Hennes & Mauritz AB, H & M HM-B.ST
H&M is a global fashion retailer that designs, manufactures, and sells clothing and accessories through its physical stores and online platform, operating with a fast-fashion model and an integrated supply chain. H&M shows solid financial health (net debt/EBITDA 2.12) and exceptional quality (ROE 33.25%, gross margin 54.41%), with 28.30% profit growth driven by margin improvement and tariff refunds, although revenue growth is flat (0.30%).
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
H&M is a global fashion retailer that designs, manufactures, and sells clothing and accessories through its physical stores and online platform, operating with a fast-fashion model and an integrated supply chain. H&M shows solid financial health (net debt/EBITDA 2.12) and exceptional quality (ROE 33.25%, gross margin 54.41%), with 28.30% profit growth driven by margin improvement and tariff refunds, although revenue growth is flat (0.30%).
Score by category
| Category | Score |
|---|---|
| Financial health | 5.8 |
| Quality / Moat | 8.4 |
| Valuation | 6.5 |
| Growth | 6.2 |
| Dividend | 6.2 |
| Momentum | 5.2 |
| Risk & Context | 6.0 |
OVERALL SCORE: 6.6/10
Context and risks
H&M is a fashion retailer headquartered in Sweden, a country with solid governance, but it operates globally. Exposure to the supply chain and tariffs (with refunds that have boosted profit) introduces moderate regulatory and geopolitical risk, though it is not a dominant factor.
News considered in the analysis
- H&M Q3 profit rises 23% admit tariff refunds and higher margins — El beneficio sube un 23% en el tercer trimestre, impulsado por devoluciones arancelarias y mayores márgenes; refuerza la salud financiera y la calidad del negocio.
- H&M Earnings Rise as Cost-Saving Push Pays Off — La subida de beneficios por el programa de ahorro de costes es positiva, pero ya estaba parcialmente descontada en el precio.
- Global Supply Chain Woes Weigh on H&M Sales in Third Quarter, but Profits Climb — Los problemas de la cadena de suministro lastran las ventas, aunque el impacto se ve compensado por la mejora de márgenes.
- H & M Hennes & Mauritz AB (HMRZF) (Q3 2026) Earnings Call Highlights: Margin Expansion ... — La expansión de márgenes mencionada en la llamada de resultados es consistente con los resultados reportados.
- Walmart, Target, and Kroger face new retail crime issue — Noticia sobre otros minoristas, sin impacto directo en H&M.
Verdict: Hold or accumulate on dips; the combination of quality, dividend yield, and reasonable valuation (P/E 19.65) offers an attractive long-term profile.
Main risk: The main risk is dependence on the global supply chain and exposure to tariffs, which could impact margins and sales if trade conditions deteriorate.
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