SWX:LOGN

Stock Analysis Report

Logitech International

Executive Summary

Logitech International S.A., through its subsidiaries, designs, manufactures, and markets products that allow people to connect through music, gaming, video, computing, and other digital platforms worldwide.

Rewards

Trading at 29.8% below its fair value

Earnings are forecast to grow 12.32% per year

Earnings grew by 25.4% over the past year

Risk Analysis

No risks detected for LOGN from our risk checks.


Snowflake Analysis

Outstanding track record with flawless balance sheet.


Similar Companies

Share Price & News

How has Logitech International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LOGN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.09%

LOGN

0.3%

CH Tech

1.1%

CH Market


1 Year Return

35.1%

LOGN

16.8%

CH Tech

19.2%

CH Market

Return vs Industry: LOGN exceeded the Swiss Tech industry which returned 16.8% over the past year.

Return vs Market: LOGN exceeded the Swiss Market which returned 19.2% over the past year.


Shareholder returns

LOGNIndustryMarket
7 Day-0.09%0.3%1.1%
30 Day4.4%2.2%1.2%
90 Day5.8%3.0%3.6%
1 Year37.5%35.1%18.5%16.8%25.0%19.2%
3 Year87.7%78.6%36.2%29.8%40.6%22.4%
5 Year270.8%224.8%96.7%72.6%40.9%18.7%

Price Volatility Vs. Market

How volatile is Logitech International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Logitech International undervalued compared to its fair value and its price relative to the market?

29.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LOGN (CHF43.04) is trading below our estimate of fair value (CHF61.29)

Significantly Below Fair Value: LOGN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LOGN is poor value based on its PE Ratio (26.4x) compared to the Tech industry average (23.7x).

PE vs Market: LOGN is poor value based on its PE Ratio (26.4x) compared to the Swiss market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: LOGN is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: LOGN is overvalued based on its PB Ratio (6.2x) compared to the XE Tech industry average (1.4x).


Next Steps

Future Growth

How is Logitech International forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LOGN's forecast earnings growth (12.3% per year) is above the savings rate (-0.6%).

Earnings vs Market: LOGN's earnings (12.3% per year) are forecast to grow faster than the Swiss market (10.3% per year).

High Growth Earnings: LOGN's earnings are forecast to grow, but not significantly.

Revenue vs Market: LOGN's revenue (7.3% per year) is forecast to grow faster than the Swiss market (3.4% per year).

High Growth Revenue: LOGN's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LOGN's Return on Equity is forecast to be high in 3 years time (22.5%)


Next Steps

Past Performance

How has Logitech International performed over the past 5 years?

16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LOGN has high quality earnings.

Growing Profit Margin: LOGN's current net profit margins (9.6%) are higher than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: LOGN's earnings have grown by 16.3% per year over the past 5 years.

Accelerating Growth: LOGN's earnings growth over the past year (25.4%) exceeds its 5-year average (16.3% per year).

Earnings vs Industry: LOGN earnings growth over the past year (25.4%) exceeded the Tech industry -4.2%.


Return on Equity

High ROE: LOGN's Return on Equity (23.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Logitech International's financial position?


Financial Position Analysis

Short Term Liabilities: LOGN's short term assets ($1.5B) exceed its short term liabilities ($836.0M).

Long Term Liabilities: LOGN's short term assets ($1.5B) exceed its long term liabilities ($152.8M).


Debt to Equity History and Analysis

Debt Level: LOGN is debt free.

Reducing Debt: LOGN has not had any debt for past 5 years.

Debt Coverage: LOGN has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: LOGN has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: LOGN has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if LOGN's debt is covered by short term assets.


Next Steps

Dividend

What is Logitech International's current dividend yield, its reliability and sustainability?

1.70%

Current Dividend Yield


Dividend Yield vs Market

company1.7%marketbottom25%1.8%markettop25%3.6%industryaverage1.6%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: LOGN's dividend (1.7%) isn’t notable compared to the bottom 25% of dividend payers in the Swiss market (1.75%).

