-03: SEK 131.85 per share

- 2025-04: SEK 140.05 per share

- 2025-05: SEK 137.30 per share

- 2025-06: SEK 132.90 per share

- 2025-07: SEK 132.35 per share

- 2025-08: SEK 138.85 per share

- 2025-09: SEK 175.25 per share

- 2025-10: SEK 180.30 per share

- 2025-11: SEK 171.30 per share

- 2025-12: SEK 185.90 per share

- 2026-01: SEK 178.35 per share

- 2026-02: SEK 192.70 per share

- 2026-03: SEK 175.15 per share

- 2026-04: SEK 164.60 per share

- 2026-05: SEK 164.15 per share

- 2026-06: SEK 166.70 per share

- 2026-07: SEK 174.20 per share

- 2026-08: SEK 175.75 per share

- 2026-09: SEK 159.80 per share

- 2026-10: SEK 167.00 per share

## Annual estimated value (SEK per share)

- FY2016: low SEK 160.46 per share, central SEK 199.84 per share, high SEK 232.69 per share

- FY2017: low SEK 153.30 per share, central SEK 176.44 per share, high SEK 204.50 per share

- FY2018: low SEK 112.36 per share, central SEK 127.24 per share, high SEK 147.05 per share

- FY2019: low SEK 109.49 per share, central SEK 123.95 per share, high SEK 143.20 per share

- FY2020: low SEK 82.85 per share, central SEK 93.20 per share, high SEK 106.99 per share

- FY2021: low SEK 94.10 per share, central SEK 105.12 per share, high SEK 119.78 per share

- FY2022: low SEK 92.06 per share, central SEK 103.30 per share, high SEK 118.26 per share

- FY2023: low SEK 92.57 per share, central SEK 103.50 per share, high SEK 118.04 per share

- FY2024: low SEK 79.20 per share, central SEK 89.03 per share, high SEK 102.13 per share

- FY2025: low SEK 79.85 per share, central SEK 89.46 per share, high SEK 102.25 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:34:47.318Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/529900O5RR7R39FRDM42/2024-11-30/ESEF/SE/0/hm-2024-11-30-0-sv/reports/hm-2024-11-30-0-sv.xhtml); period 2024-11-30, filed 2025-05-08.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.