The Swatch Group AG (UHRN) AI Stock Analysis

• Market Cap: CHF7.37B
• Dividend Yield: 3.02%
• Average Volume (3M): 80.39K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 0.94
• Revenue Growth: -13.19%
• EPS Growth: -88.43%
• Country: CH
• Employees: 32,477
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Luxury Goods
• EPS (TTM): 0.01
• Shares Outstanding: 116,919,500
• 10 Day Avg. Volume: 63,965
• 30 Day Avg. Volume: 80,385
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: CHF31.00
• Price Target Upside: -4.38% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: CHF30.00 ▼(-7.46% Downside)

The Swatch Group AG's stock score is primarily influenced by its mixed financial performance, with a strong balance sheet but declining revenue and cash flow. Technical indicators suggest potential for a rebound, but current valuation appears high. The absence of earnings call data and corporate events limits additional insights.

The Swatch Group AG 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 AG generates revenue primarily through the sale of watches and jewelry across its extensive brand portfolio, covering a broad spectrum from affordable to high-end luxury products. Additionally, the company earns money by manufacturing and selling watch movements and components to third-party watchmakers. The Swatch Group benefits from its vertically integrated production process, allowing for cost efficiencies and quality control. Key revenue streams include direct sales through its global retail network, e-commerce platforms, and wholesale distribution to authorized dealers. Strategic partnerships and sponsorships, such as those in sports and cultural events, also enhance brand visibility and drive sales. Furthermore, the company's investments in innovation and technology contribute to maintaining its competitive edge in the watch industry.

The Swatch Group AG Financial Statement Overview

Summary

The Swatch Group AG shows a mixed financial profile. The company has a robust balance sheet with low financial leverage, reflected in a high equity ratio and low debt-to-equity ratio. However, declining revenue, net income, and cash flow pose significant challenges, impacting overall profitability and efficiency.

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
EBITDA	768.00M	1.55B	1.44B	1.43B	455.00M
Net Income	193.00M	869.00M	807.00M	765.00M	-51.00M
Balance Sheet
Total Assets	13.99B	14.23B	13.89B	13.68B	12.90B
Cash, Cash Equivalents and Short-Term Investments	1.40B	2.05B	2.55B	2.66B	1.79B
Total Debt	13.00M	75.00M	6.00M	99.00M	91.00M
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: Neutral
• Last Price: 32.42
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 32.42 is above the 20-day moving average (MA) of 29.38, above the 50-day MA of 28.41, and above the 200-day MA of 30.13, indicating a neutral trend. The MACD of 0.65 indicates Positive momentum. The RSI at 48.69 is Neutral, neither overbought nor oversold. The STOCH value of 26.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
CFR	72 Outperform	CHF77.06B	29.50		2.06%	2.80%	―
Sector *	62 Neutral	AU$3.02B	29.09	4.95%	4.87%	2.19%	-27.19%
UHRN	61 Neutral	CHF7.37B	24.84		3.02%	-13.19%	-88.43%