H & M Hennes & Mauritz ABCHIX:HMBS +0.47%74 ROE % is 6.87% as of Feb. 2026, which is 69% below its 10-year median of 22.33. 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 1,024 Manufacturing - Apparel & Accessories companies, H & M Hennes & Mauritz AB ranks better than 95.12% on this metric.
H & M Hennes & Mauritz AB (CHIX:HMBs) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, H & M Hennes & Mauritz AB's ROE % distribution charts can be found below:
* The bar in red indicates where H & M Hennes & Mauritz AB's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
H & M Hennes & Mauritz AB (CHIX:HMBS) has a ROE % of 6.87% as of Feb. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on H & M Hennes & Mauritz AB and its competitors. This is 69% below median its historical median of 22.33. Over the past decade, H & M Hennes & Mauritz AB's ROE % has ranged from 2.23 to 31.25. According to the industry distribution chart, H & M Hennes & Mauritz AB ranks #50 out of 1024 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 4.9%.
Is H & M Hennes & Mauritz AB's ROE % too high?
H & M Hennes & Mauritz AB's current ROE % of 6.87% is 69% below median its 10-year median of 22.33. Over the past 10 years, this metric has ranged from a low of 2.23 to a high of 31.25. The Manufacturing - Apparel & Accessories industry median ROE % is 4.14. H & M Hennes & Mauritz AB's value of 6.87% is 66.1% above this industry median. Based on the distribution chart, H & M Hennes & Mauritz AB ranks #50 out of 1024 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 ROE % compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, H & M Hennes & Mauritz AB ranks #50 out of 1024 companies for ROE %. This places H & M Hennes & Mauritz AB in the top 5% of its industry — outperforming the majority of peers. The industry median ROE % is 4.14. H & M Hennes & Mauritz AB's value of 6.87% is 66.1% above this benchmark. Historically, H & M Hennes & Mauritz AB's own ROE % has ranged from 2.23 to 31.25 over the past decade. While the company's 10-year median is 22.33 vs. the industry median of 4.14, 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 ROE % for a Manufacturing - Apparel & Accessories company?
The median ROE % among Manufacturing - Apparel & Accessories companies is 4.14, based on 1,024 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. H & M Hennes & Mauritz AB's current ROE % of 6.87% is 66.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on H & M Hennes & Mauritz AB and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROE % is 4.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H & M Hennes & Mauritz AB's current ROE % is 6.87%, which is 69% below median its own 10-year median of 22.33. 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 ROE % is 6.87%, which is 69% below median its 10-year median of 22.33 and 66.1% above the Manufacturing - Apparel & Accessories industry median of 4.14. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For H & M Hennes & Mauritz AB (CHIX:HMBS), the current ROE % is 6.87% 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:
ROE %: 6.87% (69% below median its 10-year median of 22.33)
GF Value™: kr152.78 vs. price of kr165.25 (8.2% above fair value)
Industry Position: 66.1% above the Manufacturing - Apparel & Accessories median (#50 of 1024)
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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