Watches of Switzerland Group PLC (WOSG) AI Stock Analysis

• Market Cap: £860.57M
• Dividend Yield: N/A
• Average Volume (3M): 775.97K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 1.30
• Revenue Growth: 1.45%
• EPS Growth: -61.69%
• Country: UK
• Employees: 2,755
• Sector: Consumer Cyclical
• Sector Strength: 46
• Industry: Luxury Goods
• EPS (TTM): 0.17
• Shares Outstanding: 237,991,700
• 10 Day Avg. Volume: 762,540
• 30 Day Avg. Volume: 775,971
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.68
• Price to Cash Flow (P/CF): 7.40
• P/FCF Ratio: 12.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 562.50p
• Price Target Upside: 53.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

Watches of Switzerland Group PLC demonstrates solid revenue growth and strategic share repurchases, bolstering shareholder value and financial confidence. However, challenges include declining operational efficiencies and negative market momentum, offsetting some of the positive impacts from corporate actions.

Positive Factors

Market Demand

US demand for watches & jewellery remains good across all price points post-election.

Sales Momentum

Sales momentum showed sequential improvement in the second quarter of FY25, with a strong start to the holiday season.

Valuation

The stock is considered inexpensive relative to its historical average, based on its current price-to-earnings ratio.

Negative Factors

Dependence on Rolex

The company is heavily dependent on Rolex, posing both a significant investment opportunity and a risk due to its supply-demand dynamics.

Profitability

Profitability was weak in the first half of FY25 due to stock buildup, adverse product mix, and fixed cost challenges, resulting in a lower EBIT margin compared to the previous year.

ROCE Momentum

ROCE momentum has worsened since FY23 due to EBIT margin erosion and organic sales growth normalisation.

Watches of Switzerland Group PLC Business Overview & Revenue Model

Company Description

Watches of Switzerland Group PLC (WOSG) is a leading luxury watch retailer headquartered in the United Kingdom. The company operates in the high-end retail sector, specializing in the sale of prestigious timepieces and jewelry. It manages a network of retail outlets across key markets, including the UK and the US, offering products from renowned brands such as Rolex, Omega, and TAG Heuer, among others. WOSG provides customers with an exclusive shopping experience, combining luxury products with personalized services.

How the Company Makes Money

Watches of Switzerland Group PLC generates revenue primarily through the sale of luxury watches and jewelry in its retail stores and online platforms. The company's key revenue streams include direct sales from its branded boutiques and multibrand showrooms, as well as through its e-commerce website. WOSG benefits from strategic partnerships with high-end watch manufacturers, which enable it to offer exclusive and limited-edition products that attract affluent customers. The company also earns from after-sales services, including watch repairs and maintenance, which enhance customer loyalty and drive repeat business. Additionally, WOSG's presence in key luxury markets like the US and UK ensures a steady flow of affluent clientele, contributing significantly to its overall earnings.

Watches of Switzerland Group PLC Financial Statement Overview

Summary

Watches of Switzerland Group PLC demonstrates strong revenue growth, though recent operational efficiencies have waned, as shown by declining EBIT and EBITDA margins. The balance sheet is stable with moderate leverage, and cash flows are robust. However, declining free cash flow presents a potential risk for future investments.

Income Statement

The income statement shows solid revenue growth over the years, although the most recent year saw a slight dip in revenue. Gross profit margins and net profit margins are stable, indicating efficient cost management. However, the declining EBIT and EBITDA margins over the past year could signal pressures on operational efficiency.

Balance Sheet

The balance sheet highlights a moderate debt-to-equity ratio, which is relatively stable, suggesting manageable leverage levels. Return on equity has dipped recently, which could indicate less effective use of equity. The equity ratio shows a stable base of stockholders' equity relative to total assets, reflecting a balanced capital structure.

Cash Flow

Cash flow statements reflect a decreasing trend in free cash flow, which might impact future investment abilities. Operating cash flow to net income ratio indicates strong cash generation capabilities, but the declining free cash flow to net income ratio suggests potential for cash flow constraints.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.54B	1.54B	1.24B	905.10M	810.51M
	Gross Profit
189.40M	226.40M	188.70M	123.30M	99.25M
	EBIT
120.00M	178.80M	143.60M	92.60M	69.75M
	EBITDA
220.10M	264.60M	212.80M	117.20M	74.90M
	Net Income Common Stockholders
59.10M	121.80M	101.00M	50.60M	507.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
115.70M	136.40M	105.90M	76.10M	72.93M
	Total Assets
1.33B	1.24B	1.03B	827.20M	852.20M
	Total Debt
573.70M	530.40M	459.20M	419.25M	507.68M
	Net Debt
458.00M	394.00M	353.30M	343.15M	434.75M
	Total Liabilities
804.40M	765.70M	668.70M	576.90M	652.66M
	Stockholders Equity
523.00M	469.30M	361.30M	250.30M	199.54M
Cash Flow		Free Cash Flow
107.30M	136.90M	129.30M	147.70M	72.85M
	Operating Cash Flow
191.30M	211.90M	170.30M	171.80M	95.20M
	Investing Cash Flow
-121.10M	-95.50M	-88.10M	-23.60M	-59.70M
	Financing Cash Flow
-91.70M	-85.20M	-55.70M	-143.40M	1.52M

Watches of Switzerland Group PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 366.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WOSG, the sentiment is Negative. The current price of 366.4 is below the 20-day moving average (MA) of 431.65, below the 50-day MA of 486.71, and below the 200-day MA of 457.79, indicating a bearish trend. The MACD of -18.66 indicates Positive momentum. The RSI at 26.85 is Positive, neither overbought nor oversold. The STOCH value of 6.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:WOSG.

