Logitech International S.A. (LOGN.SW) | Investment Case

1. Company Snapshot

1.a. Company Description

Logitech International S.A., through its subsidiaries, designs, manufactures, and markets products that connect people to digital and cloud experiences worldwide.The company offers pointing devices, such as wireless mouse; corded and cordless keyboards, living room keyboards, and keyboard-and-mouse combinations; PC webcams; and keyboards for tablets and smartphones, as well as other accessories for mobile devices.It also provides keyboards, mice, headsets, and simulation products, such as steering wheels and flight sticks for gamers; video conferencing products, such as ConferenceCams, which combine enterprise-quality audio and high-definition video to bring video conferencing to businesses of any size; webcams and headsets that turn desktop into collaboration space; and controller for video conferencing room solutions.

In addition, the company offers portable wireless Bluetooth and Wi-Fi connected speakers, mobile speakers, PC speakers, PC headsets, microphones, in-ear headphones, and wireless audio wearables; home entertainment controllers, and home security cameras.Its channel network includes consumer electronics distributors, retailers, e-tailers, mass merchandisers, specialty stores, computer and telecommunications stores, value-added resellers, and online merchants.The company sells its products under the Logitech, Logitech G, ASTRO Gaming, Streamlabs, Blue Microphones, Ultimate Ears, and Jaybird brands.

Logitech International S.A. was incorporated in 1981 and is headquartered in Lausanne, Switzerland.

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1.b. Last Insights on LOGN

Logitech International's recent performance was driven by strong Q2 earnings and revenue growth, exceeding analyst expectations. The company's revenue growth projections of 5.3% per year outpace the Swiss market's forecast of 4% annual growth. Robust operating income and product innovation also contributed to the positive trend. Additionally, the company's US consumer segment remains a key growth driver. Logitech's leadership changes, including the election of Guy Gecht as new chairperson, and increased dividend to CHF 1.26 per share, have also boosted investor sentiment.

1.c. Company Highlights

Last Price	95.06
Change Percentage	-0.79%
Open	96.36
Previous Close	95.82
Market Cap ( Millions)	13961
Volume	177523
Year High	98.94
Year Low	54.58
M A 50	90.47
M A 200	79.14

FCF Yield	4.22%
Dividend Yield	1.33%
ROE	29.13%
Debt / Equity	4.28%
Net Debt / EBIDTA	-184.72%
Price To Book	8.0
Price Earnings Ratio	28.16
Price To FCF	23.68
Price To sales	3.77
EV / EBITDA	21.17

2. Logitech's Q2 FY2026 Earnings: A Strong Performance Amidst Uncertainty

Logitech reported a robust second quarter, with net sales growing 4% year-over-year in constant currency, driven by continued demand across both consumer and B2B segments. Non-GAAP operating income rose 19% to $230 million, demonstrating the company's ability to maintain strong profitability. However, EPS came in at $1.15, below estimates of $1.6. Gross margin was sustained, thanks to the company's efforts in managing costs and mitigating the impact of tariffs. The company's B2B segment showed strong growth, outpacing the consumer segment, with Personal Workspace and Video Collaboration being key drivers.

Publication Date: Oct -31

                                    📋 Highlights
                                    Q2 Non-GAAP Operating Income Growth:
                                                Rose to $230M (+19% YoY).<br>
New Product Launches:
                                                16 products introduced, including MX Master 4 and McLaren Racing collection.<br>
Marketing Reach:
                                                Logi PLAY events generated 12M live stream views and 200M social media impressions.<br>
B2B Demand Momentum:
                                                Double-digit growth in Pointing Devices and Keyboards & Combos; 3% growth in Video Collaboration.<br>
Tariff Mitigation:
                                                Full 300 bps gross margin impact offset via pricing and supply chain diversification.<br>

                                

Segment Performance

The company's Gaming segment delivered 5% year-over-year growth in constant currency, driven by double-digit growth in PC gaming. The launch of new products, including the MX Master 4 and the McLaren Racing collection, contributed to the growth. B2B demand was strong across video collaboration, personal workspace solutions, and the education vertical, with Logitech for Business experiencing double-digit demand growth in VC sales.

