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Compagnie Financiere Richemont SA CFR

Rating as of

Morningstar’s Analysis

Valuation
Currency in CHF
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Brilliant Results for Richemont, With Specialist Watchmakers Finally Adding Sparkle to Performance

Jelena Sokolova, CFA Senior Equity Analyst

Analyst Note

| Jelena Sokolova, CFA |

We are increasing our fair value estimate for wide-moat Richemont to CHF 115 per share following very strong first-half performance across divisions, with continuing strength in jewellery, stark improvement in specialist watchmakers, and a decent showing in other divisions. Although the shares trade above our fair value estimate, we think they present a good quality/valuation trade-off in a largely overvalued luxury universe. We still see some tailwinds (such as U.S. demand strength) as temporary. 

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Company Profile

Business Description

Richemont is a luxury goods conglomerate with 20 brands. Jewellery and watch brands make up over 70% of sales, but the group is also active in accessories, writing instruments, clothing and online luxury retail. Richemont’s Jewellery Maisons, including Cartier and Van Cleef & Arpels, account for 56% of revenue and over 95% of profits. Its other brands include Vacheron Constantin, Piaget, Jaeger-LeCoultre, IWC Schaffhausen, Lange & Soehne, Officine Panerai, and Montblanc. Online businesses include Yoox Net-a-Porter.

Contact
50, Chemin de la Chenaie, CP 30
Geneva, 1293, Switzerland
T +41 227213500
Sector Consumer Cyclical
Industry Luxury Goods
Most Recent Earnings
Fiscal Year End Mar 31, 2022
Stock Type
Employees 34,760

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