SWATCH (SWGAY)
OTHER OTC:SWGAY
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SWATCH
(OTC:SWGAY)
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Rating:61Neutral
Price Target:
$11.50
▲(5.70% Upside)
Action:ReiteratedDate:02/18/26
The score is held back primarily by weak recent operating profitability and an extremely high P/E ratio that signals elevated valuation risk. Offsetting these are a very strong, low-leverage balance sheet and supportive technical momentum with the stock trading above key moving averages, though momentum appears somewhat stretched.
Positive Factors
Balance Sheet Strength
Extremely low leverage and a large equity base provide durable financial flexibility and low solvency risk. Over months this allows the company to fund capex, support brand investments, absorb shocks, and pursue opportunistic M&A or investments without costly external financing.
Negative Factors
Declining Revenue Trend
Consecutive years of revenue decline point to persistent demand, mix or distribution issues rather than a temporary blip. Continued top-line erosion reduces operating leverage, shrinks scale advantages, and forces reliance on cost actions to sustain earnings over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Extremely low leverage and a large equity base provide durable financial flexibility and low solvency risk. Over months this allows the company to fund capex, support brand investments, absorb shocks, and pursue opportunistic M&A or investments without costly external financing.
Read all positive factors
SWATCH (SWGAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.29B
Dividend Yield2.55%
Average Volume (3M)8.84K
Price to Earnings (P/E)2887.3
Beta (1Y)0.83
Revenue Growth-11.17%
EPS Growth-88.23%
CountryUS
Employees32,477
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding578,720,000
10 Day Avg. Volume14,977
30 Day Avg. Volume8,840
Financial Highlights & Ratios
PEG Ratio-29.33
Price to Book (P/B)0.75
Price to Sales (P/S)1.38
P/FCF Ratio88.39
Enterprise Value/Market Cap0.71
Enterprise Value/Revenue1.40
Enterprise Value/Gross Profit1.70
Enterprise Value/Ebitda15.77
Forecast
1Y Price Target
$7.50Price Target Upside-31.07% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)0.3
Revenue Forecast (FY)$8.26B
SWATCH 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, a...
How the Company Makes Money
The Swatch Group primarily makes money by selling finished watches and jewelry under its brand portfolio through (1) wholesale distribution to third-party retailers and distributors and (2) direct-to-consumer sales via company-owned boutiques and ...
SWATCH Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
92
Very Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.28B | 6.74B | 7.89B | 7.50B | 7.31B |
| Gross Profit | 5.16B | 5.25B | 3.77B | 5.87B | 5.54B |
| EBITDA | 558.00M | 764.00M | 1.55B | 1.51B | 1.45B |
| Net Income | 3.00M | 193.00M | 869.00M | 807.00M | 765.00M |
Balance Sheet | |||||
| Total Assets | 13.38B | 13.99B | 14.23B | 13.89B | 13.68B |
| Cash, Cash Equivalents and Short-Term Investments | 1.23B | 1.40B | 2.05B | 2.54B | 2.65B |
| Total Debt | 38.00M | 22.00M | 75.00M | 8.00M | 99.00M |
| Total Liabilities | 1.72B | 1.77B | 1.97B | 1.84B | 2.07B |
| Stockholders Equity | 11.56B | 12.11B | 12.20B | 11.98B | 11.54B |
Cash Flow | |||||
| Free Cash Flow | 98.00M | -216.00M | -170.00M | 337.00M | 1.00B |
| Operating Cash Flow | 507.00M | 333.00M | 615.00M | 724.00M | 1.30B |
| Investing Cash Flow | -346.00M | -470.00M | -768.00M | -114.00M | -727.00M |
| Financing Cash Flow | -205.00M | -410.00M | -327.00M | -300.00M | -234.00M |
SWATCH Technical Analysis
Positive
10.88
Price Trends
11.65
Positive
11.12
Positive
10.26
Positive
Market Momentum
0.03
Negative
61.33
Neutral
97.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWGAY, the sentiment is Positive. The current price of 10.88 is below the 20-day moving average (MA) of 10.98, below the 50-day MA of 11.65, and above the 200-day MA of 10.26, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 61.33 is Neutral, neither overbought nor oversold. The STOCH value of 97.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SWGAY.
SWATCH Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $417.74M | 19.42 | 5.33% | 6.79% | 0.63% | -7.37% | |
68 Neutral | $30.43B | 11.94 | 63.26% | 1.16% | 8.14% | -65.04% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $12.29B | 2,887.28 | 0.03% | 2.55% | -11.17% | -88.23% | |
54 Neutral | $299.95M | -2.64 | -61.86% | ― | -12.89% | 45.32% | |
51 Neutral | $2.37B | 6.45 | -244.66% | ― | -17.66% | -223.06% | |
51 Neutral | $3.75B | 12.94 | 16.38% | 1.46% | -0.40% | -68.99% |
* Consumer Cyclical Sector Average
SWGAY
SWATCH
11.88
3.71
45.36%
TPR
Tapestry
150.30
87.43
139.07%
FOSL
Fossil Group
5.14
4.19
441.05%
CPRI
Capri Holdings
19.88
5.48
38.06%
MOV
Movado Group
26.74
14.38
116.27%
SIG
Signet Jewelers
93.63
36.99
65.31%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.