Compagnie Financiere Richemont SA (CFR) AI Stock Analysis

• Market Cap: CHF81.71B
• Dividend Yield: 1.94%
• Average Volume (3M): 825.08K
• Price to Earnings (P/E): 31.8
• Beta (1Y): 1.53
• Revenue Growth: 2.80%
• EPS Growth: N/A
• Country: CH
• Employees: 37,117
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Luxury Goods
• EPS (TTM): 3.22
• Shares Outstanding: 537,582,100
• 10 Day Avg. Volume: 952,450
• 30 Day Avg. Volume: 825,075
• PEG Ratio: 2.18
• Price to Book (P/B): 4.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF166.56
• Price Target Upside: 17.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 72 Outperform
• Price Target: CHF160.00 ▲(12.80%Upside)

The overall score reflects strong financial performance and strategic resilience highlighted in the earnings call, but is tempered by technical analysis indicating bearish momentum and a high P/E ratio suggesting overvaluation. Earnings challenges in key segments and regions further impact the score.

Positive Factors

Brand Strength and Innovation

CFR remains a top luxury pick given brand strength at Van Cleef & Cartier, innovation momentum, and potential upside if Specialist Watchmakers returns to growth.

Market Position

Cartier & Van Cleef are best in class jewelry that could earn sustained long-term growth through store expansion and 'platform' product development combined with strength in higher-end customer.

Negative Factors

Cost Pressures

FY26 gross margin could trend below last year's 66.9% given cost pressures.

Foreign Exchange Impact

Adverse foreign exchange changes have led to a reduction in EBIT forecasts for Richemont by 14% for FY26-27.

Compagnie Financiere Richemont SA Business Overview & Revenue Model

Company Description

Compagnie Financiere Richemont SA (CFR) is a Switzerland-based luxury goods holding company founded in 1988. It operates in the luxury goods sector, with a strong focus on jewelry, watches, and premium accessories. Richemont's portfolio includes prestigious brands such as Cartier, Van Cleef & Arpels, Piaget, and Montblanc, among others. The company is renowned for its craftsmanship, premium quality, and heritage, catering to high-net-worth individuals and luxury enthusiasts globally.

How the Company Makes Money

Richemont generates revenue primarily through the sale of luxury goods, with its main income streams being jewelry, watches, and accessories. The company's brands are positioned in the high-end luxury segment, enabling it to command premium pricing. Jewelry and watches are the largest contributors to its revenue, driven by iconic brands like Cartier and Jaeger-LeCoultre. Besides direct sales through its extensive retail network, Richemont also benefits from e-commerce platforms it owns or partners with, enhancing its reach and sales potential. Strategic partnerships, brand collaborations, and continuous innovation in design and craftsmanship further bolster its market position and drive sales growth.

Compagnie Financiere Richemont SA Financial Statement Overview

Summary

Compagnie Financiere Richemont SA demonstrates a strong financial profile with consistent revenue growth and robust profitability margins. The balance sheet is solid with moderate leverage, and cash flow management is efficient, although free cash flow growth challenges exist.

Income Statement

Compagnie Financiere Richemont SA demonstrates strong financial performance with a consistent increase in total revenue over recent years. The gross profit margin remains robust at 66.92% for 2025, indicating strong pricing power and efficient production. The net profit margin improved to 12.86% in 2025, showcasing enhanced profitability. However, EBIT margin slightly declined to 20.88% from the previous year, reflecting increased operational costs. The revenue growth rate for 2025 was 3.79%, indicating steady expansion.

Balance Sheet

The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.59 for 2025, indicating moderate leverage. The return on equity (ROE) stands at 12.45%, suggesting effective utilization of equity to generate profits. The equity ratio is 53.91%, showcasing a strong equity base relative to total assets. However, total debt remains substantial, which could pose risks if not managed effectively.

