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Compagnie Financiere Richemont Sa Unsponsored ADR (CFRUY)
OTHER OTC:CFRUY
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Compagnie Financiere Richemont
(OTC:CFRUY)
Select Model
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Rating:78Outperform
Price Target:
$24.50
▲(20.69% Upside)
Richemont's strong financial performance and resilience in challenging conditions are the most significant factors driving the score. The bullish technical indicators support a positive outlook, though caution is advised due to potential overbought conditions. Valuation is moderate, with limited data on P/E ratio. The earnings call provided positive insights, reinforcing the company's robust position in the luxury goods sector.
Positive Factors
Revenue Growth
The consistent revenue growth indicates strong market demand and effective brand positioning, supporting long-term business expansion.
Cash Flow Strength
Robust cash flow generation enhances financial flexibility, allowing for reinvestment in growth initiatives and shareholder returns.
Jewellery Maisons Performance
Strong performance in Jewellery Maisons underscores Richemont's competitive advantage in luxury jewelry, driving sustained profitability.
Negative Factors
Gross Margin Pressure
Declining gross margins due to rising costs could pressure profitability, necessitating strategic cost management to maintain margins.
Impact of US Tariffs
Rising tariffs present a structural challenge, potentially increasing costs and affecting competitiveness in the US market.
Challenges in Japan
Sales decline in Japan highlights regional market challenges, which could hinder growth if not addressed through strategic adjustments.
Compagnie Financiere Richemont (CFRUY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$126.50B
Dividend Yield0.82%
Average Volume (3M)42.40K
Price to Earnings (P/E)―
Beta (1Y)1.14
Revenue Growth9.17%
EPS GrowthN/A
CountryUS
Employees37,117
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)0.35
Shares Outstanding5,375,821,000
10 Day Avg. Volume19,725
30 Day Avg. Volume42,396
Financial Highlights & Ratios
PEG Ratio2.38
Price to Book (P/B)4.26
Price to Sales (P/S)4.40
P/FCF Ratio28.83
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue4.92
Enterprise Value/Gross Profit7.47
Enterprise Value/Ebitda18.59
Forecast
1Y Price Target
$18.70Price Target Upside-7.88% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.72
Revenue Forecast (FY)$25.71B
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:Nov 14, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 22, 2026
Earnings Call Sentiment Neutral
Richemont demonstrated strong financial performance and resilience amidst challenging economic conditions, with notable growth in Jewellery Maisons and the Americas. However, the group faced headwinds from increased US tariffs, currency impacts, and challenges in Specialist Watchmakers and the Japanese market.Q2-2026 Updates
Positive Updates
Solid Revenue Growth
Richemont reported sales of EUR 10.6 billion, marking a 10% increase at constant exchange rates and a 5% increase at actual exchange rates.
Strong Operating Profit
Operating profit reached EUR 2.4 billion, an increase of 7% compared to the prior year, and a 24% increase when excluding adverse FX movements.
Jewellery Maisons Performance
Jewellery Maisons saw a 17% increase in Q2 sales at constant rates, contributing to a total of EUR 7.7 billion in sales, up 14% at constant exchange rates.
Resilience in the Americas
The Americas posted 18% growth in sales, marking the seventh consecutive quarter of double-digit growth, with the region comprising 25% of group sales.
Improved Cash Flow
Cash flow from operating activities amounted to EUR 1.9 billion, an increase of EUR 600 million compared to the prior year period.
Negative Updates
Specialist Watchmakers Struggle
Sales for Specialist Watchmakers were down by 6% at actual exchange rates, with a 2% decline at constant exchange rates.
Gross Margin Pressure
Gross margin decreased by 190 basis points to 65.3% of sales, impacted by rising raw material costs and adverse currency movements.
Impact of US Tariffs
Increased US tariff rates posed a limited impact of EUR 50 million in H1, with a greater unfavorable impact anticipated in H2, potentially reaching EUR 0.3 billion for the full fiscal year.
Challenges in Japan
Sales in Japan decreased by 4% in the first half, reflecting demanding comparatives and currency challenges.
