Hermes Stocks is Not Yet Cheap, Despite The Quality!

What This Video Is About

This video provides an analysis of Hermès' stock, which has experienced a significant drop in price, and examines the company's current state, sales, financials, and investment potential.

Major Ideas Discussed

• Hermès' stock price has dropped over 50% from its peak, but the company still shows a 6% growth rate and strong balance sheet with little debt.
• Sales are down slightly in the Middle East, but the rest of the world is still growing, with half-year sales down slightly since the post-pandemic boom.
• The company has a strong moat, pricing power, and scarcity, but the stock price may still be too high, even with a 50% drop.
• The dividend yield is currently 1.3%, which may not be enough to justify the current price, and a 3-5% dividend yield would put the stock price at a more reasonable level.
• The stock market can be crazy, with prices often detached from reality, and Hermès' market cap has dropped from $280 billion to $140 billion, with a P/E ratio still high at 30.

What to Watch Next

Investors should monitor the company's valuation, dividend yield, and market trends to determine if the stock price will continue to drop or stabilize.