Compagnie Financiere Richemont (CFRUY)
OTHER OTC:CFRUY
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Compagnie Financiere Richemont
(OTC:CFRUY)
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Rating:71Outperform
Price Target:
$25.00
▲(14.63% Upside)
Action:Reiterated
Date:05/26/26
The score is driven primarily by solid financial performance (strong margins and earnings recovery with improving leverage) and a positive earnings call emphasizing strong growth, cash strength, and higher shareholder returns. Technicals add moderate support via a mildly bullish trend and positive MACD, while valuation is constrained by the unavailable/invalid P/E input and only a modest dividend yield.
Positive Factors
Profitability recovery
Sustained high gross and operating margins reflect durable pricing power and a premium product mix, underpinning strong cash generation and resilience to cyclical demand. Over the next 2–6 months, these margins support reinvestment, dividends and buffer against transient cost shocks.
Negative Factors
Commodity, tariff & FX pressure
Persistent gold price inflation, tariffs and FX volatility are structural cost levers that can compress gross margins and force price or mix adjustments. Over 2–6 months these pressures reduce operating leverage and limit margin recovery unless offset by price increases or cost reductions.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability recovery
Sustained high gross and operating margins reflect durable pricing power and a premium product mix, underpinning strong cash generation and resilience to cyclical demand. Over the next 2–6 months, these margins support reinvestment, dividends and buffer against transient cost shocks.
Read all positive factors
Compagnie Financiere Richemont (CFRUY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$133.52B
Dividend Yield0.82%
Average Volume (3M)64.41K
Price to Earnings (P/E)33.8
Beta (1Y)1.29
Revenue Growth13.22%
EPS GrowthN/A
CountryUS
Employees37,117
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)0.56
Shares Outstanding5,375,821,000
10 Day Avg. Volume66,041
30 Day Avg. Volume64,410
Financial Highlights & Ratios
PEG Ratio2.35
Price to Book (P/B)4.22
Price to Sales (P/S)4.51
P/FCF Ratio26.06
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue5.41
Enterprise Value/Gross Profit8.42
Enterprise Value/Ebitda19.36
Forecast
1Y Price Target
$18.00Price Target Upside-17.47% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.8
Revenue Forecast (FY)$28.03B
Compagnie Financiere Richemont Business Overview & Revenue Model
Company Description
Compagnie Financière Richemont SA is a Swiss-based global luxury goods conglomerate with operations spanning Europe, the Middle East, Africa, Asia, and the Americas. Its operations are categorized into three core segments: high-end jewelry houses,...
How the Company Makes Money
Richemont makes money primarily by selling luxury goods—most notably jewelry and watches—under its portfolio of maisons. Revenue is generated through (1) direct-to-consumer sales via company-operated boutiques and e-commerce, where Richemont captu...
Compagnie Financiere Richemont Earnings Call Summary
Earnings Call Date:May 22, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 06, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive performance: strong top‑line growth (EUR 22.4bn), clear outperformance from the Jewellery Maisons, robust cash generation (EUR 4.9bn operating cash flow) and a strong net cash position (EUR 8.5bn) plus an increased dividend. These positives were counterbalanced by notable margin headwinds — chiefly higher gold prices, U.S. duties (~EUR 200m), FX volatility and nonrecurring impairments — and weakness at the Specialist Watchmakers. On balance the strategic investments, cash strength and brand momentum materially outweigh the transitory cost and FX pressures.Positive Updates
Group sales growth
Sales reached EUR 22.4 billion, up 11% at constant exchange rates and 5% at actual exchange rates; Q4 sales up 13% at constant rates, with sequential acceleration in Asia Pacific, the Americas and Japan.
Negative Updates
Gross margin erosion
Gross margin declined by 250 basis points to 64.4% (gross profit rose only 1% to EUR 14.4 billion). Excluding FX movements, gross margin was down c.40 bps; FX movements accounted for ~210 bps of the decline.
