The Swatch Group (UHR) AI Stock Analysis

• Market Cap: CHF8.77B
• Dividend Yield: 2.64%
• Average Volume (3M): 132.60K
• Price to Earnings (P/E): 145.0
• Beta (1Y): 0.99
• Revenue Growth: -13.19%
• EPS Growth: -88.43%
• Country: CH
• Employees: 32,477
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.06
• Shares Outstanding: 28,936,000
• 10 Day Avg. Volume: 156,151
• 30 Day Avg. Volume: 132,603
• PEG Ratio: -0.57
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 1.27
• P/FCF Ratio: -39.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF131.13
• Price Target Upside: -22.98% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: CHF181.00 ▲(6.31% Upside)

The Swatch Group's overall stock score is primarily influenced by its strong financial stability due to low leverage, but this is offset by declining revenue and profitability. The technical analysis indicates a bullish trend, but overbought conditions pose a risk. The high P/E ratio suggests overvaluation, further impacting the score.

The Swatch Group Business Overview & Revenue Model

Company Description

The Swatch Group AG designs, manufactures, and sells finished watches, jewelry, and watch movements and components worldwide. It operates through Watches & Jewelry and Electronic Systems segments. The Watches & Jewelry segment designs, produces, and commercializes watches and jewelry. The Electronic Systems segment is involved in the design, production, and commercialization of electronic components, as well as sports timing activities. It is also involved in the provision of assembly, research and development, administration, watch case polishing, logistics and distribution, and customer services; and hard material products, microelectronics, watch cases and crowns, miniature low-frequency quartz crystals, thin wires, miniature batteries, watch dials and bracelets, watch hands, sports timing technology and equipment, precision parts, and assembly electronic components. In addition, the company engages in retail, communication, real estate project and property management, finance, reinsurance, and art center businesses. It offers its watch and jewelry products primarily under the Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Longines, Rado, Union Glashütte, Tissot, Balmain, Certina, Mido, Hamilton, Calvin Klein, Swatch, and Flik Flak brands. The Swatch Group AG was founded in 1983 and is headquartered in Biel/Bienne, Switzerland.

How the Company Makes Money

The Swatch Group generates revenue primarily through the sale of watches and related products across its diverse brand portfolio. Its key revenue streams include sales from luxury watches, mid-range timepieces, and entry-level watches, which cater to a wide demographic. The company also earns income from the sale of watch movements and components to third-party brands, bolstering its position in the watchmaking supply chain. Significant partnerships with retailers and e-commerce platforms enhance its market reach. Additionally, The Swatch Group invests in marketing and branding efforts to maintain its strong market presence, which contributes to customer loyalty and repeat purchases. The introduction of smartwatches further diversifies its offerings and revenue potential in the evolving tech landscape.

The Swatch Group Financial Statement Overview

Summary

The Swatch Group shows strong equity and low leverage, indicating financial stability. However, declining revenue, profitability, and cash flow present significant risks that need addressing to maintain financial health.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.35B	6.74B	7.89B	7.50B	7.31B	5.59B
Gross Profit	5.24B	5.60B	6.33B	3.10B	2.89B	1.62B
EBITDA	613.00M	764.00M	1.55B	1.44B	1.43B	515.00M
Net Income	60.00M	193.00M	869.00M	807.00M	765.00M	-51.00M
Balance Sheet
Total Assets	13.56B	13.99B	14.23B	13.89B	13.68B	12.90B
Cash, Cash Equivalents and Short-Term Investments	1.28B	1.40B	2.05B	2.55B	2.66B	1.79B
Total Debt	187.00M	13.00M	75.00M	6.00M	99.00M	91.00M
Total Liabilities	1.88B	1.77B	1.97B	1.84B	2.07B	1.93B
Stockholders Equity	11.59B	12.11B	12.20B	11.98B	11.54B	10.90B
Cash Flow
Free Cash Flow	-78.00M	-216.00M	-170.00M	325.00M	995.00M	566.00M
Operating Cash Flow	423.00M	333.00M	615.00M	724.00M	1.30B	819.00M
Investing Cash Flow	-350.00M	-470.00M	-768.00M	-114.00M	-727.00M	-126.00M
Financing Cash Flow	-70.00M	-410.00M	-327.00M	-300.00M	-234.00M	-251.00M

The Swatch Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 170.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 170.25 is above the 20-day moving average (MA) of 165.57, above the 50-day MA of 168.12, and above the 200-day MA of 149.14, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.72 is Neutral, neither overbought nor oversold. The STOCH value of 96.07 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CFR	78 Outperform	CHF98.66B	25.64	―	1.77%	5.10%	206.55%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
UHR	61 Neutral	CHF8.77B	145.02	0.49%	2.64%	-13.19%	-88.43%

The Swatch Group Corporate Events

Swatch Group Reports Mixed Half-Year 2025 Results

The Swatch Group AG, a leading player in the global watch and jewelry industry, is renowned for its diverse brand portfolio and innovative designs, catering to various market segments from luxury to affordable timepieces.