Should I Buy Compagnie Financière Richemont Stock in 2025?

What is Compagnie Financière Richemont?

What is the price of Compagnie Financière Richemont stock?

The price of Compagnie Financière Richemont stock is falling this week. As of now, CFR is trading at CHF 155.90, reflecting a 24-hour decline of 2.38% and a weekly decrease of 4.44%.

Richemont’s moderate volatility and established presence in South Africa offer both caution and opportunity for investors monitoring changing market conditions.

Our full analysis on the Compagnie Financière Richemont stock

Having thoroughly examined Compagnie Financière Richemont SA’s latest financial disclosures and assessed its stock trajectory over the past three years, we leveraged a robust combination of multi-source analytics, integrating key financial ratios, technical indicators, strategic industry positioning, and peer comparison through proprietary algorithms. Against this backdrop of rigorous analysis, one pivotal question emerges: Why could Richemont once more represent a strategic gateway into the global luxury goods sector as we approach 2025?

Recent Performance and Market Context

Richemont’s current share price stands at CHF 155.90, reflecting a year-on-year gain of +8.41%, and a compelling six-month rally of +27.89%. While recent weeks saw a modest correction, with a -4.44% drop over the last seven days, this pullback must be contextualised within the wider framework of robust performance and periodic sector rotation. Notably, the share price remains comfortably above its 52-week low (CHF 112.80), underscoring a strong recovery trajectory.

Recent results serve as a meaningful short-term catalyst. The company’s Q4 2025 sales reached €5.17 billion (at constant rates, +7% year-on-year), decisively beating consensus estimates (€4.98 billion). This positive surprise spurred a one-day jump of nearly 7% in Richemont shares on May 16, 2025—clear evidence that the market continues to reward outperformance.

The macroeconomic context also plays favourably into Richemont’s hands. The luxury sector rebounded in Europe, the Americas, and Japan, offsetting lingering headwinds in China. Richemont’s broad geographic revenue base works as a shock absorber, enabling it to capture growth in regions where affluent consumer spending remains resilient, even as certain Asian markets mature.

Technical Analysis

From a technical perspective, Richemont presents a particularly interesting setup. The 14-day RSI stands at 31.59, with the Stochastic RSI at 0—both classic markers of the stock entering oversold territory. Similarly, the MACD remains negative (-0.65), an additional sign that current price action reflects short-term consolidation rather than fundamental weakness.

• The 20-day (CHF 154.35), 50-day (CHF 150.54), and 200-day (CHF 143.68) moving averages all sit below the current price—suggesting active support and a structural bullish bias.
• Only the 100-day moving average (CHF 159.72) remains just above the current price, pointing to a possible inflection area and dynamic resistance.

Attention should be paid to a solid technical support level at CHF 150.73, which has consistently underpinned rebounds, and a near-term resistance at CHF 160.40, which—if overcome—could clear the way for a retest of prior highs in the CHF 180–187.50 corridor.

In summary, Richemont’s present oversold status and proximity to strong technical support suggest the stock is nearing, or has already formed, an attractive technical base for renewed upward momentum.

Fundamental Analysis

Despite global economic uncertainties, Richemont has managed to deliver solid topline growth. For FY 2025 (ended March), revenues climbed to €21.4 billion, up 4% from the previous year. While operational profit dipped somewhat (-7%, at €4.5 billion) and margin moderation was noted (20.9% vs. 23.3% in FY 2024)—primarily driven by increased gold prices and input costs—net profit from continuing operations held steady at €3.8 billion (-1% YoY).

These numbers highlight Richemont’s capacity to grow both revenue and profit even in a challenging global climate, with group profitability remaining significantly above industry averages. More crucially, revenue from its core Jewellery Maisons—namely Cartier and Van Cleef & Arpels—expanded at double-digit rates, offsetting sector headwinds in watches.

Valuation remains highly compelling given Richemont’s sector leadership: A TTM P/E ratio of 26.11 and dividend yield of 1.92%, with a progressive dividend policy (proposed dividend up 9% to CHF 3.00 per share), and a strong net cash position (€8.3 billion), all mark Richemont as one of the more attractive blue chips in the luxury universe.

• Brand portfolio: A collection of sector-defining names (Cartier, Van Cleef & Arpels, Jaeger-LeCoultre, IWC, Montblanc) ensures pricing power and timeless demand.
• Market share: Richemont solidifies its standing among the leaders of global luxury, underscoring 25 years of uninterrupted sector expansion.
• Innovation and resilience: Proven adaptability and a strong commitment to craftsmanship and innovation, especially in digital and omnichannel distribution.

