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The Swatch Group AG (CH:UHRN)
:UHRN
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The Swatch Group AG (UHRN) AI Stock Analysis

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CH:UHRN

The Swatch Group AG

(UHRN)

Rating:71Outperform
Price Target:
CHF34.00
▲(15.65% Upside)
The overall stock score of 71 reflects a balanced view of The Swatch Group AG's strengths and challenges. The strong balance sheet and positive technical indicators are significant positives. However, concerns about declining revenue, profit margins, and cash flow generation weigh on the score. The valuation is slightly high, but the dividend yield offers some compensation.

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

The Swatch Group AG Business Overview & Revenue Model

Company DescriptionThe Swatch Group AG (UHRN) is a leading Swiss manufacturer of watches and clocks, known for its diverse portfolio of brands that includes Swatch, Omega, Longines, Tissot, and Breguet. The company operates in various sectors within the watchmaking industry, encompassing luxury, mid-range, and entry-level segments. Its core products range from high-end mechanical watches to fashion-oriented timepieces, as well as components such as movements and watch parts, making it a comprehensive player in the global horology market.
How the Company Makes MoneyThe Swatch Group generates revenue primarily through the sale of its watches and related products, which are distributed through a global network of retail stores, authorized dealers, and online platforms. Key revenue streams include the sale of luxury and premium watches, mid-range timepieces, and entry-level models, with significant contributions from both its branded and unbranded segments. Additionally, the company earns income from the production and sale of watch movements and components to other brands. Partnerships with various retailers and e-commerce platforms enhance its market reach, while brand recognition and heritage play crucial roles in driving customer loyalty and sales.

The Swatch Group AG Financial Statement Overview

Summary
The Swatch Group AG shows a mixed financial profile. While the balance sheet is strong with low leverage, challenges are evident in the income statement and cash flow. Declining revenue and profit margins, along with weakened cash flow generation, are concerns. However, the strong equity position provides a buffer against financial instability.
Income Statement
65
Positive
The Swatch Group AG has seen fluctuating revenue over recent years, with a notable decline in 2024 compared to 2023. The gross profit margin remains robust, indicating effective cost management. However, net income has significantly decreased, impacting the net profit margin adversely. EBIT and EBITDA margins have also contracted, highlighting challenges in maintaining operational efficiency.
Balance Sheet
85
Very Positive
The company's balance sheet is strong, characterized by a high equity ratio and low debt-to-equity ratio, which signifies low financial leverage and a solid capital structure. The return on equity has declined, reflecting lower profitability, but overall, the company maintains a stable financial position with significant stockholders' equity.
Cash Flow
55
Neutral
The Swatch Group AG faces challenges in its cash flow, evidenced by a negative free cash flow in recent periods. Operating cash flow remains positive but has decreased, affecting the company's ability to generate cash from operations. The free cash flow to net income ratio indicates inefficiencies in cash generation relative to net income.
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 AG Technical Analysis

Technical Analysis Sentiment
Positive
Last Price29.40
Price Trends
50DMA
28.79
Positive
100DMA
28.28
Positive
200DMA
29.66
Negative
Market Momentum
MACD
0.13
Negative
RSI
51.15
Neutral
STOCH
26.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:UHRN, the sentiment is Positive. The current price of 29.4 is above the 20-day moving average (MA) of 28.94, above the 50-day MA of 28.79, and below the 200-day MA of 29.66, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 51.15 is Neutral, neither overbought nor oversold. The STOCH value of 26.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:UHRN.

The Swatch Group AG Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
CHF82.80B31.66
1.95%2.80%
71
Outperform
CHF7.55B25.25
3.06%-13.19%-88.43%
61
Neutral
$17.96B13.14-5.29%3.00%1.25%-13.95%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CH:UHRN
The Swatch Group AG
30.00
-1.22
-3.91%
CH:CFR
Compagnie Financiere Richemont SA
141.45
24.54
20.99%
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 28, 2025