HERMES

Analysis of Hermes share price

--- Advertisement ---
BUY   SELL
76.4% of retail investor accounts lose money when trading CFDs with this provider.
 
Chart provided by Tradingview

Trading Hermes shares directly from the stock market is now possible through trading platforms or your bank. However, before you can trade the Hermes share, you must of course be familiar with all the data and information relating to the share and its listing. This is what we are offering you through this detailed fact sheet with all the key figures of this company as well as more targeted advice and information, in particular concerning the historical evolution of the share price, the activities of this company, its partners and competitors and, of course, advice on how to carry out your own analysis of this share.  

Elements that can influence the price of this asset:

Analysis N°1

Firstly, Hermes acts as a defensive value in the luxury sector. There is therefore a direct relationship between the share price of competing companies such as LVMH and the Hermes share price.

Analysis N°2

On the other hand, the Hermes Group and its results are also directly linked to tourist flows in the trading regions in which it is most represented, such as France. There is therefore also an important link between its results and growth and certain elements such as air traffic.

Analysis N°3

The economic situation in the United States is particularly worrying for Hermes. Indeed, American consumption in the luxury goods sector has tended to fall almost constantly since the summer of 2015.

Analysis N°4

During your fundamental analyses, you will also have to monitor the evolution of price differentials between the different distribution areas of the Hermes Group's products.

Analysis N°5

Naturally, we will also keep a close eye on the achievement of the financial objectives announced by the group, particularly with regard to the evolution of the company's operating margin, which is known to have a direct influence on its share price on the stock market.

Analysis N°6

All of the buyouts of subsidiaries and other companies carried out by the group throughout the world will, of course, have a direct influence on its share price.

Analysis N°7

As Hermes is mainly a family business, the risk of a takeover bid is very low since the family still holds more than 60% of the company's capital and more than 68% of the voting rights.

--- Advertisement ---
Trade the Hermes share!
76.4% of retail investor accounts lose money when trading CFDs with this provider.

General presentation of Hermes :

The French group Hermes International is a company active in the design, production and sale of all types of luxury goods. Thus, and to better understand the organisation of this company, we can group the products sold by the group into different categories according to the share of turnover they generate.

The Hermes group markets these various products through a network of boutiques and shops, with more precisely 310 boutiques around the world, including 219 branches and 91 concession shops.

Hermes currently generates nearly 13.5% of its total sales in France and 18.5% in the rest of Europe. The Japanese market accounts for 12.5% of sales. This is followed by Asia-Pacific, which generates nearly 35.9% of sales, and the Americas, where the Group generates approximately 17.8% of its sales. The remaining 1.8% is generated in other countries or geographical areas not mentioned here.

Thanks to its strong international presence, Hermes currently employs 14,284 people worldwide.

 

Find out about the competition for Hermes shares :

Today, Hermes is one of the big names in the luxury sector, which has only a few serious competitors.

 

Strategic alliances set up by the Hermes Group :

Generally speaking, the Hermes Group is not very focused on partnership strategies with other companies and there are therefore few examples of strategic alliances in recent years. However, it is still important to monitor any mergers that this group is likely to enter into with other companies in similar or very different sectors.

 

The advantages and strengths of the Hermes share as a stock market asset :

Of course, the Hermes group's first strong point is the company's positioning in the luxury sector. Indeed, Hermes has succeeded in making itself known throughout the world by developing its network of boutiques in different markets. This represents a real achievement for this primarily family-owned company specialising in luxury goods.

The distribution of Hermes' sales worldwide is also one of the company's advantages. Hermes currently generates more than 32% of its sales in Europe, but also reaches highly coveted markets such as Japan and the Americas, with a strong presence in the United States in particular. The Group also has a strong presence in the Asian market in general and therefore in emerging markets.

Hermes also benefits from a variety of important products that touch almost every area of luxury. Indeed, it is one of the most diversified brands in this sector of activity, with varied product ranges such as leather goods, high-end fashion clothing and accessories, silk and high-end textiles, but also perfumes, tableware and watches. It is thus well protected from the risks associated with a single sector of activity and can diversify its sources of revenue while increasing its presence in the luxury goods world in general.

The Hermes group and more specifically the brand associated with it also has the advantage of being timeless in that it is particularly classic and its image is timeless. Thus, the group suffers very little from the effects of fashion and variable economic contexts that most other companies in the sector are subject to.

Thanks to its strong reputation, Hermes is also able to present a very important negotiating force with its suppliers and distributors. In particular, it can adopt price increase policies by positioning itself solely at the top end of the market and secure its supplies and distribution channels, notably through a very well thought-out policy of actively buying out concessions. These strategies enable it to sustain comfortable margins whatever the economic context.

Over the last twelve years, the Hermes group has attracted investors with consistently positive results and steady growth in profits, which explains the rise in the share price we mentioned earlier in the historical technical analysis. It is indeed the best historical performance in the sector.

Finally, the financial health of Hermes' corporate structure should of course be emphasised, which gives it many advantages, such as the possibility of significant investment in its distribution networks, but also regular share buybacks and the payment of a large interim dividend.

As you can see, the strengths of the Hermes company are numerous and the opportunities for growth are there. Let's now turn our attention to the most negative aspects of this company with its weaknesses and value disadvantages.

 

Weaknesses and disadvantages of the Hermes share as a stock market asset :

In order to implement an effective investment strategy for this security, we therefore advise you to take account of these weak points and use them to moderate your judgement and to consider more objectively the possibility of upward or downward trends.

Frequently Asked Questions

How has the Hermes share dividend evolved over the past five years?

Over the past five years, the dividend per Hermes share, which is a good indicator of the financial health of the company and the interest that investors may have in it, has evolved in this way. In 2014, this dividend was €2.95, with an exceptional dividend of €5. In 2015, the dividend was €3.35. It then increased to €3.75 in 2016. In 2017, the group paid a dividend of €4.10 per share and an exceptional dividend of €5. Finally, in 2018, the dividend was €4.55.

What are the Hermes Group's main business sectors?

The Hermes Group operates in various sectors of activity, mainly leather goods and saddlery. It also offers clothing, shoes and accessories. The group's third segment concerns silk and textile products. It is followed by the perfume segment, the watchmaking segment and finally another segment comprising jewellery, lifestyle products and tableware.

How do you make a technical analysis of the Hermes share?

To carry out a good technical analysis of the Hermes share, in addition, of course, to a quality fundamental analysis of this stock, you should use several graphical indicators such as trend and volatility indicators that you can display live. Moving averages, pivot points, MACD or support and resistance levels are just a few examples.

--- Advertisement ---
Trade the Hermes share!
76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.