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Compagnie Financiere Richemont SA
(CFR)
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Rating:66Neutral
Price Target:
CHF183.00
▼(-2.17% Downside)
Action:Downgraded
Date:08/26/26
The score is driven primarily by solid financial performance (strong profitability, positive cash flow, and improving leverage) and a generally constructive earnings update highlighting growth and a strong net cash position. These positives are tempered by premium valuation (high P/E, modest yield) and weaker near-term technical signals (below key moving averages with negative MACD), alongside margin headwinds and cautious guidance.
Positive Factors
Jewellery Maisons growth and profitability
The Jewellery Maisons are Richemont’s largest operating engine and are delivering strong growth with high profitability. Double-digit expansion and a 30.5% margin support brand strength, pricing power, reinvestment capacity, and durable earnings resilience.
Negative Factors
Structural gross-margin pressure
The margin decline shows that input-cost and trade-related pressures are already affecting profitability despite strong sales growth. If gold prices, currency effects or U.S. duties remain unfavorable, Richemont may need pricing or cost actions that could constrain operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Jewellery Maisons growth and profitability
The Jewellery Maisons are Richemont’s largest operating engine and are delivering strong growth with high profitability. Double-digit expansion and a 30.5% margin support brand strength, pricing power, reinvestment capacity, and durable earnings resilience.
Read all positive factors
Compagnie Financiere Richemont SA (CFR) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF99.93B
Dividend Yield1.94%
Average Volume (3M)849.45K
Price to Earnings (P/E)30.9
Beta (1Y)1.34
Revenue Growth2.39%
EPS Growth24.64%
CountryCH
Employees39,601
SectorGeneral
Sector StrengthN/A
IndustryLuxury Goods
Share Statistics
EPS (TTM)5.93
Shares Outstanding537,582,100
10 Day Avg. Volume689,293
30 Day Avg. Volume849,449
Financial Highlights & Ratios
PEG Ratio1.00
Price to Book (P/B)3.65
Price to Sales (P/S)3.93
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
CHF216.54Price Target Upside15.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)7.46
Revenue Forecast (FY)CHF25.20B
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 from selling luxury goods and related services through a combination of directly operated retail networks and wholesale distribution, supported by brand-led marketing and global clienteling.
1) Core product sale...
Compagnie Financiere Richemont SA Earnings Call Summary
Earnings Call Date:May 22, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 13, 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 | 22.42B | 21.40B | 20.62B | 19.95B | 19.18B |
| Gross Profit | 14.44B | 14.32B | 14.04B | 13.72B | 12.03B |
| EBITDA | 6.26B | 6.53B | 6.53B | 6.53B | 4.68B |
| Net Income | 3.48B | 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
Negative
187.05
Price Trends
179.20
Negative
177.88
Negative
163.83
Positive
Market Momentum
-1.62
Negative
43.38
Neutral
24.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:CFR, the sentiment is Negative. The current price of 187.05 is above the 20-day moving average (MA) of 171.56, above the 50-day MA of 179.20, and above the 200-day MA of 163.83, indicating a neutral trend. The MACD of -1.62 indicates Negative momentum. The RSI at 43.38 is Neutral, neither overbought nor oversold. The STOCH value of 24.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:CFR.
Compagnie Financiere Richemont SA Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | CHF31.74B | 25.48 | ― | 2.09% | -1.75% | -12.84% | |
66 Neutral | CHF99.93B | 30.86 | ― | 1.94% | 2.39% | 24.64% | |
65 Neutral | CHF18.34B | 25.71 | ― | 2.20% | 4.11% | 13.82% | |
58 Neutral | CHF258.43M | 21.27 | ― | 2.24% | 0.34% | -14.45% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
50 Neutral | CHF5.81B | 23.90 | ― | 2.74% | 9.39% | 68.92% | |
49 Neutral | CHF9.04B | 1,043.82 | ― | 2.63% | -0.11% | ― |
* General Sector Average
CH:CFR
Compagnie Financiere Richemont SA
170.30
21.47
14.42%
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Compagnie Financiere Richemont SA Corporate Events
Richemont Shareholders Approve All AGM Resolutions and Enhanced Dividend Payouts
Sep 9, 2026
Richemont, the Swiss-listed luxury group known for its prestigious jewellery, watch and fashion Maisons, continues to position itself as a long-term steward of high-end brands, emphasizing creativity, craftsmanship and sustainable growth. Its R...
Richemont installs dual non-executive co-deputy chairmen in board reshuffle
Sep 9, 2026
Richemont has appointed Anton Rupert as Non-executive Co-Deputy Chairman of its Board of Directors, serving alongside existing Non-executive Co-Deputy Chairman Bram Schot, effective immediately following a board meeting on 8 September. This move f...
Richemont Q1 Sales Surge 20% as Jewellery Drives Global Growth
Jul 15, 2026
Richemont reported a strong start to its financial year, with first-quarter sales to 30 June 2026 rising 20% at constant exchange rates to €6.3 billion, driven by robust local demand across key luxury markets. Jewellery Maisons led growth wi...
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.