NasdaqGS:LOGI

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.


Snowflake Analysis

Flawless balance sheet with solid track record.


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: LOGI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.3%

LOGI

-12.6%

US Tech

-10.6%

US Market


1 Year Return

1.4%

LOGI

49.6%

US Tech

5.2%

US Market

Return vs Industry: LOGI underperformed the US Tech industry which returned 49.6% over the past year.

Return vs Market: LOGI underperformed the US Market which returned 5.2% over the past year.


Shareholder returns

LOGIIndustryMarket
7 Day-9.3%-12.6%-10.6%
30 Day-17.3%-15.6%-8.5%
90 Day-11.6%1.3%-4.6%
1 Year2.6%1.4%51.8%49.6%7.4%5.2%
3 Year37.2%32.8%91.3%78.6%31.7%23.2%
5 Year204.8%183.2%116.0%95.0%56.4%39.3%

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?

27.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LOGI ($38.51) is trading below our estimate of fair value ($52.98)

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


Price To Earnings Ratio

PE vs Industry: LOGI is poor value based on its PE Ratio (23.4x) compared to the Tech industry average (18.9x).

PE vs Market: LOGI is poor value based on its PE Ratio (23.4x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: LOGI is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: LOGI is overvalued based on its PB Ratio (5x) compared to the US Tech industry average (1.8x).


Next Steps

Future Growth

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

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LOGI's forecast earnings growth (12.5% per year) is above the savings rate (1.7%).

Earnings vs Market: LOGI's earnings (12.5% per year) are forecast to grow slower than the US market (13% per year).

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

Revenue vs Market: LOGI's revenue (7.6% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: LOGI's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LOGI's Return on Equity is forecast to be high in 3 years time (22.3%)


Next Steps

Past Performance

How has Logitech International performed over the past 5 years?

16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LOGI has high quality earnings.

Growing Profit Margin: LOGI's current net profit margins (9.6%) are higher than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: LOGI's earnings have grown by 16.1% per year over the past 5 years.

Accelerating Growth: LOGI's earnings growth over the past year (11.2%) is below its 5-year average (16.1% per year).

Earnings vs Industry: LOGI earnings growth over the past year (11.2%) exceeded the Tech industry -3.2%.


Return on Equity

High ROE: LOGI's Return on Equity (21.4%) 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: LOGI's short term assets ($1.6B) exceed its short term liabilities ($893.0M).

Long Term Liabilities: LOGI's short term assets ($1.6B) exceed its long term liabilities ($155.6M).


Debt to Equity History and Analysis

Debt Level: LOGI is debt free.

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

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

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


Balance Sheet

Inventory Level: LOGI has a low level of unsold assets or inventory.

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


Next Steps

Dividend

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

1.90%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.6%markettop25%4.1%industryaverage1.3%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: LOGI's dividend (1.9%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: LOGI's dividend (1.9%) is low compared to the top 25% of dividend payers in the US market (4.09%).


Stability and Growth of Payments

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

Growing Dividend: LOGI's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.3%), LOGI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LOGI's dividends in 3 years are forecast to be well covered by earnings (32% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Bracken Darrell (56yo)

7.1yrs

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 ($USD8.40M) is about average for companies of similar size in the US market ($USD6.47M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bracken Darrell
President7.1yrsUS$8.40m0.35% $22.6m
Guerrino De Luca
Executive Director21.7yrsUS$1.90m0.19% $12.6m
Nathan Olmstead
CFO & Principal Accounting Officer0.8yrsno datano data
Massimo Rapparini
Chief Information Officer1.1yrsno datano data
Ben Lu
Vice President of Investor Relations0yrsno datano data
Craig Malloy
Senior Vice President and Chief Executive Officer of Life Size Communications6yrsno datano data
Alastair Curtis
Chief Design Officer0yrsno datano data
Krista Todd
Vice President of Global Communications - USA0yrsno datano data
Scott Wharton
General Manager of Video Collaboration Group0yrsno datano data
Delphine Donne-Crock
General Manager of Creativity & Productivity0yrsno datano data

1.1yrs

Average Tenure

56yo

Average Age

Experienced Management: LOGI's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Bracken Darrell
President7.1yrsUS$8.40m0.35% $22.6m
Guerrino De Luca
Executive Director21.7yrsUS$1.90m0.19% $12.6m
Patrick Aebischer
Independent Non-Executive Director3.4yrsUS$239.30k0.0076% $494.4k
Daniel Borel
Chairman Emeritus4.4yrsUS$25.72kno data
Neil Hunt
Lead Independent Director0yrsUS$269.04k0.038% $2.5m
Didier Hirsch
Independent Non-Executive Director7.4yrsUS$274.09k0.011% $740.6k
Edouard Bugnion
Independent Non-Executive Director4.4yrsUS$259.94k0.017% $1.1m
Marjorie Lao
Independent Director1.4yrsUS$202.48k0.0015% $96.7k
Wendy Becker
Independent Chairperson0.4yrsUS$254.30k0.0045% $293.2k
Neela Montgomery
Independent Non-Executive Director2.4yrsUS$240.39k0.0034% $222.0k

4.4yrs

Average Tenure

56.5yo

Average Age

Experienced Board: LOGI's board of directors are considered experienced (4.4 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Logitech International S.A.
  • Ticker: LOGI
  • Exchange: NasdaqGS
  • Founded: 1981
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: CHF6.338b
  • Listing Market Cap: CHF6.530b
  • Shares outstanding: 167.31m
  • 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 worldwide. The company offers portable wireless Bluetooth and Wi-Fi speakers, PC speakers, PC headsets, in-ear headphones, and wireless audio wearables; gaming mice, keyboards, headsets, mousepads, and steering wheels and flight sticks; and audio and video, and other products that connect small and medium sized user groups. It also provides keyboards and covers for tablets and smartphones, as well as other accessories for mobile devices; pointing devices, such as PC and Mac-related mice, touchpads, and presenters; corded and cordless keyboards, living room keyboards, and keyboard-and-mouse combos; PC-based Webcams; and remote control and home automation products. The company sells its products through direct sales to retailers and e-tailers, as well as indirect sales through distributors. Its channel network includes consumer electronics distributors, retailers, mass merchandisers, specialty electronics stores, computer and telecommunications stores, value-added resellers, and online merchants. The company was founded in 1981 and is headquartered in Lausanne, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:45
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
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.