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Compagnie Financiere Richemont (CH:CFR)
:CFR
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Compagnie Financiere Richemont SA (CFR) AI Stock Analysis

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CH:CFR

Compagnie Financiere Richemont SA

(CFR)

Rating:72Outperform
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 (CFR) vs. iShares MSCI Switzerland ETF (EWL)

Compagnie Financiere Richemont SA Business Overview & Revenue Model

Company DescriptionCompagnie 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 MoneyRichemont 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 Earnings Call Summary

Earnings Call Date:May 16, 2025
(Q4-2025)
|
% Change Since: -8.42%|
Next Earnings Date:Nov 14, 2025
Earnings Call Sentiment Neutral
Richemont demonstrated resilience with record sales and strong cash position, supported by strategic investments and successful leadership transitions. However, challenges in the Specialist Watchmakers segment and Asia Pacific, along with external headwinds, tempered the overall performance.
Q4-2025 Updates
Positive Updates
Record Sales and Growth in Jewellery Maisons
Richemont achieved record sales of €21.4 billion, marking an all-time high for the group with a 4% increase at actual and constant exchange rates. The Jewellery Maisons, including Buccellati, Cartier, Van Cleef & Arpels, and Vhernier, saw an 8% sales increase, with all regions growing double digits except for Asia Pacific.
Strategic Investments
Richemont made significant investments to support long-term growth, including €500 million in CapEx for the distribution network and €400 million for manufacturing capacity. Additionally, €200 million was spent on acquiring prime location real estate in London.
Strong Cash Position
The company maintained a robust net cash position of €8.3 billion, reflecting a strong financial base for future investments or strategic initiatives.
Performance in Americas and Japan
Sales in the Americas increased by 15%, and Japan saw a 30% growth, indicating strong performances in these key regions.
Successful Leadership Transitions
Richemont successfully renewed its executive leadership and governance, ensuring stability and continuity in its strategic direction.
Negative Updates
Decline in Specialist Watchmakers
Sales for Specialist Watchmakers fell by 13% due to weak demand in Asia Pacific, particularly in China, Hong Kong, and Macau. This resulted in a significant decline in operating margin for the segment.
Challenges in Asia Pacific
Sales in Asia Pacific were 13% lower, with a 23% decline in China, Hong Kong, and Macau combined, impacting the overall regional performance.
Impact of External Headwinds
Operating profit declined by 7%, impacted by external factors such as higher raw material costs, particularly gold, and unfavorable foreign exchange movements.
Buybacks and Inventory Challenges
Targeted buybacks in Mainland China for Specialist Watchmakers impacted gross margin, reflecting ongoing inventory rebalancing challenges.
Company Guidance
In Richemont's 2025 fiscal year results call, the company reported record sales of €21.4 billion, marking a 4% increase at both actual and constant exchange rates. Operating profit was reported at €4.5 billion, a 7% decrease from the previous year, attributed primarily to external challenges like increased raw material costs and unfavorable foreign exchange movements. The company maintained a robust net cash position of €8.3 billion. Sales in the Jewellery Maisons segment grew by high single digits, driven by double-digit growth in the second half, while the Specialist Watchmakers segment saw declines due to soft demand in China. Regional sales showed double-digit growth in most areas except Asia Pacific. Richemont continued to invest in its distribution network and manufacturing capacity, with capital expenditures reaching approximately €500 million. The board proposed a dividend increase of 9% to CHF 1 per A share.

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
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue21.40B20.62B19.95B16.75B13.14B
Gross Profit14.32B14.04B13.72B11.18B7.86B
EBITDA6.53B6.53B5.73B4.49B2.17B
Net Income2.75B2.36B3.92B2.07B1.30B
Balance Sheet
Total Assets41.01B42.68B40.89B39.99B35.36B
Cash, Cash Equivalents and Short-Term Investments16.77B19.49B18.34B16.51B13.43B
Total Debt13.15B16.36B15.71B15.05B13.59B
Total Liabilities18.84B22.05B21.87B20.12B17.48B
Stockholders Equity22.10B20.52B18.96B19.81B17.77B
Cash Flow
Free Cash Flow3.26B3.67B3.63B3.88B2.83B
Operating Cash Flow4.44B4.70B4.49B4.64B3.22B
Investing Cash Flow-1.55B-2.56B-2.07B-2.28B-2.19B
Financing Cash Flow-2.55B-1.82B-2.32B-1.77B906.00M

Compagnie Financiere Richemont SA Technical Analysis

Technical Analysis Sentiment
Negative
Last Price141.85
Price Trends
50DMA
151.57
Negative
100DMA
152.25
Negative
200DMA
148.01
Negative
Market Momentum
MACD
-2.74
Positive
RSI
33.74
Neutral
STOCH
13.65
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
CHF81.71B31.78
1.94%2.80%
65
Neutral
€19.74B9.837.83%3.22%0.76%-42.17%
62
Neutral
CHF8.03B27.10
2.78%-13.19%-88.43%
55
Neutral
$8.28B132.550.49%2.84%-13.19%-88.43%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CH:CFR
Compagnie Financiere Richemont SA
139.60
7.84
5.95%
CH:UHRN
The Swatch Group AG
32.42
-1.22
-3.63%
CH:UHR
The Swatch Group
158.35
-13.24
-7.71%

Compagnie Financiere Richemont SA Corporate Events

Richemont’s Strong Start to 2025: Sales Growth Amid Global Challenges
Jul 16, 2025

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
Jun 5, 2025

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
May 16, 2025

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
May 16, 2025

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.

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.Date of analysis: Jul 18, 2025