SWATCH (SWGAY) AI Stock Analysis

• Market Cap: $10.57B
• Dividend Yield: 2.65%
• Average Volume (3M): 8.84K
• Price to Earnings (P/E): 152.2
• Beta (1Y): 0.74
• Revenue Growth: -11.17%
• EPS Growth: -88.23%
• Country: US
• Employees: 32,477
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): <0.01
• Shares Outstanding: 578,720,000
• 10 Day Avg. Volume: 14,977
• 30 Day Avg. Volume: 8,840
• PEG Ratio: -0.57
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 1.26
• P/FCF Ratio: -39.30
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 1.13
• Enterprise Value/Gross Profit: 1.47
• Enterprise Value/Ebitda: 12.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $10.00 ▼(-2.91% Downside)

Swatch's overall stock score is primarily impacted by its mixed financial performance and concerning valuation. The strong balance sheet provides stability, but profitability and cash flow challenges need addressing. Technical analysis suggests a neutral outlook, with potential short-term weakness.

SWATCH Business Overview & Revenue Model

Company Description

SWATCH Group AG, often referred to as SWATCH, is a Swiss company renowned for its innovative and stylish watches. Founded in the early 1980s, it operates primarily in the luxury and fashion watch sectors, offering a diverse range of products that include not only timepieces but also accessories and jewelry. The company is recognized for its commitment to quality, creativity, and sustainability, appealing to both casual consumers and watch enthusiasts worldwide.

How the Company Makes Money

SWATCH 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. The balance sheet is strong with low leverage and high equity, but the income statement and cash flow statement indicate pressures on profitability and cash generation. The company needs to address recent declines in revenue and net income to improve financial performance.

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	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	4.89B	5.25B	3.77B	5.87B	5.54B	4.05B
EBITDA	565.00M	764.00M	1.55B	1.51B	1.45B	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	2.54B	2.65B	1.79B
Total Debt	187.00M	22.00M	75.00M	8.00M	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	337.00M	1.00B	570.00M
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

SWATCH Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 10.3 is below the 20-day moving average (MA) of 10.59, above the 50-day MA of 10.21, and above the 200-day MA of 9.10, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 46.01 is Neutral, neither overbought nor oversold. The STOCH value of 6.43 is Positive, 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
MOV	65 Neutral	$301.72M	24.77	3.52%	7.28%	-0.65%	-51.59%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SIG	61 Neutral	$3.88B	31.81	6.82%	1.32%	-1.63%	-72.22%
TPR	58 Neutral	$21.54B	94.19	16.05%	1.47%	8.14%	-65.04%
SWGAY	54 Neutral	$10.57B	152.20	0.49%	2.65%	-11.17%	-88.23%
CPRI	53 Neutral	$2.85B	―	-165.96%	―	-17.66%	-223.06%
FOSL	51 Neutral	$131.68M	―	-48.62%	―	-12.89%	45.32%