| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 17.60 | -50 |
| Graham Formula | 4.20 | -88 |
Lalique Group SA (LLQ.SW) is a Zurich-based luxury goods company renowned for its exquisite craftsmanship in perfumes, cosmetics, crystal, jewelry, high-end furniture, and lifestyle accessories. Operating under prestigious brands like Lalique, Jaguar Fragrances, Ultrasun, Bentley Fragrances, and The Glenturret, the company caters to affluent consumers globally. Lalique Group also extends its luxury expertise into gastronomy and hospitality, managing high-end hotels and restaurants. Founded in 2000 and listed on the Swiss Exchange (SIX), the company has evolved from Art & Fragrance SA to its current identity, reflecting its deep heritage in art and luxury. With a market cap of CHF 267.75 million, Lalique Group competes in the high-margin luxury sector, leveraging brand prestige and diversified revenue streams across retail, hospitality, and B2B channels. Its Swiss heritage and global distribution network position it as a niche but influential player in the luxury consumer cyclical sector.
Lalique Group SA presents a mixed investment case. On the positive side, its diversified luxury portfolio—spanning fragrances, crystal, and hospitality—provides resilience against sector-specific downturns. The company’s strong brand equity and Swiss craftsmanship appeal to high-net-worth consumers, supporting premium pricing. However, challenges include modest profitability (net income of CHF 2.55 million in 2023) and negative operating cash flow (CHF -2.92 million), raising concerns about liquidity. The dividend yield (~1.9% at a CHF 0.50 per share payout) is attractive but may be unsustainable if cash flow issues persist. With a beta of 0.83, the stock is less volatile than the market, appealing to conservative investors. Long-term growth hinges on expanding high-margin segments like whisky (The Glenturret) and Asia-Pacific markets. Investors should weigh its brand strength against operational inefficiencies and debt (CHF 65.41 million).
Lalique Group operates in the highly competitive luxury goods sector, where differentiation through heritage, craftsmanship, and exclusivity is critical. Its competitive advantage lies in its multi-brand strategy, combining legacy (Lalique crystal) with modern luxury (Bentley Fragrances). The Glenturret whisky diversifies revenue into premium spirits, a high-growth niche. However, Lalique’s smaller scale (CHF 176.8 million revenue) limits economies of scale compared to giants like LVMH. Its hospitality segment adds uniqueness but carries higher operational risks. The company’s Swiss provenance enhances prestige but may limit cost flexibility. Competitively, Lalique is a niche player, outperforming in artisanal categories but lagging in digital and omnichannel capabilities. Its reliance on licensing (e.g., Bentley) is a double-edged sword—expanding reach but diluting control. To thrive, Lalique must invest in direct-to-consumer channels and Asian markets while maintaining exclusivity. Its debt-to-equity ratio (~0.24) is manageable but requires careful monitoring given cash flow volatility.