Equity Brief · Consumer Cyclical2026-10-02
RMS.PA·Consumer Cyclical

Hermès International Société en commandite par actions

I · AI Analysis

The brief

Hermès makes and sells luxury leather goods, fashion, accessories, silk textiles, jewelry, watches, and home products through a global network of stores [Yahoo Finance]. The company controls much of its supply chain, including tanning leather, weaving textiles, and producing metal parts in-house [Yahoo Finance].

Hermès International is a French luxury goods maker founded in 1837, producing leather goods, ready-to-wear fashion, silk, jewelry, watches, and perfumes [Yahoo Finance]. The company reported trailing-twelve-month revenue of EUR 16.1 billion through 30 June 2026, with an operating margin of 42.3% and a return on invested capital of 50.6% [Yahoo Finance] [Sentinellis calculation]. Recent analyst downgrades cite ongoing weakness in China, with Citi, HSBC, and Rothschild & Co Redburn all cutting price targets in late September and early October 2026 [Yahoo Finance France] [AD HOC NEWS] [Zonebourse].

Hermès is exceptionally profitable and carries no net debt, earning a 10.0/10 health score [Sentinellis calculation].

The brief AI analysisConfidence 8/10

Sentinellis health

Financially healthy

10.0/10

7.5+ strong · 4.5–7.5 moderate · under 4.5 weak

Profitability

16% of score10.0/10
Net margin+28.0%Gross margin+71.3%

Returns on capital

16% of score10.0/10
ROIC+50.6%Return on equity+23.7%

Growth & momentum

11% of score10.0/10
Revenue growth+1.6%Operating margin trend—· no data

Balance sheet

32% of score10.0/10
Current ratio4.5xNet debt / EBITDA-1.4xInterest coverage124.2xDebt / equity0.12

Cash generation

16% of score10.0/10
Free cash flowEUR 4.2BCash vs reported profitEUR 5.4B vs EUR 4.5B

Value creation

11% of score10.0/10
ROIC vs cost of capital+42.3pp

Sentinellis calculation from the published statements — not a score reported by any data source. Each category is scored on the checks that had data; missing inputs are excluded rather than counted as failures.

Market capitalisation

EUR 136.8B

Revenue (TTM)

EUR 16.1B

Explainers

How we read these numbers

Plain-English guides · no account needed

II · Recent news

What moved

5 stories · ranked by relevance

  • Company2026-09-30

    Citi abaisse son objectif de cours sur Hermès en raison de la faiblesse persistante en Chine - Yahoo Finance France

    Yahoo Finance France

  • Company2026-10-01

    HSBC cuts target for Hermès International stock from GBp 1,650 to GBp 1,550 - AD HOC NEWS

    AD HOC NEWS

  • Company2026-10-01

    Hermès International : Rothschild & Co Redburn dégrade d'acheter à neutre et réduit son objectif de cours de 1835 EUR à 1410 EUR. - Zonebourse

    Zonebourse

  • Company2026-10-01

    Hermès International Société en commandite par actions (OTCMKTS:HESAF) Share Price Crosses Below Fifty Day Moving Average – Here’s What Happened

    Americanbankingnews

  • Company2026-09-30

    Hermès International : Receives a Buy rating from Bernstein - marketscreener.com

    marketscreener.com

Premium · Free with any account

Revenue growth of 1.6% in the latest reported period is materially slower than the company's historical pace, and multiple analysts cite persistent weakness in China as the driver of recent price-target cuts [Yahoo Finance] [Yahoo Finance France] [Zonebourse].

1 of 4 risks in this report

Risks

4

Opportunities

4

Leadership

10

7 more findings in the full report — free with any account.

Unlock the full Hermès International Société en commandite par actions analysis

Create a free account to access the complete AI-generated report with inline citations.

  • 4 risks and 4 opportunities — each with its source
  • 100+ financial metrics with charts and benchmarks
  • Full news summaries with source links
  • Executive team and compensation details
  • PDF export for offline use
Unlock all 8 findings3 free reports · No credit card

III · Related

You might also read

Same sector · Consumer Cyclical — or comparable health

Want this for your watchlist?

Read three companies free. No card.

Get 3 free reports

Produced 02 Oct 2026, 09:02 UTC

Figures come from company filings and market data. The Sentinellis health score and the wording attached to it are our interpretation of those figures, not numbers the company reported.

Not investment advice and not a recommendation to buy or sell. Sentinellis holds no positions in the companies it covers, takes no payment from issuers, and has no broker referral arrangements.

How every figure and score is calculated