The Swatch Group AG ADR SWGAY

Morningstar Rating
$10.98 −0.07 (0.63%)
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Company Report

Price vs Fair Value

SWGAY is trading at a LOCK|fX@k%?X premium.
Price
$11.05
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Around three-fourths of Swatch's revenue and a higher share of profits are from higher-end watch and jewelry brands and not affected by smartwatch competition. Performance of low-end brands is improving, thanks to innovation and smartwatches reaching maturity.

Bears

Almost 50% of demand for Swatch's products comes from Asian customers, most notably from China, making the company vulnerable to adverse economic shocks and demand changes in the region.

News

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Trading Information

Previous Close Price
$11.05
Day Range
$10.90–11.09
52-Week Range
$9.29–13.97
Bid/Ask
$9.49 / $18.00
Shares Outstanding
1.04B
Market Cap
$11.42B
Volume/Avg
52,599 / 78,196

Key Statistics

Price/Earnings (Normalized)
1,836.16
Price/Sales
1.66
Dividend Yield (Trailing)
2.57%
Dividend Yield (Forward)
2.57%
Dividend Payment Schedule
Jun
Total Yield
2.57%

Company Profile

Swatch Group’s biggest brands are Omega (number two or three in its category), Breguet, Tissot (the leader in midrange Swiss watches), and Swatch. The company employs over 32,000 people, half of them in Switzerland. We estimate Omega and Longines to be the group’s most profitable brands.
Sector
Consumer Cyclical
Industry
Luxury Goods
Stock Style Box
Mid Value
Total Number of Employees
31,331

Competitors

Valuation

Metric
SWGAY
CFR
RMS
Price/Earnings (Normalized)
1,836.1636.3229.64
Price/Book Value
0.814.617.17
Price/Sales
1.664.898.47
Price/Cash Flow
22.4920.3324.55
Price/Earnings
SWGAY
CFR
RMS

Financial Strength

Metric
SWGAY
CFR
RMS
Quick Ratio
1.782.033.63
Current Ratio
7.703.104.54
Interest Coverage
23.8014.54112.45
Quick Ratio
SWGAY
CFR
RMS

Profitability

Metric
SWGAY
CFR
RMS
Return on Assets (Normalized)
0.18%8.65%20.11%
Return on Equity (Normalized)
0.21%15.82%26.19%
Return on Invested Capital (Normalized)
0.06%10.01%22.60%
Return on Assets
SWGAY
CFR
RMS

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