The Swatch Group Ltd (SWX: UHRN)
Introduction Swatch Group has previously been covered on this blog – first on June 7th, 2020 , and then again on April 25th, 2021 , when it was highlighted as an opportunity to sell the stock at a decent gain, less than a year after the initial write-up. Since then, the company has experienced some turbulence. Sales have weakened, culminating in a disappointing 2024 financial year with a notably low operating profit. Meanwhile, governance issues , particularly surrounding CEO Nick Hayek , who also represents the company’s largest shareholder group, have drawn negative attention. The combination of operational underperformance and management criticism has driven the share price down to below CHF 27 , a stark decline from over CHF 90 in 2018 . Valuation Despite these headwinds, Swatch’s balance sheet remains strong. As of the end of 2024, the company holds: CHF 1+ billion in cash CHF 7.6 billion in inventory CHF 3.1 billion in property, plant, and equipment Virtua...