Education
About Us
Working with TipRanks
Follow Us
Logitech International (CH:LOGN)
NASDAQ:LOGN
Top Page
Logitech
(NASDAQ:LOGN)
Select Model
Select Model
Rating:73Outperform
Price Target:
CHF100.00
▲(29.30% Upside)
Logitech's strong financial performance and positive earnings call are the most significant factors driving the score. However, technical indicators suggest potential short-term weakness, and the valuation indicates the stock may be overvalued. Challenges in the Americas and macroeconomic concerns also weigh on the outlook.
Positive Factors
Product Innovation
Introducing new products like the MX Master 4 mouse showcases Logitech's commitment to innovation, potentially driving future revenue growth and strengthening its competitive position in the peripherals market.
Geographical Expansion
Significant growth in Asia Pacific indicates successful geographical expansion, which diversifies revenue streams and reduces dependency on saturated markets, enhancing long-term growth prospects.
B2B Market Growth
Growing demand in the B2B segment, especially in video collaboration, positions Logitech well to capitalize on the increasing need for business solutions, supporting sustained revenue growth.
Negative Factors
Americas Sales Decline
A decline in sales in the Americas, driven by a weaker gaming market, could hinder overall revenue growth and reflects challenges in maintaining market share in a key region.
U.S. Consumer Market Uncertainty
Uncertainty in the U.S. consumer market, especially in gaming, poses risks to revenue stability and may require strategic adjustments to address shifting consumer preferences.
Tariff and Inflation Concerns
Ongoing tariff and inflation issues could increase operational costs and pressure margins, potentially affecting profitability and requiring strategic cost management.
Logitech (LOGN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF10.91B
Dividend Yield1.53%
Average Volume (3M)568.66K
Price to Earnings (P/E)20.7
Beta (1Y)1.34
Revenue Growth0.81%
EPS Growth-5.64%
CountryCH
Employees7,300
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)1.16
Shares Outstanding160,784,450
10 Day Avg. Volume552,757
30 Day Avg. Volume568,656
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)6.24
Price to Sales (P/S)3.24
P/FCF Ratio12.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF96.91Price Target Upside25.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Logitech Business Overview & Revenue Model
Company DescriptionLogitech International S.A., through its subsidiaries, designs, manufactures, and markets products that connect people to digital and cloud experiences worldwide. The company offers pointing devices, such as wireless mouse; corded and cordless keyboards, living room keyboards, and keyboard-and-mouse combinations; PC webcams; and keyboards for tablets and smartphones, as well as other accessories for mobile devices. It also provides keyboards, mice, headsets, and simulation products, such as steering wheels and flight sticks for gamers; video conferencing products, such as ConferenceCams, which combine enterprise-quality audio and high-definition video to bring video conferencing to businesses of any size; webcams and headsets that turn desktop into collaboration space; and controller for video conferencing room solutions. In addition, the company offers portable wireless Bluetooth and Wi-Fi connected speakers, mobile speakers, PC speakers, PC headsets, microphones, in-ear headphones, and wireless audio wearables; home entertainment controllers, and home security cameras. Its channel network includes consumer electronics distributors, retailers, e-tailers, mass merchandisers, specialty stores, computer and telecommunications stores, value-added resellers, and online merchants. The company sells its products under the Logitech, Logitech G, ASTRO Gaming, Streamlabs, Blue Microphones, Ultimate Ears, and Jaybird brands. Logitech International S.A. was incorporated in 1981 and is headquartered in Lausanne, Switzerland.
How the Company Makes MoneyLogitech generates revenue through multiple streams, primarily by selling its wide range of accessories and peripherals across various markets. The company benefits from a strong retail presence, both online and in physical stores, which allows it to reach a diverse customer base. Key revenue streams include the sale of gaming products, which have seen significant growth due to the rising popularity of esports and gaming culture. Additionally, Logitech has established partnerships with leading technology companies, enhancing its product offerings and distribution capabilities. The company's commitment to innovation and quality has fostered brand loyalty, contributing to repeat purchases and sustained revenue growth.
