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The Swatch Group (CH:UHR)
:UHR
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The Swatch Group (UHR) AI Stock Analysis

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CH:UHR

The Swatch Group

(OTC:UHR)

Rating:55Neutral
Price Target:
CHF162.00
▲(2.31%Upside)
The Swatch Group's stock score is primarily impacted by its strong equity position and low leverage, although this is offset by declining profitability and cash flow issues. Technical indicators suggest the stock is overbought, and the high P/E ratio raises valuation concerns.
Positive Factors
Margin Recovery
Swatch Group offers a potential margin recovery from a depressed level of 4.5% in 2024 to 10% by 2027.
Sales Growth
Sales momentum in the US improved significantly, with +29% growth post-election in December.
Negative Factors
Financial Stability
There is a significant cash outflow in 2024, impacting the financial stability of Swatch Group.
Sales Estimates
Sales estimates for Swatch Group have been reduced for FY25-26 due to a lower FY24 base.
Structural Challenges
The Swatch Group is facing numerous structural headwinds, including a shrinking market and market share losses.

The Swatch Group (UHR) vs. iShares MSCI Switzerland ETF (EWL)

The Swatch Group Business Overview & Revenue Model

Company DescriptionThe Swatch Group (UHR) is a multinational corporation based in Switzerland, renowned for its comprehensive portfolio of watch brands and its extensive expertise in microelectronics and watchmaking. The company operates in various sectors, including the design, manufacture, and sale of finished watches, jewelry, and watch movements and components. Its diverse brand portfolio ranges from lower-end to luxury watches, with notable brands such as Omega, Longines, and the namesake Swatch. The Swatch Group also has a foothold in the production of electronic systems used in watchmaking and other industries.
How the Company Makes MoneyThe Swatch Group generates revenue primarily through the sale of its wide array of watches and jewelry. This includes its high-end luxury brands such as Breguet and Blancpain, mid-range brands like Tissot and Hamilton, and its entry-level watches under the Swatch brand. The company also earns from manufacturing and supplying watch movements and components to other watchmakers. Additionally, their microelectronics segment contributes to earnings by producing integrated circuits and other electronic components used in timekeeping and other applications. Partnerships with various retailers and distributors globally help in extending their market reach, further enhancing sales and revenue streams.

The Swatch Group Financial Statement Overview

Summary
The Swatch Group exhibits a strong balance sheet with low leverage and robust equity. However, challenges in revenue and profitability, coupled with declining cash flows, pose significant risks to financial health. Effective cost management and revenue enhancement are critical.
Income Statement
72
Positive
The Swatch Group's income statement reflects a volatile revenue trend with recent declines. The gross profit margin remains strong, indicating effective cost management. However, net profit margin has significantly dropped due to reduced net income, impacting overall profitability. EBIT and EBITDA margins have also decreased, highlighting operational challenges.
Balance Sheet
85
Very Positive
The balance sheet shows a robust equity position with a low debt-to-equity ratio, suggesting financial stability and low leverage risk. The return on equity has decreased, reflecting the drop in net income. The equity ratio remains high, indicating the company is primarily funded by equity, which is a strength.
Cash Flow
60
Neutral
The cash flow statement indicates decreasing operating cash flow and negative free cash flow, leading to concerns about liquidity. The operating cash flow to net income ratio suggests cash generation issues. The declining free cash flow growth rate poses a risk to future financial flexibility.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.74B7.89B7.50B7.31B5.59B
Gross Profit5.60B6.33B3.10B2.89B1.62B
EBITDA768.00M1.55B1.44B1.43B455.00M
Net Income193.00M869.00M807.00M765.00M-51.00M
Balance Sheet
Total Assets13.99B14.23B13.89B13.68B12.90B
Cash, Cash Equivalents and Short-Term Investments1.40B2.05B2.55B2.66B1.79B
Total Debt13.00M75.00M6.00M99.00M91.00M
Total Liabilities1.77B1.97B1.84B2.07B1.93B
Stockholders Equity12.11B12.20B11.98B11.54B10.90B
Cash Flow
Free Cash Flow-216.00M-170.00M325.00M995.00M566.00M
Operating Cash Flow333.00M615.00M724.00M1.30B819.00M
Investing Cash Flow-470.00M-768.00M-114.00M-727.00M-126.00M
Financing Cash Flow-410.00M-327.00M-300.00M-234.00M-251.00M

The Swatch Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price158.35
Price Trends
50DMA
137.65
Positive
100DMA
141.60
Positive
200DMA
151.78
Positive
Market Momentum
MACD
4.04
Negative
RSI
81.30
Negative
STOCH
96.23
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:UHR, the sentiment is Positive. The current price of 158.35 is above the 20-day moving average (MA) of 136.96, above the 50-day MA of 137.65, and above the 200-day MA of 151.78, indicating a bullish trend. The MACD of 4.04 indicates Negative momentum. The RSI at 81.30 is Negative, neither overbought nor oversold. The STOCH value of 96.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:UHR.

The Swatch Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
CHF81.71B31.78
1.94%2.80%
57
Neutral
HK$26.40B4.14-2.03%5.51%-0.23%-68.02%
55
Neutral
$8.28B132.550.49%2.84%-13.19%-88.43%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CH:UHR
The Swatch Group
158.35
-13.24
-7.71%
CH:CFR
Compagnie Financiere Richemont SA
139.60
7.84
5.95%
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: Jul 25, 2025