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The Swatch Group AG (CH:UHRN)
:UHRN

The Swatch Group AG (UHRN) AI Stock Analysis

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The Swatch Group AG

(UHRN)

Rating:67Neutral
Price Target:
CHF31.00
â–²(9.93%Upside)
The Swatch Group AG receives an overall stock score of 67.1, driven primarily by its strong balance sheet and attractive valuation metrics. While the technical indicators are neutral and financial performance is mixed, the company's low P/E ratio and solid dividend yield provide support to the stock's attractiveness.

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 global manufacturer and distributor of timepieces, headquartered in Biel/Bienne, Switzerland. It operates within the luxury goods and timepiece sectors, offering a diverse range of products including watches, jewelry, and mechanisms. The company owns a prestigious portfolio of brands that cater to various market segments, from high-end luxury to accessible fashion, including Swatch, Omega, Longines, Breguet, and Tissot, among others.
How the Company Makes MoneyThe Swatch Group AG generates revenue primarily through the sale of its watch and jewelry products across its extensive brand portfolio. The company leverages its diverse range of brands to target different consumer segments, from luxury to mass-market. Significant revenue streams include retail sales through its own boutiques and an extensive network of third-party retailers worldwide. Additionally, the company earns money from its production segment, which supplies watch movements and components both internally and to other watchmakers. The Swatch Group also benefits from strategic partnerships and marketing efforts, such as collaborations with renowned designers and sponsorships of global events, which enhance brand visibility and drive sales.

The Swatch Group AG Financial Statement Overview

Summary
The Swatch Group AG exhibits a mixed financial profile. A strong balance sheet with low leverage and significant equity is offset by declining revenue and profit margins. Additionally, cash flow challenges are evident with negative free cash flow and reduced operating cash flow.
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
6.74B7.89B7.50B7.31B5.59B
Gross Profit
5.60B6.33B3.10B2.89B1.62B
EBIT
304.00M1.19B1.03B989.00M-8.00M
EBITDA
768.00M1.55B1.44B1.43B455.00M
Net Income Common Stockholders
193.00M869.00M807.00M765.00M-51.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.40B2.05B2.55B2.66B1.79B
Total Assets
13.99B14.23B13.89B13.68B12.90B
Total Debt
13.00M75.00M6.00M99.00M91.00M
Net Debt
-1.09B-1.61B-2.17B-1.88B-1.49B
Total Liabilities
1.77B1.97B1.84B2.07B1.93B
Stockholders Equity
12.11B12.20B11.98B11.54B10.90B
Cash FlowFree Cash Flow
-216.00M-170.00M325.00M995.00M566.00M
Operating Cash Flow
333.00M615.00M724.00M1.30B819.00M
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
Negative
Last Price28.20
Price Trends
50DMA
27.92
Positive
100DMA
29.94
Negative
200DMA
30.99
Negative
Market Momentum
MACD
0.07
Positive
RSI
48.47
Neutral
STOCH
48.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:UHRN, the sentiment is Negative. The current price of 28.2 is below the 20-day moving average (MA) of 28.52, above the 50-day MA of 27.92, and below the 200-day MA of 30.99, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 48.47 is Neutral, neither overbought nor oversold. The STOCH value of 48.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:UHRN.

The Swatch Group AG Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
CHF7.21B7.55
3.19%-14.62%-77.71%
CHCFR
65
Neutral
CHF88.71B33.95
1.81%-2.34%-51.68%
62
Neutral
$6.84B11.412.80%3.87%2.70%-24.58%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CH:UHRN
The Swatch Group AG
28.84
-7.32
-20.24%
CH:CFR
Compagnie Financiere Richemont SA
151.55
6.46
4.45%
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.