Logitech Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jan 27, 2026
Earnings Call Sentiment Neutral
Logitech's earnings call highlighted strong growth in sales and successful cost management, with significant achievements in product innovation and B2B expansion. However, the company faces challenges from tariff impacts and a decline in North American sales. Overall, the positives from growth and innovation are tempered by external pressures and regional sales declines.Q1-2026 Updates
Positive Updates
Top Line Growth and Improved Profitability
Logitech achieved a 5% increase in net sales year-over-year, with growth in all key categories and markets, demonstrating resilience despite external challenges.
Successful Cost Management
Operating expenses were reduced by 2% year-over-year, including an 8% reduction in general and administrative expenses, resulting in a 200 basis-point decrease in OpEx as a percent of sales.
New Product Launches and Innovation
Logitech launched nine new products, including the G522 Wireless Gaming Headset and Logitech Muse for Apple Vision Pro, and was named one of Fortune's most innovative European companies.
Strong B2B Growth
The B2B segment outpaced consumer demand, with double-digit net sales growth in video conferencing, reflecting the strength of Logitech's enterprise solutions.
Significant Growth in Asia Pacific
Asia Pacific region grew by 15% year-over-year, with notable strength in China, where Logitech achieved share gains in the fast-growing gaming market.
Negative Updates
Gross Margin Pressure
Gross margin declined by 120 basis points year-over-year to 42.1% due to tariffs and higher promotional spend.
Impact of U.S. Tariffs
U.S. tariffs imposed a 100 basis-point negative impact on gross margin, with expectations of a 200 to 300 basis-point impact in the next quarter.
Decline in North American Sales
North American sales declined by 4%, primarily due to pauses in product shipments during price negotiations.
Company Guidance
During the first quarter of fiscal year 2026, Logitech demonstrated resilience and strategic focus, achieving a 5% year-over-year net sales growth in constant currency. The company reported a strong gross margin of 42.1%, despite the negative impact of U.S. tariffs, which caused approximately a 100 basis points reduction. This was mitigated by a 50 basis points positive effect from price increases in North America and cost reduction measures. Operating expenses fell by 2% from the previous year, with a notable 8% decrease in general and administrative costs, leading to a 200 basis points reduction in operating expenses as a percentage of sales. Logitech's B2B demand outpaced consumer demand, with video conferencing sales experiencing a 13% growth, particularly driven by North American demand. The Asia Pacific region saw a 15% year-over-year sales increase, while EMEA grew by 9%. As the team continues to navigate uncertainties in tariff policy and inflation, Logitech remains committed to its long-term strategies, focusing on innovation, cost discipline, and agility. The company projects a 1% to 5% year-over-year net sales growth for the second quarter, with anticipated gross margins between 41% and 42%, and non-GAAP operating income ranging from $180 million to $200 million.Logitech Financial Statement Overview
Summary
Logitech demonstrates a solid financial performance with strong profitability margins and a robust balance sheet. The company effectively manages its costs and maintains low leverage, providing financial stability. While revenue growth is modest, the company continues to generate healthy returns on equity. The decline in free cash flow growth is a point of concern, but overall, Logitech is well-positioned financially in the computer hardware industry.Income Statement