Watches of Switzerland Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSON	73 Outperform	£7.90B	18.62	10.83%	2.00%	-3.32%	20.38%
JMAT	66 Neutral	£2.06B	4.24	21.80%	6.24%	-15.51%	200.70%
DGE	64 Neutral	$45.22B	16.08	35.82%	3.77%	-3.88%	-11.33%
WOSG	63 Neutral	£860.57M	21.14	7.71%	―	1.45%	-61.69%
BUR	63 Neutral	£2.13B	18.92	6.07%	1.00%	-51.54%	-77.07%
Sector *	59 Neutral	$12.18B	11.09	-1.08%	3.77%	1.26%	-19.82%

Watches of Switzerland Group PLC Corporate Events

Watches of Switzerland Executes Share Repurchase to Boost Shareholder Value

Watches of Switzerland Group PLC announced the repurchase of 80,436 ordinary shares as part of its £25 million share repurchase program. This transaction, executed on the London Stock Exchange, reflects the company’s strategy to optimize its capital structure and enhance shareholder value. The repurchased shares will be canceled, leaving the company with 238,068,636 shares in issue. This move is expected to impact the company’s market positioning by potentially increasing earnings per share and demonstrating confidence in its financial health.

Watches of Switzerland Executes Share Repurchase to Enhance Shareholder Value

Watches of Switzerland Group PLC announced the repurchase of 81,555 of its ordinary shares on March 31, 2025, as part of a £25 million share repurchase program initiated earlier in March. This move, executed through Barclays Capital Securities Limited, is part of the company’s strategy to optimize its capital structure and enhance shareholder value, with the purchased shares intended for cancellation, thereby reducing the total number of shares in circulation.

Watches of Switzerland Updates Share Capital and Voting Rights

Watches of Switzerland Group PLC announced that its issued share capital now consists of 238,230,627 ordinary shares, each carrying one vote at general meetings. This update is in line with the Financial Conduct Authority’s rules, and shareholders can use this figure to assess their interests in the company, impacting their reporting requirements under the FCA’s Disclosure and Transparency Rules.

Watches of Switzerland Executes Share Repurchase to Enhance Shareholder Value

Watches of Switzerland Group PLC announced the repurchase of 87,287 of its ordinary shares on the London Stock Exchange as part of a £25 million share repurchase program. This move, executed through Barclays Capital Securities Limited, is intended to cancel the purchased shares, thereby reducing the total number of shares in issue to 238,230,627. This strategic action is part of the company’s broader financial strategy to enhance shareholder value and optimize its capital structure.

Watches of Switzerland Executes Share Repurchase Program

Watches of Switzerland Group PLC announced the repurchase of 88,472 of its ordinary shares on the London Stock Exchange as part of a £25 million share repurchase program. This transaction, conducted through Barclays Capital Securities Limited, resulted in the company holding no shares in treasury and maintaining 238,317,914 ordinary shares in issue. The repurchase is part of a strategic initiative to enhance shareholder value and optimize the company’s capital structure.

Watches of Switzerland Executes Share Repurchase to Boost Market Position

Watches of Switzerland Group PLC announced the repurchase of 91,232 of its ordinary shares as part of a £25 million share repurchase program. This move, executed through Barclays Capital Securities Limited, aims to enhance shareholder value by reducing the number of shares in circulation, thereby potentially increasing earnings per share and strengthening the company’s market position.

Watches of Switzerland Executes Share Repurchase Program

Watches of Switzerland Group PLC has announced the repurchase of 96,147 of its ordinary shares as part of a £25 million share repurchase program. This transaction, executed on the London Stock Exchange, is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value. Following this purchase, the company has no shares in treasury, with a total of 238,497,618 ordinary shares in issue. This move reflects the company’s ongoing commitment to optimizing its financial operations and could have implications for shareholder voting rights.

Watches of Switzerland Executes Share Buyback to Bolster Market Position

Watches of Switzerland Group PLC announced the repurchase of 98,277 of its ordinary shares on the London Stock Exchange as part of a £25 million share repurchase program. This move, which follows shareholder approval, aims to enhance shareholder value by reducing the number of shares in circulation, thereby potentially increasing earnings per share and strengthening the company’s market position.

Watches of Switzerland Executes Share Buyback to Enhance Shareholder Value

Watches of Switzerland Group PLC has repurchased 94,425 of its ordinary shares as part of a £25 million share repurchase program. This move, executed on the London Stock Exchange, is part of a broader strategy to enhance shareholder value and optimize the company’s capital structure, potentially impacting its market positioning and stakeholder interests.

