Is Logitech International a Good Computer Hardware Stock to Add to Your Portfolio?

NASDAQ: LOGI | Logitech International S.A. News, Ratings, and Charts

LOGI – Computer peripherals manufacturer Logitech International’s (LOGI) CEO expects robust demand for computer equipment in the coming months amid the continuation of the remote working environment. But given current supply chain disruptions, will LOGI be able to maintain its growth trajectory in the near term? Read more to find out.

Logitech International S.A. (LOGI) is an Apples, Switzerland-based computer peripherals manufacturer and seller. It was the first company to produce and sell computer mice in the 1980s. With a $13.84 billion market cap, LOGI is one of the largest companies in the computer hardware industry. Also, it has an ISS Governance QualityScore of 1, indicating a low governance risk.

The company has benefited immensely from rising demand for computer accessories with the advent of the remote working era. However, supply chain disruptions and an ongoing semiconductor shortage have caused the company’s profit margins to shrink in its fiscal 2022 second quarter, ended September 30, 2021. While LOGI’s revenues increased 4% year-over-year to a record $1.31 billion, its non-GAAP operating income fell 40% from the same period last year to $211 million. Its non-GAAP EPS came in at $1.05, reflecting a 44% decline from the year-ago value.

In a Reuters interview recently, LOGI CEO Bracken Darell said, “We will have some issues delivering at the levels of demand that are out there.” He said he expects the supply chain issues to last until at least March 2022. 

Shares of LOGI have slumped 15.8% in price year-to-date and 33.9% over the past six months.

Here is what could shape LOGI’s performance in the near term:

Impressive Growth Story

LOGI’s revenues have increased at a 29.1% CAGR over the past three years. Its EBITDA and net income have risen at CAGRs of 58.1% and 62.5%, respectively, over the past three years. Its EPS has improved at a  61.3% rate per annum over the past three years, while its levered free cash flow rose at a 24.3 rate per annum over this period. In addition, both its tangible book value and total assets rose at 47.3% CAGRs over this period.

Furthermore, the company’s trailing-12-month revenues increased 59% year-over-year. Its trailing-12-month operating income rose 88.2% from the same period last year, while trailing-12-month EPS improved 37.2% from the year-ago value. And its trailing-12-month EBITDA increased 82.4% year-over-year.

Bleak Growth Prospects

Analysts expect LOGI’s revenues to decline 12% in its fiscal 2022 third quarter (ending December 2021) and 16.4% in the next quarter. The consensus EPS estimates indicate a 49.1% year-over-year decline in the current quarter, a 41.7% slump in the next quarter, and a 32% decline in the current year. Moreover, the Street expects LOGI’s EPS to decline at a 6.4% rate per annum over the next five years.

POWR Ratings Reflect Uncertainty

LOGI has an overall C rating of C, which equates to Neutral in our proprietary POWR Ratings system. The POWR Ratings are calculated considering 118 distinct factors, with each factor weighted to an optimal degree.

The stock has a C grade for Value and Momentum. Its 6.14 trailing-12-month Price/Book multiple is 39.9% higher than the 4.39 industry average. However, LOGI’s 18.74 non-GAAP forward P/E ratio  is 21.5% lower than the 23.88 industry average. These justify its Value grade. In addition, LOGI is currently trading below its $82.84 and $103.40 respective 50-day and 200-day moving averages, indicating a downtrend, in sync with the Momentum grade.

Of the 51 stocks in the C-rated Technology – Hardware industry, LOGI is ranked #35.

In total, we rate LOGI on eight distinct levels. Beyond what we have stated above, we have also rated LOGI for Growth, Sentiment, Stability, and Quality. View all LOGI ratings here.

Bottom Line

Because companies are extending their work-from-home policies as COVID-19 cases rise globally, LOGI is expected to witness surging demand in the coming months. However, current supply chain disruptions and a global semiconductor shortage are expected to impact the company’s profit margins adversely. Thus, we think investors should wait until LOGI’s profit margins improve before investing in the stock.

How Does Logitech International S.A. (LOGI) Stack Up Against its Peers?

While LOGI has a C rating in our proprietary rating system, one might want to consider looking at its industry peers, Digi International Inc. (DGII), Synopsys, Inc. (SNPS), and Seiko Epson Corporation (SEKEY), which have a B (Buy) rating.


LOGI shares were trading at $83.34 per share on Tuesday afternoon, up $1.48 (+1.81%). Year-to-date, LOGI has declined -14.25%, versus a 24.85% rise in the benchmark S&P 500 index during the same period.


About the Author: Aditi Ganguly


Aditi is an experienced content developer and financial writer who is passionate about helping investors understand the do’s and don'ts of investing. She has a keen interest in the stock market and has a fundamental approach when analyzing equities. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
LOGIGet RatingGet RatingGet Rating
DGIIGet RatingGet RatingGet Rating
SNPSGet RatingGet RatingGet Rating
SEKEYGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

3 BIG Reasons Why Stocks Might Finally Be a Buy

The best time to buy is always when you want to least. I believe you should face the fear and embrace the new opportunities provided by the recent mayhem in the S&P 500 (SPY). I'll explore this mindset and how you can apply it to outperform in today's volatile markets below. Read on for more...

:  |  News, Ratings, and Charts

3 Energy Stocks to Buy on the Dip

While most of the market has been mired in a brutal correction, energy stocks have had a very mild pullback. Investors should consider buying a high-quality energy stock like Ovintiv (OVV), Occidental Petroleum (OXY), and VAALCO Energy (EGY) as the underlying fundamentals keep improving.

:  |  News, Ratings, and Charts

Stock Market Moment of Truth

It is clear at this stage that investors want to push stocks (SPY) to the edge of bear market. That 20% sell off from the highs equates to 3,855 where there truly will be a battle for the soul of this market. Is there truly enough belief to push down below into bear market territory. Or will the bullish spirits return given the dramatically better valuation of stocks at this level? Lets discuss those vital topics as well as trading plans for investors in both the bullish and bearish scenarios.

:  |  News, Ratings, and Charts

5 Unstoppable Basic Materials Stocks With More Room to Run

Growing demand for basic materials across industries has been helping companies in this space benefit amid the supply disruptions and rising prices. So, it is wise to bet on quality basic materials stocks LyondellBasell (LYB), Olin (OLN), Chemours Company (CC), Westlake (WLK), and Alpha Metallurgical (AMR), which have gained significantly so far this year and still have plenty of upsides left.

:  |  News, Ratings, and Charts

Stock Market Moment of Truth

It is clear at this stage that investors want to push stocks (SPY) to the edge of bear market. That 20% sell off from the highs equates to 3,855 where there truly will be a battle for the soul of this market. Is there truly enough belief to push down below into bear market territory. Or will the bullish spirits return given the dramatically better valuation of stocks at this level? Lets discuss those vital topics as well as trading plans for investors in both the bullish and bearish scenarios.

Read More Stories

More Logitech International S.A. (LOGI) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All LOGI News