# Hermes International SCA (RMS.PA)

Canonical: https://gigainvestors.com/s/RMS.PA

Analysis as of: 2026-10-16T07:33:35.781Z. Financial observations: FY2001–FY2025.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 1,338.50 per share; close as of 2026-10-15.

Estimated value: low EUR 702.74 per share, central EUR 972.63 per share, high EUR 1,123.15 per share. Buy at or below the central value EUR 972.63 per share. Valuation as of 2026-10-16T07:33:35.781Z; scenarios are not confidence intervals.

Expected annual return: 8.0% at the stated quote. About 8.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; FR 10-year bond 4.8% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.10×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.33×

- FY2017: 0.35×

- FY2018: 0.35×

- FY2019: 0.34×

- FY2020: 0.32×

- FY2021: 0.40×

- FY2022: 0.42×

- FY2023: 0.42×

- FY2024: 0.41×

- FY2025: 0.42×

### moat: pass

- ROIC, median of available years: 56.0%

- ROIC, second-lowest year: 45.3%

- Typical minus recent gross margin: -2.3 pp

- Typical gross margin (annual median): 68.8%

- Recent gross margin (lower of latest and 3-year median): 71.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.7%

- ROIC including acquisitions, ten-year median: 47.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 55.2%

- FY2017: 60.0%

- FY2018: 45.3%

- FY2019: 47.9%

- FY2020: 33.1%

- FY2021: 56.7%

- FY2022: 68.0%

- FY2023: 62.2%

- FY2024: 57.5%

- FY2025: 52.4%

### economics: pass

- Owner earnings / net income, 5-yr: 0.90×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 17B

- Net income, five-year total: EUR 19B

- Return on incremental invested capital: 181.0%

- Working capital / revenue, annual change: -0.4 pp

- Working capital / revenue, change between three-year averages: -1.9 pp

- Working capital / revenue, final three-year average: 16.5%

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

- FY2021: 0.87×

- FY2022: 0.91×

- FY2023: 0.91×

- FY2024: 0.91×

- FY2025: 0.90×

### management: pass

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

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 55.2% vs 57.5%

- Per-share earnings: 10.46 to 43.08 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.0%

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: EUR 182B

- Cumulative retained earnings: EUR 3.4B

- Diluted shares, 10-year annual growth: -0.0%

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 19.4%

- Per-share value change: EUR 32.62

- Per-share value, starting three-year median: EUR 10.46

- Per-share value, ending three-year median: EUR 43.08

- Buybacks concentrated in cheaper years (correlation): 0.39

- Average buyback yield: 0.1%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: EUR 442M

- Cumulative net income, 10 years: EUR 26B

- ROIC, first three-year median: 55.2%

- ROIC, last three-year median: 57.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: EUR 10.46

- FY2017: EUR 11.65

- FY2018: EUR 13.38

- FY2019: EUR 14.57

- FY2020: EUR 13.19

- FY2021: EUR 23.36

- FY2022: EUR 32.08

- FY2023: EUR 41.06

- FY2024: EUR 43.84

- FY2025: EUR 43.08

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -3.8%

- Receivables to sales index (DSRI): 1.65×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.20×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.2%

- FY2017: -5.7%

- FY2018: -6.3%

- FY2019: -5.7%

- FY2020: -2.3%

- FY2021: -6.9%

- FY2022: -4.7%

- FY2023: -0.1%

- FY2024: -2.3%

- FY2025: -3.8%

## Holders

## Price story

Down 51% since Feb 2025 · "French luxury firms Hermes, Kering knocked by disappointing sales" (finance.yahoo.com, Apr 2026) · sales +5.5%

Story as of 2026-10-16T09:59:56.840Z; price observation 2026-10-15.

