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SWATCH (SWGAY)
OTHER OTC:SWGAY
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SWATCH (SWGAY) AI Stock Analysis

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SWGAY

SWATCH

(OTC:SWGAY)

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Neutral 53 (OpenAI - 5.2)
Rating:53Neutral
Price Target:
$11.50
▲(10.68% Upside)
Action:Reiterated
Date:08/06/26
The score is held up mainly by the very strong balance sheet and low financial risk, but it is weighed down by sharply deteriorating profitability, inconsistent free cash flow, and an extremely high P/E ratio. Technical indicators are broadly neutral-to-weak, offering limited support for near-term momentum.
Positive Factors
Very strong balance sheet
Minimal leverage and a large equity base materially reduce solvency risk. This gives Swatch flexibility to fund operations, sustain its brand portfolio, and absorb prolonged demand weakness without relying heavily on external financing.
Negative Factors
Persistent revenue contraction
Two consecutive years of declining revenue indicate sustained pressure on demand, market execution or geographic exposure. Prolonged top-line weakness can reduce operating leverage, constrain brand investment and make recovery dependent on a stronger product cycle.
Read all positive and negative factors
Positive Factors
Negative Factors
Very strong balance sheet
Minimal leverage and a large equity base materially reduce solvency risk. This gives Swatch flexibility to fund operations, sustain its brand portfolio, and absorb prolonged demand weakness without relying heavily on external financing.
Read all positive factors

SWATCH (SWGAY) vs. SPDR S&P 500 ETF (SPY)

SWATCH Business Overview & Revenue Model

Company Description
The Swatch Group AG is a global enterprise specializing in the design, production, and worldwide distribution of finished watches, exquisite jewelry, and critical watch movements and components. Its operations are structured across two primary div...
How the Company Makes Money
The Swatch Group primarily makes money by selling watches and jewelry under its portfolio of brands. Revenue is generated through (1) wholesale distribution, where products are sold to third-party retailers, distributors, and duty-free operators; ...

SWATCH Financial Statement Overview

Summary
Financial profile is mixed: an exceptionally strong, low-leverage balance sheet (very low debt-to-equity and large equity base) supports resilience and flexibility, but operating fundamentals have weakened materially. Revenue has declined over the last two years and profitability has deteriorated sharply (net margin falling from ~11% to near break-even), while free cash flow has been volatile and often negative, only turning modestly positive in 2025.
Income Statement
44
Neutral
Balance Sheet
92
Very Positive
Cash Flow
55
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue6.41B6.28B6.74B7.89B7.50B7.31B
Gross Profit3.78B5.16B5.25B3.77B5.87B5.54B
EBITDA541.18M558.00M764.00M1.55B1.51B1.45B
Net Income9.19M3.00M193.00M869.00M807.00M765.00M
Balance Sheet
Total Assets13.43B13.38B13.99B14.23B13.89B13.68B
Cash, Cash Equivalents and Short-Term Investments1.35B1.23B1.40B2.05B2.54B2.65B
Total Debt235.17M38.00M22.00M75.00M8.00M99.00M
Total Liabilities1.98B1.72B1.77B1.97B1.84B2.07B
Stockholders Equity11.35B11.56B12.11B12.20B11.98B11.54B
Cash Flow
Free Cash Flow273.29M98.00M-216.00M-170.00M337.00M1.00B
Operating Cash Flow637.54M507.00M333.00M615.00M724.00M1.30B
Investing Cash Flow-367.57M-346.00M-470.00M-768.00M-114.00M-727.00M
Financing Cash Flow-187.64M-205.00M-410.00M-327.00M-300.00M-234.00M

SWATCH Technical Analysis

Technical Analysis Sentiment
Negative
Last Price10.39
Price Trends
50DMA
11.89
Negative
100DMA
12.17
Negative
200DMA
11.58
Positive
Market Momentum
MACD
-0.03
Negative
RSI
47.18
Neutral
STOCH
49.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWGAY, the sentiment is Negative. The current price of 10.39 is below the 20-day moving average (MA) of 11.70, below the 50-day MA of 11.89, and below the 200-day MA of 11.58, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 47.18 is Neutral, neither overbought nor oversold. The STOCH value of 49.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SWGAY.

SWATCH Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$3.25B11.4516.01%1.47%1.35%661.25%
66
Neutral
$550.19M18.958.19%3.01%4.83%136.40%
64
Neutral
$3.49B22.773.25%0.19%3.54%-55.30%
63
Neutral
$25.02B16.75262.81%1.12%14.17%956.15%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
53
Neutral
$11.88B1,100.590.08%2.71%9.18%
52
Neutral
$135.46M-4.56-37.58%21.13%6.41%-893.45%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SWGAY
SWATCH
11.59
2.64
29.48%
TPR
Tapestry
125.49
24.96
24.83%
MOV
Movado Group
34.48
17.27
100.37%
PVH
PVH
75.79
-8.37
-9.95%
SIG
Signet Jewelers
82.70
-4.10
-4.72%
BRLT
Brilliant Earth Group
1.33
-1.46
-52.33%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 06, 2026