High Dividend: LOGN's dividend (1.7%) is low compared to the top 25% of dividend payers in the Swiss market (3.56%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, LOGN has been paying a dividend for less than 10 years.

Growing Dividend: LOGN's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45%), LOGN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LOGN's dividends in 3 years are forecast to be well covered by earnings (33.9% payout ratio).


Next Steps

Management

What is the CEO of Logitech International's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Bracken Darrell (56yo)

6.9yrs

Tenure

US$8,404,952

Compensation

Mr. Bracken P. Darrell has been the Chief Executive Officer of Logitech International S.A. since January 2013. Mr. Darrell has been President of Logitech International S.A. since joining it in April 2012.  ...


CEO Compensation Analysis

Compensation vs Market: Bracken's total compensation ($USD8.40M) is above average for companies of similar size in the Swiss market ($USD2.01M).

Compensation vs Earnings: Bracken's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.7yrs

Average Tenure

56yo

Average Age

Experienced Management: LOGN's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

4.3yrs

Average Tenure

56.5yo

Average Age

Experienced Board: LOGN's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: LOGN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,047,65825 Oct 19
Didier Hirsch
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares25,230
Max PriceUS$41.52
SellUS$4,482,38203 May 19
Vincent Pilette
EntityIndividual
Shares109,181
Max PriceUS$41.05

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Craig Malloy

    Senior Vice President and Chief Executive Officer of Life Size Communications

    • Tenure: 5.8yrs
  • Guerrino De Luca (67yo)

    Executive Director

    • Tenure: 21.5yrs
    • Compensation: US$1.90m
  • Scott Wharton

    General Manager of Video Collaboration Group

    • Tenure: 0yrs
  • Alastair Curtis

    Chief Design Officer

    • Tenure: 0yrs
  • Bracken Darrell (56yo)

    President

    • Tenure: 6.9yrs
    • Compensation: US$8.40m
  • Bryan Ko

    General Counsel & Corporate Secretary

    • Tenure: 2.5yrs
  • Krista Todd

    Vice President of Global Communications - USA

    • Tenure: 0yrs
  • Ben Lu

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Nate Olmstead (47yo)

    CFO & Principal Accounting Officer

    • Tenure: 0.6yrs
  • Massimo Rapparini

    Chief Information Officer

    • Tenure: 0.9yrs

Board Members

  • Guerrino De Luca (67yo)

    Executive Director

    • Tenure: 21.5yrs
    • Compensation: US$1.90m
  • Patrick Aebischer (65yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: US$239.30k
  • Daniel Borel (69yo)

    Chairman Emeritus

    • Tenure: 4.3yrs
    • Compensation: US$25.72k
  • Neil Hunt (57yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$269.04k
  • Didier Hirsch (68yo)

    Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: US$274.09k
  • Ed Bugnion (49yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: US$259.94k
  • Bracken Darrell (56yo)

    President

    • Tenure: 6.9yrs
    • Compensation: US$8.40m
  • Marjorie Lao (45yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$202.48k
  • Wendy Becker (54yo)

    Independent Chairperson

    • Tenure: 0.3yrs
    • Compensation: US$254.30k
  • Neela Montgomery (45yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: US$240.39k

Company Information

Logitech International S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Logitech International S.A.
  • Ticker: LOGN
  • Exchange: SWX
  • Founded: 1981
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: CHF7.187b
  • Shares outstanding: 166.97m
  • Website: https://www.logitech.com

Number of Employees


Location

  • Logitech International S.A.
  • Daniel Borel Innovation Center
  • EPFL - Quartier de l'Innovation
  • Lausanne
  • Vaud
  • 1015
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LTECDB (Deutsche Boerse AG)YesRegistered SharesDEEURAug 1993
LOGNSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFAug 1993
LOGINasdaqGS (Nasdaq Global Select)YesRegistered SharesUSUSDAug 1993
0QK6LSE (London Stock Exchange)YesRegistered SharesGBCHFAug 1993

Biography

Logitech International S.A., through its subsidiaries, designs, manufactures, and markets products that allow people to connect through music, gaming, video, computing, and other digital platforms worldwid ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 20:51
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.