Hermes InternationalMEX:RMS N 81 ROE % is 25.35% as of Dec. 2025, which is 6% below its 10-year median of 26.97. GuruFocus rates MEX:RMS N with a GF Score™ of 81/100 and a GF Value™ of MXN53,522.17 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,097 Retail - Cyclical companies, Hermes International ranks better than 85.6% on this metric.
The historical rank and industry rank for Hermes International's ROE % or its related term are showing as below:
MEX:RMS N'
s ROE % Range Over the Past 10 Years
Min: 19.86 Med: 26.97 Max: 31.19
Current: 25.72
During the past 13 years, Hermes International's highest ROE % was 31.19%. The lowest was 19.86%. And the median was 26.97%.
MEX:RMS N's ROE % is ranked better than 85.6% of 1097
companies
in the Retail - Cyclical industry
Industry Median: 6.46
vs MEX:RMS N: 25.72
Hermes International (MEX:RMS N) 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 two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) 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 Luxury Goods subindustry, Hermes International'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.
Hermes International ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Hermes International's ROE % distribution charts can be found below:
* The bar in red indicates where Hermes International'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 two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Hermes International (MEX:RMS N) has a ROE % of 25.35% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Hermes International and its competitors. This is near median its historical median of 26.97. Over the past decade, Hermes International's ROE % has ranged from 19.86 to 31.19. According to the industry distribution chart, Hermes International ranks #158 out of 1097 companies in the Retail - Cyclical industry, placing it in the top 14.4%.
Is Hermes International's ROE % too high?
Hermes International's current ROE % of 25.35% is near median its 10-year median of 26.97. Over the past 10 years, this metric has ranged from a low of 19.86 to a high of 31.19. The Retail - Cyclical industry median ROE % is 6.46. Hermes International's value of 25.35% is 292.4% above this industry median. Based on the distribution chart, Hermes International ranks #158 out of 1097 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 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hermes International's ROE % compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, Hermes International ranks #158 out of 1097 companies for ROE %. This places Hermes International in the top 14% of its industry — outperforming the majority of peers. The industry median ROE % is 6.46. Hermes International's value of 25.35% is 292.4% above this benchmark. Historically, Hermes International's own ROE % has ranged from 19.86 to 31.19 over the past decade. While the company's 10-year median is 26.97 vs. the industry median of 6.46, 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 ROE % for a Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.46, based on 1,097 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. Hermes International's current ROE % of 25.35% is 292.4% 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 Hermes International and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hermes International's current ROE % is 25.35%, which is near median its own 10-year median of 26.97. 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?
Based on GuruFocus' analysis, Hermes International (MEX:RMS N) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN53,522.17, compared to a current price of MXN35,500.00 — trading 33.7% below its estimated fair value. The current ROE % is 25.35%, which is near median its 10-year median of 26.97 and 292.4% above the Retail - Cyclical industry median of 6.46. Hermes International's overall GF Score™ is 81/100 with 1 warning sign 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 Hermes International (MEX:RMS N), the current ROE % is 25.35% 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 (MEX:RMS N) Overvalued in 2026?
Based on GuruFocus' analysis, Hermes International stock appears to be undervalued.
The current stock price of MXN35,500.00 is trading 33.7% below its estimated GF Value™ of MXN53,522.17.
GuruFocus considers Hermes International to be Significantly Undervalued.
Key valuation signals for MEX:RMS N:
ROE %: 25.35% (near median its 10-year median of 26.97)
GF Value™: MXN53,522.17 vs. price of MXN35,500.00 (33.7% below fair value)
Industry Position: 292.4% above the Retail - Cyclical median (#158 of 1097)
No single metric tells the full story. See the MEX:RMS N 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.
81GF Score
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