The Swatch Group AG
The Swatch Group AG Fundamental Analysis
The Swatch Group AG (SWGAF) shows weak financial fundamentals with a PE ratio of 2821.95, profit margin of 0.05%, and ROE of 0.03%. The company generates $6.5B in annual revenue with weak year-over-year growth of -14.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 18.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SWGAF's fundamental strength across five key dimensions:
Efficiency Score
WeakSWGAF struggles to generate sufficient returns from assets.
Valuation Score
ModerateSWGAF shows balanced valuation metrics.
Growth Score
WeakSWGAF faces weak or negative growth trends.
Financial Health Score
ExcellentSWGAF maintains a strong and stable balance sheet.
Profitability Score
WeakSWGAF struggles to sustain strong margins.
Key Financial Metrics
Is SWGAF Expensive or Cheap?
P/E Ratio
SWGAF trades at 2821.95 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SWGAF's PEG of -38.32 indicates potential undervaluation.
Price to Book
The market values The Swatch Group AG at 0.73 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 17.37 times EBITDA. This signals the market has high growth expectations.
How Well Does SWGAF Make Money?
Net Profit Margin
For every $100 in sales, The Swatch Group AG keeps $0.05 as profit after all expenses.
Operating Margin
Core operations generate 2.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.03 in profit for every $100 of shareholder equity.
ROA
The Swatch Group AG generates $0.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Swatch Group AG generates limited operating cash flow of $522.30M, signaling weaker underlying cash strength.
Free Cash Flow
The Swatch Group AG generates weak or negative free cash flow of $100.96M, restricting financial flexibility.
FCF Per Share
Each share generates $1.90 in free cash annually.
FCF Yield
SWGAF converts 1.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2821.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-38.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.003
vs 25 benchmark
Current Ratio
Current assets to current liabilities
9.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.00
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How SWGAF Stacks Against Its Sector Peers
| Metric | SWGAF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2821.95 | 25.25 | Worse (Expensive) |
| ROE | 0.03% | 1170.00% | Weak |
| Net Margin | 0.05% | 742.00% | Weak |
| Debt/Equity | 0.00 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 9.76 | 9.19 | Strong Liquidity |
| ROA | 0.02% | -6467.00% (disorted) | Weak |
SWGAF outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Swatch Group AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-5.97%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
-69.58%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-68.69%
Industry Style: Cyclical, Growth, Discretionary
Declining