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Logitech (CH:LOGN)
:LOGN
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Logitech
(NASDAQ:LOGN)
Rating:74Outperform
Price Target:―
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
$10.50B
Dividend Yield1.56%
Average Volume (3M)636.81K
Price to Earnings (P/E)19.2
Beta (1Y)1.44
Revenue Growth5.97%
EPS Growth6.79%
CountryCH
Employees7,300
SectorTechnology
Sector Strength83
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-3.57
Price to Book (P/B)6.37
Price to Sales (P/S)0.00
P/FCF Ratio14.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$72.36Price Target Upside2.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
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 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: 9.09%|
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
Income Statement
Balance Sheet
Cash Flow
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| 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 | ||||
| 319.94M | 1.52B | 1.15B | 1.33B | 1.75B | 715.57M | Total Assets |
| 1.60B | 3.60B | 3.56B | 4.04B | 4.14B | 2.36B | Total Debt |
| 0.00 | 77.03M | 71.02M | 41.90M | 34.42M | 30.48M | Net Debt |
| -319.94M | -1.44B | -1.08B | -1.29B | -1.72B | -685.09M | Total Liabilities |
| 599.96M | 1.37B | 1.30B | 1.64B | 1.88B | 874.21M | Stockholders Equity |
| 999.72M | 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
Positive
70.30
Price Trends
67.25
Positive
76.78
Negative
74.98
Negative
Market Momentum
0.40
Positive
54.00
Neutral
60.34
Neutral
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 70.3 is below the 20-day moving average (MA) of 70.62, above the 50-day MA of 67.25, and below the 200-day MA of 74.98, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 54.00 is Neutral, neither overbought nor oversold. The STOCH value of 60.34 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $10.50B | 19.18 | 28.96% | 1.56% | 5.97% | 6.79% | |
62 Neutral | $11.80B | 10.37 | -7.29% | 2.91% | 7.39% | -7.96% | |
| $944.36M | ― | -13.29% | ― | ― | ― | ||
| $81.94M | 5.65 | -52.12% | ― | ― | ― | ||
| $844.92M | ― | -24.38% | 1.00% | ― | ― | ||
| CHF1.15B | ― | 4.04% | ― | ― |
* Technology Sector Average
Performance Comparison
CH:LOGN
Logitech
70.30
-19.03
-21.30%
AUKUF
ams-OSRAM
9.65
-5.35
-35.67%
KDCXF
Kudelski SA
1.15
-0.02
-1.71%
UBLXF
u-blox Holding AG
114.94
7.43
6.91%
CH:SWON
SoftwareOne Holding Ltd.
7.42
-8.88
-54.48%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.