H & M Hennes & Mauritz ABCHIX:HMBS +0.47%74 ROA % is 1.73% as of Feb. 2026, which is 74% below its 10-year median of 6.69. GuruFocus rates CHIX:HMBS with a GF Score™ of 74/100 and a GF Value™ of kr152.78 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,069 Manufacturing - Apparel & Accessories companies, H & M Hennes & Mauritz AB ranks better than 84.1% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. H & M Hennes & Mauritz AB's annualizedNet Income for the quarter that ended in Feb. 2026 was kr2,896 Mil.
H & M Hennes & Mauritz AB's average Total Assets over the quarter that ended in Feb. 2026 was kr167,183 Mil. Therefore, H & M Hennes & Mauritz AB's annualized ROA % for the quarter that ended in Feb. 2026 was 1.73%.
The historical rank and industry rank for H & M Hennes & Mauritz AB's ROA % or its related term are showing as below:
CHIX:HMBs'
s ROA % Range Over the Past 10 Years
Min: 0.84 Med: 6.69 Max: 20.21
Current: 7.21
During the past 13 years, H & M Hennes & Mauritz AB's highest ROA % was 20.21%. The lowest was 0.84%. And the median was 6.69%.
H & M Hennes & Mauritz AB (CHIX:HMBs) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Feb. 2026) net income data. The Revenue data used here is four times the quarterly (Feb. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Apparel Manufacturing subindustry, H & M Hennes & Mauritz AB's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, H & M Hennes & Mauritz AB's ROA % distribution charts can be found below:
* The bar in red indicates where H & M Hennes & Mauritz AB's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Feb. 2026) net income data.
ROA % is displayed in the 30-year financial page.
H & M Hennes & Mauritz AB (CHIX:HMBS) has a ROA % of 1.73% as of Feb. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on H & M Hennes & Mauritz AB and its competitors. This is 74% below median its historical median of 6.69. Over the past decade, H & M Hennes & Mauritz AB's ROA % has ranged from 0.84 to 20.21. According to the industry distribution chart, H & M Hennes & Mauritz AB ranks #170 out of 1069 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 15.9%.
Is H & M Hennes & Mauritz AB's ROA % too high?
H & M Hennes & Mauritz AB's current ROA % of 1.73% is 74% below median its 10-year median of 6.69. Over the past 10 years, this metric has ranged from a low of 0.84 to a high of 20.21. The Manufacturing - Apparel & Accessories industry median ROA % is 1.95. H & M Hennes & Mauritz AB's value of 1.73% is 11.3% below this industry median. Based on the distribution chart, H & M Hennes & Mauritz AB ranks #170 out of 1069 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 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does H & M Hennes & Mauritz AB's ROA % compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, H & M Hennes & Mauritz AB ranks #170 out of 1069 companies for ROA %. This places H & M Hennes & Mauritz AB in the top 16% of its industry — outperforming the majority of peers. The industry median ROA % is 1.95. H & M Hennes & Mauritz AB's value of 1.73% is 11.3% below this benchmark. Historically, H & M Hennes & Mauritz AB's own ROA % has ranged from 0.84 to 20.21 over the past decade. While the company's 10-year median is 6.69 vs. the industry median of 1.95, H & M Hennes & Mauritz AB has consistently been below 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 ROA % for a Manufacturing - Apparel & Accessories company?
The median ROA % among Manufacturing - Apparel & Accessories companies is 1.95, based on 1,069 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. H & M Hennes & Mauritz AB's current ROA % of 1.73% is 11.3% below 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on H & M Hennes & Mauritz AB and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROA % is 1.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H & M Hennes & Mauritz AB's current ROA % is 1.73%, which is 74% below median its own 10-year median of 6.69. 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 kr152.78, compared to a current price of kr165.25 — trading 8.2% above its estimated fair value. The current ROA % is 1.73%, which is 74% below median its 10-year median of 6.69 and 11.3% below the Manufacturing - Apparel & Accessories industry median of 1.95. H & M Hennes & Mauritz AB's overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For H & M Hennes & Mauritz AB (CHIX:HMBS), the current ROA % is 1.73% as of Feb. 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 kr165.25 is trading 8.2% above its estimated GF Value™ of kr152.78.
GuruFocus considers H & M Hennes & Mauritz AB to be Fairly Valued.
Key valuation signals for CHIX:HMBS:
ROA %: 1.73% (74% below median its 10-year median of 6.69)
GF Value™: kr152.78 vs. price of kr165.25 (8.2% above fair value)
Industry Position: 11.3% below the Manufacturing - Apparel & Accessories median (#170 of 1069)
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 .
74GF Score
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