Hermes InternationalXSWX:RMS 98 Return-on-Tangible-Equity is 26.27% as of Dec. 2025, which is 6% below its 10-year median of 27.94. GuruFocus rates XSWX:RMS with a GF Score™ of 98/100 and a GF Value™ of CHF2,497.81. The stock has 1 warning sign investors should review. Among 1,063 Retail - Cyclical companies, Hermes International ranks better than 77.89% 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. Hermes International's annualized net income for the quarter that ended in Dec. 2025 was CHF4,251 Mil. Hermes International's average shareholder tangible equity for the quarter that ended in Dec. 2025 was CHF16,181 Mil. Therefore, Hermes International's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 26.27%.
The historical rank and industry rank for Hermes International's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:RMS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 20.54 Med: 27.94 Max: 31.78
Current: 26.37
During the past 13 years, Hermes International's highest Return-on-Tangible-Equity was 31.78%. The lowest was 20.54%. And the median was 27.94%.
XSWX:RMS's Return-on-Tangible-Equity is ranked better than 77.89% of 1063
companies
in the Retail - Cyclical industry
Industry Median: 8.27
vs XSWX:RMS: 26.37
Hermes International (XSWX:RMS) 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.
Hermes International Return-on-Tangible-Equity Related Terms
Hermes International Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Hermes International'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.
Hermes International Return-on-Tangible-Equity Chart
XSWX:RMS vs TPR, SIG: Return-on-Tangible-Equity Comparison
For the Luxury Goods subindustry, Hermes International'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.
Hermes International Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Hermes International's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hermes International'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 two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 26.27% mean?
Hermes International (XSWX:RMS) has a Return-on-Tangible-Equity of 26.27% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Hermes International and its competitors. This is near median its historical median of 27.94. Over the past decade, Hermes International's Return-on-Tangible-Equity has ranged from 20.54 to 31.78. According to the industry distribution chart, Hermes International ranks #235 out of 1063 companies in the Retail - Cyclical industry, placing it in the top 22.1%.
Is Hermes International's Return-on-Tangible-Equity too high?
Hermes International's current Return-on-Tangible-Equity of 26.27% is near median its 10-year median of 27.94. Over the past 10 years, this metric has ranged from a low of 20.54 to a high of 31.78. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.27. Hermes International's value of 26.27% is 217.7% above this industry median. Based on the distribution chart, Hermes International ranks #235 out of 1063 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Hermes International has a GF Score™ of 98/100, reflecting its overall financial health beyond just this single metric.
How does Hermes International's Return-on-Tangible-Equity compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, Hermes International ranks #235 out of 1063 companies for Return-on-Tangible-Equity. This places Hermes International in the top 22% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.27. Hermes International's value of 26.27% is 217.7% above this benchmark. Historically, Hermes International's own Return-on-Tangible-Equity has ranged from 20.54 to 31.78 over the past decade. While the company's 10-year median is 27.94 vs. the industry median of 8.27, Hermes International 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 Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.27, based on 1,063 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. Hermes International's current Return-on-Tangible-Equity of 26.27% is 217.7% 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 Hermes International and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hermes International's current Return-on-Tangible-Equity is 26.27%, which is near median its own 10-year median of 27.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hermes International stock overvalued right now?
Hermes International (XSWX:RMS) has a current Return-on-Tangible-Equity of 26.27%. The stock's GF Value™ is CHF2,497.81, compared to a current price of CHF1,621.50 — trading 35.1% below its estimated fair value. The current Return-on-Tangible-Equity is 26.27%, which is near median its 10-year median of 27.94 and 217.7% above the Retail - Cyclical industry median of 8.27. Hermes International's overall GF Score™ is 98/100 with 1 warning sign 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 Hermes International (XSWX:RMS), the current Return-on-Tangible-Equity is 26.27% as of Dec. 2025. 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 Hermes International (XSWX:RMS) Overvalued in 2026?
Based on GuruFocus' analysis, Hermes International stock appears to be undervalued.
The current stock price of CHF1,621.50 is trading 35.1% below its estimated GF Value™ of CHF2,497.81.
Key valuation signals for XSWX:RMS:
Return-on-Tangible-Equity: 26.27% (near median its 10-year median of 27.94)
GF Value™: CHF2,497.81 vs. price of CHF1,621.50 (35.1% below fair value)
Industry Position: 217.7% above the Retail - Cyclical median (#235 of 1063)
No single metric tells the full story. See the XSWX:RMS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hermès is over 180-year-old family controlled luxury goods company best known for its Birkin and Kelly bags. Its biggest segments are leather goods and saddlery, accounting for over 40% of revenue; clothes and accessories (28% of sales); silk and textiles (6%); and other products such as perfumes, watches, jewellery, and home furnishings. Hermès has about 300 stores globally.
98GF Score
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