Read all updates
Q4-2026 Updates
Positive
Negative
Group sales growth
Sales reached EUR 22.4 billion, up 11% at constant exchange rates and 5% at actual exchange rates; Q4 sales up 13% at constant rates, with sequential acceleration in Asia Pacific, the Americas and Japan.
Read all positive updates
Company Guidance
Management gave no explicit FY27 financial guidance — rather they stressed navigating “volatile times” with vigilance, continued strategic investment and cost discipline while highlighting FY26 metrics as the baseline: sales €22.4bn (+11% at constant rates, +5% actual), operating profit €4.5bn (+1% actual, +23% CER; underlying ~€4.7bn excluding €164m non‑recurring charges), profit for the year €3.5bn, gross profit €14.4bn (gross margin 64.4%, -250bps YoY with -210bps FX impact), operating expenses 44.4% of sales, retail =71% of sales, direct‑to‑client 77%, wholesale 23%, cash flow from operations €4.9bn, free cash flow €2.8bn, net cash €8.5bn, CapEx ~€1bn (4.6% of sales) — >50% to retail, >25% to manufacturing, ~20% to IT/other — communications ~9% of sales, US duties ≈€200m and targeted buybacks noted; they proposed a total dividend CHF4.30 (ordinary CHF3.30, +10% y/y, plus CHF1 special).Compagnie Financiere Richemont Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
67
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 22.57B | 21.40B | 20.62B | 19.15B | 17.58B |
| Gross Profit | 14.53B | 14.32B | 13.95B | 13.11B | 11.58B |
| EBITDA | 6.26B | 6.53B | 6.53B | 6.19B | 5.43B |
| Net Income | 3.51B | 2.75B | 2.36B | 313.00M | 2.07B |
Balance Sheet | |||||
| Total Assets | 42.67B | 41.01B | 42.68B | 40.99B | 40.21B |
| Cash, Cash Equivalents and Short-Term Investments | 17.25B | 16.77B | 19.49B | 18.38B | 16.60B |
| Total Debt | 13.50B | 13.15B | 16.36B | 15.75B | 15.13B |
| Total Liabilities | 18.50B | 18.84B | 22.05B | 21.92B | 20.23B |
| Stockholders Equity | 24.10B | 22.10B | 20.54B | 19.01B | 19.92B |
Cash Flow | |||||
| Free Cash Flow | 3.90B | 3.26B | 3.67B | 3.37B | 3.95B |
| Operating Cash Flow | 4.91B | 4.44B | 4.70B | 4.31B | 4.87B |
| Investing Cash Flow | -1.57B | -1.55B | -2.56B | -1.97B | -2.47B |
| Financing Cash Flow | -4.36B | -2.55B | -1.82B | -2.25B | -1.78B |
Compagnie Financiere Richemont Technical Analysis
Positive
21.81
Price Trends
20.29
Positive
19.62
Positive
19.90
Positive
Market Momentum
0.79
Negative
74.63
Negative
98.55
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 21.81 is above the 20-day moving average (MA) of 21.37, above the 50-day MA of 20.29, and above the 200-day MA of 19.90, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 74.63 is Negative, neither overbought nor oversold. The STOCH value of 98.55 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $133.52B | 33.81 | 15.06% | 0.82% | 13.22% | ― | |
67 Neutral | $28.99B | 43.84 | 106.44% | 1.16% | 14.13% | -15.62% | |
66 Neutral | $3.47B | 12.06 | 16.01% | 1.46% | 1.35% | 661.25% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $1.09B | 2.18 | 34.62% | ― | 194.57% | ― | |
54 Neutral | $1.50B | -57.00 | 17.42% | ― | 17.16% | -48.49% | |
51 Neutral | $2.33B | 17.62 | 102.24% | ― | -21.79% | ― |
* Consumer Cyclical Sector Average
CFRUY
Compagnie Financiere Richemont
23.07
5.12
28.55%
TPR
Tapestry
143.50
58.84
69.50%
CPRI
Capri Holdings
20.32
3.54
21.10%
SIG
Signet Jewelers
88.23
9.60
12.21%
REAL
RealReal
12.45
7.55
154.08%
LUXE
LuxExperience
7.91
0.25
3.26%
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.