The Swatch Group AGXSWX:UHR -1.75%69 Gross Margin % is 71.31% as of Dec. 2025, which is 7% below its 10-year median of 77.09. GuruFocus rates XSWX:UHR with a GF Score™ of 69/100 and a GF Value™ of CHF129.52 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,117 Retail - Cyclical companies, The Swatch Group AG ranks better than 96.69% on this metric.
The historical rank and industry rank for The Swatch Group AG's Gross Margin % or its related term are showing as below:
XSWX:UHR'
s Gross Margin % Range Over the Past 10 Years
Min: 72.44 Med: 77.09 Max: 80.26
Current: 77.23
During the past 13 years, the highestGross Margin % of The Swatch Group AG was 80.26%. The lowest was 72.44%. And the median was 77.09%.
XSWX:UHR's Gross Margin % is ranked better than 96.69% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.23
vs XSWX:UHR: 77.23
The Swatch Group AG had a gross margin of 71.31% for the quarter that ended in Dec. 2025 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for The Swatch Group AG was 1.20% per year.
The Swatch Group AG (XSWX:UHR) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
The Swatch Group AG had a gross margin of 71.31% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
The Swatch Group AG Gross Margin % Related Terms
The Swatch Group AG Gross Margin % Historical Data
* Premium members only.
The historical data trend for The Swatch Group AG's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Luxury Goods subindustry, The Swatch Group AG's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Swatch Group AG Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Swatch Group AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Swatch Group AG's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
The Swatch Group AG (XSWX:UHR) has a Gross Margin % of 71.31% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on The Swatch Group AG and its competitors. This is near median its historical median of 77.09. Over the past decade, The Swatch Group AG's Gross Margin % has ranged from 72.44 to 80.26. According to the industry distribution chart, The Swatch Group AG ranks #37 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 3.3%.
Is The Swatch Group AG's Gross Margin % too high?
The Swatch Group AG's current Gross Margin % of 71.31% is near median its 10-year median of 77.09. Over the past 10 years, this metric has ranged from a low of 72.44 to a high of 80.26. The Retail - Cyclical industry median Gross Margin % is 36.23. The Swatch Group AG's value of 71.31% is 96.8% above this industry median. Based on the distribution chart, The Swatch Group AG ranks #37 out of 1117 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, The Swatch Group AG has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The Swatch Group AG's Gross Margin % compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, The Swatch Group AG ranks #37 out of 1117 companies for Gross Margin %. This places The Swatch Group AG in the top 3% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.23. The Swatch Group AG's value of 71.31% is 96.8% above this benchmark. Historically, The Swatch Group AG's own Gross Margin % has ranged from 72.44 to 80.26 over the past decade. While the company's 10-year median is 77.09 vs. the industry median of 36.23, The Swatch Group AG has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Swatch Group AG's current Gross Margin % of 71.31% is 96.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on The Swatch Group AG and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Swatch Group AG's current Gross Margin % is 71.31%, which is near median its own 10-year median of 77.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Swatch Group AG stock overvalued right now?
Based on GuruFocus' analysis, The Swatch Group AG (XSWX:UHR) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF129.52, compared to a current price of CHF202.60 — trading 56.4% above its estimated fair value. The current Gross Margin % is 71.31%, which is near median its 10-year median of 77.09 and 96.8% above the Retail - Cyclical industry median of 36.23. The Swatch Group AG's overall GF Score™ is 69/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For The Swatch Group AG (XSWX:UHR), the current Gross Margin % is 71.31% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Swatch Group AG (XSWX:UHR) Overvalued in 2026?
Based on GuruFocus' analysis, The Swatch Group AG stock appears to be overvalued.
The current stock price of CHF202.60 is trading 56.4% above its estimated GF Value™ of CHF129.52.
GuruFocus considers The Swatch Group AG to be Significantly Overvalued.
Key valuation signals for XSWX:UHR:
Gross Margin %: 71.31% (near median its 10-year median of 77.09)
GF Value™: CHF129.52 vs. price of CHF202.60 (56.4% above fair value)
Industry Position: 96.8% above the Retail - Cyclical median (#37 of 1117)
No single metric tells the full story. See the XSWX:UHR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Swatch Group's biggest brands are Omega (number two or three in its category), Breguet, Tissot (the leader in midrange Swiss watches), and Swatch. The company employs over 32,000 people, half of them in Switzerland. We estimate Omega and Longines to be the group's most profitable brands.
69GF Score
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