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Compagnie Financiere Richemont Sa Unsponsored ADR (CFRUY)
:CFRUY
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Compagnie Financiere Richemont (CFRUY) AI Stock Analysis

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CFRUY

Compagnie Financiere Richemont

(OTC:CFRUY)

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Outperform 77 (OpenAI - 4o)
Rating:77Outperform
Price Target:
$23.00
▲(13.30% Upside)
Richemont's overall stock score reflects its strong financial performance and strategic investments, despite challenges in specific segments and regions. Positive technical indicators support the stock's momentum, though valuation concerns and regional challenges temper the outlook.

Compagnie Financiere Richemont (CFRUY) vs. SPDR S&P 500 ETF (SPY)

Compagnie Financiere Richemont Business Overview & Revenue Model

Company DescriptionCompagnie Financière Richemont SA engages in the luxury goods business in Europe, the Middle East, Africa, Asia, and the Americas. The company operates through Jewellery Maisons, Specialist Watchmakers, and Online Distributors segments. It designs, manufactures, and distributes jewelry products; and precision timepieces, watches, and writing instruments, as well as clothing, and leather goods and accessories. The company offers its products under the Cartier, Van Cleef & Arpels, Buccellati, A. Lange & Söhne, Baume & Mercier, IWC Schaffhausen, Jaeger LeCoultre, Panerai, Piaget, Roger Dubuis, Vacheron Constantin, Watchfinder & Co., YOOX, NET-A-PORTER, MR PORTER, The Outnet, Alaïa, Chloé, Montblanc, Peter Millar, Purdey, Serapian, TIMEVALLEE, dunhill, Delvaux, and AZ Factory brands through own boutiques and online stores. Compagnie Financière Richemont SA was incorporated in 1979 and is headquartered in Bellevue, Switzerland.
How the Company Makes MoneyCompagnie Financiere Richemont generates revenue primarily through the sale of luxury goods across its various brands. The company has a diversified revenue model that includes retail sales through its own boutiques, e-commerce platforms, and wholesale distribution to third-party retailers. Key revenue streams include the jewelry sector, which represents a significant portion of its earnings, followed by watches, fashion, and accessories. Richemont also benefits from strategic partnerships and collaborations that enhance brand visibility and market reach, along with a growing emphasis on digital sales channels, which have become increasingly important in reaching younger luxury consumers.

Compagnie Financiere Richemont Earnings Call Summary

Earnings Call Date:May 16, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Nov 14, 2025
Earnings Call Sentiment Neutral
The earnings call for Richemont's fiscal year 2025 results shows a balanced outlook. While the company achieved record sales and maintained a strong cash position, challenges in the Specialist Watchmakers segment and the Asia Pacific region, particularly China, impacted overall performance. Strategic investments and leadership renewals are positive steps, but the decline in operating profit and regional sales highlight ongoing challenges.
Q4-2025 Updates
Positive Updates
Record Sales Achievement
Richemont achieved all-time high sales of €21.4 billion, marking a 4% increase at both actual and constant exchange rates.
Jewellery Maisons Growth
The Jewellery Maisons segment saw an 8% rise in sales to €15.3 billion, with double-digit growth in all regions except Asia Pacific.
Strong Cash Position
Richemont maintained a robust net cash position of €8.3 billion and generated a cash flow from operating activities of €4.4 billion.
Strategic Investments
The company invested €500 million in CapEx for distribution network enhancements and €400 million in manufacturing capacity, especially for the Jewellery Maisons.
Leadership and Governance
Richemont renewed its executive leadership and governance, adding expertise to the senior executive committee, and implemented smooth management transitions at several Maisons.
Negative Updates
Decline in Specialist Watchmakers
Sales for Specialist Watchmakers dropped by 13% to €3.3 billion, majorly impacted by a 27% decline in Asia Pacific due to weak demand in China, Hong Kong, and Macau.
Operating Profit Decline
Operating profit fell by 7% to €4.5 billion, impacted by higher raw material costs, unfavorable foreign exchange movements, and lower sales in Specialist Watchmakers.
Challenges in Asia Pacific
Sales in Asia Pacific were 13% lower, primarily due to a significant decline in China, Hong Kong, and Macau, affecting the overall performance of the region.
Inventory Buybacks Impact
Targeted inventory buybacks in Mainland China for Specialist Watchmakers impacted the gross margin, reflecting ongoing challenges in managing inventory levels.
Company Guidance
During Richemont's 2025 fiscal year results presentation, the company reported an all-time high in sales at €21.4 billion, marking a 4% increase at both actual and constant exchange rates. Operating profit was €4.5 billion, down 7% from the previous year, or down 4% when excluding unfavorable foreign exchange impacts, while profit from continuing operations slightly decreased by 1% to €3.8 billion. The company's net cash position was robust at €8.3 billion, and cash flow from operating activities was €4.4 billion. Jewelry Maisons led the growth with a high single-digit increase, counterbalancing a decline in Specialist Watchmakers. By region, double-digit sales growth was seen across all areas except Asia Pacific, which faced challenges due to soft demand in China. The company invested €500 million in CapEx for its distribution network, €200 million in acquiring real estate assets in London, and €400 million in manufacturing capacities, particularly for Cartier and Van Cleef & Arpels. The board proposed a dividend increase of 9%, reflecting a stable financial outlook despite global uncertainties.

