The Swatch Group AG (UHRN) AI Stock Analysis

• Market Cap: CHF8.55B
• Dividend Yield: 2.72%
• Average Volume (3M): 56.02K
• Price to Earnings (P/E): 28.8
• Beta (1Y): 1.01
• Revenue Growth: -13.19%
• EPS Growth: -88.43%
• Country: CH
• Employees: 32,477
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.01
• Shares Outstanding: 116,919,500
• 10 Day Avg. Volume: 89,251
• 30 Day Avg. Volume: 56,025
• 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: CHF90.00
• Price Target Upside: 171.90% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: CHF38.00 ▲(14.80% Upside)

The Swatch Group AG's stock score is primarily influenced by its strong balance sheet and bullish technical indicators. However, challenges in financial performance and a high P/E ratio weigh on the overall score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing Swatch Group to invest in growth opportunities and weather economic downturns effectively.

Brand Portfolio

A diverse brand portfolio across luxury, mid-range, and entry-level segments enhances market reach and mitigates risks associated with reliance on a single brand or market segment.

Gross Profit Margin

Maintaining a strong gross profit margin suggests efficient cost control and pricing power, which are critical for sustaining profitability in the competitive luxury goods market.

Negative Factors

Declining Revenue

Declining revenue trends can signal weakening demand or competitive pressures, which may challenge the company's ability to grow and maintain market share over time.

Decreased Net Income

A significant drop in net income affects profitability and can limit the company's ability to reinvest in business operations, potentially hindering long-term growth prospects.

Cash Flow Challenges

Negative free cash flow indicates inefficiencies in cash generation, which can restrict the company's ability to fund operations, pay dividends, or reduce debt, impacting financial health.

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 through multiple streams centered around the sale of watches and jewelry. The company's primary revenue source is the retail sales of its wide range of watch brands, which cater to various market segments from luxury to affordable timepieces. Additionally, the company earns revenue from the sale of watch movements and components to third-party brands, leveraging its expertise in manufacturing. The Swatch Group also benefits from licensing agreements for certain brands and collaborations with fashion or technology partners. Seasonal promotions and limited edition releases further enhance its revenue potential. The company's strong global distribution network and e-commerce platform have become increasingly important, especially in reaching younger consumers and adapting to changing market dynamics.

The Swatch Group AG Financial Statement Overview

Summary

The Swatch Group AG has a strong balance sheet with low leverage, but faces challenges in revenue, profit margins, and cash flow generation. The robust equity position provides some stability.

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	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 AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.10
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 33.1 is below the 20-day moving average (MA) of 33.82, below the 50-day MA of 33.93, and above the 200-day MA of 30.26, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 42.39 is Neutral, neither overbought nor oversold. The STOCH value of 27.19 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
CFR	78 Outperform	CHF92.19B	35.29	―	1.80%	5.10%	206.55%
UHRN	69 Neutral	CHF8.55B	28.81	―	2.72%	-13.19%	-88.43%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%