The Swatch Group AG (UHRN) AI Stock Analysis

• Market Cap: CHF7.04B
• Dividend Yield: 3.25%
• Average Volume (3M): 64.48K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.90
• Revenue Growth: -14.62%
• EPS Growth: -77.71%
• Country: CH
• Employees: 32,477
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Luxury Goods
• EPS (TTM): 1.10
• Shares Outstanding: 116,919,500
• 10 Day Avg. Volume: 68,209
• 30 Day Avg. Volume: 64,484
• PEG Ratio: -0.59
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -33.66
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: CHF31.00 ▲(11.91%Upside)

Swatch Group AG's overall stock score is driven primarily by its mixed financial performance, which benefits from a strong balance sheet but faces challenges in revenue and cash flow generation. The valuation is a strong positive factor, suggesting potential undervaluation with a low P/E ratio and attractive dividend yield. Technical analysis indicates neutral momentum, neither significantly aiding nor detracting from the stock's prospects.

The Swatch Group AG Business Overview & Revenue Model

Company Description

The 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 Money

The 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.74B	7.89B	7.50B	7.31B	5.59B
	Gross Profit
5.60B	6.33B	3.10B	2.89B	1.62B
	EBIT
304.00M	1.19B	1.03B	989.00M	-8.00M
	EBITDA
768.00M	1.55B	1.44B	1.43B	455.00M
	Net Income Common Stockholders
193.00M	869.00M	807.00M	765.00M	-51.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.40B	2.05B	2.55B	2.66B	1.79B
	Total Assets
13.99B	14.23B	13.89B	13.68B	12.90B
	Total Debt
13.00M	75.00M	6.00M	99.00M	91.00M
	Net Debt
-1.09B	-1.61B	-2.17B	-1.88B	-1.49B
	Total Liabilities
1.77B	1.97B	1.84B	2.07B	1.93B
	Stockholders Equity
12.11B	12.20B	11.98B	11.54B	10.90B
Cash Flow		Free Cash Flow
-216.00M	-170.00M	325.00M	995.00M	566.00M
	Operating Cash Flow
333.00M	615.00M	724.00M	1.30B	819.00M
	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 Price: 27.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 27.7 is below the 20-day moving average (MA) of 28.53, below the 50-day MA of 27.74, and below the 200-day MA of 30.86, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 42.81 is Neutral, neither overbought nor oversold. The STOCH value of 41.91 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UHRN	68 Neutral	CHF7.04B	7.42		3.25%	-14.62%	-77.71%
CFR	65 Neutral	CHF88.04B	33.70		1.72%	-2.34%	-51.68%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%