Logitech (LOGN) AI Stock Analysis

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Logitech

(NASDAQ:LOGN)

Rating:74Outperform

Price Target:―

Logitech's overall stock score reflects its strong financial performance, effective cash flow management, and positive outcomes from recent earnings. While the technical indicators suggest caution in the short term, the company's stable financials and strategic focus on growth and innovation provide a solid foundation. Valuation metrics are reasonable, and the earnings call highlights significant achievements and future potential, despite some external risks.

Positive Factors

Financial Flexibility

Logitech has $10 per share in cash and no debt, providing flexibility for growth through potential acquisitions and investments.

Gaming Sector Growth

The company has a significant growth opportunity in the gaming sector, driven by increasing demand for gaming peripherals.

Tariff Management

Logitech's 'China+5' manufacturing strategy demonstrates its ability to adapt to the current tariff environment.

Negative Factors

Consumer Demand

Logitech has hiked product prices in the US by an average of 10%, potentially a headwind to consumer demand.

Macroeconomic Uncertainty

Considerable macroeconomic uncertainties and tariff risks justify a discount to the historical median multiple.

Revenue and Margin Assumptions

Lowered revenue and gross margin assumptions due to tariff impacts lead to a reduction in EPS estimates.

Logitech (LOGN) vs. iShares MSCI Switzerland ETF (EWL)

Market Cap

CHF10.64B

Dividend Yield1.54%

Average Volume (3M)636.81K

Price to Earnings (P/E)19.4

Beta (1Y)1.44

Revenue Growth5.97%

EPS Growth6.79%

CountryCH

Employees7,300

SectorTechnology

Sector Strength82

IndustryComputer Hardware

Share Statistics

EPS (TTM)0.76

Shares Outstanding168,994,140

10 Day Avg. Volume518,139

30 Day Avg. Volume636,810

Financial Highlights & Ratios

PEG Ratio-0.62

Price to Book (P/B)4.17

Price to Sales (P/S)0.00

P/FCF Ratio21.31

Enterprise Value/Market Cap0.78

Enterprise Value/Revenue0.47

Enterprise Value/Gross Profit4.24

Enterprise Value/Ebitda2.82

Forecast

1Y Price Target

CHF72.57

Price Target Upside1.83% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering11

Logitech Business Overview & Revenue Model

Company DescriptionLogitech International S.A. (LOGN) is a global leader in designing, manufacturing, and selling personal computer and mobile accessories. Established in 1981 and headquartered in Lausanne, Switzerland, the company operates across several sectors, including consumer electronics, gaming, video collaboration, and smart home devices. Logitech's core products include keyboards, mice, webcams, headsets, and other peripherals, as well as advanced gaming products under the Logitech G brand.

How the Company Makes MoneyLogitech makes money primarily through the sale of its diverse range of innovative hardware products. The company's revenue streams are divided into several key categories: PC peripherals (keyboards, mice, and webcams), gaming products, video collaboration tools, and music and smart home devices. Logitech's gaming division, including the popular Logitech G brand, contributes significantly to its income by offering high-performance gaming mice, keyboards, and headsets. The video collaboration segment also plays a crucial role, providing conferencing solutions for businesses. Additionally, strategic partnerships with leading technology companies and a strong distribution network across retail and online channels support Logitech's earnings.

Logitech Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q4-2025)

% Change Since: 10.58%|

Next Earnings Date:Jul 28, 2025

Earnings Call Sentiment Positive

Logitech had a strong fiscal year 2025 with notable growth in net sales, successful product launches, and increased shareholder returns. However, challenges related to tariffs, macroeconomic uncertainty, and specific financial setbacks present obstacles for the upcoming fiscal year. Overall, the company's strengths and strategic focus on innovation, B2B growth, and operational excellence provide a positive outlook despite these challenges.

Q4-2025 Updates

Positive Updates

Strong Fiscal Year 2025 Performance

Logitech delivered a 7% constant currency net sales growth, with expanded market share in key product categories and non-GAAP gross margins increased by 170 basis points.

Successful Product Launches

In fiscal '25, Logitech launched 39 new products, including the best-selling Combo Touch keyboard case for the iPad and the Pro X Superlight wireless gaming mouse.

Increased Cash Flow and Shareholder Returns

Logitech generated about $840 million of cash from operations and returned approximately $800 million to shareholders through dividends and share repurchases.

Gaming and Education Vertical Growth

Double-digit growth in education vertical demand and strong demand across the gaming portfolio contributed to Logitech's success.

Negative Updates

Impact of Tariffs on Gross Margins

Current tariffs represent a 200 basis point hit to global gross margins in Q1 of fiscal '26, with potential for a 500 basis point impact if inventory is depleted.

Bad Debt Reserve

Operating expenses included approximately $23 million of bad debt reserve due to the inability of the e-commerce payment provider, Digital River, to pay.

Macroeconomic and Geopolitical Uncertainty

Uncertainty around tariffs, consumer confidence, and geopolitical factors creates challenges in providing a long-term outlook beyond the next quarter.

Caution in B2B Spending

Some caution was observed in B2B spending, particularly in Europe, due to uncertain market conditions.