Outlook and Guidance

Looking ahead to Q3, Logitech expects continued strong momentum in its business, but also notes some market uncertainty, particularly in the North American consumer market, especially in gaming. The company is cautiously optimistic that this will improve for the holiday season. For Q3, Logitech expects a sequential increase in OpEx, mainly in R&D and sales and marketing, but anticipates that its pricing actions and diversification efforts will offset the negative impacts of tariffs.

Valuation and Metrics

With a P/E Ratio of 28.78 and an EV/EBITDA of 21.75, the market appears to be pricing in a certain level of growth and profitability. The company's ROIC of 23.28% and ROE of 29.13% indicate strong returns on investment and equity. Analysts estimate next year's revenue growth at -5.3%, which may impact the stock's performance. The Dividend Yield of 1.3% and Free Cash Flow Yield of 4.12% provide some support to the stock.

3. NewsRoom

United States Wireless Mouse Market Report 2025-2033, Featuring Logitech, Razer, Microsoft, Hewlett Packard Enterprise, Apple, Dell, Lenovo, Samsung

Dec -03

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Assessing Logitech Stock After 24.3% 2025 Rally and DCF Suggests Further Upside

Dec -03

Source:

Logitech Named to Inc. Best in Business 2025 List

Dec -02

Source:

Logitech (LOGI) Q2 2026 Earnings Call Transcript

Nov -27

Source:

Logitech Unveils First U.S. Experience Store in San Francisco’s Union Square

Nov -20

Source:

Is Logitech International S.A. (VTX:LOGN) Trading At A 29% Discount?

Nov -20

Source:

Appspace and Partners Release Expert Guide to AI in Today's Workplace

Nov -18

Source:

Logitech Cybersecurity Disclosure

Nov -14

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.48%)

6. Segments

Gaming

Expected Growth: 4.0%

Logitech's 4.0% growth in gaming is driven by increasing demand for gaming peripherals, rising popularity of esports, and growing adoption of cloud gaming. Additionally, the company's strategic partnerships, innovative product offerings, and expanding presence in emerging markets contribute to its growth momentum.

Keyboards and Combos

Expected Growth: 2.5%

Logitech's keyboards and combos growth is driven by increasing demand for gaming peripherals, rising adoption of remote work and online education, and the company's strategic partnerships with gaming and esports organizations. Additionally, Logitech's focus on innovation, quality, and customer experience has enabled the company to maintain its market leadership and attract new customers.

Pointing Devices

Expected Growth: 2.0%

Logitech's Pointing Devices segment growth of 2.0% is driven by increasing demand for computer peripherals, rising adoption of wireless and ergonomic mice, and growing popularity of gaming and e-sports, which require high-performance pointing devices. Additionally, Logitech's strong brand reputation, innovative product offerings, and expanding distribution channels contribute to the segment's growth.

Video Collaboration

Expected Growth: 5.0%

Logitech's Video Collaboration segment growth is driven by the increasing adoption of remote work, virtual meetings, and digital communication. The COVID-19 pandemic has accelerated this trend, leading to a surge in demand for video conferencing solutions. Logitech's innovative products, such as webcams and conference cameras, are well-positioned to capitalize on this growth, driven by their ease of use, high-quality video, and seamless integration with popular collaboration platforms.

Webcams

Expected Growth: 4.5%

Logitech's webcam segment growth is driven by the rise of remote work and virtual communication, increasing demand for high-quality video conferencing, and growing adoption of streaming and online content creation. Additionally, the shift towards hybrid work models and the need for reliable, high-definition video solutions also contribute to this growth.

Tablet Accessories

Expected Growth: 3.5%

Logitech's tablet accessories segment growth of 3.5% is driven by increasing demand for premium tablet experiences, rising adoption of 2-in-1 devices, and growing popularity of gaming and content creation on tablets. Additionally, Logitech's strong brand reputation, innovative product offerings, and strategic partnerships with leading tablet manufacturers contribute to the segment's growth.

Headsets

Expected Growth: 4.2%

Logitech's headset segment growth of 4.2% is driven by increasing demand for gaming and virtual reality experiences, rising popularity of remote work and online learning, and strategic partnerships with gaming companies. Additionally, Logitech's focus on innovation, quality, and affordability has helped to expand its market share in the gaming and PC peripherals market.

Other

Expected Growth: 2.8%

Logitech's 2.8% growth in 'Other' segment is driven by increasing demand for ASTRO gaming accessories, growth in video conferencing products, and rising sales of OEM keyboard and mouse products. Additionally, the company's expansion into new markets, such as cloud-based services, and strategic partnerships also contribute to this growth.

