Watches of Switzerland Group plc
Watches of Switzerland Group plc Fundamental Analysis
Watches of Switzerland Group plc (WOSGF) shows weak financial fundamentals with a PE ratio of 16.63, profit margin of 4.05%, and ROE of 12.33%. The company generates $1.7B in annual revenue with weak year-over-year growth of -0.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WOSGF's fundamental strength across five key dimensions:
Efficiency Score
WeakWOSGF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWOSGF trades at attractive valuation levels.
Growth Score
WeakWOSGF faces weak or negative growth trends.
Financial Health Score
ModerateWOSGF shows balanced financial health with some risks.
Profitability Score
WeakWOSGF struggles to sustain strong margins.
Key Financial Metrics
Is WOSGF Expensive or Cheap?
P/E Ratio
WOSGF trades at 16.63 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WOSGF's PEG of 0.74 indicates potential undervaluation.
Price to Book
The market values Watches of Switzerland Group plc at 1.97 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.53 times EBITDA. This is generally considered low.
How Well Does WOSGF Make Money?
Net Profit Margin
For every $100 in sales, Watches of Switzerland Group plc keeps $4.05 as profit after all expenses.
Operating Margin
Core operations generate 10.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.33 in profit for every $100 of shareholder equity.
ROA
Watches of Switzerland Group plc generates $4.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Watches of Switzerland Group plc produces operating cash flow of $192.86M, showing steady but balanced cash generation.
Free Cash Flow
Watches of Switzerland Group plc produces free cash flow of $124.34M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.54 in free cash annually.
FCF Yield
WOSGF converts 10.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.63
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.74
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.67
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How WOSGF Stacks Against Its Sector Peers
| Metric | WOSGF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.63 | 24.85 | Better (Cheaper) |
| ROE | 12.33% | 1165.00% | Weak |
| Net Margin | 4.05% | 749.00% | Weak |
| Debt/Equity | 1.07 | 0.76 | Weak (High Leverage) |
| Current Ratio | 1.96 | 9.23 | Neutral |
| ROA | 4.61% | 1271.00% | Weak |
WOSGF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Watches of Switzerland Group plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
101.09%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
3479.01%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
200.80%
Industry Style: Cyclical, Growth, Discretionary
High Growth