(RMS) Hermes International SCA - Ratings and Ratios

Hermès International Société en commandite par actions is a French multinational engaged in the design, production, and distribution of luxury goods. The company is renowned for its high-quality leather goods, including iconic handbags like the Birkin and Kelly, as well as saddlery and equestrian products. Hermès also offers ready-to-wear clothing, accessories such as jewelry and watches, and home goods like silk textiles and tableware. Its product range extends to perfumes, beauty products, and IoT-enabled accessories, blending tradition with modern innovation. The company operates a global retail network spanning Europe, Asia, the Americas, and the Middle East, with a strong emphasis on exclusive boutiques and specialized stores for specific product categories. Hermès is also known for its craftsmanship, with in-house expertise in leather tanning, textile weaving, and metalwork. Founded in 1837 by Thierry Hermès, the company remains a symbol of French luxury and artisanal excellence, headquartered in Paris and listed on the Euronext Paris exchange under the ticker symbol RMS.PA.

From a technical perspective, Hermès shares are currently trading at €2,287.00, below their 20-day moving average of €2,365.20 but above the 200-day moving average of €2,260.95. The stock exhibits moderate volatility with an ATR of 74.03. The 50-day moving average of €2,537.63 suggests recent downward momentum. Based on these indicators, the stock is likely to consolidate in the near term, with potential support near €2,200 and resistance around €2,400.

Fundamentally, Hermès boasts a strong financial profile, with a market capitalization of €246.89 billion and a price-to-earnings ratio of 53.58, reflecting its premium valuation. The forward P/E of 50.00 indicates expectations of sustained earnings growth. The companys return on equity of 29.97% underscores its profitability, while the price-to-sales ratio of 16.28 highlights its strong revenue generation. The price-to-book ratio of 14.22 suggests that investors are willing to pay a significant premium for its brand equity and intangible assets.

3-Month Forecast: - Technical Outlook: Expect Hermès shares to trade in a range of €2,150 to €2,450 over the next three months, with potential upside driven by breaking above the 50-day moving average of €2,537.63. - Fundamental Outlook: Continued demand for luxury goods and strong margins will support earnings growth, though the stocks high valuation may limit upside in the near term. - Key Levels: Support at €2,200 (SMA 200) and resistance at €2,400 (recent highs). - Catalysts: Q3 earnings, macroeconomic trends in key markets like China and Europe, and potential currency fluctuations impacting overseas sales.