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Swisscom (CH:SCMN)
:SCMN
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Swisscom AG
(SCMN)
Rating:72Outperform
Price Target:
CHF644.00
▲(10.65% Upside)
Swisscom AG (SCMN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF30.15B
Dividend Yield3.77%
Average Volume (3M)55.60K
Price to Earnings (P/E)22.6
Beta (1Y)0.28
Revenue Growth17.62%
EPS Growth-21.60%
CountryCH
Employees23,717
SectorServices
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)5.00
Shares Outstanding51,801,945
10 Day Avg. Volume71,338
30 Day Avg. Volume55,597
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF635.75Price Target Upside9.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Swisscom AG Business Overview & Revenue Model
Company DescriptionSwisscom AG (SCMN) is Switzerland's leading telecommunications provider, offering a comprehensive range of services in the fields of telecommunications, IT, and entertainment. The company operates in several sectors, including mobile and fixed-line telephony, broadband internet, and digital services. Swisscom is known for its high-quality network infrastructure and innovative solutions, catering to both residential and business customers with products such as mobile plans, internet access, cloud services, and ICT solutions.
How the Company Makes MoneySwisscom generates revenue through multiple streams, primarily from its telecommunications services, which include mobile communications, fixed-line telephony, and broadband internet access. The company also earns income from IT services and solutions for businesses, including cloud computing and data center services. Additionally, Swisscom has a growing segment in digital entertainment, offering television services and content. Significant partnerships with technology providers and collaborations within the telecommunications ecosystem enhance their service offerings, contributing to revenue growth. Furthermore, Swisscom invests in expanding its network infrastructure, which allows it to attract and retain customers while improving service quality, thus driving sustainable earnings.
Swisscom AG Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: 0.34%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
Swisscom's Q2 2025 earnings call highlighted strong customer service achievements in Switzerland and progress in integrating Italian operations. However, the company faced challenges with declining revenues and service revenue erosion in Italy. Overall, the sentiment reflects a balance between operational successes and financial challenges.Q2-2025 Updates
Positive Updates
Strong Customer Service in Switzerland
Swisscom was nominated as the strongest telco brand in Switzerland and achieved a new record score of 490 out of 500 in the Connect Test on the mobile hotline.
Successful Launch of beem B2B Connectivity Portfolio
Swisscom launched beem, a new convergent B2B connectivity portfolio combining connectivity and security, receiving positive market feedback and strong initial sales.
Progress in Italian Integration
The integration of Fastweb and Vodafone in Italy is progressing as planned, with synergy ramp-up and integration costs on track.
Growing Wholesale Business
FTTH penetration in wholesale business increased by 5.5%, driving access service revenue up by 9% to CHF 49 million.
Negative Updates
Revenue and EBITDAaL Decline
Group revenue for the first half year was CHF 7.44 billion, down 2.3%, and EBITDAaL was CHF 2.47 billion, down 5.5%, primarily due to integration costs in Italy.
Challenges in Italian B2C Mobile Market
The Italian B2C mobile business is experiencing service revenue erosion, with a decline at the high end of the guidance range of EUR 100 million to EUR 200 million.
Service Revenue Decline in Switzerland
Swisscom's service revenue in Switzerland is expected to decline by around CHF 100 million for the full year, with a slightly higher run rate observed in the first half.
Seasonal and Competitive Pressures in Italy
Italy's IT service revenues experienced a slowdown in Q2, and the telecom market remains competitive despite some signs of rationalization.