Logitech's income statement shows a stable performance with a gross profit margin of 42.81% and a net profit margin of 13.46% in the TTM period. The revenue growth rate of 1.31% indicates a slight improvement compared to the previous year. The EBIT and EBITDA margins are healthy at 14.62% and 16.36%, respectively, reflecting efficient cost management. However, the revenue growth is modest, and there is room for improvement in expanding market share.Balance Sheet
The balance sheet is strong with a low debt-to-equity ratio of 0.0428, indicating minimal leverage and financial risk. The return on equity is impressive at 29.13%, showcasing effective use of shareholder funds. The equity ratio of 58.43% suggests a solid capital structure. Overall, Logitech maintains a robust financial position with low debt levels and high returns on equity.Cash Flow
Cash flow analysis reveals a decline in free cash flow growth by 6.70% in the TTM period, which is a concern. However, the operating cash flow to net income ratio is 0.65, indicating adequate cash generation relative to net income. The free cash flow to net income ratio of 0.93 suggests efficient conversion of earnings into cash. Despite the decline in free cash flow growth, the company maintains a healthy cash flow position.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.68B | 4.55B | 4.54B | 4.30B | 5.48B | 5.25B |
| Gross Profit | 2.00B | 1.96B | 1.72B | 1.79B | 2.26B | 2.34B |
| EBITDA | 796.87M | 744.23M | 603.85M | 681.97M | 902.84M | 1.24B |
| Net Income | 646.34M | 631.53M | 364.57M | 612.14M | 644.51M | 947.26M |
Balance Sheet | ||||||
| Total Assets | 3.71B | 3.54B | 3.56B | 3.60B | 4.04B | 4.14B |
| Cash, Cash Equivalents and Short-Term Investments | 1.38B | 1.50B | 1.15B | 1.52B | 1.33B | 1.75B |
| Total Debt | 95.25M | 92.40M | 71.02M | 77.03M | 41.90M | 34.42M |
| Total Liabilities | 1.62B | 1.41B | 1.30B | 1.37B | 1.64B | 1.88B |
| Stockholders Equity | 2.08B | 2.13B | 2.26B | 2.23B | 2.40B | 2.26B |
Cash Flow | ||||||
| Free Cash Flow | 794.56M | 786.43M | 441.66M | 1.09B | 209.17M | 1.38B |
| Operating Cash Flow | 854.41M | 842.56M | 534.01M | 1.15B | 298.32M | 1.46B |
| Investing Cash Flow | -60.24M | -57.27M | -105.73M | -70.33M | -107.86M | -119.98M |
| Financing Cash Flow | -780.23M | -797.36M | -583.35M | -690.17M | -606.82M | -299.93M |
Logitech Technical Analysis
Negative
77.34
Price Trends
90.03
Negative
87.53
Negative
78.74
Negative
Market Momentum
-3.70
Positive
28.86
Positive
27.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:LOGN, the sentiment is Negative. The current price of 77.34 is below the 20-day moving average (MA) of 85.84, below the 50-day MA of 90.03, and below the 200-day MA of 78.74, indicating a bearish trend. The MACD of -3.70 indicates Positive momentum. The RSI at 28.86 is Positive, neither overbought nor oversold. The STOCH value of 27.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:LOGN.
Logitech Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | CHF5.70B | 26.18 | 55.30% | 1.64% | -25.91% | 83.70% | |
73 Outperform | CHF10.91B | 20.65 | 31.51% | 1.53% | 0.81% | -5.64% | |
72 Outperform | CHF292.47M | 34.65 | ― | 0.16% | -0.64% | -5.79% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | CHF1.89B | -69.49 | ― | 3.40% | -5.87% | -224.75% | |
58 Neutral | CHF1.03B | -9.07 | -20.37% | ― | -27.51% | -36.15% | |
46 Neutral | CHF815.14M | -5.22 | -14.27% | ― | -5.48% | 79.75% |
* Technology Sector Average
CH:LOGN
Logitech
77.34
0.18
0.23%
CH:TEMN
Temenos
84.55
18.11
27.25%
CH:AMS
ams-OSRAM
8.24
1.99
31.84%
CH:UBXN
u-blox Holding AG
136.40
61.30
81.62%
CH:ELMN
Elma Electronic AG
1,280.00
221.93
20.97%
CH:SWON
SoftwareOne Holding Ltd.
8.83
2.89
48.82%
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.