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Logitech (CH:LOGN)
:LOGN
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Logitech
(LOGN)
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Rating:71Outperform
Price Target:
CHF76.00
▲(11.40% Upside)
The score is driven primarily by strong financial quality (high profitability, conservative balance sheet, and robust free cash flow) and a positive earnings-call outlook with supportive guidance. These strengths are meaningfully offset by weak technicals (price below key moving averages with negative momentum), while valuation is reasonable but not compelling enough to fully counter the bearish trend.
Positive Factors
Balance Sheet Strength
Logitech's minimal leverage and substantial equity provide durable financial flexibility, lowering bankruptcy and refinancing risk. High ROE indicates efficient capital use, enabling sustained investment in products, buybacks or dividends and cushioning cyclical demand shocks over months.
Free Cash Flow & Cash Conversion
Consistent, growing free cash flow underpins long-term strategic optionality: funds R&D, product launches, M&A or shareholder returns without adding leverage. Strong cash conversion reduces reliance on external financing and supports resilience through industry cyclicality over the coming quarters.
Product Innovation & AI Rollout
Successful new product launches and scaled AI-enabled offerings demonstrate sustainable competitive differentiation. Higher take-rates for premium peripherals and enterprise AI video products can support durable margin expansion and attach-rate growth as innovation cements customer loyalty and pricing power.
Negative Factors
Uneven Revenue Trajectory
Choppy top-line history and periodic revenue contraction weaken predictability of future cash flows and investment returns. Even with margin resilience, inconsistent revenue makes planning R&D, capacity and channel investments harder and can mute sustained growth beyond near-term quarters.
Gaming Weakness in Americas/EMEA
Gaming is a key growth vector; sustained softness in Americas and EMEA reduces overall growth runway and increases reliance on Asia. Regional cyclicality and product release timing mean this category may not reliably drive top-line expansion in the next several quarters without structural demand improvement.
Tariff & Component Cost Pressure
Persistent tariffs and memory/component constraints can structurally compress gross margins and raise unit costs. Although mitigation (diversification, pricing) helps, ongoing supply-cost volatility poses a lasting margin and supply-risk that can dampen profitability consistency over multiple quarters.
Logitech (LOGN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF9.40B
Dividend Yield1.53%
Average Volume (3M)737.90K
Price to Earnings (P/E)16.9
Beta (1Y)1.43
Revenue Growth0.81%
EPS Growth-5.64%
CountryCH
Employees7,300
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)1.50
Shares Outstanding160,784,450
10 Day Avg. Volume1,173,866
30 Day Avg. Volume737,903
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
CHF87.89Price Target Upside28.83% 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:Jan 27, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong, broad-based operational and financial performance: solid top-line growth, record-like profitability, excellent cash generation, successful new product and AI rollouts, and meaningful manufacturing diversification. Notable near-term risks include regional softness in gaming (U.S./EMEA), tariff and component cost pressures (memory impacts on some video products), and macro/consumer uncertainty. Management emphasized mitigation actions and provided a constructive outlook, so positives materially outweigh the identified headwinds.Q3-2026 Updates
Positive Updates
Record Profitability and Margin Expansion
Non-GAAP operating income of $312M, up 17% year-over-year, driven by a 220 basis point expansion in operating profitability; non-GAAP gross margin of 43.5%, up 30 basis points year-over-year; record non-GAAP operating income and EPS (outside pandemic peaks).
Exceptional Cash Generation and Strong Balance Sheet
Operating cash flow of approximately $500M, a 30% year-over-year increase (~1.5x operating income); cash balance of $1.8B; cash conversion cycle improved 18% to 27 days.
Broad-Based Top-Line Growth
Net sales of $1.4B, up 4% year-over-year in constant currency (6% in USD), marking the eighth consecutive quarter of top-line growth; Personal Workspace +7%, pointing devices +9%, video collaboration +8%, gaming +2%; Asia Pacific +15%, EMEA +2%, Americas returned to modest growth.
Successful Product Launches and AI Innovation at Scale
MX Master 4 sold more units in its first month than any other personal workspace mouse in Logitech history; strong demand for Pro X Superlight 2 and China-for-China G3116 keyboard; shipping AI-enabled products globally (Rally Board 65, Rally AI camera/Rally AI Pro, AI-enabled headsets, Spot sensor).
Operational Execution and Manufacturing Diversification
Reduced U.S.-destined manufacturing share from 40% to <10% in China by Dec 2025; product cost reductions, targeted pricing and FX offset tariff headwinds; non-GAAP G&A down 7% year-over-year and non-GAAP operating expense $306M, down 2% year-over-year.
Confident Forward Outlook
Q4 guidance: net sales growth 3–5% year-over-year in constant currency, gross margin ~43–44%, and non-GAAP operating income $155–165M (midpoint implies ~20% YoY increase); expectation to close FY26 above long-term model targets for non-GAAP gross and operating margin.
Negative Updates
Gaming Weakness in Americas and EMEA
Gaming net sales grew only 2% overall; Americas and EMEA declined single digits due to market contraction and softer game release cadence in the West despite double-digit growth in Asia Pacific; U.S./Europe softness is a notable near-term headwind for a key growth category.
Tariff and Component Cost Pressures
Tariff headwinds and rising commodity/component costs (including memory) remain risks; company offset these in the quarter via pricing, cost reductions and diversification, but acknowledged potential modest cost impacts ahead.
Memory Availability Impact on Video Products
Tight memory availability affects a portion of the video conferencing portfolio (not the majority of the product mix) and could create modest cost or supply impacts, although management says proactive mitigation has avoided meaningful disruption to date.
