The Swatch Group AG Fundamental Analysis (SIX: UHRN.SW)
The Swatch Group AG (SIX: UHRN.SW) shows weak financial fundamentals with a PE ratio of 1105.59, profit margin of 0.14%, and ROE of 0.08%. The company generates $31.7B in annual revenue with weak year-over-year growth of -6.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze UHRN.SW's fundamental strength across five key dimensions:
Efficiency Score
WeakUHRN.SW struggles to generate sufficient returns from assets.
Valuation Score
ModerateUHRN.SW shows balanced valuation metrics.
Growth Score
WeakUHRN.SW faces weak or negative growth trends.
Financial Health Score
ExcellentUHRN.SW maintains a strong and stable balance sheet.
Profitability Score
WeakUHRN.SW struggles to sustain strong margins.
Key Financial Metrics
Is UHRN.SW Expensive or Cheap?
P/E Ratio
UHRN.SW trades at 1105.59 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, UHRN.SW's PEG of -12.95 indicates potential undervaluation.
Price to Book
The market values The Swatch Group AG at 0.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 19.05 times EBITDA. This signals the market has high growth expectations.
How Well Does UHRN.SW Make Money?
Net Profit Margin
For every $100 in sales, The Swatch Group AG keeps $0.14 as profit after all expenses.
Operating Margin
Core operations generate 1.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.08 in profit for every $100 of shareholder equity.
ROA
The Swatch Group AG generates $0.07 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 $3.16B, signaling weaker underlying cash strength.
Free Cash Flow
The Swatch Group AG produces free cash flow of $1.35B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.19 in free cash annually.
FCF Yield
UHRN.SW converts 2.76% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1105.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-12.95
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
7.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.001
vs 25 benchmark
ROA
Return on assets percentage
0.001
vs 25 benchmark
ROCE
Return on capital employed
0.010
vs 25 benchmark
How UHRN.SW Stacks Against Its Sector Peers
| Metric | UHRN.SW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1105.59 | 25.50 | Worse (Expensive) |
| ROE | 0.08% | 964.00% | Weak |
| Net Margin | 0.14% | -4901.00% (disorted) | Weak |
| Debt/Equity | 0.02 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 7.70 | 2.34 | Strong Liquidity |
| ROA | 0.07% | 322.00% | Weak |
UHRN.SW 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
28.63%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
106.74%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-29.06%
Industry Style: Cyclical, Growth, Discretionary
Declining