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Compagnie Financiere Richemont SA Class A CFR

Morningstar Rating
CHF 127.45 −1.00 (0.78%)
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Company Report

Richemont's Jewellery Maisons Continue To Outperform

Wide-moat Richemont is the number-three global luxury goods conglomerate by revenue. Over the years, the group has amassed and developed a portfolio of very successful global brands, mostly in the hard luxury segment. Despite more pronounced cyclicality, hard luxury goods benefit from much longer product cycles and lower fashion risk. Most of the group’s brands are at least a century old, have iconic collections lasting 40-80 years, and have historically commanded significant pricing power. Prices of more than $5,000 for most of Richemont’s watch brands and the prestige value attached to them protect the group’s watch business from the emerging technological disruption. Additionally, control over distribution and higher entry barriers in the jewellery business, along with diversification by brand, give us confidence that the company will be able to generate economic profits well into the future, despite cyclicality.

Price vs Fair Value

CFR is trading at a 17% discount.
Price
CHF 127.45
Fair Value
CHF 747.00
Uncertainty
High
1-Star Price
CHF 715.60
5-Star Price
CHF 98.80
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Richemont's jewellery brand is one of the strongest, most profitable, and one of the faster growing in an attractive high-end jewellery niche with a good growth profile and high entry barriers.

Bears

Richemont is invested in a number of smaller, lagging brands in apparel and leather that pull down returns on capital.

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News

Trading Information

Previous Close Price
CHF 128.45
Day Range
CHF 125.45127.85
52-Week Range
CHF 102.95161.10
Bid/Ask
CHF 0.00 / CHF 128.75
Market Cap
CHF 74.86 Bil
Volume/Avg
1.7 Mil / 1.0 Mil

Key Statistics

Price/Earnings (Normalized)
9.68
Price/Sales
3.71
Dividend Yield (Trailing)
1.90%
Dividend Yield (Forward)
1.90%
Total Yield
1.95%

Company Profile

Richemont is a luxury goods conglomerate with 20 brands. Jewellery and watch brands make up 85% 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 67% of revenue and over 86% of profits. Its other brands include Vacheron Constantin, Piaget, Jaeger-LeCoultre, IWC Schaffhausen, Lange & Soehne, Officine Panerai, and Montblanc.
Sector
Consumer Cyclical
Industry
Luxury Goods
Stock Style Box
Large Growth
Total Number of Employees
33,959

Competitors

Valuation

Metric
CFR
UHR
RMS
Price/Earnings (Normalized)
9.6811.6453.06
Price/Book Value
3.990.8216.02
Price/Sales
3.711.2718.15
Price/Cash Flow
13.717.1547.55
Price/Earnings
CFR
UHR
RMS

Financial Strength

Metric
CFR
UHR
RMS
Quick Ratio
1.632.503.58
Current Ratio
2.488.614.40
Interest Coverage
13.04278.7599.32
Quick Ratio
CFR
UHR
RMS

Profitability

Metric
CFR
UHR
RMS
Return on Assets (Normalized)
9.68%6.27%24.29%
Return on Equity (Normalized)
20.95%7.31%33.36%
Return on Invested Capital (Normalized)
11.40%7.01%27.81%
Return on Assets
CFR
UHR
RMS
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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
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HESAY
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CHDRF
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CHDRY
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SWGAY
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TPR
Tapestry IncVdnknlzbsPrypvzl$9.3 Bil
CPRI
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REAL
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