Company Guidance
During the Swisscom Q2 2025 results conference call, the company confirmed its full-year guidance, projecting revenue at the lower end of CHF 15.0 billion to CHF 15.2 billion. For the first half of the year, Swisscom reported revenues of CHF 7.44 billion, reflecting a 2.3% decrease, and an EBITDAaL of CHF 2.47 billion, down 5.5%. The revenue decline was attributed to integration work in Italy, particularly with Vodafone, leading to a CHF 65 million EBITDAaL decrease in Italy, while Switzerland experienced a slight decline of CHF 3 million in Q2. Despite these challenges, the company is on track with its strategic initiatives and integration plans, and it anticipates stability in the second half of the year. Swisscom is focused on maintaining its strong market position and is implementing a value-oriented strategy in both Switzerland and Italy to maximize customer retention and ARPU.Swisscom AG Financial Statement Overview
Summary
Swisscom AG showcases a strong financial performance with robust revenue growth, solid profitability, and efficient cash flow management. The company maintains a stable balance sheet with moderate leverage, although there is potential for enhancing equity returns. Overall, Swisscom is well-positioned in the telecommunications industry with a strong financial foundation, but should focus on improving net income margins and equity utilization to further strengthen its financial health.Income Statement
Swisscom AG exhibits strong profitability with a gross profit margin of 68.5% and an EBIT margin of 16.2% in the TTM. However, the net profit margin decreased slightly to 12.0% from 14.0% the previous year. The revenue growth rate is healthy at 9.6% from 2024 to TTM, showing good top-line expansion, although the net income has slightly declined. The company shows a robust EBITDA margin of 41.5%, indicating operational efficiency.75
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.31, suggesting moderate leverage. Return on equity (ROE) stands at 11.5% for the TTM, indicating efficient use of equity. The equity ratio is 33.8%, signifying a solid capital structure. Overall, Swisscom maintains a healthy balance between debt and equity, but there is room for improvement in equity utilization.68
Positive
Cash Flow
Swisscom demonstrates solid cash flow management with an operating cash flow to net income ratio of 3.27 in the TTM, highlighting strong cash generation relative to net income. The free cash flow growth rate is a notable 36.2%, indicating significant improvement in cash available after capital expenditures. The free cash flow to net income ratio is 1.58, showing efficient free cash flow generation.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.09B | 11.04B | 11.07B | 11.05B | 11.18B | 11.10B |
| Gross Profit | 8.28B | 8.72B | 8.81B | 8.96B | 9.00B | 8.90B |
| EBITDA | 5.02B | 4.46B | 4.55B | 4.43B | 4.71B | 4.35B |
| Net Income | 1.45B | 1.54B | 1.71B | 1.60B | 1.83B | 1.53B |
Balance Sheet | ||||||
| Total Assets | 37.26B | 37.21B | 24.75B | 24.62B | 24.80B | 24.26B |
| Cash, Cash Equivalents and Short-Term Investments | 1.05B | 1.59B | 198.00M | 185.00M | 494.00M | 510.00M |
| Total Debt | 3.95B | 3.64B | 1.92B | 1.91B | 2.02B | 1.99B |
| Total Liabilities | 24.66B | 25.06B | 13.13B | 13.45B | 13.99B | 14.77B |
| Stockholders Equity | 12.60B | 12.15B | 11.62B | 11.17B | 10.81B | 9.49B |
Cash Flow | ||||||
| Free Cash Flow | 2.30B | 1.69B | 1.76B | 1.59B | 1.77B | 1.88B |
| Operating Cash Flow | 4.76B | 3.98B | 4.03B | 3.88B | 4.04B | 4.07B |
| Investing Cash Flow | -9.47B | -9.28B | -2.32B | -2.43B | -2.12B | -2.23B |
| Financing Cash Flow | 5.50B | 6.82B | -1.67B | -1.72B | -1.86B | -1.82B |
Swisscom AG Technical Analysis
Positive
582.00
Price Trends
565.41
Positive
549.42
Positive
520.78
Positive
Market Momentum
5.35
Negative
63.82
Neutral
71.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SCMN, the sentiment is Positive. The current price of 582 is above the 20-day moving average (MA) of 569.08, above the 50-day MA of 565.41, and above the 200-day MA of 520.78, indicating a bullish trend. The MACD of 5.35 indicates Negative momentum. The RSI at 63.82 is Neutral, neither overbought nor oversold. The STOCH value of 71.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:SCMN.
Swisscom AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Performance Comparison
CH:SCMN
Swisscom AG
582.00
75.27
14.85%
SNNRF
Sunrise Communications AG Class A
55.85
15.63
38.86%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.