Added to YB: 2026-04-28
Pitch date: 2026-04-25
RMS.PA [bullish]
Hermès International Société en commandite par actions
+0.67%
current return
Author Info
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Company Info
Hermès International Société en commandite par actions engages in the production, wholesale, and retail of various goods.
Market Cap
EUR 168.3B
Pitch Price
EUR 1.6K
Price Target
2.5K (+50%)
Dividend
1.12%
EV/EBITDA
21.29
P/E
37.26
EV/Sales
9.90
Sector
Textiles, Apparel and Luxury Goods
Category
value
Hermes – Buy Today and Hold Forever
RMS.PA: Luxury's apex compounder down 22% YTD on transient headwinds. Q1 rev +6% CC (strong Jan-Feb, Mar hit by Mideast conflict). Americas +17%, Japan +10%, EU +10%. Leather goods +9% vs LVMH -2%, Kering -3%. 71% gross margin, 41% op margin, 24% FCF margin, €12B net cash, 25% ROE, 32% ROIC. Family-owned (66%), artisan-made scarcity = untouchable pricing power. 8-12% rev CAGR likely next decade from pricing + UHNW wealth expansion. At 35x '26E EPS vs 48x 5yr avg, rare chance to own unrivaled brand at COVID-level multiples. PT €2470 = 17% IRR through 2028.
Read full article (19 min)