These assets combine to make the recent moderation in margins appear not as a sign of structural vulnerability, but rather a temporary phase within an ongoing growth cycle.

Volume and Liquidity

Liquidity metrics further reinforce Richemont’s investment case. The average daily volume over the past three months stands at 1.157 million shares, underlining persistent and healthy investor interest—notably on primary (SIX) and secondary (JSE) listings, ensuring investors in ZA benefit from seamless access.

With 503 million shares in free float and a total of 537.58 million shares outstanding, Richemont boasts a float conducive to price discovery and dynamic valuations—important for institutional and retail investors alike. Sustained trading activity even in correction phases demonstrates the market’s underlying confidence in Richemont’s value proposition.

Catalysts and Positive Outlook

Several near- and mid-term catalysts position Richemont for further upside:

• Strategic leadership: Appointment of Nicolas Bos (formerly CEO of Van Cleef & Arpels) as group CEO in June 2024 brings a renewed focus on product innovation and digital engagement, aligning with evolving consumer trends in luxury retail.
• Brand expansion and M&A: The acquisition of Italian jeweller Vhernier and the divestment of YNAP (yielding a strategic stake in Mytheresa/LuxExperience) sharpen Richemont’s focus on high-margin core businesses, and strengthen exposure to thriving e-commerce channels.
• Geographical rebalancing: Amid temporary softness in China (-23% YoY), Richemont has successfully captured double-digit growth in Europe (+10%), the Americas (+16%), and especially Japan (+25%), evidencing geographic diversification.
• ESG leadership: Continuing investment in craftsmanship, heritage, and sustainability—which resonates with newer generations of affluent consumers—may deepen Richemont’s customer base and brand equity.

Consensus analyst price targets reflect this optimism: With a mean target of CHF 172.87 and upside calculations suggesting CHF 202.67 (+30% from current price), Richemont stands out as a rare blend of stability and high re-rating potential.

Investment Strategies

Richemont presents multiple viable entry points for investors with differing time horizons:

• Short-term: Technical indicators suggest the shares are consolidating at a strong support level (CHF 150.73), in an oversold state. This may represent an ideal tactical entry for those seeking a rebound aligned with the next leg of the luxury sector’s upcycle.
• Medium-term: The positive aftermath of Q4 earnings, further roll-out of post-M&A synergies, and executive leadership transition all point to a multi-quarter window of opportunity as new initiatives begin to reflect in earnings.
• Long-term: Richemont’s enviable market positioning, unparalleled brand portfolio, robust cash reserves, and progressive dividend policy create a compelling case for portfolio anchoring. The group’s continuous reinvestment in innovation and talent ensures it remains well-insulated from sectoral disruptions.

For investors seeking to capitalise on volatility, the recent pullback post-results, set against mid-term catalysts and continuing analyst support, could be especially notable.

Is It the Right Time to Buy Compagnie Financière Richemont?

Richemont’s recent performance confirms the strength and resilience of its core franchises, especially the Jewellery Maisons, while successful strategic pivots have broadened its growth footprint beyond a single geography or product line. Technical readings indicate that the stock is entering a renewed phase of attractiveness, with oversold signals converging with robust support levels—a scenario that historically has preceded upward inflections.

On fundamentals, Richemont’s strong cash generation, iconic brands, and strategic realignment underpin superior quality versus sector peers, whether measured by profitability, balance sheet strength, or innovation capacity.

While sector risks such as macro headwinds in China cannot be overlooked, the group’s rapid expansion in Europe, the Americas, and Japan, and its focus on building resilient, diversified revenue streams help to neutralise these risks. Leadership succession, targeted acquisitions, and relentless ESG commitment offer clear long-term value creation levers.

From both a structural and tactical viewpoint, Richemont’s current valuation, supportive technical structure, and strategic rebalancing all seem to represent an excellent opportunity for investors seeking quality exposure to global luxury. The fundamentals, recent catalysts, and a consensus target price well above current levels justify renewed interest, with the stock potentially entering a new bullish phase as 2025 unfolds.

For investors in South Africa and beyond who value diversified, sector-leading exposure with robust medium- to long-term prospects, Compagnie Financière Richemont stands out as a compelling consideration. The confluence of technical resilience, financial strength, and strategic clarity position this stock at the threshold of an appealing new cycle—one that should be closely watched by those seeking premium opportunities in the luxury sector.

How to buy Compagnie Financière Richemont stock in South Africa?

Buying Compagnie Financière Richemont stock online is straightforward and secure when you go through a regulated broker in South Africa. Investors typically choose between two main methods: direct spot buying, where you actually own the shares, and contract for difference (CFD) trading, which allows you to speculate on the share price without owning the underlying asset. Both options offer flexibility for different investment goals. Below, you’ll find a practical comparison of brokers to help you select the right platform for your needs.

