Logitech International S.A. (NASDAQ: LOGI)

Sector: Technology Industry: Computer Hardware CIK: 0001032975
Market Cap 14.88 Bn
P/B 7.15
P/E 22.52
P/S 3.18
ROIC (Qtr) 27.31
Div Yield % 1.58
Rev 1y % (Qtr) 6.27
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

Logitech International S.A., a Swiss public company listed on the SIX Swiss Exchange (LOGN) and the Nasdaq Global Select Market (LOGI), operates in the technology industry, specializing in the design, manufacturing, and marketing of software-enabled hardware solutions. These solutions aim to facilitate businesses, bring people together, and extend human potential in various activities such as working, creating, gaming, and streaming. The company's main business activities are divided into six segments: Gaming, Keyboards & Combos, Pointing Devices,...

Read more

Price action

Investment thesis

Bull case

  • Robust free cash flow of 794.56M exceeds capital expenditure of 59.85M by 13.28x, indicating strong organic growth funding capability.
  • Operating cash flow of 854.41M fully covers other non-current liabilities 342.85M by 2.49x, showing strong long-term stability.
  • Operating cash flow of 854.41M provides solid 0.67x coverage of current liabilities 1.28B, showing strong operational health.
  • Tangible assets of 3.23B provide robust 4.62x coverage of other current liabilities 698.05M, indicating strong asset backing.
  • Operating cash flow of 854.41M provides strong 33.88x coverage of operating expenses 25.21M, showing operational efficiency.

Bear case

  • Operating cash flow of 854.41M barely covers its investment activities of (60.24M), with a coverage ratio of -14.18, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 854.41M provides thin coverage of dividend payments of (233.06M) with a -3.67 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (60.24M) provide weak support for R&D spending of 308.19M, which is -0.20x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Retained earnings of 2.99B provide limited buffer against comprehensive income items of (126.49M), which is -23.61x, indicating elevated exposure to market risks.
  • Operating cash flow of 854.41M is outpaced by equity issuance of (516.03M) (-1.66 ratio), indicating concerning reliance on equity markets for funding operations.

Peer comparison

Companies in the Computer Hardware
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ANET Arista Networks, Inc. 164.72 Bn 49.07 19.50 0.00 Bn
2 DELL Dell Technologies Inc. 86.37 Bn 16.20 0.83 31.24 Bn
3 WDC Western Digital Corp 60.34 Bn 23.73 5.03 4.68 Bn
4 STX Seagate Technology Holdings plc 58.67 Bn 34.25 6.14 4.99 Bn
5 SNDK Sandisk Corp 34.41 Bn -19.78 4.42 1.35 Bn
6 PSTG Pure Storage, Inc. 21.84 Bn 167.52 6.27 0.23 Bn
7 HPQ Hp Inc 21.10 Bn 8.34 0.38 9.67 Bn
8 SMCI Super Micro Computer, Inc. 17.45 Bn 22.01 0.83 4.78 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.61 2.06
EV to Cash from Ops. EV/CFO 15.68 -0.65
EV to Debt EV to Debt 0.00 56.37
EV to EBIT EV/EBIT 18.08 2.89
EV to EBITDA EV/EBITDA 17.31 -1.74
EV to Free Cash Flow [EV/FCF] EV/FCF 16.86 -7.44
EV to Market Cap EV to Market Cap 0.90 7.64
EV to Revenue EV/Rev 2.86 78.30
Price to Book Value [P/B] P/B 7.15 -28.73
Price to Earnings [P/E] P/E 22.52 6.39
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.84 1.25
Dividend Payout Ratio % Div Payout % (Qtr) 35.60 12.30
Dividend per Basic Share Div per Share (Qtr) 1.58 0.27
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 29.33 7.93
Interest Coverage Int. cover (Qtr) 0.00 -105.42
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -19.03 -11.38
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.92 867.36
Dividend Growth (1y) % Div 1y % (Qtr) 36.55 4.71
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -5.53 -189.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 3.93 -40.76
EBIT Growth (1y) % EBIT 1y % (Qtr) 2.58 -117.00
EBT Growth (1y) % EBT 1y % (Qtr) 2.58 -116.68
EPS Growth (1y) % EPS 1y % (Qtr) -1.77 -70.06
FCF Growth (1y) % FCF 1y % (Qtr) -18.41 712.64
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 4.57 34.90
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.26 0.80
Cash Payout Ratio Cash Payout (Qtr) 0.25 0.06
Cash Ratio Cash Ratio (Qtr) 1.07 7.26
Current Ratio Curr Ratio (Qtr) 2.15 13.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 -3.57
Interest Cover Ratio Int Coverage (Qtr) 0.00 -105.42
Times Interest Earned Times Interest Earned (Qtr) 0.00 -105.42
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 17.50 -629.92
EBIT Margin % EBIT Margin % (Qtr) 15.82 -683.67
EBT Margin % EBT Margin % (Qtr) 15.82 -687.58
Gross Margin % Gross Margin % (Qtr) 42.80 34.79
Net Profit Margin % Net Margin % (Qtr) 14.10 -692.43