Operating Margin

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Price: 42.14 USD Market Closed

Market Cap: $10.9B

2.5%

Declining

by 7.9%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

2.5%

Operating Income

CHf170m

Revenue

CHf6.3B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

2.5%

Operating Income

$170m

Revenue

CHf6.3B

Peer Comparison

Country	Company	Market Cap	Operating Margin
CH	Swatch Group AG F:UHR	9.3B EUR	Loading...
FR	Hermes International SCA PAR:RMS	223.3B EUR	Loading...
FR	LVMH Moet Hennessy Louis Vuitton SE PAR:MC	293.4B EUR	Loading...
KR	SBW KRX:102280	235.5T KRW	Loading...
FR	EssilorLuxottica SA PAR:EL	122.3B EUR	Loading...
FR	Christian Dior SE PAR:CDI	99.1B EUR	Loading...
CH	Compagnie Financiere Richemont SA SIX:CFR	91.1B CHF	Loading...
FR	Kering SA PAR:KER	33.8B EUR	Loading...
IN	Titan Company Ltd NSE:TITAN	3.6T INR	Loading...
DE	Adidas AG XETRA:ADS	25.7B EUR	Loading...
CN	ANTA Sports Products Ltd HKEX:2020	216.3B HKD	Loading...

Market Distribution

Min	-62 472.2%
30th Percentile	3.5%
Median	10.3%
70th Percentile	16.5%
Max	91.2%

Other Profitability Ratios

Swatch Group AG
Glance View

Market Cap

10.9B USD

Industry

Textiles, Apparel & Luxury Goods

In the intricate world of timepieces, Swatch Group AG stands as a titan of the industry, weaving a rich tapestry of innovation, tradition, and resilience. Born in Switzerland, this global giant emerged amid challenging times in the 1980s, revolutionizing the watch market with its eponymous brand, Swatch. At that time, the Swiss watch industry was under siege from the rise of quartz technology and low-cost, mass-produced digital watches predominantly from Asia. Swatch’s introduction of inexpensive, trendy, and colorful plastic watches not only revitalized the market but also redefined the perception of Swiss craftsmanship. They ingeniously paired fun with function, ensuring the Swatch brand became synonymous with affordable luxury. But Swatch Group AG's story doesn't end with its colorful plastic watches; it represents a sophisticated conglomerate of prestigious brands including Omega, Longines, and Breguet, each exemplifying the epitome of artistry in watchmaking. The business model of Swatch Group is multifaceted, with a robust vertical integration strategy, ensuring comprehensive control over the production chain, from raw material procurement to assembly—a rarity in today’s globalized market. This strategic depth enables them to not only ensure quality but also maintain healthy margins. The company segments its brands across various price categories, capturing diverse market segments from luxury watch buyers to budget-conscious fashion enthusiasts. Revenue streams, therefore, stretch beyond the sale of their famed wristwatches to encompass movement manufacturing, assembling microelectronics, and even the precision engineering of watchmaking tools. With a keen understanding of brand positioning and market dynamics, Swatch Group has adeptly sustained a portfolio of brands that resonate with consumers on multiple levels, ensuring its place as a watchmaking institution that doesn’t just tell time, but also a compelling narrative of innovation and heritage.

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SWGNF Intrinsic Value

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Swatch Group AG
OTC:SWGNF

Peer Comparison

Market Distribution

Other Profitability Ratios

Swatch Group AG
Glance View

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Swatch Group AG OTC:SWGNF