Fact based stock research
Swatch (SWX:UHR)

CH0012255151

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Swatch stock research in summary

swatchgroup.com

ANALYSIS: With an Obermatt Combined Rank of 90 (better than 90% compared with investment alternatives), Swatch (Apparel, Accessories, Luxury, Switzerland) shares have much better financial characteristics than comparable stocks. Shares of Swatch are a good value (attractively priced) with a consolidated Value Rank of 86 (better than 86% of alternatives), are safely financed (Safety Rank of 100, which means low debt burdens), but show below-average growth (Growth Rank of 4). ...read more

RECOMMENDATION: A Combined Rank of 90, is a strong buy recommendation based on Swatch's financial characteristics. As the company Swatch's key financial metrics exhibit good value (Obermatt Value Rank of 86) but low growth (Obermatt Growth Rank of 4) while being safely financed (Obermatt Safety Rank of 100), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 86% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	86
Growth Rank	4
Safety Rank	100
Combined Rank	90

Country	Switzerland
Industry	Apparel, Accessories, Luxury
Index	SPI, SPI, SMI
Size class	X-Large

This stock has achievements: Gold Winner CEO, Insight 2022-10-13, Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Swatch

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	54	83	89	86
GROWTH
GROWTH	25	67	11	4
SAFETY
SAFETY	92	96	100	100
SENTIMENT
SENTIMENT	n/a	88	27	^new
360° VIEW
360° VIEW	n/a	100	77	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Swatch is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	54	83	89	86
GROWTH
GROWTH	25	67	11	4
SAFETY
SAFETY	92	96	100	100
COMBINED
COMBINED	83	100	100	90

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Swatch the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 86 (better than 86% compared with alternatives) for 2024, Swatch shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Swatch. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 68 which means that the stock price compared with what market professionals expect for future profits is lower than for 68% of comparable companies, indicating a good value concerning Swatch's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 97, and for Dividend Yield with a Dividend Yield Rank of 86. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 75% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 25). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 86, is a buy recommendation based on Swatch's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Swatch has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Swatch shares. 9. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	23	23	27	25
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	67	75	79	68
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	61	92	90	97
DIVIDEND YIELD
DIVIDEND YIELD	46	78	88	86
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	54	83	89	86

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Swatch; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 4 (better than 4% compared with alternatives), Swatch shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with all four metrics below average for Swatch. Sales Growth has a rank of 10, which means that currently professionals expect the company to grow less than 90% of its competitors. The same is valid for Profit Growth, with a rank of 10, and Capital Growth with 11. In addition, Stock Returns have a below market rank of 20, which means that the stock returns have recently been below 80% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 4, is a sell recommendation for growth and momentum investors. These are all bad growth momentum indicators. These are negative signals for investors interested in growth companies. Value is likely good for this company, as investors may have left this stock in the cold. If that is the case, investors should look at the company's outlook, especially Sentiment performance, because it may be a turnaround situation that could entail above-average stock returns in the future. But it remains a risky bet, as no growth signals are in the green zone yet. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	54	32	16	10
PROFIT GROWTH
PROFIT GROWTH	78	100	70	10
CAPITAL GROWTH
CAPITAL GROWTH	n/a	79	11	11
STOCK RETURNS
STOCK RETURNS	30	39	33	20
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	25	67	11	4

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Swatch.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 100 (better than 100% compared with alternatives) for 2024, the company Swatch has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Swatch is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Swatch. Leverage is at 93, meaning the company has a below-average debt-to-equity ratio. It has less debt than 93% of its competitors. Refinancing is at a rank of 98, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 98% of its competitors. Finally, Liquidity is also good at a rank of 98, which means that the company generates more profit to service its debt than 98% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 100 (better than 100% compared with alternatives), Swatch has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Swatch but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	85	92	94	93
REFINANCING
REFINANCING	68	97	99	98
LIQUIDITY
LIQUIDITY	88	73	98	98
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	92	96	100	100

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Swatch and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	40	22	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	40	10	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	94	42	^new
MARKET PULSE
MARKET PULSE	n/a	88	66	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	88	27	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Swatch.
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