Compagnie Financiere Richemont Financial Statement Overview

Summary
Compagnie Financiere Richemont demonstrates strong financial performance with consistent revenue growth and robust cash flows. The balance sheet is stable, though there are areas for improvement in operational efficiency and managing debt levels.
Income Statement
Compagnie Financiere Richemont has demonstrated strong revenue growth with a consistent upward trend over the years. The gross profit margin remains solid, indicative of strong pricing power and cost management. However, there is a slight decline in EBIT margin over the latest period, suggesting possible pressure on operational efficiency.
Balance Sheet
The company's balance sheet reflects a healthy equity ratio, showing a stable capital structure. However, the debt-to-equity ratio is moderate, which could pose some risk if not managed properly. The return on equity has been positive, but there's room for improvement in leveraging equity to generate profits.
Cash Flow
Richemont maintains strong operating cash flows, with a favorable free cash flow to net income ratio, suggesting efficient cash management. While the free cash flow growth rate has experienced some volatility, the overall cash flow position remains robust, supporting potential reinvestment and shareholder returns.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue21.40B21.40B20.62B19.15B17.58B13.03B
Gross Profit14.32B14.32B13.95B13.11B11.58B7.45B
EBITDA5.17B6.53B6.53B6.19B5.43B3.04B
Net Income2.75B2.75B2.36B313.00M2.07B1.30B
Balance Sheet
Total Assets41.01B41.01B42.68B40.99B40.21B35.79B
Cash, Cash Equivalents and Short-Term Investments16.77B16.77B19.49B18.38B16.60B13.43B
Total Debt13.15B13.15B16.36B15.75B15.13B13.59B
Total Liabilities18.84B18.84B22.05B21.92B20.23B17.90B
Stockholders Equity22.10B22.10B20.54B19.01B19.92B17.77B
Cash Flow
Free Cash Flow3.40B3.26B3.67B3.37B3.95B2.68B
Operating Cash Flow4.44B4.44B4.70B4.31B4.87B3.19B
Investing Cash Flow-1.55B-1.55B-2.56B-1.97B-2.47B-2.18B
Financing Cash Flow-2.55B-2.55B-1.82B-2.25B-1.78B898.26M

Compagnie Financiere Richemont Technical Analysis

Technical Analysis Sentiment
Positive
Last Price20.30
Price Trends
50DMA
18.36
Positive
100DMA
18.10
Positive
200DMA
18.10
Positive
Market Momentum
MACD
0.48
Negative
RSI
62.13
Neutral
STOCH
92.90
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CFRUY, the sentiment is Positive. The current price of 20.3 is above the 20-day moving average (MA) of 19.44, above the 50-day MA of 18.36, and above the 200-day MA of 18.10, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 62.13 is Neutral, neither overbought nor oversold. The STOCH value of 92.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CFRUY.

Compagnie Financiere Richemont Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$117.78B17.53%1.88%2.71%10.20%
73
Outperform
$4.30B35.206.82%1.17%-1.63%-72.22%
64
Neutral
$24.38B142.269.76%1.26%5.09%-80.06%
63
Neutral
$761.43M1.7261.33%51.76%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
54
Neutral
$1.40B12.68%62.96%
46
Neutral
$2.55B-142.38%-16.69%-279.61%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CFRUY
Compagnie Financiere Richemont
20.13
5.73
39.79%
TPR
Tapestry
115.33
72.57
169.71%
CPRI
Capri Holdings
22.44
-19.37
-46.33%
SIG
Signet Jewelers
104.44
12.41
13.48%
REAL
RealReal
11.78
8.85
302.05%
LUXE
LuxExperience
8.70
1.80
26.09%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025