Compagnie Financiere Richemont SA (CFR) AI Stock Analysis

• Market Cap: CHF92.19B
• Dividend Yield: 1.94%
• Average Volume (3M): 804.18K
• Price to Earnings (P/E): 35.3
• Beta (1Y): 1.51
• Revenue Growth: 2.80%
• EPS Growth: 11.97%
• Country: CH
• Employees: 37,117
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Luxury Goods
• EPS (TTM): 3.22
• 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: CHF168.79
• Price Target Upside: 8.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: CHF182.00 ▲(17.46% Upside)

Compagnie Financiere Richemont SA's strong financial performance and positive earnings call highlights are the most significant factors driving the score. Technical analysis indicates bullish momentum, though caution is advised due to potential overbought conditions. The high P/E ratio suggests the stock may be overvalued, impacting the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, reinforcing Richemont's position in the luxury goods sector.

Jewellery Maisons Performance

Strong performance in Jewellery Maisons signifies robust brand strength and consumer preference, supporting long-term profitability and market leadership.

Cash Flow and Financial Position

Strong cash flow and a solid net cash position enhance financial flexibility, enabling strategic investments and resilience against economic fluctuations.

Negative Factors

Decline in Specialist Watchmakers

Declining sales in Specialist Watchmakers highlight challenges in specific markets, potentially impacting segment profitability and requiring strategic adjustments.

Challenges in Asia Pacific

Significant sales decline in Asia Pacific, especially China, suggests regional market volatility, affecting overall revenue and necessitating market-specific strategies.

Impact of External Headwinds

External headwinds, such as raw material costs and forex impacts, reduce profitability, posing risks to margin sustainability and financial performance.

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 generates revenue through several key streams primarily focused on the sale of luxury goods. The company operates through various channels, including retail, e-commerce, and wholesale distribution. Retail sales are facilitated through a global network of boutiques and flagship stores, where customers can experience the brands firsthand. E-commerce has become increasingly significant, with Richemont investing in its online platforms to enhance direct-to-consumer sales. Additionally, the company earns revenue through wholesale distribution to selected retailers. Notably, Richemont has formed strategic partnerships with various online luxury marketplaces to expand its digital presence. The company also benefits from brand licensing and collaborations, further diversifying its revenue sources. Overall, the luxury segment continues to drive Richemont's profitability, supported by strong demand from affluent consumers worldwide.

Compagnie Financiere Richemont SA Financial Statement Overview

Summary

Compagnie Financiere Richemont SA demonstrates strong financial performance with robust revenue growth, a solid balance sheet, and efficient cash flow management. Despite some fluctuations in margins and cash flow growth, the company remains well-positioned 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.40B	21.40B	20.62B	19.95B	19.18B	13.14B
Gross Profit	14.32B	14.32B	14.04B	13.72B	12.03B	7.86B
EBITDA	5.17B	6.53B	6.53B	6.53B	4.85B	3.22B
Net Income	2.75B	2.75B	2.36B	313.00M	2.07B	1.30B
Balance Sheet
Total Assets	41.01B	41.01B	42.68B	40.89B	39.99B	35.36B
Cash, Cash Equivalents and Short-Term Investments	16.77B	16.77B	19.49B	18.34B	16.51B	13.43B
Total Debt	13.15B	13.15B	16.36B	15.67B	15.05B	13.59B
Total Liabilities	18.84B	18.84B	22.05B	21.87B	20.12B	17.48B
Stockholders Equity	22.10B	22.10B	20.54B	18.96B	19.81B	17.77B
Cash Flow
Free Cash Flow	3.40B	3.26B	3.67B	3.51B	3.76B	2.71B
Operating Cash Flow	4.44B	4.44B	4.70B	4.49B	4.64B	3.22B
Investing Cash Flow	-1.55B	-1.55B	-2.56B	-2.07B	-2.28B	-2.19B
Financing Cash Flow	-2.55B	-2.55B	-1.82B	-2.32B	-1.77B	906.00M

Compagnie Financiere Richemont SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 154.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 154.95 is below the 20-day moving average (MA) of 159.11, above the 50-day MA of 152.56, and above the 200-day MA of 151.06, indicating a neutral trend. The MACD of 1.39 indicates Positive momentum. The RSI at 46.02 is Neutral, neither overbought nor oversold. The STOCH value of 24.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	77 Outperform	CHF92.19B	35.29	―	1.94%	2.80%	11.97%
UHRN	69 Neutral	CHF8.55B	28.81	―	2.70%	-13.19%	-88.43%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
UHR	61 Neutral	$8.55B	141.35	0.49%	2.73%	-13.19%	-88.43%

Compagnie Financiere Richemont SA Corporate Events

Richemont’s 2025 AGM Approves Key Resolutions and Appointments

At its 2025 Annual General Meeting in Geneva, Richemont’s shareholders approved all agenda items, including the appropriation of retained earnings and the payment of dividends on ‘A’ and ‘B’ shares. The meeting also saw the re-election of board members, the appointment of Wendy Luhabe as the ‘A’ shareholders’ representative, and the approval of KPMG SA as the new auditor. These decisions reflect Richemont’s commitment to maintaining strong governance and financial stability, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (CH:CFR) stock is a Buy with a CHF160.00 price target. To see the full list of analyst forecasts on Compagnie Financiere Richemont SA stock, see the CH:CFR Stock Forecast page.