The Swatch Group AG (UHRN) AI Stock Analysis

The Swatch Group AG

(Six Swiss:UHRN)

Select Model

Rating:49Neutral

Price Target:CHF 33.00▼(-4.62% Downside)

Action:reiterated

Date:08/06/26

The score is held back primarily by sharply weakened profitability and inconsistent free-cash-flow generation, reinforced by weak-to-neutral technical momentum (negative MACD and price below key moving averages). A very strong, low-debt balance sheet provides meaningful stability, but the extremely high P/E meaningfully reduces the valuation component despite a modest dividend yield.

Positive Factors

Very low leverageExtremely low leverage gives Swatch substantial financial resilience through cyclical luxury demand and reduces interest-related pressure on cash flow. Its large equity base also preserves flexibility to sustain operations, invest in brands, and withstand weaker earnings without relying heavily on external financing.

Negative Factors

Severely weakened profitabilityThe sharp compression in net and EBIT margins materially reduces earnings power and weakens the conversion of Swatch’s high gross margin into shareholder returns. If operating costs remain elevated relative to sales, the company may have limited room to absorb further demand weakness without additional profit erosion.

The Swatch Group AG (UHRN) vs. iShares MSCI Switzerland ETF (EWL)

Market Cap: CHF 9.36B
Dividend Yield: 2.60%
Average Volume (3M): 51.51K
Price to Earnings (P/E): 1067.9
Beta (1Y): 1.06
Revenue Growth: -0.11%
EPS Growth: ―
Country: Switzerland
Employees: 31,796
Sector: General
Sector Strength: 55
Industry: Luxury Goods

The Swatch Group AG Business Overview & Revenue Model

Company Description

The Swatch Group AG, established in 1983 and based in Biel/Bienne, Switzerland, operates globally as a prominent designer, manufacturer, and distributor of watches, jewelry, and related components and movements. The company's operations are divided i...

How the Company Makes Money

The Swatch Group makes money primarily by selling finished watches and jewelry under its portfolio of brands. Revenue is generated through a mix of wholesale distribution (selling to third-party retailers and distributors) and direct-to-consumer sale...

The Swatch Group AG Financial Statement Overview

Summary

Overall financials are mixed: a very strong, low-leverage balance sheet (Balance Sheet Score 88) supports resilience, but profitability has deteriorated sharply with margins near breakeven (Income Statement Score 42) and free cash flow has been volatile and often negative despite positive operating cash flow (Cash Flow Score 46).

Income Statement

42Neutral

Balance Sheet

88Very Positive

Cash Flow

46Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.34B	6.28B	6.74B	7.89B	7.50B	7.31B
Gross Profit	3.75B	5.16B	5.60B	6.71B	6.19B	5.81B
EBITDA	560.00M	585.00M	720.00M	1.58B	1.56B	1.46B
Net Income	9.00M	3.00M	193.00M	869.00M	807.00M	765.00M
Balance Sheet
Total Assets	13.48B	13.38B	13.99B	14.23B	13.89B	13.68B
Cash, Cash Equivalents and Short-Term Investments	1.36B	1.23B	1.40B	2.05B	2.55B	2.66B
Total Debt	236.00M	38.00M	13.00M	75.00M	6.00M	99.00M
Total Liabilities	1.98B	1.72B	1.77B	1.97B	1.84B	2.07B
Stockholders Equity	11.39B	11.56B	12.11B	12.20B	11.98B	11.54B
Cash Flow
Free Cash Flow	270.00M	98.00M	-216.00M	-170.00M	325.00M	995.00M
Operating Cash Flow	631.00M	507.00M	333.00M	615.00M	724.00M	1.30B
Investing Cash Flow	-355.00M	-346.00M	-470.00M	-768.00M	-114.00M	-727.00M
Financing Cash Flow	-184.00M	-205.00M	-410.00M	-327.00M	-300.00M	-234.00M

The Swatch Group AG Technical Analysis

Technical Analysis SentimentPositive

Last Price34.60

Price Trends

50DMA35.19Negative

100DMA36.88Negative

200DMA36.73Negative

Market Momentum

MACD-0.45Positive

RSI50.20Neutral

STOCH43.92Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:UHRN, the sentiment is Positive. The current price of 34.60 is above the 20-day moving average (MA) of 34.38, below the 50-day MA of 35.19, and below the 200-day MA of 36.73, indicating a neutral trend. The MACD of -0.45 indicates Positive momentum. The RSI at 50.20 is Neutral, neither overbought nor oversold. The STOCH value of 43.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:UHRN.

The Swatch Group AG Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

CH:UHRN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CH:GALD	80Outperform	CHF 44.97B	63.88	―	0.18%	15.78%	111.61%
CH:GIVN	79Outperform	CHF 36.66B	29.42	―	1.81%	-1.75%	-12.84%
CH:CFR	66Neutral	CHF 97.29B	30.30	―	1.99%	2.39%	24.64%
CH:LISN	65Neutral	CHF 19.47B	27.09	―	2.09%	4.11%	13.82%
CH:VZUG	58Neutral	CHF 258.43M	21.27	―	2.24%	0.34%	-14.45%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
CH:UHRN	49Neutral	CHF 9.24B	1067.94	―	2.60%	-0.11%	―

* General Sector Average

Performance Comparison

CH:UHRN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
CH:UHRN	The Swatch Group	34.60	1.45	4.37%
CH:CFR	Compagnie Financiere Richemont	165.80	8.10	5.13%
CH:GIVN	Givaudan	3973.00	806.49	25.47%
CH:LISN	Chocoladefabriken Lindt & Spruengli AG	86200.00	-34730.84	-28.72%
CH:GALD	Galderma Group AG	192.85	41.68	27.57%
CH:VZUG	V-ZUG Holding Ltd	40.20	-0.98	-2.38%

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

The Swatch Group AG AI Stock Analysis