Price needs cash profits to grow 11.9% a year for ten years

- 2025-04-17: Hermes to Raise Prices in the U.S. to Mitigate Tariff Hit ([finance.yahoo.com](https://finance.yahoo.com/m/278c3944-36b6-3fd1-ba31-f8ce39b379e8/hermes-to-raise-prices-in-the.html))

- 2025-10-22: Birkin Bag Maker Hermes’s Sales Accelerate as Hopes of Luxury Rebound Mount ([finance.yahoo.com](https://finance.yahoo.com/m/8e669bf7-1bae-3562-9587-6f6fda8f7cb7/birkin-bag-maker-hermes%E2%80%99s.html))

### Sales · FY2024–2025

sales +5.5%; source https://filings.xbrl.org/969500Y4IJGHJE2MTJ13/2026-12-31/ESEF/FR/0/hermes-2025-12-31-1/reports/hermes-2025-12-31-1-fr.html; observed 2026-03-24.

- FY2016: EUR 5.2B 

- FY2017: EUR 5.5B 

- FY2018: EUR 6.0B 

- FY2019: EUR 6.9B 

- FY2020: EUR 6.4B 

- FY2021: EUR 9.0B 

- FY2022: EUR 12B 

- FY2023: EUR 13B 

- FY2024: EUR 15B 

- FY2025: EUR 16B 

### Gross margin · FY2025

gross margin 71.1%; source https://filings.xbrl.org/969500Y4IJGHJE2MTJ13/2026-12-31/ESEF/FR/0/hermes-2025-12-31-1/reports/hermes-2025-12-31-1-fr.html; observed 2026-03-24.

- FY2016: 67.7% 

- FY2017: 70.1% 

- FY2018: 70.0% 

- FY2019: 63.2% 

- FY2020: 61.2% 

- FY2021: 65.6% 

- FY2022: 66.0% 

- FY2023: 72.3% 

- FY2024: 70.3% 

- FY2025: 71.1% 

## Owner memo

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

### How it makes money

Operates in luxury goods; annual sales are EUR 16 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2025: revenue 16002000000; grossProfit 11379000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RMS.PA: Hermès International Société en commandite par actions engages in the production, wholesale, and retail of various goods. The company offers leather goods and saddlery, such as bags for men and women, travel articles, small leather goods and accessories, saddles, bridles, and various equestrian products and clothing; ready-to-wear garments for men and women; and accessories, including jewelry, belts, hats, gloves, internet of things products, and shoes. It also provides silk and textiles for men and women; art of living and tableware products; beauty and perfume products; and watches. In addition, the company is involved in weaving, engraving, printing, dyeing, finishing, and producing textiles; purchasing, tanning, dyeing, finishing, and selling tanneries and precious leathers; and creating and producing of metal parts. It sells its products through a network of stores in France, rest of Europe, Japan, the Asia Pacific, the Americas, and the Middle East, as well as sells watches, perfumes, and tableware through a network of specialized stores. The company was founded in 1837 and is headquartered in Paris, France. Hermès International Société en commandite par actions is a subsidiary of H51 SAS.

### Why customers stay

Margins ranged from 70.3% to 72.3% during 2023–25; it earns 56% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2023: grossProfit / revenue = 72.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2024: grossProfit / revenue = 70.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2025: grossProfit / revenue = 71.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); 10-year return on capital observations [[2016,0.5521545365751289],[2017,0.6003571932133289],[2018,0.45306004755555535],[2019,0.4786807670476036],[2020,0.3312153311359003],[2021,0.5672082139894509],[2022,0.6803545603161704],[2023,0.6215422123997228],[2024,0.5747465415029427],[2025,0.5241238710729649]]; median 0.5596813752822899. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 5.8% of cash earnings on expansion; earns over 100% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2016: growth capex 13600000; upkeep 201600000; owner earnings 1100300000. Growth capex / owner earnings = 0.012360265382168499.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2017: growth capex 15800000; upkeep 200200000; owner earnings 1221500000. Growth capex / owner earnings = 0.01293491608677855.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2018: growth capex 0; upkeep 312300000; owner earnings 1499000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2019: growth capex 30300000; upkeep 447700000; owner earnings 1309880000. Growth capex / owner earnings = 0.02313188994411702.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2020: growth capex 0; upkeep 448400000; owner earnings 1121980000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2021: growth capex 0; upkeep 532000000; owner earnings 2118600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2022: growth capex 0; upkeep 518000000; owner earnings 3076600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2023: growth capex 78000000; upkeep 666000000; owner earnings 3909200000. Growth capex / owner earnings = 0.019952931546096387.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2024: growth capex 93000000; upkeep 844000000; owner earnings 4180400000. Growth capex / owner earnings = 0.022246674959334033.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2025: growth capex 235000000; upkeep 799000000; owner earnings 4061600000. Growth capex / owner earnings = 0.0578589718337601.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); Incremental return on capital 1.809766943611412, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); Dividend observations: [[2016,356000000],[2017,399300000],[2018,954000000],[2019,486600000],[2020,489600000],[2021,490000000],[2022,852000000],[2023,1376000000],[2024,2642000000],[2025,2753000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); FY2025: cash repurchases 8000000 EUR.