Company Guidance

In the fiscal year 2025, Logitech achieved remarkable results, with net sales growth of 7% in constant currency and notable expansion in market share across 11 out of 13 key product categories. The company improved its non-GAAP gross margins by 170 basis points and operating margins by 70 basis points, resulting in an operating income of $775 million. Logitech generated $840 million in cash from operations, exceeding its operating income, and returned approximately $800 million to shareholders through dividends and share repurchases. Notably, the company launched 39 new products, with highlights including the Combo Touch keyboard case for iPad and the Pro X Superlight wireless gaming mouse. Logitech's strategic focus on B2B and operational excellence contributed to its success, while the company plans to continue expanding its market share and manage costs efficiently in fiscal 2026. However, uncertainties related to tariffs and geopolitical factors present challenges, with potential tariff impacts of 200 basis points on gross margins expected in the first quarter of fiscal 2026.

Logitech Financial Statement Overview

Summary

Logitech demonstrates strong financial health with high profitability margins and efficient cash flow management. Despite a decline in revenue, the company maintains solid EBIT and EBITDA margins, low debt levels, and a robust equity ratio, indicating a stable financial position.

Income Statement

Positive

Logitech shows strong profitability with a TTM net profit margin of 14.38% and a gross profit margin of 43.16%. However, the revenue has decreased over the last few years, with a TTM revenue of $4.56 billion, down from $5.48 billion in 2022. EBIT and EBITDA margins are solid at 15.01% and 16.79%, respectively, indicating efficient cost management and operational performance.

Balance Sheet

Positive

The company maintains an impressive equity ratio of 56.37%, suggesting a strong equity base relative to its assets. The debt-to-equity ratio is low at 0.05, reflecting minimal reliance on debt. With a return on equity of 31.14%, Logitech demonstrates efficient use of shareholder funds to generate profit.

Cash Flow

Very Positive

Logitech exhibits robust cash flow management with a TTM operating cash flow to net income ratio of 1.45 and free cash flow to net income ratio of 1.37. The free cash flow growth rate is strong, with a significant increase from $209 million in 2022 to $898 million TTM.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
4.56B	4.30B	4.54B	5.48B	5.25B	2.98B
	Gross Profit
1.97B	1.79B	1.72B	2.26B	2.34B	1.12B
	EBIT
683.76M	587.34M	458.47M	774.01M	1.15B	276.50M
	EBITDA
765.01M	681.97M	598.95M	902.84M	1.24B	375.83M
	Net Income Common Stockholders
655.08M	612.14M	364.57M	644.51M	947.26M	449.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
715.57M	1.52B	1.15B	1.33B	1.75B	715.57M
	Total Assets
2.36B	3.60B	3.56B	4.04B	4.14B	2.36B
	Total Debt
30.48M	77.03M	71.02M	41.90M	34.42M	30.48M
	Net Debt
-685.09M	-1.44B	-1.08B	-1.29B	-1.72B	-685.09M
	Total Liabilities
874.21M	1.37B	1.30B	1.64B	1.88B	874.21M
	Stockholders Equity
1.49B	2.23B	2.26B	2.40B	2.26B	1.49B
Cash Flow		Free Cash Flow
898.35M	1.09B	441.66M	209.17M	1.38B	385.52M
	Operating Cash Flow
952.01M	1.15B	534.01M	298.32M	1.46B	425.00M
	Investing Cash Flow
-55.86M	-70.33M	-105.73M	-107.86M	-119.98M	-130.23M
	Financing Cash Flow
-787.80M	-690.17M	-583.35M	-606.82M	-299.93M	-176.66M

Logitech Technical Analysis

Technical Analysis Sentiment

Positive

Last Price71.26

Price Trends

50DMA

66.89

Positive

100DMA

76.63

Negative

200DMA

74.94

Negative

Market Momentum

MACD

0.73

Negative

RSI

61.87

Neutral

STOCH

89.83

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:LOGN, the sentiment is Positive. The current price of 71.26 is above the 20-day moving average (MA) of 70.89, above the 50-day MA of 66.89, and below the 200-day MA of 74.94, indicating a neutral trend. The MACD of 0.73 indicates Negative momentum. The RSI at 61.87 is Neutral, neither overbought nor oversold. The STOCH value of 89.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:LOGN.

Logitech Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOGN	74 Outperform	CHF10.64B	19.44	28.96%	1.54%	5.97%	6.79%
Sector *	62 Neutral	$11.90B	10.64	-7.50%	2.90%	7.41%	-8.19%
UBXN	60 Neutral	$715.21M	―	-24.38%	1.09%	-54.43%	-1090.31%
KUD	58 Neutral	CHF74.10M	8.19	-52.12%	―	-49.83%	―
AMS	51 Neutral	CHF791.96M	―	-13.29%	―	-3.98%	95.78%

* Technology Sector Average

Performance Comparison

CH:LOGN

Logitech

73.06

-16.44

-18.37%

CH:AMS

ams-OSRAM

8.91

-5.16

-36.67%

CH:KUD

Kudelski SA

1.32

-0.10

-7.37%

CH:UBXN

u-blox Holding AG

99.90

-0.70

-0.70%

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.