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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

Jewellery Maisons' Performance Further Accelerates in the Quarter; Raising FVE to CHF 87 per Share

Jelena Sokolova, CFA Equity Analyst

Analyst Note

| Jelena Sokolova, CFA |

We are increasing our fair value estimate for wide-moat Cie Financiere Richemont to CHF 87 per share from CHF 82 per share to account for better-than-expected sales in the most profitable Jewellery Maisons division and euro/Swiss franc exchange-rate movements. After being up over 70% since March 2020 lows, Richemont shares are trading approximately in line with our fair value estimate, in 3-star territory. On an absolute level, Richemont’s watchmaking peer Swatch looks more attractive to us offering about 20% upside. However, on a relative basis Richemont still looks more attractive than its wide-moat luxury peers LVMH or Hermes (both are trading in 1-star territory).

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Company Profile

Business Description

Compagnie Financiere Richemont SA, formerly Richemont is a luxury goods conglomerate with 20 brands. Jewellery and watch brands make up 70% of sales, but the group is also active in accessories, writing instruments, clothing and online luxury retail. Richemont's jewellery business Maisons, including Cartier and Van Cleef & Arpels, account for 50% of revenue and over 85% 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, 2021
Stock Type
Employees 35,657

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