Added to YB: 2026-04-28
Pitch date: 2026-04-25
RMS.PA [bullish]
Hermès International Société en commandite par actions
+0.61%
current return
Author Info
No bio for this author
Company Info
Hermès International Société en commandite par actions engages in the production, wholesale, and retail of various goods.
Market Cap
EUR 172.8B
Pitch Price
EUR 1.6K
Price Target
2.5K (+50%)
Dividend
1.09%
EV/EBITDA
21.89
P/E
38.26
EV/Sales
10.18
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)