Compagnie Financiere Richemont SA (CFR) AI Stock Analysis

• Market Cap: CHF88.27B
• Dividend Yield: 1.72%
• Average Volume (3M): 796.49K
• Price to Earnings (P/E): 33.8
• Beta (1Y): 1.53
• Revenue Growth: -2.34%
• EPS Growth: -51.68%
• Country: CH
• Employees: 37,117
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Luxury Goods
• EPS (TTM): 3.22
• Shares Outstanding: 537,582,100
• 10 Day Avg. Volume: 855,820
• 30 Day Avg. Volume: 796,492
• PEG Ratio: 0.36
• Price to Book (P/B): 4.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.01
• 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: CHF169.84
• Price Target Upside: 13.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 65 Neutral
• Price Target: ―

Compagnie Financiere Richemont SA demonstrates strong financial performance and strategic growth within its Jewellery Maisons segment. However, the company's high valuation, negative market momentum, and challenges in key regions like Asia Pacific contribute to a cautious outlook. The overall score reflects a balance between robust financial health and strategic positioning against current market and valuation challenges.

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.

Long-term Growth Potential

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.

Store Expansion

Key catalysts include the watches business improving in the medium-term, as well as continued expansion of stores in new markets in the U.S., such as Texas and Illinois.

Negative Factors

Foreign Exchange Headwinds

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

Gold Prices

Rising gold prices present a significant margin headwind for Richemont, especially impacting Cartier due to its exposure to gold products.

Supply Constraints

Supply constraints still exist within the Van Cleef banner, with shortages in the Alhambra collection.

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 makes money primarily through the sale of luxury goods, including jewelry, watches, and accessories. The company's revenue model is centered on its portfolio of iconic brands that command premium pricing due to their strong brand equity and reputation for excellence. Key revenue streams include direct sales through brand-operated boutiques, e-commerce platforms, and a network of authorized retailers. Richemont also benefits from its strategic focus on digital transformation and innovation, enhancing its online presence to capture a broader audience. Additionally, the company engages in selective partnerships and collaborations to expand its market reach and enhance brand visibility. Factors such as global economic conditions, consumer confidence, and trends in luxury spending significantly impact Richemont's earnings.

Compagnie Financiere Richemont SA Financial Statement Overview

Summary

Compagnie Financiere Richemont SA demonstrates strong revenue growth and operational efficiency with a robust gross profit margin. However, the decline in net profit margin and ROE suggests potential areas for improvement in cost management and profitability. The financial health remains robust with a balanced capital structure.

Income Statement

Compagnie Financiere Richemont SA has displayed consistent revenue growth, moving from CHF 13.14 billion in 2021 to CHF 20.62 billion in 2024, reflecting a strong market presence. The gross profit margin remains robust at approximately 68% in 2024. However, the net profit margin declined from 19.7% in 2023 to 11.5% in 2024, indicating increased costs or lower profitability. The EBIT and EBITDA margins remain strong, indicating operational efficiency.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 0.80 in 2024, indicating moderate leverage. The equity ratio stands at 48.1%, showing a balanced capital structure. ROE decreased from 20.7% in 2023 to 11.5% in 2024, reflecting a decline in profit efficiency. Overall, the balance sheet reflects a solid financial position with adequate equity backing.

Cash Flow

Operating cash flow slightly improved to CHF 4.70 billion in 2024, demonstrating strong operational cash generation. Free cash flow growth was modest at 1.1% from 2023 to 2024, but the free cash flow to net income ratio remains healthy. Cash flow management is effective, although the lower net income impacts cash flow ratios.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	20.47B	20.62B	19.95B	16.75B	13.14B	14.24B
Gross Profit	13.83B	14.04B	13.72B	11.18B	7.86B	8.61B
EBITDA	5.07B	6.53B	5.73B	4.49B	2.17B	2.27B
Net Income	1.31B	2.36B	3.92B	2.07B	1.30B	933.00M
Balance Sheet
Total Assets	42.35B	42.68B	40.89B	39.99B	35.36B	30.46B
Cash, Cash Equivalents and Short-Term Investments	19.17B	19.49B	18.34B	16.51B	13.43B	8.82B
Total Debt	17.39B	16.36B	15.71B	15.05B	13.59B	9.77B
Total Liabilities	22.37B	22.05B	21.87B	20.12B	17.48B	13.20B
Stockholders Equity	19.92B	20.52B	18.96B	19.81B	17.77B	17.14B
Cash Flow
Free Cash Flow	3.38B	3.67B	3.63B	3.88B	2.83B	1.80B
Operating Cash Flow	4.28B	4.70B	4.49B	4.64B	3.22B	2.37B
Investing Cash Flow	-2.65B	-2.56B	-2.07B	-2.28B	-2.19B	-826.00M
Financing Cash Flow	-1.65B	-1.82B	-2.32B	-1.77B	906.00M	-1.92B

Compagnie Financiere Richemont SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 149.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:CFR, the sentiment is Positive. The current price of 149.15 is below the 20-day moving average (MA) of 150.37, below the 50-day MA of 151.58, and above the 200-day MA of 146.50, indicating a neutral trend. The MACD of -0.85 indicates Negative momentum. The RSI at 49.61 is Neutral, neither overbought nor oversold. The STOCH value of 73.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UHRN	68 Neutral	CHF6.95B	7.34		2.71%	-14.62%	-77.71%
CFR	65 Neutral	CHF88.27B	33.79		1.72%	-2.34%	-51.68%
Sector *	56 Neutral	$3.37B	4.05	-1.30%	6.64%	0.16%	-63.79%
SWGAF		$8.68B	39.09	1.57%	3.26%	―	―

Compagnie Financiere Richemont SA Corporate Events

Mytheresa Completes Acquisition of YOOX NET-A-PORTER from Richemont

Mytheresa has completed its acquisition of YOOX NET-A-PORTER (YNAP) from Richemont, marking a significant milestone in its expansion within the digital luxury sector. The acquisition will see Mytheresa, now renamed LuxExperience B.V., consolidate YNAP under its umbrella, enhancing its position in the market. The integration aims to strengthen Mytheresa’s retail brands and improve operational efficiency through shared infrastructure. Richemont received a 33% stake in Mytheresa as part of the deal, reflecting a strategic partnership. This move is expected to create value for stakeholders and position Mytheresa as a resilient global player in digital luxury.

Mytheresa to Acquire YOOX NET-A-PORTER, Forming LuxExperience B.V.

Mytheresa, a prominent player in the digital luxury retail sector, has received final regulatory approval to acquire YOOX NET-A-PORTER (YNAP) from Richemont. This acquisition aims to create a leading global multi-brand digital luxury group under the new entity LuxExperience B.V. The transaction is expected to close on April 23, 2025, and will see Mytheresa issuing new shares to Richemont, making it a significant shareholder. The merger is anticipated to generate substantial synergies and enhance the value proposition for luxury customers, brand partners, and shareholders. However, the integration process is expected to initially dilute Mytheresa’s EBITDA margin, with a restructuring plan in place to return YNAP to profitability within 24 to 36 months.