Hermès (RMS.PA): analysis in plain words
Is Hermès cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
Hermès (RMS.PA) is listed on Euronext Paris and we classify it in luxury and apparel. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against Hermès according to those figures, and the questions people ask most about the stock. No buy or sell tips.
Hermès (RMS.PA) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | €1,372.50 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 31.9x | Price over earnings per share |
| Revenue growth | +1.6% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 28.0% | Profit for every 100 of sales |
| Net debt / EBITDA | Net cash (more cash than debt) | Years of operating profit to repay debt |
| Dividend yield | 1.37% | Annual dividend over price |
| Market cap | €143.7 billion | What the stock market values it at |
The Hermès figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any RMS.PA figure that is not available shows as N/A: we do not estimate it.
How Hermès makes money
Hermès reports sales by business line: Leather Goods & Saddlery, including the Birkin and Kelly bags, its biggest source of revenue; Ready-to-wear & Accessories; Silk & Textiles, known for its scarves; Perfume & Beauty; Watches; and other lines such as jewelry and homeware. It sells mainly through its own stores across Asia, Europe and the Americas.
Over the last 12 months, Hermès brought in revenue of €16.1 billion. For every 100 it sells, Hermès keeps 71.3 after the direct cost of what it sells (gross margin) and 42.2 after all operating costs (operating margin). With 27,107 full-time employees, that is about €595,000 of revenue per employee.
Hermès against its sector
To know whether a Hermès figure is high or low you have to put it next to similar companies. This table compares Hermès with the median of the 6 luxury and apparel companies Fintols covers, with data as of November 4, 2026.
| Figure | Hermès | luxury and apparel median |
|---|---|---|
| P/E | 31.9x | 23.7x (6) |
| Revenue growth | +1.6% | +1.6% (7) |
| Net margin | 28.0% | 8.5% (7) |
| Dividend yield | 1.37% | 1.66% (7) |
| Net debt / EBITDA | -1.4x | 1.2x (7) |
In short, against the typical luxury and apparel company, Hermès trades on a higher P/E, earns a wider margin and pays a lower dividend yield. By size, Hermès ranks number 3 of 6 luxury and apparel companies quoted in EUR on Fintols.
The bull case for Hermès
These are the strengths in the Hermès figures as of November 4, 2026:
- Its net margin over the last 12 months is 28.0% (sector median: 8.5%): Hermès turns a large share of its sales into profit.
- Hermès earns 25.5% a year on its shareholders' money (return on equity).
- Hermès holds more cash than debt (net cash), so it does not depend on lenders to keep investing and is better placed to ride out a bad year.
The main risk for Hermès
Hermès stock sits 40% below its 52-week high (€2,300.00): the market has cut its expectations, and it is worth understanding why first.
And, like the rest of luxury and apparel, Hermès is exposed to spending by wealthier customers, especially in China and the US, cooling down.
Frequently asked questions about Hermès
Is it a good time to buy Hermès stock?
Fintols does not tell you whether to buy or sell Hermès, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, Hermès stock trades at €1,372.50, 40% below its 52-week high (€2,300.00) and 12% above its low (€1,228.00). Its P/E is 31.9x against a luxury and apparel median of 23.7x, and 28.5x on the earnings analysts expect over the next 12 months. With Hermès, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does Hermès pay a dividend?
Yes. As of November 4, 2026, Hermès pays €18.00 per share a year, which at today's price is a yield of 1.37%. It uses 42% of its profit to pay it, which leaves room to keep paying it if profit dips. Its average dividend yield over the last five years is 0.64%. The luxury and apparel median on Fintols is 1.66%.
Is Hermès stock expensive?
It depends on what you compare it with. On P/E, Hermès trades at 31.9x its last 12 months of earnings: more expensive than the luxury and apparel median (23.7x). Including its debt, Hermès is valued at 18.1x its EBITDA (EV/EBITDA). A high P/E alone does not make Hermès expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are Hermès's competitors?
On Fintols we compare Hermès with Inditex, LVMH and EssilorLuxottica, which are also in luxury and apparel. As of November 4, 2026, Inditex is worth €184.0 billion and trades on a P/E of 28.0; LVMH is worth €205.2 billion and trades on a P/E of 19.0; EssilorLuxottica is worth €86.7 billion and trades on a P/E of 35.3. Each has a side-by-side comparison with Hermès below.
Hermès competitors
- Inditex (ITX) analysis · Hermès vs Inditex comparison
- LVMH (MC.PA) analysis · Hermès vs LVMH comparison
- EssilorLuxottica (EL.PA) analysis · Hermès vs EssilorLuxottica comparison
To understand Hermès better
- Economic Moats Explained: From Warren Buffett to AI
- P/E Ratio and EPS Explained: How to Read Them Without Traps
More companies like Hermès: luxury and apparel stocks and Euro Stoxx 50 companies. Open the full RMS.PA analysis with its valuation and scenarios. Educational content about Hermès, not investment advice.