### Are managers owners

Insiders own 67% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RMS.PA SharesStats.PercentInsiders = 66.982 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 11.9% yearly over ten years; actual growth was 15.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-24); Ten-year compound average after fade. Initial solved rate 0.21077018955234605. Price 1338.5; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 9.252344716907361 → FY2025 38.678221121797925. Closing-price date 2026-10-15.

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

- 2016-10: EUR 369.10 per share

- 2016-11: EUR 389.40 per share

- 2016-12: EUR 390.00 per share

- 2017-01: EUR 402.45 per share

- 2017-02: EUR 411.90 per share

- 2017-03: EUR 444.10 per share

- 2017-04: EUR 439.20 per share

- 2017-05: EUR 439.95 per share

- 2017-06: EUR 432.65 per share

- 2017-07: EUR 428.00 per share

- 2017-08: EUR 444.30 per share

- 2017-09: EUR 426.55 per share

- 2017-10: EUR 445.55 per share

- 2017-11: EUR 442.85 per share

- 2017-12: EUR 446.25 per share

- 2018-01: EUR 445.20 per share

- 2018-02: EUR 442.10 per share

- 2018-03: EUR 481.50 per share

- 2018-04: EUR 535.80 per share

- 2018-05: EUR 608.80 per share

- 2018-06: EUR 523.80 per share

- 2018-07: EUR 541.60 per share

- 2018-08: EUR 560.20 per share

- 2018-09: EUR 570.60 per share

- 2018-10: EUR 505.00 per share

- 2018-11: EUR 477.70 per share

- 2018-12: EUR 484.80 per share

- 2019-01: EUR 524.40 per share

- 2019-02: EUR 556.80 per share

- 2019-03: EUR 588.20 per share

- 2019-04: EUR 627.20 per share

- 2019-05: EUR 594.80 per share

- 2019-06: EUR 634.20 per share

- 2019-07: EUR 636.60 per share

- 2019-08: EUR 621.00 per share

- 2019-09: EUR 634.00 per share

- 2019-10: EUR 645.00 per share

- 2019-11: EUR 680.00 per share

- 2019-12: EUR 666.20 per share

- 2020-01: EUR 676.60 per share

- 2020-02: EUR 630.00 per share

- 2020-03: EUR 628.80 per share

- 2020-04: EUR 667.80 per share

- 2020-05: EUR 747.80 per share

- 2020-06: EUR 743.80 per share

- 2020-07: EUR 686.20 per share

- 2020-08: EUR 719.40 per share

- 2020-09: EUR 736.20 per share

- 2020-10: EUR 799.00 per share

- 2020-11: EUR 817.40 per share

- 2020-12: EUR 879.60 per share

- 2021-01: EUR 842.60 per share

- 2021-02: EUR 923.20 per share

- 2021-03: EUR 944.00 per share

- 2021-04: EUR 1,044.00 per share

- 2021-05: EUR 1,152.50 per share

- 2021-06: EUR 1,228.50 per share

- 2021-07: EUR 1,289.00 per share

- 2021-08: EUR 1,244.50 per share

- 2021-09: EUR 1,196.50 per share

- 2021-10: EUR 1,370.50 per share

- 2021-11: EUR 1,653.00 per share

- 2021-12: EUR 1,536.00 per share

- 2022-01: EUR 1,318.50 per share

- 2022-02: EUR 1,242.00 per share

- 2022-03: EUR 1,291.50 per share

- 2022-04: EUR 1,186.50 per share

- 2022-05: EUR 1,110.00 per share

- 2022-06: EUR 1,067.00 per share

- 2022-07: EUR 1,334.00 per share

- 2022-08: EUR 1,282.50 per share

- 2022-09: EUR 1,217.00 per share

