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The Swatch Group AG Bearer Shares UHR Stock Quote

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Morningstar‘s Stock Analysis UHR

Valuation
Currency in CHF
Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Swatch Sales Show Solid Growth in First Half Despite Lockdowns in China; Shares Attractive

Jelena Sokolova, CFA Senior Equity Analyst

Analyst Note

| Jelena Sokolova, CFA |

We are maintaining our fair value estimate of CHF 341 per share for narrow-moat Swatch as the company reported solid improvement in revenue and profits in the first half of the year, even despite lockdowns in China, the company’s major market. Sales were up 7.4% in the first half at constant currencies and would have been 18% higher if CHF 400 million in lost sales due to lockdowns in China were included. Our forecasts call for 4.7% growth in revenue for the full year, implying deceleration in the second half of the year, factoring in some demand cooling from inflationary pressures and weaker asset markets. Management remains sanguine with double-digit local currency growth expected for the remainder of the year. Even so, we view shares of Swatch as inexpensive, trading in 4-star territory with some 45% upside to our fair value estimate.

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Key Statistics UHR

Company Profile UHR

Business Description

Swatch Group’s biggest brands are Omega (number-two Swiss watch brand by sales after Rolex), Longines (the largest premium watch brand and number four by sales globally), Breguet, Tissot (the leader in midrange Swiss watches), and Swatch. Swatch group employs over 31,000 people, half of them in Switzerland. We estimate that Swatch Group makes about 28% of its sales from Omega, 18% from ultraluxury brands, 20% from Longines, 12% from Tissot, and 4% from Swatch. We estimate Omega and Longines to be the group’s most profitable brands.

Contact
Seevorstadt 6
Bienne, 2501, Switzerland
T +41 323436811
Industry Luxury Goods
Most Recent Earnings
Fiscal Year End Dec 31, 2022
Stock Type
Employees 31,405