We are maintaining our fair value estimate for narrow-moat Swatch Group as we incorporate full-year 2023 figures into our forecasts. We believe shares are undervalued at current levels.
Around three quarters of Swatch's revenue and higher share of profits are from higher-end watch and jewellery brands, and is not affected by smartwatch competition. Performance of low end brands is improving thanks to innovation and smartwatches reaching maturity.
Around 50% of demand for Swatch products comes from Asian customer, most notably Chinese, making the company vulnerable to adverse economic shocks and demand changes in the region.
|
Metric
|
UHR
|
RMS
|
MC
|
|---|---|---|---|
Price/Earnings (Normalized) | 11.79 | 52.40 | 25.92 |
Price/Book Value | 0.84 | 15.82 | 6.45 |
Price/Sales | 1.29 | 17.93 | 4.58 |
Price/Cash Flow | 7.24 | 46.96 | 17.17 |
|
Metric
|
UHR
|
RMS
|
MC
|
|---|---|---|---|
Quick Ratio | 2.50 | 3.58 | 0.58 |
Current Ratio | 8.61 | 4.40 | 1.32 |
Interest Coverage | 278.75 | 99.32 | 23.09 |
|
Metric
|
UHR
|
RMS
|
MC
|
|---|---|---|---|
Return on Assets (Normalized) | 6.27% | 24.29% | 11.43% |
Return on Equity (Normalized) | 7.31% | 33.36% | 27.46% |
Return on Invested Capital (Normalized) | 7.01% | 27.81% | 16.88% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
LVMUY
| Lvmh Moet Hennessy Louis Vuitton SE ADR | Yznmcjc | Rgx | $424.6 Bil | |
LVMHF
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HESAF
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CHDRY
| Christian Dior SE ADR | — | Zfkws | $143.9 Bil | |
CHDRF
| Christian Dior SE | — | Xlxn | $143.4 Bil | |
SWGAY
| The Swatch Group AG ADR | Wqkxvfjzb | Ngtstp | $11.2 Bil | |
TPR
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CPRI
| Capri Holdings Ltd | Wrybjsxp | Kvpb | $4.2 Bil | |
REAL
| The RealReal Inc | Pggd | Ghwn | $447.2 Mil |
