Compagnie Financiere Richemont SA (CFR) AI Stock Analysis

• Market Cap: CHF87.27B
• Dividend Yield: 1.97%
• Average Volume (3M): 875.44K
• Price to Earnings (P/E): 34.1
• Beta (1Y): 1.47
• Revenue Growth: 2.80%
• EPS Growth: N/A
• Country: CH
• Employees: 37,117
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Luxury Goods
• EPS (TTM): 3.22
• Shares Outstanding: 537,582,100
• 10 Day Avg. Volume: 834,709
• 30 Day Avg. Volume: 875,443
• 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: CHF166.47
• Price Target Upside: 11.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 77 Outperform
• Price Target: CHF160.00 ▲(7.31% Upside)

Compagnie Financiere Richemont SA's overall stock score reflects strong financial performance and positive earnings call highlights, tempered by valuation concerns and regional challenges. The company's robust sales growth and strategic investments are significant strengths, while the high P/E ratio and challenges in specific segments present risks.

Positive Factors

Strong Jewellery Maisons Performance

The Jewellery Maisons segment's robust growth highlights Richemont's strength in luxury jewelry, a key driver of long-term profitability and market leadership.

Successful Expansion and Investment

Strategic expansion and investment in distribution and manufacturing bolster Richemont's infrastructure, supporting sustained growth and competitive advantage.

Solid Cash Flow and Net Cash Position

Strong cash flow and a solid net cash position provide Richemont with financial flexibility to invest in growth opportunities and weather economic challenges.

Negative Factors

Decline in Specialist Watchmakers

The decline in the Specialist Watchmakers segment, especially in key markets, poses a risk to Richemont's diversified revenue streams and overall growth.

Challenges in Asia Pacific

Significant sales declines in Asia Pacific, particularly in China, highlight regional vulnerabilities that could impact Richemont's global growth strategy.

Impact of External Headwinds

External headwinds, such as raw material costs and forex issues, pressure Richemont's margins, potentially affecting long-term profitability if persistent.

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 consistent revenue growth and robust profit margins. The balance sheet is solid with moderate leverage, and cash flow management is efficient despite some fluctuations. Overall, the company is 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: Positive
• Last Price: 149.10
• 50DMA: Positive
• 100DMA: Positive
• 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 149.1 is above the 20-day moving average (MA) of 144.27, above the 50-day MA of 137.63, and above the 200-day MA of 148.29, indicating a bullish trend. The MACD of 3.87 indicates Negative momentum. The RSI at 63.11 is Neutral, neither overbought nor oversold. The STOCH value of 45.00 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
CFR	77 Outperform	CHF87.27B	34.11	―	1.97%	2.80%	―
UHRN	71 Outperform	7.92B	27.61	1.59%	2.91%	-13.19%	-88.43%
UHR	65 Neutral	7.92B	136.26	1.59%	2.97%	-13.19%	-88.43%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%

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.