H & M Hennes & Mauritz ABCHIX:HMBS +1.77%75 Return-on-Tangible-Equity is 52.83% as of May. 2026, which is 98% above its 10-year median of 26.68. GuruFocus rates CHIX:HMBS with a GF Score™ of 75/100 and a GF Value™ of kr160.64 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,011 Manufacturing - Apparel & Accessories companies, H & M Hennes & Mauritz AB ranks better than 94.66% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. H & M Hennes & Mauritz AB's annualized net income for the quarter that ended in May. 2026 was kr15,944 Mil. H & M Hennes & Mauritz AB's average shareholder tangible equity for the quarter that ended in May. 2026 was kr30,180 Mil. Therefore, H & M Hennes & Mauritz AB's annualized Return-on-Tangible-Equity for the quarter that ended in May. 2026 was 52.83%.
The historical rank and industry rank for H & M Hennes & Mauritz AB's Return-on-Tangible-Equity or its related term are showing as below:
CHIX:HMBs'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.77 Med: 26.68 Max: 39.7
Current: 39.7
During the past 13 years, H & M Hennes & Mauritz AB's highest Return-on-Tangible-Equity was 39.70%. The lowest was 2.77%. And the median was 26.68%.
CHIX:HMBs's Return-on-Tangible-Equity is ranked better than 94.66% of 1011
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.43
vs CHIX:HMBs: 39.70
H & M Hennes & Mauritz AB (CHIX:HMBs) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
H & M Hennes & Mauritz AB Return-on-Tangible-Equity Related Terms
H & M Hennes & Mauritz AB Return-on-Tangible-Equity Historical Data
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The historical data trend for H & M Hennes & Mauritz AB's Return-on-Tangible-Equity 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.
H & M Hennes & Mauritz AB Return-on-Tangible-Equity Chart
CHIX:HMBS vs RL, LEVI, VFC: Return-on-Tangible-Equity Comparison
For the Apparel Manufacturing subindustry, H & M Hennes & Mauritz AB's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
H & M Hennes & Mauritz AB Return-on-Tangible-Equity vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, H & M Hennes & Mauritz AB's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where H & M Hennes & Mauritz AB's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (May. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 52.83% mean?
H & M Hennes & Mauritz AB (CHIX:HMBS) has a Return-on-Tangible-Equity of 52.83% as of May. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on H & M Hennes & Mauritz AB and its competitors. This is 98% above median its historical median of 26.68. Over the past decade, H & M Hennes & Mauritz AB's Return-on-Tangible-Equity has ranged from 2.77 to 39.70. According to the industry distribution chart, H & M Hennes & Mauritz AB ranks #54 out of 1011 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 5.3%.
Is H & M Hennes & Mauritz AB's Return-on-Tangible-Equity too high?
H & M Hennes & Mauritz AB's current Return-on-Tangible-Equity of 52.83% is 98% above median its 10-year median of 26.68. Over the past 10 years, this metric has ranged from a low of 2.77 to a high of 39.70. The Manufacturing - Apparel & Accessories industry median Return-on-Tangible-Equity is 4.43. H & M Hennes & Mauritz AB's value of 52.83% is 1092.6% above this industry median. Based on the distribution chart, H & M Hennes & Mauritz AB ranks #54 out of 1011 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, H & M Hennes & Mauritz AB has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does H & M Hennes & Mauritz AB's Return-on-Tangible-Equity compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, H & M Hennes & Mauritz AB ranks #54 out of 1011 companies for Return-on-Tangible-Equity. This places H & M Hennes & Mauritz AB in the top 5% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 4.43. H & M Hennes & Mauritz AB's value of 52.83% is 1092.6% above this benchmark. Historically, H & M Hennes & Mauritz AB's own Return-on-Tangible-Equity has ranged from 2.77 to 39.70 over the past decade. While the company's 10-year median is 26.68 vs. the industry median of 4.43, H & M Hennes & Mauritz AB has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Manufacturing - Apparel & Accessories company?
The median Return-on-Tangible-Equity among Manufacturing - Apparel & Accessories companies is 4.43, based on 1,011 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. H & M Hennes & Mauritz AB's current Return-on-Tangible-Equity of 52.83% is 1092.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on H & M Hennes & Mauritz AB and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Return-on-Tangible-Equity is 4.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H & M Hennes & Mauritz AB's current Return-on-Tangible-Equity is 52.83%, which is 98% above median its own 10-year median of 26.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is H & M Hennes & Mauritz AB stock overvalued right now?
Based on GuruFocus' analysis, H & M Hennes & Mauritz AB (CHIX:HMBS) is currently considered Fairly Valued. The stock's GF Value™ is kr160.64, compared to a current price of kr166.80 — trading 3.8% above its estimated fair value. The current Return-on-Tangible-Equity is 52.83%, which is 98% above median its 10-year median of 26.68 and 1092.6% above the Manufacturing - Apparel & Accessories industry median of 4.43. H & M Hennes & Mauritz AB's overall GF Score™ is 75/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For H & M Hennes & Mauritz AB (CHIX:HMBS), the current Return-on-Tangible-Equity is 52.83% as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is H & M Hennes & Mauritz AB (CHIX:HMBS) Overvalued in 2026?
Based on GuruFocus' analysis, H & M Hennes & Mauritz AB stock appears to be overvalued.
The current stock price of kr166.80 is trading 3.8% above its estimated GF Value™ of kr160.64.
GuruFocus considers H & M Hennes & Mauritz AB to be Fairly Valued.
Key valuation signals for CHIX:HMBS:
Return-on-Tangible-Equity: 52.83% (98% above median its 10-year median of 26.68)
GF Value™: kr160.64 vs. price of kr166.80 (3.8% above fair value)
Industry Position: 1092.6% above the Manufacturing - Apparel & Accessories median (#54 of 1011)
No single metric tells the full story. See the CHIX:HMBS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The H&M Group is a global multi-brand fashion conglomerate founded in 1947. Its flagship brand, H&M, generates the majority of the group's revenue, while ARKET, COS, and the secondhand platform Sellpy represent key sources of future growth. Geographically, 34% of group revenues are generated in Western Europe, followed by North and South America at 23%, and both Southern Europe and Asia, Oceania, and Africa at 13% each. The Nordic region accounts for approximately 9% of total sales.The company operates 4,101 stores (3,660 attributable to H&M brand) across 81 markets worldwide, the majority of which are leased. Online sales contributed slightly above 30% of total group revenue in financial 2025 .
75GF Score
Get the complete analysis for CHIX:HMBS
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