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Professional

[BLOG] Dan Shuart

Added to YB: 2024-05-20

Pitch date: 2024-05-18

WOSG.L [bullish]

Watches of Switzerland Group PLC

+21.55%

current return

Author Info

Company Info

Watches of Switzerland Group PLC operates as a retailer of luxury watches and jewelry in the United Kingdom, Europe, and the United States.

Market Cap

GBP 878.4M

Pitch Price

GBP 4.07

Price Target

528.32 (+10673%)

Dividend

N/A

EV/EBITDA

5.37

P/E

16.34

EV/Sales

0.86

Sector

Specialty Retail

Category

growth

Show full summary:
Watches Of Switzerland Group: A Value Investor’s Rolex

WOSG.L: Rolex AD trades at 9x earnings despite brand strength, pricing power & growth runway. Rolex acquired Bucherer, stoking disintermediation fears, but Rolex can't easily replicate WOSG's scale. Demand dip post-COVID, but long waitlists & wealthy clients provide stability. US expansion, M&A (Roberto Coin), mono-brand trend & CPO program are growth drivers. Proven unit economics (20-30% ROE), strong cash flows, aligned mgmt. Earnings & multiple have upside.

Read full article (15 min)