Logitech (LOGN) AI Stock Analysis

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Logitech

(NASDAQ:LOGN)

Rating:79Outperform

Price Target:

CHF91.00

▲(6.73% Upside)

Logitech's overall stock score is driven by strong financial performance and a positive earnings call, highlighting growth and innovation. Technical analysis supports a bullish outlook, although valuation concerns suggest the stock may be overvalued. The company's ability to navigate challenges such as tariffs and maintain profitability further strengthens its position.

Positive Factors

Financial Flexibility

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

Manufacturing Strategy

Logitech delivered a convincing message on their ability to adapt to the current tariff environment with their 'China+5' manufacturing strategy.

Shareholder Returns

The company plans to increase share repurchases and continue raising its dividend, indicating confidence in its financial position.

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

Logitech withdrew its full-year guidance due to macroeconomic and policy uncertainties, reflecting challenges in forecasting future performance.

Revenue and EPS Forecast

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

$12.05B

Dividend Yield1.36%

Average Volume (3M)495.11K

Price to Earnings (P/E)22.9

Beta (1Y)1.49

Revenue Growth2.11%

EPS Growth-6.79%

CountryCH

Employees7,300

SectorTechnology

Sector Strength83

IndustryComputer Hardware

Share Statistics

EPS (TTM)1.01

Shares Outstanding160,784,450

10 Day Avg. Volume379,077

30 Day Avg. Volume495,112

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.79

Enterprise Value/Revenue2.07

Enterprise Value/Gross Profit4.83

Enterprise Value/Ebitda12.64

Forecast

1Y Price Target

$85.10

Price Target Upside-0.18% Downside

Rating ConsensusModerate Buy

Number of Analyst Covering12

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 primarily through the sale of its hardware products, which include a wide range of peripherals for computers and mobile devices. The company’s revenue model is predominantly based on direct sales through retail and online channels, as well as partnerships with major electronics retailers and e-commerce platforms. Key revenue streams include consumer electronics, gaming products, and business solutions for video collaboration. Notably, Logitech has formed strategic partnerships with software companies and platforms, enhancing its ecosystem of products and boosting sales. Additionally, the company benefits from a growing trend towards remote work and gaming, which has increased demand for its products.

Logitech Earnings Call Summary

Earnings Call Date:Jul 29, 2025

(Q1-2026)

% Change Since: |

Next Earnings Date:Oct 27, 2025

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

Positive

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

Positive

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

Positive

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 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.61B	4.55B	4.30B	4.54B	5.48B	5.25B
Gross Profit	1.98B	1.96B	1.79B	1.72B	2.26B	2.34B
EBITDA	754.76M	744.23M	681.97M	598.95M	902.84M	1.24B
Net Income	621.16M	631.53M	612.14M	364.57M	644.51M	947.26M
Balance Sheet
Total Assets	3.74B	3.54B	3.60B	3.56B	4.04B	4.14B
Cash, Cash Equivalents and Short-Term Investments	1.49B	1.50B	1.52B	1.15B	1.33B	1.75B
Total Debt	93.63M	92.40M	77.03M	71.02M	41.90M	34.42M
Total Liabilities	1.56B	1.41B	1.37B	1.30B	1.64B	1.88B
Stockholders Equity	2.19B	2.13B	2.23B	2.26B	2.40B	2.26B
Cash Flow
Free Cash Flow	733.75M	786.43M	1.09B	441.66M	209.17M	1.38B
Operating Cash Flow	791.57M	842.56M	1.15B	534.01M	298.32M	1.46B
Investing Cash Flow	-60.01M	-57.27M	-70.33M	-105.73M	-107.86M	-119.98M
Financing Cash Flow	-786.66M	-797.36M	-690.17M	-583.35M	-606.82M	-299.93M

Logitech Technical Analysis

Technical Analysis Sentiment

Positive

Last Price85.26

Price Trends

50DMA

77.87

Positive

100DMA

72.73

Positive

200DMA

76.17

Positive

Market Momentum

MACD

2.00

Negative

RSI

70.16

Negative

STOCH

84.20

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 85.26 is above the 20-day moving average (MA) of 81.64, above the 50-day MA of 77.87, and above the 200-day MA of 76.17, indicating a bullish trend. The MACD of 2.00 indicates Negative momentum. The RSI at 70.16 is Negative, neither overbought nor oversold. The STOCH value of 84.20 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 (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOGN	79 Outperform	$12.05B	22.91	28.66%	1.36%	2.11%	-6.79%
Sector *	54 Neutral	$291.06M	3.16	-13.34%	2.78%	5.71%	-76.50%
TMNSF	―	$5.93B	23.99	41.83%	1.75%	―	―
AUKUF	―	$1.19B	―	-9.68%	―	―	―
UBLXF	―	$1.28B	―	-20.37%	1.00%	―	―
ELMN	74 Outperform	CHF274.19M	32.49		0.17%	-0.64%	-5.79%
SWON	68 Neutral	CHF1.53B	―		4.17%	-5.87%	-224.75%

* Technology Sector Average

Performance Comparison

CH:LOGN

Logitech

85.26

14.52

20.52%

TMNSF

Temenos

87.74

19.53

28.63%

AUKUF

ams-OSRAM

12.35

1.28

11.56%

UBLXF

u-blox Holding AG

169.50

84.34

99.04%

CH:ELMN

Elma Electronic AG

1,200.00

181.86

17.86%

CH:SWON

SoftwareOne Holding Ltd.

7.32

-7.20

-49.59%

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: Aug 19, 2025