Watches of Switzerland Group PLC (WOSG) AI Stock Analysis

• Market Cap: £917.97M
• Dividend Yield: N/A
• Average Volume (3M): 707.21K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 1.94
• Revenue Growth: 7.39%
• EPS Growth: -8.50%
• Country: UK
• Employees: 2,755
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.24
• Shares Outstanding: 233,301,620
• 10 Day Avg. Volume: 652,222
• 30 Day Avg. Volume: 707,207
• PEG Ratio: -0.27
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 7.48
• 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: £462.86
• Price Target Upside: 4.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: 501.00p ▲(12.79% Upside)

Watches of Switzerland Group PLC demonstrates strong financial performance and technical indicators, with consistent revenue growth and bullish market momentum. However, the stock is currently overbought, which may lead to a short-term correction. The valuation is moderate, with a focus on growth over dividends. Managing debt levels and enhancing profitability will be key to sustaining long-term growth.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for luxury watches and jewelry, supporting long-term business expansion and market presence.

Cash Generation

Strong cash generation enhances financial flexibility, allowing for reinvestment in growth opportunities and resilience against market fluctuations.

Operational Efficiency

Sustained operational efficiency supports profitability and competitiveness, enabling the company to maintain its market position effectively.

Negative Factors

Profitability Margins

Decreasing profitability margins could limit the company's ability to invest in growth and may impact its competitive edge over time.

Rising Debt Levels

Increased debt levels can strain financial resources, potentially limiting strategic flexibility and increasing financial risk.

Return on Equity

A declining return on equity suggests challenges in generating returns from shareholder investments, which may affect investor confidence.

Watches of Switzerland Group PLC Business Overview & Revenue Model

Company Description

Watches of Switzerland Group PLC (WOSG) is a leading retailer of luxury watches and jewelry, primarily operating in the UK, the US, and Europe. The company features an extensive portfolio of prestigious watch brands, including Rolex, Omega, and TAG Heuer, as well as a range of high-end jewelry offerings. WOSG operates through several segments, including retail and e-commerce, catering to affluent consumers seeking premium timepieces and accessories.

How the Company Makes Money

Watches of Switzerland Group PLC generates revenue primarily through the sale of luxury watches and jewelry. The company's revenue model is based on direct retail sales in its physical stores and online platforms. Key revenue streams include the sale of high-end watch brands, which often have significant markups due to their luxury status, as well as the sale of related accessories and jewelry. WOSG also benefits from strong partnerships with renowned watch manufacturers, allowing it to offer exclusive products and limited editions that attract high-end clientele. Additionally, the company may engage in after-sales services, such as repairs and maintenance for luxury watches, further enhancing its revenue potential.

Watches of Switzerland Group PLC Financial Statement Overview

Summary

Watches of Switzerland Group PLC exhibits solid financial health with consistent revenue growth and strong cash flow generation. While there is a slight decline in profitability margins and an increase in leverage, the company maintains operational efficiency and a stable equity position. Continued focus on managing debt levels and enhancing profitability will be crucial for sustaining long-term growth.

Income Statement

Watches of Switzerland Group PLC has demonstrated consistent revenue growth with a 5.78% increase in the latest year, following a slight decline in the previous year. The gross profit margin has remained stable, though slightly lower than in earlier years. The net profit margin has decreased to 3.26% from 3.84%, indicating some pressure on profitability. However, the EBIT and EBITDA margins remain healthy, suggesting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.20, indicating a higher reliance on debt financing, which could pose a risk if not managed carefully. Return on equity has decreased to 9.97%, reflecting reduced profitability. The equity ratio remains stable, suggesting a balanced approach to asset financing.

Cash Flow

The company has shown a strong free cash flow growth rate of 20.33%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is healthy, though slightly lower than previous years, suggesting efficient cash conversion. The free cash flow to net income ratio remains robust, supporting the company's ability to fund operations and growth.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.65B	1.54B	1.65B	1.54B	1.24B	905.10M
Gross Profit	213.20M	189.40M	211.20M	226.40M	188.70M	123.30M
EBITDA	197.70M	220.10M	213.60M	264.60M	212.80M	117.20M
Net Income	53.80M	59.10M	53.80M	121.80M	101.00M	50.60M
Balance Sheet
Total Assets	1.48B	1.33B	1.48B	1.24B	1.03B	827.20M
Cash, Cash Equivalents and Short-Term Investments	79.70M	115.70M	79.70M	136.40M	105.90M	76.10M
Total Debt	647.40M	573.70M	647.40M	530.40M	459.20M	419.25M
Total Liabilities	936.00M	804.40M	936.00M	765.70M	668.70M	576.90M
Stockholders Equity	539.60M	523.00M	539.60M	469.30M	361.30M	250.30M
Cash Flow
Free Cash Flow	106.40M	107.30M	108.30M	136.90M	129.30M	147.70M
Operating Cash Flow	178.20M	191.30M	183.70M	211.90M	170.30M	171.80M
Investing Cash Flow	-180.30M	-121.10M	-178.00M	-95.50M	-88.10M	-23.60M
Financing Cash Flow	-7.70M	-91.70M	-21.10M	-85.20M	-55.70M	-143.40M

Watches of Switzerland Group PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 444.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WOSG, the sentiment is Positive. The current price of 444.2 is above the 20-day moving average (MA) of 397.26, above the 50-day MA of 376.72, and above the 200-day MA of 399.92, indicating a bullish trend. The MACD of 15.44 indicates Negative momentum. The RSI at 71.87 is Negative, neither overbought nor oversold. The STOCH value of 83.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:WOSG.

