Compagnie Financiere Richemont SA (CFR) AI Stock Analysis

• Market Cap: CHF76.51B
• Dividend Yield: 1.76%
• Average Volume (3M): 804.18K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 1.51
• Revenue Growth: 5.10%
• EPS Growth: 206.55%
• Country: CH
• Employees: 37,117
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 2.76
• Shares Outstanding: 537,582,100
• 10 Day Avg. Volume: 864,468
• 30 Day Avg. Volume: 804,178
• PEG Ratio: 2.37
• Price to Book (P/B): 4.24
• Price to Sales (P/S): 4.38
• P/FCF Ratio: 28.74
• 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: CHF185.34
• Price Target Upside: 41.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 6.21
• Revenue Forecast (FY): CHF22.35B

• Rating: 78 Outperform
• Price Target: CHF150.00 ▲(14.42% Upside)
• Action: Reiterated Date: 11/18/25
• Date: Action: Reiterated 11/18/25

Compagnie Financiere Richemont SA's overall stock score reflects strong financial performance and positive earnings call insights, supported by solid technical indicators. While the valuation suggests moderate growth potential, the company's strategic positioning in the luxury goods market and robust cash management are key strengths.

Positive Factors

Strong Net Cash Position

A net cash position of EUR 6.5bn provides durable financial flexibility: it funds boutique and manufacturing investments, cushions against demand shocks or tariffs, supports dividend payouts and buybacks, and reduces refinancing risk — strengthening long-term strategic optionality.

Jewellery Maisons Driving Growth

Sustained double-digit growth in Jewellery Maisons indicates structural demand and strong brand pricing power. Jewellery typically yields higher margins than watches, so persistent outperformance boosts overall profitability, supports resource allocation to top maisons, and strengthens Richemont's competitive moat.

Robust Free Cash Flow Generation

Consistent free cash flow (EUR 3.26bn) and strong operating cash conversion sustain capital investments, inventory cycles and shareholder returns without heavy reliance on external financing. This cash generation underpins durable operations and resiliency through luxury cyclicality.

Negative Factors

Substantial Total Debt

A debt-to-equity ratio near 0.6 signals moderate leverage; while manageable today, meaningful absolute debt raises susceptibility to rising rates or profit shocks. Sustained leverage can constrain capital allocation flexibility if cash generation eases or macro volatility increases over the next 2–6 months.

Specialist Watchmakers Sales Weakness

Declines in Specialist Watchmakers reflect structural vulnerability in a high-cost, cyclical segment. Prolonged weakness here can erode diversification, pressure segment margins, and require sustained investment or inventory adjustments, limiting near-term group margin expansion and revenue resilience.

Adverse FX Impacts on Margins

A 190bp gross margin hit from FX shows material exposure to currency volatility. Persistent adverse movements or limited hedging effectiveness can compress pricing power and margins, forcing trade-offs between local pricing, discounting and absorbed costs that harm sustained profitability.

Compagnie Financiere Richemont SA Business Overview & Revenue Model

Company Description

Compagnie 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 Money

Richemont primarily makes money by designing, manufacturing (in many cases), marketing, and selling luxury goods under its maisons, generating revenue from product sales at premium price points. Its key revenue streams are (1) direct-to-consumer retail sales through company-operated boutiques and other directly managed points of sale, where Richemont captures the full retail margin; (2) wholesale sales to third-party retailers and distributors, which typically deliver lower gross margins than retail but provide broader distribution and volume; and (3) e-commerce sales via online storefronts, which can be fulfilled directly and may also support omnichannel services (e.g., boutique pickup and clienteling). Product categories that drive sales include jewelry (a major contributor for the group, led by its jewelry maisons) and watches (watchmaking maisons), alongside fashion and accessories. Earnings are influenced by factors typical to luxury retail—brand equity and pricing power, product mix (notably the balance between jewelry and watches), tourist flows and local demand by region, inventory and supply constraints for precious materials, and the ability to control distribution (direct retail expansion vs. wholesale exposure). Specific partnership or platform-revenue details not stated here: null.

Compagnie Financiere Richemont SA Financial Statement Overview

Summary

Compagnie Financiere Richemont SA shows strong financial performance with robust revenue growth, a solid balance sheet, and efficient cash flow management. Despite some margin fluctuations and a decrease in free cash flow growth, the company maintains a strong position in the luxury goods industry.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	21.97B	21.40B	20.62B	19.95B	19.18B	13.14B
Gross Profit	14.48B	14.32B	14.04B	13.72B	12.03B	7.86B
EBITDA	5.76B	6.53B	6.53B	6.35B	4.85B	3.20B
Net Income	4.11B	2.75B	2.36B	313.00M	2.07B	1.30B
Balance Sheet
Total Assets	41.44B	41.01B	42.68B	40.89B	39.99B	35.36B
Cash, Cash Equivalents and Short-Term Investments	16.67B	16.77B	19.49B	18.34B	16.51B	13.43B
Total Debt	14.81B	13.15B	16.36B	15.67B	15.05B	13.59B
Total Liabilities	19.19B	18.84B	22.05B	21.87B	20.12B	17.48B
Stockholders Equity	22.19B	22.10B	20.54B	18.96B	19.81B	17.77B
Cash Flow
Free Cash Flow	3.97B	3.26B	3.67B	3.51B	3.76B	2.71B
Operating Cash Flow	5.05B	4.44B	4.70B	4.49B	4.64B	3.22B
Investing Cash Flow	-2.27B	-1.55B	-2.56B	-2.07B	-2.28B	-2.19B
Financing Cash Flow	-2.83B	-2.55B	-1.82B	-2.32B	-1.77B	906.00M

Compagnie Financiere Richemont SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 131.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 131.1 is below the 20-day moving average (MA) of 146.88, below the 50-day MA of 154.06, and below the 200-day MA of 152.17, indicating a bearish trend. The MACD of -6.02 indicates Positive momentum. The RSI at 26.33 is Positive, neither overbought nor oversold. The STOCH value of 11.79 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	78 Outperform	CHF76.51B	13.11	―	1.76%	5.10%	206.55%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
UHRN	58 Neutral	CHF8.71B	2,911.00	―	2.61%	-13.19%	-88.43%
UHR	58 Neutral	CHF8.71B	2,911.00	0.49%	2.67%	-13.19%	-88.43%

Compagnie Financiere Richemont SA Corporate Events

Richemont Extends Growth Streak as Jewellery and Retail Drive Double-Digit Q3 Sales

Richemont reported another robust quarter to 31 December 2025, with third-quarter sales rising 11% at constant exchange rates to €6.4 billion despite a challenging macroeconomic backdrop and tough comparatives. Growth was broad-based across regions and channels, led by its Jewellery Maisons, which delivered a 14% sales increase, and by strong double-digit performances in the Americas, Japan and the Middle East & Africa, while Asia Pacific and Europe also advanced. Retail, now accounting for 72% of group sales, remained the key engine with 12% growth at constant rates, complemented by solid gains in wholesale and modest growth in online retail. Over the first nine months of the financial year, sales climbed 10% at constant rates to €17.0 billion and the group maintained a robust net cash position of €7.6 billion, underscoring its capacity to keep investing in its Maisons’ growth despite currency headwinds and rising material costs that continue to pressure margins.

The most recent analyst rating on (CH:CFR) stock is a Buy with a CHF190.00 price target. To see the full list of analyst forecasts on Compagnie Financiere Richemont SA stock, see the CH:CFR Stock Forecast page.