Here’s Why Logitech Stock Has Almost Doubled Since 2018 End

April 22nd, 2022 · by Trefis Team
LOGIYTD-0.4%SPYYTD+14.8%QQQYTD+22.6%
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Logitech International (NASDAQ: LOGI) stock price jumped more than 2x from around $31 in 2018 end to almost $66 currently, primarily due to favorable changes in its revenues. However, the company witnessed a drop in its P/S multiple over this period, and a marginal rise in the outstanding share count also weighed on the company’s stock price.

In our interactive dashboard, Why Logitech Stock Moved: LOGI Stock Has Gained 110% Since 2018, we break down the factors behind this move.

(A) Logitech’s Total Revenue has grown 125% from $2.6 billion in 2018 to $5.8 billion on an LTM basis

  • Logitech’s total revenue has seen a steady rise over the past few years, with a gradual increase from $2.6 billion in FY ’18 to $5.3 billion in FY ’21, and currently stands even higher at $5.8 billion on an LTM basis (Logitech’s fiscal year ends in March).
  • Logitech International is a leading manufacturer of computer peripherals and software.
  • As of FY ’21, sales from gaming peripherals make up almost 25% of the company’s sales, standing at $1.24 billion, up from $648 million in FY ’19, a jump of almost 2x in just two years, now coming in as the largest contributor to the company’s revenues.
  • For details about LOGI revenues and comparison to peers, see Logitech (LOGI) Revenue Comparison

(B) Revenue per share (RPS) increased 122% from $15.63 in 2018 to $34.72 currently

  • LOGI revenue rose from $2.6 billion in 2018 to $5.8 billion currently, while the outstanding share count increased marginally from 164.2 million in 2018 to 166.7 million currently.
  • Due to this, RPS has risen from $15.63 in FY ’18 to $34.72 currently.

(C) Price-To-Sales (P/S) multiple for LOGI rose strongly from 2.1x in 2018 to 5.7x by 2020 end, but has pulled back to 1.9x currently, around 10% lower than its 2018 level

  • Due to LOGI’s strong performance between 2018-end to 2021, its P/S multiple rose steadily from 2.1x in 2018 to as high as 5.7x in late-2020, on the back of rising investor expectations surrounding a continued rise in demand for the company’s products.
  • However, despite the recent jump in sales, current geopolitical tensions have led to increased uncertainty in the broader markets, and the P/S multiple has pulled back, currently standing at around 1.9x.
  • For additional details about the company stock returns and comparison to peers, see Logitech (LOGI) Stock Return Comparison.

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 Returns Apr 2022
MTD [1]		 2022
YTD [1]		 2017-22
Total [2]
 LOGI Return -11% -20% 166%
 S&P 500 Return -4% -8% 95%
 Trefis Multi-Strategy Portfolio -6% -14% 240%

[1] Month-to-date and year-to-date as of 4/22/2022
[2] Cumulative total returns since the end of 2016

 

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