Watches of Switzerland Executes Share Buyback to Boost Shareholder Value

Watches of Switzerland Group PLC announced the repurchase of 91,919 of its ordinary shares as part of a £25 million share buyback program. This transaction, executed on the London Stock Exchange, reflects the company’s strategic move to enhance shareholder value by reducing the number of shares in circulation, which may impact voting rights and share valuation.

Watches of Switzerland Executes Strategic Share Repurchase

Watches of Switzerland Group PLC announced the repurchase of 92,847 of its ordinary shares as part of a £25 million share repurchase program. This move, executed on the London Stock Exchange, reflects the company’s strategic initiative to enhance shareholder value by reducing the number of shares in circulation, thereby potentially increasing the value of remaining shares. The repurchase underscores the company’s commitment to optimizing its capital structure and could positively impact its market positioning by signaling confidence in its financial health.

Watches of Switzerland Executes Share Repurchase to Boost Shareholder Value

Watches of Switzerland Group PLC announced the repurchase of 91,558 ordinary shares as part of a £25 million share repurchase program. This transaction, executed on the London Stock Exchange, is part of the company’s strategy to manage its share capital and enhance shareholder value, reflecting confidence in its financial position and future prospects.

Watches of Switzerland Executes Share Repurchase to Boost Shareholder Value

Watches of Switzerland Group PLC announced the repurchase of 89,546 of its ordinary shares on the London Stock Exchange as part of a £25 million share repurchase program. This transaction, executed through Barclays Capital Securities Limited, aims to enhance shareholder value by reducing the number of shares in circulation, thereby increasing the value of remaining shares. The company intends to cancel these shares, which will adjust the total number of voting rights to 239,062,791. This move reflects the company’s strategic focus on optimizing its capital structure and delivering value to its stakeholders.

Watches of Switzerland Executes Share Repurchase to Boost Shareholder Value

Watches of Switzerland Group PLC has announced the repurchase of 88,673 of its ordinary shares as part of a £25 million share repurchase program. This move, executed on the London Stock Exchange, is part of a broader strategy to enhance shareholder value by reducing the number of shares in circulation, thereby potentially increasing the value of remaining shares. The company has repurchased a total of 417,960 shares since the program’s inception, reflecting its commitment to strategic financial management and shareholder engagement.

Watches of Switzerland Executes Share Buyback to Boost Shareholder Value

Watches of Switzerland Group PLC announced the repurchase of 85,885 of its ordinary shares as part of a £25 million share repurchase program. This transaction, executed on the London Stock Exchange, reflects the company’s strategy to enhance shareholder value by reducing the number of shares in circulation, thereby potentially increasing earnings per share and strengthening its market position.

Watches of Switzerland Executes Share Buyback to Boost Shareholder Value

Watches of Switzerland Group PLC announced the repurchase of 83,473 ordinary shares on the London Stock Exchange as part of its £25 million share repurchase program. This move, executed through Barclays Capital Securities Limited, reflects the company’s strategic initiative to enhance shareholder value by reducing the number of shares in circulation, thereby potentially increasing earnings per share and improving market confidence.

Watches of Switzerland Executes Share Buyback to Strengthen Market Position

Watches of Switzerland Group PLC announced the repurchase of 80,737 of its ordinary shares as part of a £25 million share repurchase program. This move, executed on the London Stock Exchange, is part of a broader strategy to enhance shareholder value and optimize the company’s capital structure, reflecting confidence in its financial health and future prospects.

Watches of Switzerland Executes Share Repurchase to Boost Shareholder Value

Watches of Switzerland Group PLC has announced the repurchase of 79,192 of its ordinary shares, as part of a £25 million share repurchase program. This move, executed on the London Stock Exchange, is intended to cancel the purchased shares, thereby reducing the number of shares in circulation and potentially increasing the value of remaining shares. The transaction reflects the company’s strategy to optimize its capital structure and enhance shareholder value.

Watches of Switzerland Group Initiates £25 Million Share Buyback

Watches of Switzerland Group PLC announced the launch of a £25 million share buyback program, reflecting its strong balance sheet and strategic capital allocation approach. This initiative follows a successful refinancing in December 2024, which increased liquidity by £50 million, allowing the company to return surplus capital to shareholders while maintaining its investment strategy for growth and development. The buyback will be managed by Barclays Bank PLC and aims to reduce the company’s share capital, with purchases to be completed by December 2025.

Watches of Switzerland Group Maintains Positive Momentum in FY25

Watches of Switzerland Group PLC reported that trading over the holiday period in both the UK and US was robust, aligning with expectations and supporting their FY25 guidance. Strong demand for luxury brands, particularly products on registration lists, continues to outpace supply, aiding market share gains in both regions. The integration of recent acquisitions and showroom expansions, including new Rolex boutiques, are progressing well, enhancing the company’s strategic positioning. The Group’s financial stability is reinforced by refinancing efforts, providing additional liquidity and flexibility. Overall, the Group is confident in achieving its FY25 targets due to favorable trading performance, supply visibility, and upcoming showroom developments.