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Logitech (CH:LOGN)
:LOGN
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Logitech
(NASDAQ:LOGN)
71Outperform
Positive Factors
Financial Strategies
Logitech will accelerate share repurchases while continuing to increase its dividend, indicating confidence in its financial health and future growth prospects.
Growth Opportunities
Management clarified that it has significant organic growth runway ahead with gaming tailwinds and by expanding its addressable market into new end markets.
Supply Chain Management
Logitech has actively moved manufacturing out of China to other locations and could use subcontractors more broadly to mitigate the impact of tariffs on its supply chain.
Negative Factors
Input Costs
The company is likely to suffer from higher input costs related to manufacturing based outside of the US and potentially demand destruction due to higher prices.
Revenue Guidance
FY26 revenues are guided to be between US$4.53bn and US$4.71bn, which is below consensus estimates.
Tariff Impact
Lowered revenue and gross margin assumptions due to tariff impacts lead to a reduction in EPS estimates.
Logitech (LOGN) vs. S&P 500 (SPY)
Market Cap
$8.74B
Dividend Yield1.85%
Average Volume (3M)916.08K
Price to Earnings (P/E)15.6
Beta (1Y)1.41
Revenue Growth5.24%
EPS Growth37.18%
CountryCH
Employees7,300
SectorTechnology
Sector Strength44
IndustryComputer Hardware
Share Statistics
EPS (TTM)3.74
Shares Outstanding168,994,140
10 Day Avg. Volume1,352,553
30 Day Avg. Volume916,075
Financial Highlights & Ratios
PEG Ratio0.42
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$78.24Price Target Upside33.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Logitech Business Overview & Revenue Model
Company DescriptionLogitech International S.A. (LOGN) is a global leader in designing, manufacturing, and selling personal computer and mobile accessories. Established in 1981 and headquartered in Lausanne, Switzerland, the company operates across several sectors, including consumer electronics, gaming, video collaboration, and smart home devices. Logitech's core products include keyboards, mice, webcams, headsets, and other peripherals, as well as advanced gaming products under the Logitech G brand.
How the Company Makes MoneyLogitech makes money primarily through the sale of its diverse range of innovative hardware products. The company's revenue streams are divided into several key categories: PC peripherals (keyboards, mice, and webcams), gaming products, video collaboration tools, and music and smart home devices. Logitech's gaming division, including the popular Logitech G brand, contributes significantly to its income by offering high-performance gaming mice, keyboards, and headsets. The video collaboration segment also plays a crucial role, providing conferencing solutions for businesses. Additionally, strategic partnerships with leading technology companies and a strong distribution network across retail and online channels support Logitech's earnings.
Logitech Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.56B | 4.30B | 4.54B | 5.48B | 5.25B | 2.98B | Gross Profit |
| 1.97B | 1.79B | 1.72B | 2.26B | 2.34B | 1.12B | EBIT |
| 683.76M | 587.34M | 458.47M | 774.01M | 1.15B | 276.50M | EBITDA |
| 765.01M | 681.97M | 598.95M | 902.84M | 1.24B | 375.83M | Net Income Common Stockholders |
| 655.08M | 612.14M | 364.57M | 644.51M | 947.26M | 449.72M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 319.94M | 1.52B | 1.15B | 1.33B | 1.75B | 715.57M | Total Assets |
| 1.60B | 3.60B | 3.56B | 4.04B | 4.14B | 2.36B | Total Debt |
| 0.00 | 77.03M | 71.02M | 41.90M | 34.42M | 30.48M | Net Debt |
| -319.94M | -1.44B | -1.08B | -1.29B | -1.72B | -685.09M | Total Liabilities |
| 599.96M | 1.37B | 1.30B | 1.64B | 1.88B | 874.21M | Stockholders Equity |
| 999.72M | 2.23B | 2.26B | 2.40B | 2.26B | 1.49B |
| Cash Flow | Free Cash Flow | ||||
| 898.35M | 1.09B | 441.66M | 209.17M | 1.38B | 385.52M | Operating Cash Flow |
| 952.01M | 1.15B | 534.01M | 298.32M | 1.46B | 425.00M | Investing Cash Flow |
| -55.86M | -70.33M | -105.73M | -107.86M | -119.98M | -130.23M | Financing Cash Flow |
| -787.80M | -690.17M | -583.35M | -606.82M | -299.93M | -176.66M |
Logitech Technical Analysis
Negative
58.60
Price Trends
79.11
Negative
78.89
Negative
76.31
Negative
Market Momentum
-6.30
Positive
29.90
Positive
36.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:LOGN, the sentiment is Negative. The current price of 58.6 is below the 20-day moving average (MA) of 66.52, below the 50-day MA of 79.11, and below the 200-day MA of 76.31, indicating a bearish trend. The MACD of -6.30 indicates Positive momentum. The RSI at 29.90 is Positive, neither overbought nor oversold. The STOCH value of 36.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:LOGN.