7. Detailed Products

Mice

Logitech's mice are designed for comfort, precision, and durability, offering a range of wireless and wired options for everyday use.

Keyboards

Logitech's keyboards offer advanced features such as Romer-G mechanical switches, customizable backlighting, and long battery life, designed for gamers, professionals, and everyday users.

Webcams

Logitech's webcams provide high-definition video, wide-angle lenses, and advanced noise reduction, ideal for video conferencing, streaming, and online meetings.

Speakers

Logitech's speakers offer immersive audio, sleek designs, and wireless connectivity, perfect for music lovers, gamers, and home entertainment enthusiasts.

Gaming Accessories

Logitech's gaming accessories, including gaming mice, keyboards, and headsets, are designed for professional gamers and enthusiasts, offering advanced features and customization options.

Video Collaboration

Logitech's video collaboration solutions, including conference cameras and speakerphones, are designed for businesses and organizations, offering high-quality video and audio conferencing.

Home Control

Logitech's home control solutions, including remote controls and automation systems, are designed for smart home enthusiasts, offering convenience and ease of use.

8. Logitech International S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Logitech faces moderate threat from substitutes, as customers can opt for alternative products such as keyboards and mice from other manufacturers.

Bargaining Power Of Customers

Logitech's customers have low bargaining power due to the company's strong brand presence and wide distribution network.

Bargaining Power Of Suppliers

Logitech's suppliers have moderate bargaining power, as the company relies on a few key suppliers for components and materials.

Threat Of New Entrants

The threat of new entrants is low for Logitech, as the company has established a strong brand presence and has a significant market share.

Intensity Of Rivalry

The intensity of rivalry in the computer peripherals industry is high, with Logitech facing competition from established players such as Razer and Corsair.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	3.33%
Debt Cost	3.95%
Equity Weight	96.67%
Equity Cost	6.70%
WACC	6.61%
Leverage	3.45%

11. Quality Control: Logitech International S.A. passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Computacenter

A-Score: 5.7/10

Value: 4.9

Growth: 6.9

Quality: 5.7

Yield: 5.0

Momentum: 6.0

Volatility: 5.7

1-Year Total Return ->

Rexel

A-Score: 5.3/10

Value: 4.9

Growth: 5.2

Quality: 3.0

Yield: 7.5

Momentum: 5.5

Volatility: 5.7

1-Year Total Return ->

Indra Sistemas

A-Score: 5.3/10

Value: 3.4

Growth: 6.9

Quality: 5.6

Yield: 1.9

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

Logitech

A-Score: 5.2/10

Value: 1.6

Growth: 6.9

Quality: 8.1

Yield: 2.5

Momentum: 7.0

Volatility: 5.0

1-Year Total Return ->

A-Score: 5.0/10

Value: 3.4

Growth: 8.0

Quality: 6.9

Yield: 1.2

Momentum: 3.0

Volatility: 7.3

1-Year Total Return ->

ALSO Holding

A-Score: 4.6/10

Value: 5.8

Growth: 3.9

Quality: 4.8

Yield: 3.1

Momentum: 3.0

Volatility: 7.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-1.33%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.61%

Logitech International S.A. - CH0025751329

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on LOGN

1.c. Company Highlights

Better Quality

Strong Momentum

Fairly Valued

Earnings Beats

Revenues Beats

Less Volatile

Stable Momentum

Revenues Miss

Medium Volatility

Average Yield

Average Growth

Weak Momentum

Earnings Miss

Expensive

2. Logitech's Q2 FY2026 Earnings: A Strong Performance Amidst Uncertainty

Segment Performance

Outlook and Guidance

Valuation and Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.48%)

6. Segments

Gaming

Expected Growth: 4.0%

Keyboards and Combos

Expected Growth: 2.5%

Pointing Devices

Expected Growth: 2.0%

Video Collaboration

Expected Growth: 5.0%

Webcams

Expected Growth: 4.5%

Tablet Accessories

Expected Growth: 3.5%

Headsets

Expected Growth: 4.2%

Other

Expected Growth: 2.8%

7. Detailed Products

Mice

Keyboards

Webcams

Speakers

Gaming Accessories

Video Collaboration

Home Control

8. Logitech International S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Logitech International S.A. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

12.e Scoring ^Insights

12.f DCF ^BETA