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SWATCH (SWGAY)
OTHER OTC:SWGAY
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SWATCH (SWGAY) AI Stock Analysis

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SWGAY

SWATCH

(OTC:SWGAY)

Rating:56Neutral
Price Target:
$9.00
▼(-3.64% Downside)
Swatch's overall stock score is primarily influenced by its strong balance sheet and neutral technical indicators. However, high valuation and challenges in profitability and cash flow management weigh down the score. Addressing revenue and income declines is crucial for improvement.

SWATCH (SWGAY) vs. SPDR S&P 500 ETF (SPY)

SWATCH Business Overview & Revenue Model

Company DescriptionThe 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 MoneySWATCH generates revenue primarily through the sale of its watches and accessories, which are marketed under several brand names, including Swatch, Longines, Omega, and Breguet. The company employs a multi-tiered pricing strategy that allows it to cater to various market segments, from affordable fashion watches to high-end luxury timepieces. Key revenue streams include direct sales through retail outlets, e-commerce platforms, and wholesale distribution to other retailers. Additionally, SWATCH benefits from strategic partnerships with other brands and organizations for co-branding initiatives and sponsorships, which enhance brand visibility and consumer engagement. Seasonal collections and limited-edition releases also drive sales by creating urgency and exclusivity among consumers.

SWATCH Financial Statement Overview

Summary
Swatch shows mixed financial performance with a strong balance sheet, but faces challenges in income and cash flow. The robust balance sheet with low leverage and high equity is overshadowed by declining revenue and net income, and negative free cash flow, which impact overall financial health.
Income Statement
55
Neutral
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
75
Positive
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
45
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.74B7.89B7.50B7.31B5.59B
Gross Profit5.25B3.77B5.87B5.54B4.05B
EBITDA764.00M1.55B1.51B1.45B502.00M
Net Income193.00M869.00M807.00M765.00M-53.00M
Balance Sheet
Total Assets13.99B14.23B13.89B13.68B12.90B
Cash, Cash Equivalents and Short-Term Investments1.40B2.05B2.54B2.65B1.79B
Total Debt22.00M75.00M8.00M99.00M91.00M
Total Liabilities1.77B1.97B1.84B2.07B1.93B
Stockholders Equity12.11B12.20B11.98B11.54B10.90B
Cash Flow
Free Cash Flow-216.00M-170.00M337.00M1.00B570.00M
Operating Cash Flow333.00M615.00M724.00M1.30B819.00M
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 Price9.34
Price Trends
50DMA
8.65
Positive
100DMA
8.50
Positive
200DMA
8.78
Positive
Market Momentum
MACD
0.02
Negative
RSI
50.33
Neutral
STOCH
86.72
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 9.34 is above the 20-day moving average (MA) of 8.76, above the 50-day MA of 8.65, and above the 200-day MA of 8.78, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 50.33 is Neutral, neither overbought nor oversold. The STOCH value of 86.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SWGAY.

SWATCH Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$269.18M21.253.67%7.99%-1.36%-54.97%
71
Outperform
$3.61B92.452.04%1.31%-3.98%-93.50%
61
Neutral
$17.75B12.56-5.49%3.02%1.43%-14.12%
60
Neutral
$20.96B119.599.76%1.39%5.09%-80.06%
56
Neutral
$9.21B132.240.49%2.91%-11.17%-88.23%
55
Neutral
$160.28M-35.01%-15.35%61.40%
49
Neutral
$2.55B-142.38%-16.69%-279.61%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SWGAY
SWATCH
9.34
-1.00
-9.67%
TPR
Tapestry
100.98
61.37
154.94%
FOSL
Fossil Group
3.06
1.94
173.21%
CPRI
Capri Holdings
21.55
-14.33
-39.94%
MOV
Movado Group
17.52
-4.74
-21.29%
SIG
Signet Jewelers
93.37
10.41
12.55%
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.Date of analysis: Aug 20, 2025