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Hennes & Mauritz AB (Hennes & Mauritz AB) Piotroski F-Score : 8 (As of Apr. 29, 2024)


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What is Hennes & Mauritz AB Piotroski F-Score?

Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Hennes & Mauritz AB has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Hennes & Mauritz AB's Piotroski F-Score or its related term are showing as below:

HNNMY' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 5   Max: 8
Current: 8

During the past 13 years, the highest Piotroski F-Score of Hennes & Mauritz AB was 8. The lowest was 4. And the median was 5.


Hennes & Mauritz AB Piotroski F-Score Historical Data

The historical data trend for Hennes & Mauritz AB's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hennes & Mauritz AB Piotroski F-Score Chart

Hennes & Mauritz AB Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 4.00 8.00 5.00 8.00

Hennes & Mauritz AB Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 5.00 8.00 8.00

Competitive Comparison of Hennes & Mauritz AB's Piotroski F-Score

For the Apparel Manufacturing subindustry, Hennes & Mauritz AB's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Hennes & Mauritz AB's Piotroski F-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Hennes & Mauritz AB's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Hennes & Mauritz AB's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Feb24) TTM:Last Year (Feb23) TTM:
Net Income was 314.211 + 307.32 + 148.743 + 115.953 = $886 Mil.
Cash Flow from Operations was 716.627 + 1131.858 + 862.935 + 380.469 = $3,092 Mil.
Revenue was 5505.958 + 5623.459 + 5871.933 + 5147.316 = $22,149 Mil.
Gross Profit was 2899.191 + 2864.042 + 3154.535 + 2652.351 = $11,570 Mil.
Average Total Assets from the begining of this year (Feb23)
to the end of this year (Feb24) was
(17175.382 + 17373.546 + 17318.429 + 16989.99 + 16665.74) / 5 = $17104.6174 Mil.
Total Assets at the begining of this year (Feb23) was $17,175 Mil.
Long-Term Debt & Capital Lease Obligation was $4,598 Mil.
Total Current Assets was $7,180 Mil.
Total Current Liabilities was $5,969 Mil.
Net Income was 370.523 + 51.17 + -80.717 + 51.774 = $393 Mil.

Revenue was 5484.79 + 5536.229 + 5832.679 + 5251.311 = $22,105 Mil.
Gross Profit was 3003.432 + 2713.668 + 2905.83 + 2477.319 = $11,100 Mil.
Average Total Assets from the begining of last year (Feb22)
to the end of last year (Feb23) was
(19951.431 + 18722.893 + 18502.279 + 17007.474 + 17175.382) / 5 = $18271.8918 Mil.
Total Assets at the begining of last year (Feb22) was $19,951 Mil.
Long-Term Debt & Capital Lease Obligation was $4,684 Mil.
Total Current Assets was $7,432 Mil.
Total Current Liabilities was $6,203 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Hennes & Mauritz AB's current Net Income (TTM) was 886. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Hennes & Mauritz AB's current Cash Flow from Operations (TTM) was 3,092. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Feb23)
=886.227/17175.382
=0.05159868

ROA (Last Year)=Net Income/Total Assets (Feb22)
=392.75/19951.431
=0.0196853

Hennes & Mauritz AB's return on assets of this year was 0.05159868. Hennes & Mauritz AB's return on assets of last year was 0.0196853. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Hennes & Mauritz AB's current Net Income (TTM) was 886. Hennes & Mauritz AB's current Cash Flow from Operations (TTM) was 3,092. ==> 3,092 > 886 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Feb24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Feb23 to Feb24
=4598.239/17104.6174
=0.26883028

Gearing (Last Year: Feb23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Feb22 to Feb23
=4684.282/18271.8918
=0.25636546

Hennes & Mauritz AB's gearing of this year was 0.26883028. Hennes & Mauritz AB's gearing of last year was 0.25636546. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Feb24)=Total Current Assets/Total Current Liabilities
=7180.481/5968.964
=1.20296939

Current Ratio (Last Year: Feb23)=Total Current Assets/Total Current Liabilities
=7432.435/6202.676
=1.19826265

Hennes & Mauritz AB's current ratio of this year was 1.20296939. Hennes & Mauritz AB's current ratio of last year was 1.19826265. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Hennes & Mauritz AB's number of shares in issue this year was 8087.475. Hennes & Mauritz AB's number of shares in issue last year was 8148.435. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=11570.119/22148.666
=0.52238446

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=11100.249/22105.009
=0.5021599

Hennes & Mauritz AB's gross margin of this year was 0.52238446. Hennes & Mauritz AB's gross margin of last year was 0.5021599. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Feb23)
=22148.666/17175.382
=1.28955886

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Feb22)
=22105.009/19951.431
=1.10794103

Hennes & Mauritz AB's asset turnover of this year was 1.28955886. Hennes & Mauritz AB's asset turnover of last year was 1.10794103. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+1+1+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Hennes & Mauritz AB has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Hennes & Mauritz AB  (OTCPK:HNNMY) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Hennes & Mauritz AB Piotroski F-Score Related Terms

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Hennes & Mauritz AB (Hennes & Mauritz AB) Business Description

Address
Master Samuelsgatan 46A, Stockholm, SWE, SE-106 38
Hennes & Mauritz is a global multibrand fashion conglomerate that was founded in 1947. Its flagship H&M brand accounts for most of revenue, but the newer brands (COS, &Other Stories, Monki, Weekday, and newly launched Arket) are growing a bit faster. H&M commands low-single-digit market share in a fragmented global apparel market. Just under 70% of revenue is generated in Europe and Africa, 14% in Asia and Oceania, and 23% in North and South America. The company operates around 4,400 stores globally of which 3,947 are H&M-brand stores.

Hennes & Mauritz AB (Hennes & Mauritz AB) Headlines