Watches of Switzerland Group (LSE:WOSG) - Share price, News & Analysis

WOSG fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	4/6
Past Performance	6/6
Financial Health	6/6
Dividends	0/6

WOSG Stock Overview

Watches of Switzerland Group PLC operates as a retailer of luxury watches.

Rewards

Trading at 0.09% below our estimate of its fair value

Earnings are forecast to grow 19.88% per year

Earnings grew by 94% over the past year

Risk Analysis

WOSG passed our risk checks.

Watches of Switzerland Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Watches of Switzerland Group
Historical stock prices
Current Share Price	UK£7.94
52 Week High	UK£16.00
52 Week Low	UK£7.48
Beta	1.83
1 Month Change	-12.75%
3 Month Change	-29.53%
1 Year Change	-4.17%
3 Year Change	188.55%
5 Year Change	n/a
Change since IPO	159.40%

Recent News & Updates

Jun 15

Calculating The Fair Value Of Watches of Switzerland Group plc (LON:WOSG)

Does the June share price for Watches of Switzerland Group plc ( LON:WOSG ) reflect what it's really worth? Today, we...

May 28

Does Watches of Switzerland Group (LON:WOSG) Deserve A Spot On Your Watchlist?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

	WOSG	GB Specialty Retail	GB Market
7D	4.5%	4.2%	2.3%
1Y	-4.2%	-25.6%	-8.6%

Return vs Industry: WOSG exceeded the UK Specialty Retail industry which returned -26.3% over the past year.

Return vs Market: WOSG exceeded the UK Market which returned -10.4% over the past year.

Price Volatility

Is WOSG's price volatile compared to industry and market?
WOSG volatility
WOSG Average Weekly Movement	7.3%
Specialty Retail Industry Average Movement	6.5%
Market Average Movement	5.5%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: WOSG is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: WOSG's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2019	2,022	Hugh Duffy	https://www.thewosgroupplc.com

Watches of Switzerland Group PLC operates as a retailer of luxury watches. It offers luxury watches and jewelry; fashion and classic watches and jewelry; and gifts. The company operates 118 stores in the United Kingdom and 30 stores in the United States, as well as through six transactional websites under the Goldsmiths, Mappin & Webb, Watches of Switzerland, Mayors Jewelers, and Analog Shift brands.

Watches of Switzerland Group Fundamentals Summary

How do Watches of Switzerland Group's earnings and revenue compare to its market cap?
WOSG fundamental statistics
Market Cap	UK£1.91b
Earnings (TTM)	UK£73.39m
Revenue (TTM)	UK£1.08b

26.0x

P/E Ratio

1.8x

P/S Ratio

Is WOSG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
WOSG income statement (TTM)
Revenue	UK£1.08b
Cost of Revenue	UK£922.40m
Gross Profit	UK£154.61m
Other Expenses	UK£81.22m
Earnings	UK£73.39m

Last Reported Earnings

Oct 31, 2021

Next Earnings Date

Jul 07, 2022

Earnings per share (EPS)	0.31
Gross Margin	14.36%
Net Profit Margin	6.81%
Debt/Equity Ratio	38.4%

How did WOSG perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is WOSG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WOSG?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for WOSG. This is calculated by dividing WOSG's market cap by their current preferred multiple.
What is WOSG's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£1.91b

WOSG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2x
Enterprise Value/EBITDA	14.1x
PEG Ratio	1.3x

Price to Earnings Ratio vs Peers

How does WOSG's PE Ratio compare to its peers?

WOSG PE Ratio vs Peers

The above table shows the PE ratio for WOSG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	15.1x

Forward PE

Price-To-Earnings vs Peers: WOSG is expensive based on its Price-To-Earnings Ratio (26x) compared to the peer average (15.1x).

Price to Earnings Ratio vs Industry

How does WOSG's PE Ratio compare vs other companies in the U.K. Specialty Retail Industry?

Price-To-Earnings vs Industry: WOSG is expensive based on its Price-To-Earnings Ratio (26x) compared to the UK Specialty Retail industry average (8x)

Price to Earnings Ratio vs Fair Ratio

What is WOSG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WOSG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	26x
Fair PE Ratio	21.4x

Price-To-Earnings vs Fair Ratio: WOSG is expensive based on its Price-To-Earnings Ratio (26x) compared to the estimated Fair Price-To-Earnings Ratio (21.4x).

Share Price vs Fair Value

What is the Fair Price of WOSG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WOSG (£7.94) is trading below our estimate of fair value (£7.94)

Significantly Below Fair Value: WOSG is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: WOSG is poor value based on its PEG Ratio (1.3x)

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Future Growth

How is Watches of Switzerland Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

19.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: WOSG's forecast earnings growth (19.9% per year) is above the savings rate (0.9%).

Earnings vs Market: WOSG's earnings (19.9% per year) are forecast to grow faster than the UK market (10.9% per year).

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

Revenue vs Market: WOSG's revenue (15.8% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: WOSG's revenue (15.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: WOSG's Return on Equity is forecast to be high in 3 years time (24.1%)

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Past Performance

How has Watches of Switzerland Group performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

66.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WOSG has high quality earnings.

Growing Profit Margin: WOSG's current net profit margins (6.8%) are higher than last year (4.7%).

Past Earnings Growth Analysis

Earnings Trend: WOSG has become profitable over the past 5 years, growing earnings by 66.9% per year.

Accelerating Growth: WOSG's earnings growth over the past year (94%) exceeds its 5-year average (66.9% per year).

Earnings vs Industry: WOSG earnings growth over the past year (94%) exceeded the Specialty Retail industry 46.2%.

Return on Equity

High ROE: WOSG's Return on Equity (23.8%) is considered high.

Discover strong past performing companies

Financial Health

How is Watches of Switzerland Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: WOSG's short term assets (£402.1M) exceed its short term liabilities (£233.3M).

Long Term Liabilities: WOSG's short term assets (£402.1M) exceed its long term liabilities (£385.5M).

Debt to Equity History and Analysis

Debt Level: WOSG has more cash than its total debt.

Reducing Debt: WOSG's debt to equity ratio has reduced from 462.8% to 38.4% over the past 5 years.

Debt Coverage: WOSG's debt is well covered by operating cash flow (131.5%).

Interest Coverage: WOSG's interest payments on its debt are well covered by EBIT (7.8x coverage).

Balance Sheet

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Dividend

What is Watches of Switzerland Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate WOSG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WOSG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WOSG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WOSG's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as WOSG has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.4yrs

Average management tenure

CEO

Hugh Duffy (67 yo)

8.42yrs

Tenure

UK£1,221,337

Compensation

Mr. Hugh Brian Duffy serves as Chief Executive Officer at Watches Switzerland Group PLC since 2014 and has been its Director since May 7, 2019. He has served on several boards of across the fashion, retail...

CEO Compensation Analysis

Compensation vs Market: Hugh's total compensation ($USD1.50M) is about average for companies of similar size in the UK market ($USD2.07M).

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

Leadership Team

Experienced Management: WOSG's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.

Board Members

Experienced Board: WOSG's board of directors are considered experienced (3.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: WOSG insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/10/31
Annual Earnings	2021/05/02