Cash Flow

Cash flow analysis reveals a positive trend with a free cash flow of 3.26 billion in 2025. The operating cash flow to net income ratio is 1.61, indicating strong cash generation relative to net income. Although free cash flow decreased from the previous year, the company maintains a solid free cash flow to net income ratio of 1.19, reflecting efficient cash flow management. The decrease in free cash flow growth rate suggests potential challenges in sustaining cash flow growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.40B	20.62B	19.95B	16.75B	13.14B
Gross Profit	14.32B	14.04B	13.72B	11.18B	7.86B
EBITDA	6.53B	6.53B	5.73B	4.49B	2.17B
Net Income	2.75B	2.36B	3.92B	2.07B	1.30B
Balance Sheet
Total Assets	41.01B	42.68B	40.89B	39.99B	35.36B
Cash, Cash Equivalents and Short-Term Investments	16.77B	19.49B	18.34B	16.51B	13.43B
Total Debt	13.15B	16.36B	15.71B	15.05B	13.59B
Total Liabilities	18.84B	22.05B	21.87B	20.12B	17.48B
Stockholders Equity	22.10B	20.52B	18.96B	19.81B	17.77B
Cash Flow
Free Cash Flow	3.26B	3.67B	3.63B	3.88B	2.83B
Operating Cash Flow	4.44B	4.70B	4.49B	4.64B	3.22B
Investing Cash Flow	-1.55B	-2.56B	-2.07B	-2.28B	-2.19B
Financing Cash Flow	-2.55B	-1.82B	-2.32B	-1.77B	906.00M

Compagnie Financiere Richemont SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 141.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:CFR, the sentiment is Negative. The current price of 141.85 is below the 20-day moving average (MA) of 147.30, below the 50-day MA of 151.57, and below the 200-day MA of 148.01, indicating a bearish trend. The MACD of -2.74 indicates Positive momentum. The RSI at 33.74 is Neutral, neither overbought nor oversold. The STOCH value of 13.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:CFR.

Compagnie Financiere Richemont SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CFR	72 Outperform	CHF81.71B	31.78		1.94%	2.80%	―
Sector *	65 Neutral	€19.74B	9.83	7.83%	3.22%	0.76%	-42.17%
UHRN	62 Neutral	CHF8.03B	27.10		2.78%	-13.19%	-88.43%
UHR	55 Neutral	$8.28B	132.55	0.49%	2.84%	-13.19%	-88.43%

Compagnie Financiere Richemont SA Corporate Events

Richemont’s Strong Start to 2025: Sales Growth Amid Global Challenges

Richemont reported a solid start to its fiscal year with a 6% increase in group sales at constant exchange rates for the quarter ending June 30, 2025, despite a challenging macroeconomic and geopolitical environment. The growth was driven by strong performances in Europe, the Americas, and the Middle East & Africa, with Jewellery Maisons leading the charge. However, sales in Japan declined due to high prior-year comparatives and a strong Yen, while the Asia Pacific region remained stable. The company’s robust net cash position and consistent growth across distribution channels underscore its resilience and strategic positioning in the luxury market.

The most recent analyst rating on (CH:CFR) stock is a Buy with a CHF155.00 price target. To see the full list of analyst forecasts on Compagnie Financiere Richemont SA stock, see the CH:CFR Stock Forecast page.

Richemont Releases FY25 Annual and Non-Financial Reports

Richemont has released its FY25 Annual Report and Non-Financial Report, highlighting its financial performance and non-financial disclosures for the year ending March 31, 2025. The reports, prepared in compliance with Swiss regulations and assured by PwC, reflect Richemont’s commitment to transparency and sustainability, potentially enhancing its reputation and stakeholder trust.

The most recent analyst rating on (CH:CFR) stock is a Buy with a CHF150.00 price target. To see the full list of analyst forecasts on Compagnie Financiere Richemont SA stock, see the CH:CFR Stock Forecast page.

Richemont Achieves Strong FY25 Results Amid Strategic Expansions

Richemont reported strong financial results for the fiscal year ending March 31, 2025, with group sales reaching €21.4 billion, driven by robust performance in its Jewellery Maisons. Despite a challenging macroeconomic environment, the company saw significant growth in most regions, except Asia Pacific, and maintained a solid net cash position of €8.3 billion. The company also completed strategic moves, including the acquisition of Italian jewelry brand Vhernier and the sale of YNAP to Mytheresa. The appointment of a new CEO and expansion of the executive committee are expected to strengthen Richemont’s leadership and operational capabilities.

The most recent analyst rating on (CH:CFR) stock is a Buy with a CHF150.00 price target. To see the full list of analyst forecasts on Compagnie Financiere Richemont SA stock, see the CH:CFR Stock Forecast page.

Richemont Releases FY25 Annual Report Highlighting Financial Transparency

Richemont has released its Annual Report and Accounts for the fiscal year ending March 31, 2025, which includes comprehensive financial statements and audit reports. The company plans to release additional reports, including the Compensation Report and Corporate Governance Report, on June 5, 2025, highlighting its commitment to transparency and governance. This announcement underscores Richemont’s dedication to maintaining robust financial health and stakeholder trust.

The most recent analyst rating on (CH:CFR) stock is a Buy with a CHF150.00 price target. To see the full list of analyst forecasts on Compagnie Financiere Richemont SA stock, see the CH:CFR Stock Forecast page.