SWGAF (The Swatch Group AG) Operating Income: $168 Mil (TTM As of Dec. 2025)

What is The Swatch Group AG Operating Income?

The Swatch Group AG SWGAF 71 Operating Income is $168 Mil as of Dec. 2025. GuruFocus rates SWGAF with a GF Score™ of 71/100 and a GF Value™ of $164.57 (Significantly Overvalued). The stock has 10 warning signs investors should review.

The Swatch Group AG's Operating Income for the six months ended in Dec. 2025 was $84 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was $168 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. The Swatch Group AG's Operating Income for the six months ended in Dec. 2025 was $84 Mil. The Swatch Group AG's Revenue for the six months ended in Dec. 2025 was $4,042 Mil. Therefore, The Swatch Group AG's Operating Margin % for the quarter that ended in Dec. 2025 was 2.08%.

Good Sign:

The Swatch Group AG operating margin is expanding. Margin expansion is usually a good sign.

The Swatch Group AG's 5-Year average Growth Rate for Operating Margin % was 2.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. The Swatch Group AG's annualized ROC % for the quarter that ended in Dec. 2025 was 0.11%. The Swatch Group AG's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 1.74%.

The Swatch Group AG (OTCPK:SWGAF) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

The Swatch Group AG's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

	ROC % (Q: Dec. 2025 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2025 )	+	Invested Capital (Q: Dec. 2025 ))	/ count )
=	168.152 * ( 1 - 90.7% )	/	( (14806.935	+	14886.435)	/ 2 )
=	15.638136	/	14846.685
=	0.11 %

where

	Invested Capital		(Q: Jun. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	16672.405	-	296.36	-	( 1569.11	-	max(0, 1425.234	-	11988.441	+	1569.11	))
=	14806.935

	Invested Capital		(Q: Dec. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	16785.042	-	356.381	-	( 1542.226	-	max(0, 1233.53	-	12042.916	+	1542.226	))
=	14886.435

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

The Swatch Group AG's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2025 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2025		Q: Dec. 2025
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	223.366	/	( ( (3833.005 + max(8885.882, 0))	+	(3916.426 + max(9107.792, 0)) )	/	2 )
=	223.366	/	( ( 12718.887	+	13024.218 )	/	2 )
=	223.366	/	12871.5525
=	1.74 %

where Working Capital is:

	Working Capital		(Q: Jun. 2025 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(735.366	+	9124.447	+	223.807)	-	(296.36	+	0	+	901.378)
=	8885.882

	Working Capital		(Q: Dec. 2025 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(745.388	+	9154.223	+	397.791)	-	(356.381	+	0	+	833.229)
=	9107.792

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. Operating Income is also linked to Operating Margin %:

The Swatch Group AG's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2025 )	/	Revenue (Q: Dec. 2025 )
	=	84.076	/	4041.912
	=	2.08 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

The Swatch Group AG Operating Income Related Terms

The Swatch Group AG Operating Income Historical Data

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The historical data trend for The Swatch Group AG's Operating Income can be seen below:

The Swatch Group AG Operating Income Chart

The Swatch Group AG Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Operating Income

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1,108.58

1,243.02

1,377.20

343.20

169.41

The Swatch Group AG Semi-Annual Data
	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24	Jun25	Dec25
Operating Income	Get a 7-Day Free Trial															583.95	228.24	114.40	83.62	84.08

71GF Score

The Swatch Group AG SWGAF

Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.

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The Swatch Group AG Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was $168 Mil.

Frequently Asked Questions Learn more about Operating Income →

What does a Operating Income of $168 Mil mean?

The Swatch Group AG (SWGAF) has a Operating Income of $168 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on The Swatch Group AG and its competitors.

Is The Swatch Group AG's Operating Income too high?

The Swatch Group AG's current Operating Income is $168 Mil. Overall, The Swatch Group AG has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does The Swatch Group AG's Operating Income compare to TPR and SIG?

The Swatch Group AG's Operating Income of $168 Mil can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Operating Income for a Retail - Cyclical company?

A good Operating Income depends on the Retail - Cyclical industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Operating Income mean?

A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on The Swatch Group AG and its competitors. The Swatch Group AG's current Operating Income is $168 Mil. 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 (SWGAF) is currently considered Significantly Overvalued. The stock's GF Value™ is $164.57, compared to a current price of $257.43 — trading 56.4% above its estimated fair value. The current Operating Income is $168 Mil. The Swatch Group AG's overall GF Score™ is 71/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Operating Income calculated?

Operating Income is calculated from a company's financial statements. For The Swatch Group AG (SWGAF), the current Operating Income is $168 Mil 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 (SWGAF) Overvalued in 2026?

Based on GuruFocus' analysis, The Swatch Group AG stock appears to be overvalued. The current stock price of $257.43 is trading 56.4% above its estimated GF Value™ of $164.57. GuruFocus considers The Swatch Group AG to be Significantly Overvalued.

Key valuation signals for SWGAF:

Operating Income: $168 Mil
GF Value™: $164.57 vs. price of $257.43 (56.4% above fair value)
GF Score™: 71/100 with 10 warning signs

No single metric tells the full story. See the SWGAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

The Swatch Group AG Business Description

Industry Consumer Cyclical Retail - Cyclical

Comparable Companies XSWX:AVOL XSWX:MOZN XPAR:MC XPAR:RMS XSWX:CFR XPAR:CDI NSE:TITAN XPAR:KER TPR HKSE:01929 HKSE:01913 HKSE:06181 OCSE:PNDORA MIL:BC LSE:BRBY BOM:543278 SIG SZSE:301071 SHSE:600655 SHSE:600612

Other Exchanges SWGNF:USA SWGAY:USA UHRN:Mexico 1UHR:Italy UHRNz:UK UHRz:UK 0QM4:UK 0QJV:UK UHRA:Germany UHRN:Switzerland UHR:Switzerland UHR:Austria

Address Seevorstadt 6, P.O Box 1232, Bienne, CHE, 2501

Website https://www.swatchgroup.com

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.

71GF Score

Get the complete analysis for SWGAF

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$257.43

Price

$164.57

GF Value

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