Watches of Switzerland Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WOSG	76 Outperform	£917.97M	17.48	10.13%	―	7.39%	-8.50%
NXT	75 Outperform	£16.49B	21.14	51.86%	1.64%	9.74%	0.92%
MKS	70 Outperform	£7.75B	26.30	0.68%	0.94%	14.13%	-96.12%
FRAS	68 Neutral	£2.96B	10.14	15.02%	―	-11.05%	-23.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DOCS	60 Neutral	£834.91M	183.83	1.23%	2.95%	-10.20%	-93.32%
BRBY	54 Neutral	£4.20B	-55.67	-7.28%	―	-17.08%	-128.46%

Watches of Switzerland Group PLC Corporate Events

Watches of Switzerland Reports Strong H1 FY26 Performance Driven by US Growth

Watches of Switzerland Group PLC reported a strong performance for the first half of FY26, with a 10% increase in group revenue at constant currency, driven by a 20% rise in US sales. The company’s growth is attributed to strategic investments in teams, showrooms, and digital offerings, alongside the successful integration of Roberto Coin. Despite challenges in the UK retail environment, the company achieved a 2% revenue increase, with its luxury watch market remaining stable. The Group is optimistic about continued sales growth and maintaining its leadership in luxury watch and jewellery retailing, despite economic uncertainties and US tariffs.

The most recent analyst rating on (GB:WOSG) stock is a Buy with a £433.00 price target. To see the full list of analyst forecasts on Watches of Switzerland Group PLC stock, see the GB:WOSG Stock Forecast page.

Watches of Switzerland Group to Release H1 Trading Update

Watches of Switzerland Group PLC has announced that it will release its H1 Trading Update for the 26 weeks ending on October 26, 2025, on November 6, 2025. This forthcoming update is anticipated to provide insights into the company’s performance and strategic positioning within the luxury watch retail market, potentially impacting stakeholders and market perceptions.

The most recent analyst rating on (GB:WOSG) stock is a Buy with a £389.00 price target. To see the full list of analyst forecasts on Watches of Switzerland Group PLC stock, see the GB:WOSG Stock Forecast page.

Watches of Switzerland Group Awards Executive Share Options Amid Tariff Uncertainty

Watches of Switzerland Group PLC has announced the awarding of nil cost options to its Executive Directors under its 2019 Long Term Incentive Plan. These awards are contingent upon performance conditions, which will be set by the Remuneration Committee once information on US tariffs becomes available, potentially impacting the company’s strategic decisions and stakeholder interests.

The most recent analyst rating on (GB:WOSG) stock is a Buy with a £530.00 price target. To see the full list of analyst forecasts on Watches of Switzerland Group PLC stock, see the GB:WOSG Stock Forecast page.

Watches of Switzerland Group PLC Announces Successful AGM Resolutions

Watches of Switzerland Group PLC announced the successful passing of all resolutions at its Annual General Meeting held on September 3, 2025. The resolutions included the approval of the Group’s Annual Report, Directors’ Remuneration Report and Policy, re-election of directors, and authorization for various corporate actions. This outcome reflects strong shareholder support and positions the company for continued strategic initiatives and governance stability.

The most recent analyst rating on (GB:WOSG) stock is a Buy with a £530.00 price target. To see the full list of analyst forecasts on Watches of Switzerland Group PLC stock, see the GB:WOSG Stock Forecast page.

Watches of Switzerland Group Reports Strong Performance Amidst Market Challenges

Watches of Switzerland Group PLC reports strong performance in the 18 weeks to August 31, 2025, with growth in both the UK and US markets despite increased US tariffs on Swiss imports. The company highlights the success of its flagship Rolex Boutique in London and the growth of its ecommerce sales, particularly in the US. The acquisition of Roberto Coin Inc. has been fruitful, with new advertising campaigns and showroom expansions underway. The Group continues to invest in showroom development, with several new openings and refurbishments planned. The outlook remains positive, with no anticipated material impact from US tariffs in the first half of FY26.

The most recent analyst rating on (GB:WOSG) stock is a Buy with a £4.25 price target. To see the full list of analyst forecasts on Watches of Switzerland Group PLC stock, see the GB:WOSG Stock Forecast page.