Cash buying (Spot Purchase)

A spot purchase means you buy Compagnie Financière Richemont shares directly and become a shareholder, benefiting from price changes and dividends. On the Johannesburg Stock Exchange (JSE), these shares trade under the ticker CFRJ and are settled in South African rand (ZAR). Brokers typically charge a fixed commission per transaction, often between R70 and R150 per order, plus a small percentage fee.

Example

Let’s say the current Richemont share price is about R3,150 (using an exchange rate of CHF 1 ≈ R20.20; CHF 155.90 ≈ R3,150). With a R19,500 investment (about $1,000), minus a typical R100 brokerage fee, you can buy around 6 shares (R19,500/R3,150).

Gain scenario:
If the share price rises by 10%, your shares are now worth R21,450.
Result: +R1,950 gross gain, which is a 10% return on your investment.

CFD trading

CFD (Contract for Difference) trading allows you to speculate on Richemont's price movements without actually owning the shares. With CFDs, you can trade both rising and falling markets and apply leverage to amplify your position. The key costs include the bid-ask spread and overnight financing fees if you hold your position longer than a day.

Example

You open a CFD position on Richemont shares with a R19,500 margin and 5x leverage, giving you R97,500 market exposure.

Gain scenario:
If the Richemont share price goes up by 8%, your position earns 8% × 5 = 40%.
Result: +R7,800 profit on your R19,500 initial margin (excluding fees).

Final advice

Before investing, it’s essential to compare brokers’ fees, trade execution, and service quality. Spot buying suits long-term investors seeking direct share ownership and dividends, while CFDs are more suited to active traders comfortable with higher risk and leverage. Your choice should reflect your goals and risk profile. For a side-by-side view of local brokers and their conditions, check our broker comparison further down the page.

Our 7 tips for buying Compagnie Financière Richemont stock

The latest news about Compagnie Financière Richemont

Richemont shares remain accessible to South African investors via their listing on the Johannesburg Stock Exchange (CFRJ). This local listing continues to facilitate liquidity and direct exposure for South African institutional and retail investors, making Richemont a key option in the luxury goods segment for local equity portfolios and indices. The company’s inclusion in major indices such as the Swiss Market Index and its presence on the JSE reinforce its significance for South African market participants, particularly given the prominence of South African founder and chairman Johann Rupert, who is a well-recognized figure in the local business community.

Richemont’s recent FY2025 results, published in late May, surpassed consensus estimates and triggered a nearly 7% positive market reaction. The group posted revenue of €21.4 billion for the year, up 4% versus 2024, and net income from continuing operations of €3.8 billion, only down 1% despite operating margin compression. Notably, Q4 sales grew 7% at constant exchange rates, with double-digit gains in the Jewellery Maisons segment, which includes iconic brands like Cartier and Van Cleef & Arpels—both of which remain highly sought after in the South African luxury market. This performance supports analyst consensus targets, which project a further potential upside from current price levels.

Ongoing geographic diversification has benefitted Richemont, with strong growth outside Asia and a positive sales dynamic in Europe, the Americas, and Japan. The company has effectively reduced its historic reliance on China, an important point for South African analysts tracking global luxury trends and currency exposure, given local investors’ frequent quest for geographic risk balance. Growth of +10% in Europe, +16% in the Americas, and +25% in Japan illustrates the group’s broadened footprint and strategic resilience, which underpins its stability for ZA investors seeking robust international diversification.

The positive dividend policy, featuring a proposed 9% increase and continued strong net cash, provides assurance for income-focused South African investors. Richemont’s board has proposed a CHF 3.00 per share dividend, supported by a net cash position of €8.3 billion. While Swiss withholding tax is applicable, South African investors have access to reduced tax rates under the Switzerland-South Africa double taxation agreement, making Richemont relatively attractive for its steady yield and reliability in hard-currency dividend income, especially amidst local currency volatility.

Richemont’s leadership transition, with the appointment of Nicolas Bos (ex-CEO Van Cleef & Arpels), signals a sustained focus on luxury innovation and brand equity, both critical for global and local strategic relevance. This move is seen positively by analysts, as Bos’s expertise in building Maison desirability aligns well with the evolving aspirational demand seen in South Africa’s upper-income segments. Combined with the recently completed disposal of YNAP and the acquisition of new high-end jewellery houses such as Vhernier, Richemont’s management actions reinforce its premium positioning—an essential consideration for ZA investors monitoring global brands that resonate locally.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.