Compagnie Financiere Richemont SA (CH:CFR)
:CFR
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Compagnie Financiere Richemont SA
(CFR)
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Rating:74Outperform
Price Target:
CHF206.00
▲(28.75% Upside)
Action:Reiterated
Date:05/26/26
The score is driven primarily by strong underlying financial performance (profitability, positive cash generation, and improving leverage) and a supportive earnings-call read-through (strong sales momentum, net cash, and higher dividend). Technicals are moderately constructive, while valuation is reasonable with a moderate P/E and modest yield; margin and volatility risks temper the overall rating.
Positive Factors
Leading Jewellery Maisons
High-margin Jewellery Maisons are the group's primary earnings engine, delivering double-digit constant‑rate growth and a 30.5% operating margin. This durable brand-led strength provides pricing power, margin resilience and geographic diversification that underpin medium-term profitability.
Negative Factors
Gross margin headwinds
Material input cost and tariff pressures (notably gold and U.S. duties) alongside FX volatility compressed gross margin by 250bps. These are structural risks: prolonged higher commodity prices, tariffs or adverse FX trends can persistently erode profitability unless offset by sustained pricing or cost actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Leading Jewellery Maisons
High-margin Jewellery Maisons are the group's primary earnings engine, delivering double-digit constant‑rate growth and a 30.5% operating margin. This durable brand-led strength provides pricing power, margin resilience and geographic diversification that underpin medium-term profitability.
Read all positive factors
Compagnie Financiere Richemont SA (CFR) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF107.76B
Dividend Yield1.76%
Average Volume (3M)804.18K
Price to Earnings (P/E)33.8
Beta (1Y)1.55
Revenue Growth2.39%
EPS Growth24.64%
CountryCH
Employees37,117
SectorGeneral
Sector StrengthN/A
IndustryLuxury Goods
Share Statistics
EPS (TTM)5.93
Shares Outstanding537,582,100
10 Day Avg. Volume864,468
30 Day Avg. Volume804,178
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)3.65
Price to Sales (P/S)3.90
P/FCF Ratio22.55
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF184.45Price Target Upside15.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)6.91
Revenue Forecast (FY)CHF24.16B
Compagnie Financiere Richemont SA Business Overview & Revenue Model
Company Description
Compagnie Financière Richemont S.A. is a prominent Swiss-based luxury conglomerate with a global footprint, conducting business across Europe, the Middle East, Africa, Asia, and the Americas. Its operations are structured into three primary divisi...
How the Company Makes Money
Richemont generates revenue mainly by designing, manufacturing (in-house and via specialized production networks depending on the maison), and selling luxury goods at premium price points. Its key revenue streams are: (1) Jewelry: Sales of high je...
Compagnie Financiere Richemont SA Earnings Call Summary
Earnings Call Date:May 22, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 06, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial picture: strong top‑line momentum (EUR 22.4bn sales), robust performance and market share gains from Jewellery Maisons, healthy cash generation and a strong balance sheet enabling a higher dividend. However, material margin headwinds from higher gold prices, U.S. duties, FX volatility and one‑off impairments weighed on gross margins and below‑the‑line results, and Specialist Watchmakers and some other businesses showed mixed or weak performances. On balance, the business fundamentals, cash position and earnings resilience outweighed the challenges described.Positive Updates
Group Sales Growth
Total sales of EUR 22.4 billion, up 11% at constant exchange rates and 5% at actual exchange rates; Q4 sales up 13% at constant rates, demonstrating sustained momentum across the year.
Negative Updates
Gross Margin Pressure
Gross margin declined by 250 basis points to 64.4% YoY. Drivers included higher raw material costs (notably gold), adverse FX (approx. 210 bps negative impact), and U.S. duties; excluding FX, gross margin down ~40 bps.
Read all updates
Q4-2026 Updates
Positive
Negative
Group Sales Growth
Total sales of EUR 22.4 billion, up 11% at constant exchange rates and 5% at actual exchange rates; Q4 sales up 13% at constant rates, demonstrating sustained momentum across the year.
