Compagnie Financière Richemont SA
Compagnie Financière Richemont SA Fundamental Analysis
Compagnie Financière Richemont SA (CFRHF) shows moderate financial fundamentals with a PE ratio of 25.42, profit margin of 18.71%, and ROE of 18.57%. The company generates $20.0B in annual revenue with moderate year-over-year growth of 3.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CFRHF's fundamental strength across five key dimensions:
Efficiency Score
WeakCFRHF struggles to generate sufficient returns from assets.
Valuation Score
ModerateCFRHF shows balanced valuation metrics.
Growth Score
WeakCFRHF faces weak or negative growth trends.
Financial Health Score
ExcellentCFRHF maintains a strong and stable balance sheet.
Profitability Score
ExcellentCFRHF achieves industry-leading margins.
Key Financial Metrics
Is CFRHF Expensive or Cheap?
P/E Ratio
CFRHF trades at 25.42 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CFRHF's PEG of 0.58 indicates potential undervaluation.
Price to Book
The market values Compagnie Financière Richemont SA at 4.71 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.17 times EBITDA. This signals the market has high growth expectations.
How Well Does CFRHF Make Money?
Net Profit Margin
For every $100 in sales, Compagnie Financière Richemont SA keeps $18.71 as profit after all expenses.
Operating Margin
Core operations generate 21.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.57 in profit for every $100 of shareholder equity.
ROA
Compagnie Financière Richemont SA generates $9.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Compagnie Financière Richemont SA produces operating cash flow of $4.59B, showing steady but balanced cash generation.
Free Cash Flow
Compagnie Financière Richemont SA generates strong free cash flow of $3.61B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.76 in free cash annually.
FCF Yield
CFRHF converts 4.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.58
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.67
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.82
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How CFRHF Stacks Against Its Sector Peers
| Metric | CFRHF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.42 | 25.25 | Neutral |
| ROE | 18.57% | 1170.00% | Weak |
| Net Margin | 18.71% | 742.00% | Weak |
| Debt/Equity | 0.67 | 0.77 | Neutral |
| Current Ratio | 2.82 | 9.19 | Strong Liquidity |
| ROA | 9.92% | -6467.00% (disorted) | Weak |
CFRHF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Compagnie Financière Richemont SA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.28%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-16.94%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
126.92%
Industry Style: Cyclical, Growth, Discretionary
High Growth