B2B Lumpiness and Promotional Mix
Video collaboration (B2B) is lumpy quarter-to-quarter, which can cause volatility; the quarter included slightly higher promotional activity for holiday, and management emphasized watching sell-through (though channel inventory was reported healthy).
Macroeconomic and Consumer Uncertainty
Ongoing geopolitics, consumer confidence and PC demand variability present external risks to growth and attach-rate expansion; management remains optimistic but acknowledges a mixed backdrop that could pressure consumer spending.
Company Guidance
Logitech guided Q4 fiscal 2026 net sales to grow 3%–5% year‑over‑year in constant currency, with a non‑GAAP gross margin of approximately 43%–44% (the midpoint implying a fiscal‑year‑end gross margin around 43.5%), non‑GAAP operating income of $155–$165 million for the quarter (the midpoint representing roughly a 20% YoY increase), and reiterated that it expects to close FY26 above its long‑term model targets for non‑GAAP gross margin and non‑GAAP operating margin.Logitech Financial Statement Overview
Summary
Strong overall fundamentals supported by excellent balance-sheet strength (very low leverage and high ROE), solid profitability (net margin ~13.8%), and robust free cash flow with positive growth and good cash conversion. The main offset is a historically uneven revenue trajectory, indicating cyclical demand and less consistent top-line momentum.Income Statement
Logitech shows solid profitability in TTM (Trailing-Twelve-Months), with healthy gross and operating margins and strong bottom-line conversion (net margin ~13.8%). Revenue growth has re-accelerated in TTM (about +2%), improving from the prior annual period that showed slight contraction. The main weakness is a choppier growth profile across recent years (including periods of declining revenue), which suggests demand cyclicality and less consistent top-line momentum.78
Positive
Balance Sheet
The balance sheet is a clear strength: leverage is very low (debt-to-equity ~0.05 in TTM), and equity is substantial relative to assets, supporting financial flexibility. Returns on shareholder capital are also strong (ROE ~32% in TTM), indicating effective profitability relative to the equity base. A watch item is that ROE can be influenced by capital structure and earnings volatility, but overall balance-sheet risk appears limited given minimal debt.90
Very Positive
Cash Flow
Cash generation is strong, with TTM (Trailing-Twelve-Months) free cash flow of roughly 0.91B and positive free-cash-flow growth (~14.7%). Free cash flow is well-supported by earnings (free cash flow at ~0.93x net income), indicating good cash conversion. The key weakness is that cash flow coverage appears less consistent across periods (with a lower operating cash flow coverage figure in TTM versus the latest annual period), suggesting some working-capital or timing-driven variability.83
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.78B | 4.55B | 4.54B | 4.30B | 5.48B | 5.25B |
| Gross Profit | 2.05B | 1.96B | 1.72B | 1.79B | 2.26B | 2.34B |
| EBITDA | 862.94M | 744.23M | 603.85M | 681.97M | 902.84M | 1.24B |
| Net Income | 699.28M | 631.53M | 364.57M | 612.14M | 644.51M | 947.26M |
Balance Sheet | ||||||
| Total Assets | 4.09B | 3.54B | 3.56B | 3.60B | 4.04B | 4.14B |
| Cash, Cash Equivalents and Short-Term Investments | 1.82B | 1.50B | 1.15B | 1.52B | 1.33B | 1.75B |
| Total Debt | 166.39M | 92.40M | 71.02M | 77.03M | 41.90M | 34.42M |
| Total Liabilities | 1.76B | 1.41B | 1.30B | 1.37B | 1.64B | 1.88B |
| Stockholders Equity | 2.33B | 2.13B | 2.26B | 2.23B | 2.40B | 2.26B |
Cash Flow | ||||||
| Free Cash Flow | 911.28M | 786.43M | 441.66M | 1.09B | 209.17M | 1.38B |
| Operating Cash Flow | 971.92M | 842.56M | 534.01M | 1.15B | 298.32M | 1.46B |
| Investing Cash Flow | -60.78M | -57.27M | -105.73M | -70.33M | -107.86M | -119.98M |
| Financing Cash Flow | -603.08M | -797.36M | -583.35M | -690.17M | -606.82M | -299.93M |
Logitech Technical Analysis
Negative
68.22
Price Trends
83.08
Negative
86.25
Negative
78.97
Negative
Market Momentum
-4.37
Positive
25.85
Positive
24.57
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 68.22 is below the 20-day moving average (MA) of 74.05, below the 50-day MA of 83.08, and below the 200-day MA of 78.97, indicating a bearish trend. The MACD of -4.37 indicates Positive momentum. The RSI at 25.85 is Positive, neither overbought nor oversold. The STOCH value of 24.57 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 | $4.61B | 21.16 | 55.30% | 1.64% | -25.91% | 83.70% | |
72 Outperform | CHF292.47M | 34.65 | ― | 0.16% | -0.64% | -5.79% | |
71 Outperform | CHF9.40B | 16.91 | 32.07% | 1.53% | 0.81% | -5.64% | |
63 Neutral | CHF1.70B | -63.15 | ― | 3.40% | -5.87% | -224.75% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | CHF1.02B | -8.99 | -20.37% | ― | -27.51% | -36.15% | |
46 Neutral | $796.34M | -5.12 | -14.27% | ― | -5.48% | 79.75% |
* Technology Sector Average
CH:LOGN
Logitech
68.22
-19.13
-21.90%
CH:TEMN
Temenos
69.20
-6.60
-8.70%
CH:AMS
ams-OSRAM
8.08
1.63
25.27%
CH:UBXN
u-blox Holding AG
135.20
69.30
105.16%
CH:ELMN
Elma Electronic AG
1,280.00
221.93
20.97%
CH:SWON
SoftwareOne Holding Ltd.
8.02
2.39
42.58%
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.