Read all positive updates
Company Guidance
Management gave cautious, non‑numeric forward guidance emphasizing vigilance and continued long‑term investment rather than firm FY27 targets: they will “navigate volatile times” while keeping disciplined pricing and cost control and optimizing the store footprint (retail 71% of sales; direct‑to‑client 77%). Quantified commitments and reference metrics disclosed on the call included FY26 sales EUR22.4bn (+11% at constant rates, +5% actual), operating profit EUR4.5bn (underlying ~EUR4.7bn excluding EUR164m non‑recurring charges), gross profit EUR14.4bn (64.4% margin, -250bps), cash flow from operations EUR4.9bn, free cash flow EUR2.8bn, net cash EUR8.5bn, CapEx ~EUR1.0bn (4.6% of sales; >50% retail, >25% manufacturing, ~20% IT), communications spend circa 9% of sales, U.S. duties impact circa EUR200m, FX hedging gain EUR374m (which would have moved reported operating profit growth from +1% to +11%), and a proposed dividend of CHF4.30 per A share (ordinary CHF3.30, +10% y/y, plus CHF1 special) to be put to shareholders on 9 September 2026.Compagnie Financiere Richemont SA Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 22.61B | 21.40B | 20.62B | 19.95B | 19.18B |
| Gross Profit | 14.56B | 14.32B | 14.04B | 13.72B | 12.03B |
| EBITDA | 6.32B | 6.53B | 6.53B | 6.35B | 4.85B |
| Net Income | 3.51B | 2.75B | 2.36B | 313.00M | 2.07B |
Balance Sheet | |||||
| Total Assets | 42.79B | 41.01B | 42.68B | 40.89B | 39.99B |
| Cash, Cash Equivalents and Short-Term Investments | 17.30B | 16.77B | 19.49B | 18.34B | 16.51B |
| Total Debt | 13.52B | 13.15B | 16.36B | 15.67B | 15.05B |
| Total Liabilities | 18.55B | 18.84B | 22.05B | 21.87B | 20.12B |
| Stockholders Equity | 24.17B | 22.10B | 20.54B | 18.96B | 19.81B |
Cash Flow | |||||
| Free Cash Flow | 3.91B | 3.26B | 3.67B | 3.51B | 3.76B |
| Operating Cash Flow | 4.92B | 4.44B | 4.70B | 4.49B | 4.64B |
| Investing Cash Flow | -1.58B | -1.55B | -2.56B | -2.07B | -2.28B |
| Financing Cash Flow | -4.37B | -2.55B | -1.82B | -2.32B | -1.77B |
Compagnie Financiere Richemont SA Technical Analysis
Positive
160.00
Price Trends
160.25
Positive
154.24
Positive
157.07
Positive
Market Momentum
7.16
Negative
75.98
Negative
91.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:CFR, the sentiment is Positive. The current price of 160 is below the 20-day moving average (MA) of 170.49, below the 50-day MA of 160.25, and above the 200-day MA of 157.07, indicating a bullish trend. The MACD of 7.16 indicates Negative momentum. The RSI at 75.98 is Negative, neither overbought nor oversold. The STOCH value of 91.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:CFR.
Compagnie Financiere Richemont SA Peers Comparison
UnderperformOutperform
Sector (55)
CH:CFR
Compagnie Financiere Richemont SA
183.65
39.22
27.15%
CH:UHRN
The Swatch Group AG
41.95
15.58
59.09%
CH:UHR
The Swatch Group
210.70
82.13
63.88%
Compagnie Financiere Richemont SA Corporate Events
Richemont Releases FY26 Annual and Non-Financial Reports, Enhancing ESG Transparency
May 29, 2026
Richemont has published its combined FY26 Annual Report and Accounts, together with its Non-Financial Report for the year ended 31 March 2026, making available detailed financial statements, governance and compensation disclosures, and independent...
Richemont Issues FY26 Annual Report and Sets Date for Expanded Disclosures
May 22, 2026
Richemont has released its Annual Report and Accounts for the financial year ended 31 March 2026, providing shareholders with the chairman’s review, consolidated and statutory financial statements, and audited results. The document aligns wi...
Richemont Ends 2023 Buyback and Launches New Treasury Share Programme
May 22, 2026
Richemont has concluded its three-year share buyback programme launched in May 2023, under which it repurchased 2.195 million A shares, equal to 0.37% of its share capital and 0.20% of voting rights. The group currently holds 3 million A shares in...
Richemont Posts Strong FY26 Sales as Jewellery Powers Growth and Cash Pile Fuels Higher Payouts
May 22, 2026
Richemont reported solid full-year results to 31 March 2026, with group sales rising 11% at constant exchange rates to €22.4 billion and operating profit holding at €4.5 billion despite currency headwinds and higher raw material costs....
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.