- 2022-10: EUR 1,310.50 per share

- 2022-11: EUR 1,542.50 per share

- 2022-12: EUR 1,445.00 per share

- 2023-01: EUR 1,714.50 per share

- 2023-02: EUR 1,715.50 per share

- 2023-03: EUR 1,864.00 per share

- 2023-04: EUR 1,966.80 per share

- 2023-05: EUR 1,901.80 per share

- 2023-06: EUR 1,990.00 per share

- 2023-07: EUR 2,016.50 per share

- 2023-08: EUR 1,900.80 per share

- 2023-09: EUR 1,729.80 per share

- 2023-10: EUR 1,759.60 per share

- 2023-11: EUR 1,904.20 per share

- 2023-12: EUR 1,918.80 per share

- 2024-01: EUR 1,957.80 per share

- 2024-02: EUR 2,313.00 per share

- 2024-03: EUR 2,366.00 per share

- 2024-04: EUR 2,251.00 per share

- 2024-05: EUR 2,176.00 per share

- 2024-06: EUR 2,140.00 per share

- 2024-07: EUR 2,023.00 per share

- 2024-08: EUR 2,169.00 per share

- 2024-09: EUR 2,206.00 per share

- 2024-10: EUR 2,074.00 per share

- 2024-11: EUR 2,065.00 per share

- 2024-12: EUR 2,322.00 per share

- 2025-01: EUR 2,724.00 per share

- 2025-02: EUR 2,737.00 per share

- 2025-03: EUR 2,411.00 per share

- 2025-04: EUR 2,391.00 per share

- 2025-05: EUR 2,428.00 per share

- 2025-06: EUR 2,299.00 per share

- 2025-07: EUR 2,151.00 per share

- 2025-08: EUR 2,091.00 per share

- 2025-09: EUR 2,083.00 per share

- 2025-10: EUR 2,149.00 per share

- 2025-11: EUR 2,100.00 per share

- 2025-12: EUR 2,122.00 per share

- 2026-01: EUR 2,029.00 per share

- 2026-02: EUR 2,049.00 per share

- 2026-03: EUR 1,609.00 per share

- 2026-04: EUR 1,623.50 per share

- 2026-05: EUR 1,620.00 per share

- 2026-06: EUR 1,598.00 per share

- 2026-07: EUR 1,531.50 per share

- 2026-08: EUR 1,581.00 per share

- 2026-09: EUR 1,336.50 per share

- 2026-10: EUR 1,284.50 per share

## Annual estimated value (EUR per share)

- FY2016: low EUR 172.35 per share, central EUR 241.71 per share, high EUR 280.40 per share

- FY2017: low EUR 188.60 per share, central EUR 262.79 per share, high EUR 304.17 per share

- FY2018: low EUR 206.40 per share, central EUR 286.41 per share, high EUR 331.04 per share

- FY2019: low EUR 229.19 per share, central EUR 310.05 per share, high EUR 357.14 per share

- FY2020: low EUR 218.90 per share, central EUR 293.91 per share, high EUR 337.59 per share

- FY2021: low EUR 319.13 per share, central EUR 429.21 per share, high EUR 493.30 per share

- FY2022: low EUR 464.25 per share, central EUR 637.93 per share, high EUR 734.80 per share

- FY2023: low EUR 536.62 per share, central EUR 737.56 per share, high EUR 849.63 per share

- FY2024: low EUR 664.40 per share, central EUR 919.65 per share, high EUR 1,062.02 per share

- FY2025: low EUR 702.77 per share, central EUR 971.96 per share, high EUR 1,122.10 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

## Sources

[Original ESEF filing](https://filings.xbrl.org/969500Y4IJGHJE2MTJ13/2026-12-31/ESEF/FR/0/hermes-2025-12-31-1/reports/hermes-2025-12-31-1-fr.html); period 2026-12-31, filed 2026-03-24.

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.