Logitech Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $8.74B | 15.65 | 30.52% | 1.85% | 5.24% | 37.18% | |
58 Neutral | $9.99B | 10.12 | -6.46% | 3.10% | 7.47% | -11.60% | |
54 Neutral | $509.83M | ― | -24.38% | 1.31% | -54.43% | -1090.31% | |
52 Neutral | CHF67.90M | 7.08 | -52.12% | ― | -49.83% | ― | |
46 Neutral | $509.31M | ― | -50.45% | ― | -6.38% | 76.12% |
* Technology Sector Average
Performance Comparison
CH:LOGN
Logitech
58.60
-12.50
-17.58%
CH:AMS
ams-OSRAM
6.06
-4.16
-40.75%
CH:KUD
Kudelski SA
1.21
-0.19
-13.57%
CH:UBXN
u-blox Holding AG
70.70
-11.46
-13.95%
Logitech Earnings Call Summary
Earnings Call Date: Jan 28, 2025 | % Change Since: -29.12% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
Logitech's earnings call reflected a strong performance with significant growth in key segments like gaming, AI integration, and B2B. Despite facing challenges such as a $40 million bad debt charge and currency headwinds, the company's strategic initiatives and operational excellence resulted in increased financial flexibility and shareholder returns.Highlights
Strong Holiday Performance
Logitech delivered strong profitable growth for the fourth consecutive quarter, with net sales growing 6% year-over-year and demand growth accelerating to 8%.
Gaming Segment Success
Gaming sales reached near pandemic highs, growing double-digits at 13% year-over-year, with 16 new products launched and the Pro line achieving record sales.
AI and Innovation
Logitech integrated AI into key product categories, launching an AI streaming assistant and a two-way noise-canceling headset, with the Logitech Sight being recognized as one of Time's best inventions of 2024.
B2B Growth
Logitech for Business saw strong growth, with services bookings more than doubling and the education vertical yielding over 20% growth.
Geographical Expansion
Asia grew at high single digits in net sales, with Europe and the Americas growing mid-single-digits. China saw robust growth, contributing to Logitech's sales increase.
Operational Excellence
Cost reductions drove gross margin above 43%, marking the fifth consecutive quarter of gross margin expansion.
Financial Flexibility
Logitech announced a $750 million credit facility, enhancing financial flexibility and returned $200 million to shareholders through share repurchases.
Lowlights
Bad Debt Charge
Q3 operating expenses were impacted by a $40 million charge for bad debt reserve due to an issue with an e-commerce payment provider.
Currency Headwinds
The recent strengthening of the U.S. dollar is expected to negatively impact results in the fourth quarter, representing an approximate $40 million headwind.
Tariff Concerns
Potential tariffs pose a threat, though Logitech is preparing by diversifying its manufacturing footprint.
Company Guidance
During the Logitech earnings call for the third quarter of Fiscal Year 2025, the company provided several key metrics and insights into its performance and outlook. Net sales increased by 6% year-over-year, with demand growth accelerating to 8%. Gaming sales grew by 13%, reaching near pandemic highs, and the company's Pro and MX product lines achieved record and near-record sales, respectively. The non-GAAP gross margin rate was reported at 43.2%, marking the fifth consecutive quarter of year-over-year gross margin expansion. Operating expenses included a $40 million charge for bad debt reserve, and cash generation remained robust at $370 million, contributing to a healthy cash position of $1.5 billion. The company also announced a five-year $750 million credit facility and returned $200 million to shareholders through share repurchases. Despite facing a $40 million headwind due to bad debt and foreign exchange impacts, Logitech raised its fiscal year 2025 outlook for both net sales and operating income, demonstrating resilience and flexibility in a dynamic environment.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.