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Compagnie Financiere Richemont Sa Unsponsored ADR (CFRUY)
:CFRUY
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Compagnie Financiere Richemont
(OTC:CFRUY)
Rating:75Outperform
Price Target:
$20.00
▲(10.38% Upside)
Compagnie Financiere Richemont (CFRUY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$106.05B
Dividend Yield1.78%
Average Volume (3M)39.64K
Price to Earnings (P/E)40.8
Beta (1Y)1.14
Revenue Growth2.71%
EPS Growth10.20%
CountryUS
Employees37,117
SectorConsumer Cyclical
Sector Strength81
IndustryLuxury Goods
Share Statistics
EPS (TTM)0.39
Shares Outstanding5,375,821,000
10 Day Avg. Volume35,776
30 Day Avg. Volume39,642
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue4.58
Enterprise Value/Gross Profit6.84
Enterprise Value/Ebitda18.94
Forecast
1Y Price Target
$18.70Price Target Upside3.20% Upside
Rating ConsensusHold
Number of Analyst Covering1
Compagnie Financiere Richemont Business Overview & Revenue Model
Company DescriptionCompagnie Financière Richemont SA (CFRUY) is a Swiss luxury goods holding company headquartered in Bellevue, Switzerland. The company is renowned for its prestigious portfolio of luxury brands, which includes Cartier, Van Cleef & Arpels, Piaget, and Montblanc, among others. Richemont operates in several sectors, primarily focusing on jewelry, watches, and writing instruments. The company is known for its commitment to craftsmanship, heritage, and innovation, catering to a global clientele seeking high-end luxury products.
How the Company Makes MoneyRichemont primarily generates revenue through the sale of luxury goods, with its key revenue streams being jewelry, watches, and accessories. The company operates a retail network worldwide, including branded boutiques and a significant e-commerce presence, allowing it to reach a broad customer base. Richemont also benefits from licensing and distribution agreements, enhancing its market presence. Strategic partnerships and collaborations with other luxury brands and designers contribute to its offerings and appeal. The company invests heavily in marketing and brand positioning to maintain its status in the luxury segment and drive sales growth, leveraging its strong brand equity and reputation for quality and exclusivity.
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 healthy, though operational efficiency and debt management could improve.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.85
Very Positive
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.78
Positive
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.82
Very Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 21.40B | 20.62B | 19.15B | 17.58B | 13.03B |
| Gross Profit | 14.32B | 13.95B | 13.11B | 11.58B | 7.45B |
| EBITDA | 6.53B | 6.53B | 6.19B | 5.43B | 3.04B |
| Net Income | 2.75B | 2.36B | 313.00M | 2.07B | 1.30B |
Balance Sheet | |||||
| Total Assets | 41.01B | 42.68B | 40.99B | 40.21B | 35.79B |
| Cash, Cash Equivalents and Short-Term Investments | 16.77B | 19.49B | 18.38B | 16.60B | 13.43B |
| Total Debt | 13.15B | 16.36B | 15.75B | 15.13B | 13.59B |
| Total Liabilities | 18.84B | 22.05B | 21.92B | 20.23B | 17.90B |
| Stockholders Equity | 22.10B | 20.54B | 19.01B | 19.92B | 17.77B |
Cash Flow | |||||
| Free Cash Flow | 3.26B | 3.67B | 3.37B | 3.95B | 2.68B |
| Operating Cash Flow | 4.44B | 4.70B | 4.31B | 4.87B | 3.19B |
| Investing Cash Flow | -1.55B | -2.56B | -1.97B | -2.47B | -2.18B |
| Financing Cash Flow | -2.55B | -1.82B | -2.25B | -1.78B | 898.26M |
Compagnie Financiere Richemont Technical Analysis
Positive
18.12
Price Trends
17.46
Positive
17.87
Positive
17.51
Positive
Market Momentum
0.21
Negative
65.87
Neutral
97.32
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 18.12 is above the 20-day moving average (MA) of 16.97, above the 50-day MA of 17.46, and above the 200-day MA of 17.51, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 65.87 is Neutral, neither overbought nor oversold. The STOCH value of 97.32 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $106.05B | 40.84 | 17.53% | 1.78% | 2.71% | 10.20% | |
75 Outperform | $3.85B | 31.42 | 6.82% | 1.32% | -1.63% | -72.22% | |
63 Neutral | $808.32M | ― | -8.75% | ― | 7.08% | -42.22% | |
61 Neutral | $17.92B | 12.81 | -0.76% | 2.98% | 1.30% | -14.28% | |
60 Neutral | $21.68B | 126.52 | 9.76% | 1.38% | 5.09% | -80.06% | |
58 Neutral | $999.11M | ― | 32.94% | ― | 12.68% | 62.96% | |
50 Neutral | $2.53B | ― | -142.38% | ― | -16.69% | -279.61% |
* Consumer Cyclical Sector Average
Performance Comparison
CFRUY
Compagnie Financiere Richemont
18.13
4.25
30.62%
TPR
Tapestry
104.82
64.39
159.26%
CPRI
Capri Holdings
20.47
-17.34
-45.86%
SIG
Signet Jewelers
92.65
17.69
23.60%
REAL
RealReal
8.23
5.86
247.26%
LUXE
LuxExperience
9.62
5.88
157.22%
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.