SWATCH (SWGAY) AI Stock Analysis

• Market Cap: $9.00B
• Dividend Yield: 2.38%
• Average Volume (3M): 15.99K
• Price to Earnings (P/E): 40.8
• Beta (1Y): 0.67
• Revenue Growth: -12.88%
• EPS Growth: -77.31%
• Country: US
• Employees: 32,477
• Sector: Consumer Cyclical
• Sector Strength: 67
• Industry: Luxury Goods
• EPS (TTM): 0.21
• Shares Outstanding: 578,720,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 15,995
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Swatch's overall stock score reflects mixed financial performance, with a strong balance sheet but challenges in revenue growth and cash flow management. Technical analysis indicates weak momentum, and the high P/E ratio suggests a potentially overvalued stock. Despite a decent dividend yield, the current valuation and market conditions present risks.

SWATCH Business Overview & Revenue Model

Company Description

Swatch Group (SWGAY) is a leading global manufacturer and distributor of finished watches, jewelry, and watch movements and components. Founded in 1983 and headquartered in Biel/Bienne, Switzerland, the company is renowned for its diverse portfolio of watch brands, which includes prestigious names such as Omega, Longines, Breguet, and its iconic brand, Swatch. The company operates through its Watches & Jewelry, Electronic Systems, and Production segments, catering to both luxury and mass-market consumers worldwide.

How the Company Makes Money

Swatch Group generates revenue primarily through the sale of watches and jewelry, leveraging its extensive brand portfolio that ranges from high-end luxury timepieces to more affordable, fashion-forward options. The company earns money by selling directly to consumers through its global network of retail stores and e-commerce platforms, as well as wholesaling to third-party retailers. Additionally, Swatch Group benefits from selling watch movements and components to other watchmakers, including those outside of its own brand portfolio. Key factors contributing to its earnings include its innovation in watch technology, strategic brand positioning, and marketing partnerships. The company's vertical integration allows it to control costs and maintain high-quality standards, further enhancing profitability.

SWATCH Financial Statement Overview

Summary

Swatch shows a mixed financial performance, with a strong balance sheet highlighted by low leverage and high equity. However, declining revenue, net income, and cash flow pressures suggest operational and profitability challenges. The company must address these issues to enhance financial stability.

Income Statement

The income statement reveals mixed performance. Over the most recent year, Swatch experienced a significant decline in revenue, gross profit, and net income, resulting in a weakening net profit margin. However, gross profit margin remains relatively high, indicating strong cost management. The company has seen fluctuating EBIT and EBITDA margins, with a sharp decline in the latest year, reflecting potential operational challenges.

Balance Sheet

Swatch maintains a robust balance sheet with a low debt-to-equity ratio, indicating minimal financial leverage risk. The equity ratio is strong, showcasing a solid equity position relative to total assets. Return on Equity (ROE) has declined recently, reflecting lower profitability, but the overall financial health remains stable due to substantial stockholders' equity.

Cash Flow

Cash flow analysis highlights concerns, particularly with negative free cash flow in the latest year, driven by increased capital expenditures. Operating cash flow to net income ratio is relatively stable, but the free cash flow to net income ratio has weakened significantly, indicating cash flow management challenges in supporting operations and investments.

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	3.77B	5.87B	5.54B	4.05B
	EBIT
304.00M	1.19B	1.16B	1.02B	36.00M
	EBITDA
764.00M	1.55B	1.51B	1.45B	502.00M
	Net Income Common Stockholders
193.00M	869.00M	807.00M	765.00M	-53.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.40B	2.05B	2.54B	2.65B	1.79B
	Total Assets
13.99B	14.23B	13.89B	13.68B	12.90B
	Total Debt
22.00M	75.00M	8.00M	99.00M	91.00M
	Net Debt
-1.08B	-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	337.00M	1.00B	570.00M
	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

SWATCH Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWGAY, the sentiment is Neutral. The current price of 8.6 is above the 20-day moving average (MA) of 8.19, below the 50-day MA of 8.93, and below the 200-day MA of 9.50, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 54.42 is Neutral, neither overbought nor oversold. The STOCH value of 99.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SWGAY.

SWATCH Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RL	76 Outperform	$13.71B	20.23	27.57%	1.50%	5.23%	24.63%
SCI	75 Outperform	$11.48B	22.56	32.22%	1.55%	2.11%	0.05%
BIRK	75 Outperform	$9.65B	40.68	8.52%	―	20.40%	134.09%
LNW	68 Neutral	$7.15B	22.98	47.97%	―	9.82%	109.44%
Sector *	60 Neutral	$6.87B	11.74	3.18%	4.16%	2.37%	-21.84%
SWGAY	53 Neutral	$9.00B	40.79	1.57%	2.38%	-12.88%	-77.31%
VFC	53 Neutral	$4.51B	―	-16.13%	3.16%	-8.42%	57.91%