Company Guidance
During Richemont's Fiscal Year 2026 Interim Results Presentation, the company reported solid financial performance amidst challenging macroeconomic conditions. For the first half of the fiscal year, sales reached EUR 10.6 billion, marking a 10% increase at constant exchange rates and a 5% increase at actual exchange rates. Operating profit rose to EUR 2.4 billion, a 7% increase from the previous year, and a 24% increase when excluding adverse foreign exchange movements, with an operating margin of 22.2%. Profit from continuing operations grew by 4% to EUR 1.8 billion, while cash flow from operating activities was EUR 1.9 billion. The company's net cash position remained robust at EUR 6.5 billion, even after a EUR 1.9 billion dividend payment. Jewellery Maisons led the growth with a 17% sales increase, while Specialist Watchmakers showed a 3% rise, marking their first quarter of growth in almost two years. All regions achieved double-digit sales growth in Q2, with Asia Pacific, particularly China, contributing significantly. The company managed to maintain and improve its financial standing despite external challenges like unfavorable foreign exchange movements and increased raw material costs.Compagnie Financiere Richemont Financial Statement Overview
Summary
Compagnie Financiere Richemont showcases 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.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 | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.55B | 21.40B | 20.62B | 19.15B | 17.58B | 13.03B |
| Gross Profit | 15.51B | 14.32B | 13.95B | 13.11B | 11.58B | 7.45B |
| EBITDA | 6.23B | 6.53B | 6.53B | 6.19B | 5.43B | 3.04B |
| Net Income | 4.38B | 2.75B | 2.36B | 313.00M | 2.07B | 1.30B |
Balance Sheet | ||||||
| Total Assets | 41.44B | 41.01B | 42.68B | 40.99B | 40.21B | 35.79B |
| Cash, Cash Equivalents and Short-Term Investments | 16.67B | 16.77B | 19.49B | 18.38B | 16.60B | 13.43B |
| Total Debt | 14.81B | 13.15B | 16.36B | 15.75B | 15.13B | 13.59B |
| Total Liabilities | 19.19B | 18.84B | 22.05B | 21.92B | 20.23B | 17.90B |
| Stockholders Equity | 22.19B | 22.10B | 20.54B | 19.01B | 19.92B | 17.77B |
Cash Flow | ||||||
| Free Cash Flow | 4.19B | 3.26B | 3.67B | 3.37B | 3.95B | 2.68B |
| Operating Cash Flow | 5.33B | 4.44B | 4.70B | 4.31B | 4.87B | 3.19B |
| Investing Cash Flow | -2.50B | -1.55B | -2.56B | -1.97B | -2.47B | -2.18B |
| Financing Cash Flow | -3.20B | -2.55B | -1.82B | -2.25B | -1.78B | 898.26M |
Compagnie Financiere Richemont Technical Analysis
Positive
20.30
Price Trends
20.68
Positive
19.31
Positive
18.58
Positive
Market Momentum
0.23
Positive
58.79
Neutral
100.43
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 below the 20-day moving average (MA) of 21.34, below the 50-day MA of 20.68, and above the 200-day MA of 18.58, indicating a bullish trend. The MACD of 0.23 indicates Positive momentum. The RSI at 58.79 is Neutral, neither overbought nor oversold. The STOCH value of 100.43 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $126.50B | ― | 17.48% | 0.82% | 9.17% | ― | |
69 Neutral | $26.87B | 117.52 | 16.05% | 1.16% | 8.14% | -65.04% | |
67 Neutral | $1.16B | 1.87 | 56.42% | ― | 97.28% | ― | |
64 Neutral | $3.47B | 25.47 | 8.24% | 1.46% | -0.40% | -68.99% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $2.98B | -2.54 | -165.96% | ― | -17.66% | -223.06% | |
54 Neutral | $1.89B | -11.69 | ― | ― | 14.30% | 23.73% |
* Consumer Cyclical Sector Average
CFRUY
Compagnie Financiere Richemont
21.61
6.54
43.41%
TPR
Tapestry
130.34
65.57
101.24%
CPRI
Capri Holdings
24.61
4.09
19.93%
SIG
Signet Jewelers
84.55
5.43
6.86%
REAL
RealReal
16.36
5.18
46.33%
LUXE
LuxExperience
8.53
1.50
21.34%
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.