Trade the Logitech share!
LOGITECH

Analysis before buying or selling Logitech shares

Trade the Logitech share!
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If you are considering investing in the Logitech share price or adding this Swiss stock to your technology portfolio, we recommend that you first take the time to understand who this company is and the environment in which it operates. In this article, we will present you with key data about Logitech, its activities and revenue sources, its main competitors in the market, its recent partners and we will also explain how to perform a good fundamental analysis of this stock.

Elements to consider before selling or buying Logitech shares

Analysis N°1

The group's innovations that may enable it to stand out from the competition. In particular, the company's investments in research and development and any technological partnerships that have been set up should be studied.

Analysis N°2

It will also be necessary to look at the group's marketing strategy, which currently aims to reach a wider customer base by targeting different market segments that are not currently accessible.

Analysis N°3

Similarly, it will be necessary to keep an eye on the competition in this sector with news and updates from the biggest players in the sector, particularly in terms of innovation and pricing policy.

Analysis N°4

The health of the global economy, particularly in the developed world, will also have an impact on demand and therefore on the profitability of this company.

Analysis N°5

Finally, the group's quarterly and annual results should be closely monitored and compared with analysts' expectations and the company's own forecasts and targets.

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General presentation of Logitech

Let's take a look at Logitech to make sure you have all the important information about the company's business and its main sources of income. A good knowledge of this company is essential if you want to bet on its share price. Here is a complete overview of the Logitech Group.

The Logitech Group is a Swiss company that operates in the IT and technology sector. More specifically, the company is currently one of the world's largest players in the design, manufacture and sale of computer peripherals.

To better understand the Logitech Group's activities, it is possible to divide them into different divisions according to the share of turnover they generate and in this way:

  • Game controllers represent 23.2% of the group's turnover.
  • The next largest category is keyboards and combos with 19.2% of turnover.
  • Trackballs represent 19.2% of turnover.
  • Video conferencing systems and webcams generate 16.6% of turnover.
  • Portable and PC audio systems generate 9.2% of turnover with headphones, earphones, wireless music systems and others.
  • Mobile speakers generate 7.5% of turnover.
  • Remote controls represent 1.5% of the turnover.
  • Finally, the remaining 4.5% of turnover comes from other types of products.

The Logitech Group markets all these products through specialised shops.

It is also interesting to know the geographical distribution of the group's revenues, with 31.7% of its turnover coming from Europe, Middle East and Africa, 43.2% from the Americas and 25.1% from Asia Pacific.

Analysis before buying or selling Logitech shares
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The major competitors of Logitech

Although the Logitech Group is now one of the world's leading companies in its field, there are some major competitors that can easily take market share from it and that you should take into account in your analysis. Here is a presentation of the main players in this field:

Microsoft Corporation 

This American multinational company is of course a direct competitor of Logitech. It is mainly active in the development and marketing of operating systems, software and related hardware and employs more than 148,000 people in 120 countries worldwide. The group is also listed on the Nasdaq, where it is currently one of the largest capitalisations.

Razer Inc

This other computer company based in Singapore was founded in 2005. Its main activity today is the development and sale of computer peripherals for gamers.

Philips 

Philips is a Dutch IT company based in Amsterdam. It is also one of the leaders in lighting and medical equipment. The group employs more than 114,000 people in about 100 countries and organises its activities into three divisions

Samsung Electronics 

The last major competitor of Logitech is currently the Korean group Samsung Electronics, which specialises in the manufacture of electronic products. The group employs 308,745 people and is one of the largest companies in the world. Recently, the group has diversified into the consumer electronics sector.


The major partners of Logitech

While the Logitech Group has many rivals in its market, it can also set up ambitious strategic partnerships with other companies. To understand the interest of this type of event, we now propose three concrete examples of this type of alliance:

Loco

In 2021, the group signed a strategic partnership with Loco, which is the leading esport and live game streaming platform in France. As a result, the PC gaming community is expected to be worth $36.9 billion and the two companies, which are currently leaders in their respective industries, have partnered to host one of the largest PC gaming tournaments in France.

Riot Games

Another partnership was also recently signed between Logitech and Riot Games as part of the launch of League of Legends-themed peripherals in Brazil. This is actually the second product line to come out of a partnership between these two companies, which had started in 2019 with themed products from the virtual girl band K/DA. The League of Legends product line that will come out of this new agreement is going to include the G Pro X gaming headset, the G Pro mechanical keyboard, the G Pro wireless mouse and the G840 XL mouse pad with unique illustrations of Summoner's Rift, the setting of epic League of Legends matches, among others.

McLaren

Finally, in 2020, the group also established a strategic alliance with McLaren. This is actually a renewal of a partnership between the two companies aimed at taking motor racing into a new era by combining McLaren's motorsport heritage with Logitech's expertise in simracing, gaming and esports. As a result, the two companies will be able to accelerate their esport partnership together this year.

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Frequently Asked Questions

How is the Logitech Group's shareholding composed?

The Logitech Group's share capital is largely free float capital traded on the market. The remaining capital is owned by Capital Research & Management Global Investors (8.2%), Credit Suisse Securities (4.04%), Walter Scott & Partners (3.56%), UBS Asset Management Switzerland (3.01%), Norges Bank Investment Management (3.01%), Daniel Borel (2.99%), Marathoon Asset Management (2.98%), Thornburg Investment Management (2.80%), The Vanguard Group (2.40%) and Credit Suisse Asset Management (2.21%).

What brands are owned by Logitech?

The Logitech Group operates several brands including QuickCam, Lifesize, Jaybird, Ultimate Ears, Blue Microphones and Streamlabs. These brands enable it to distribute various types of products, including microphones and headphones for professionals, portable waterproof and wireless speakers, webcams, computer accessories and an online streaming tool.

How can you anticipate future trends in Logitech's share price?

To find out how the Logitech share is likely to evolve in the short, medium and long term, you need to perform several types of analysis. The first of these is technical analysis, which is based on the study of stock market charts and the various indicators. The second analysis, which complements this graphical analysis, is fundamental analysis, which is based on the study of major publications likely to influence the stock market.

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