Swisscom AG (SCMN) AI Stock Analysis

• Market Cap: CHF29.89B
• Dividend Yield: 3.65%
• Average Volume (3M): 52.40K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 0.27
• Revenue Growth: 17.62%
• EPS Growth: -21.60%
• Country: CH
• Employees: 23,717
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): 7.01
• Shares Outstanding: 51,801,945
• 10 Day Avg. Volume: 55,748
• 30 Day Avg. Volume: 52,402
• PEG Ratio: -1.72
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 2.37
• P/FCF Ratio: 15.47
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF562.09
• Price Target Upside: -6.78% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: CHF642.00 ▲(6.47% Upside)

Swisscom AG's overall stock score reflects strong financial performance and strategic achievements, such as cost savings and integration efforts. However, technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation. The earnings call presented a mixed sentiment, with both positive operational highlights and revenue challenges.

Swisscom AG Business Overview & Revenue Model

Company Description

Swisscom AG provides telecommunication services primarily in Switzerland, Italy, and internationally. It operates through three segments: Swisscom Switzerland, Fastweb, and Other Operating. The company offers mobile and fixed-network services, such as telephony, broadband, TV, and mobile offerings, as well as sells terminal equipment; and telecom and communications solutions for large corporations and small and medium-sized enterprises. It also provides cloud, outsourcing, workplace, mobile phone, networking, business process optimization, SAP, and security and authentication solutions, as well as a range of services to the banking industry; Internet of Things solutions; digitization services to the healthcare sector; IT systems for health insurance companies; fixed-line and mobile networks by other telecommunication service providers; and roaming to foreign operators whose customers use its mobile networks, as well as broadband services and regulated products. In addition, the company plans, operates, and maintains network infrastructure and IT systems; provides support functions to finance, human resource, and strategy, as well as management of real estate and vehicle fleet; and offers broadband and mobile services, such as telephony, mobile offerings, and broadband services, as well as ICT solutions for residential, business, and wholesale customers. Further, it provides IT and network services; online and telephone directories; and cross-platform retail media and security communication services, as well as builds and maintains wired and wireless networks. The company was founded in 1852 and is based in Bern, Switzerland.

How the Company Makes Money

Swisscom 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 Financial Statement Overview

Summary

Swisscom AG's financial performance is robust, with strong revenue growth and efficient operations. The company maintains a healthy balance sheet with conservative leverage and effective equity utilization. Cash flow generation is strong, supporting ongoing investments and shareholder returns. While profitability margins have slightly decreased, the overall financial health remains solid, positioning Swisscom well for future growth.

Income Statement

Swisscom AG demonstrates strong revenue growth with a 7.74% increase in TTM, indicating robust demand in the telecommunications sector. The gross profit margin remains healthy at 68.51%, though slightly lower than previous years, suggesting some cost pressures. The net profit margin of 12.02% is solid, albeit lower than the previous year, reflecting stable profitability. EBIT and EBITDA margins are strong at 16.85% and 41.53%, respectively, indicating efficient operations.

Balance Sheet

The company maintains a conservative debt-to-equity ratio of 0.31, reflecting prudent financial management. Return on equity is stable at 12.06%, showcasing effective use of shareholder funds. The equity ratio of 32.28% indicates a solid capital structure, though slightly lower than previous years, suggesting increased leverage.

Cash Flow

Swisscom AG shows a positive free cash flow growth rate of 7.13% in TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 3.80, indicating efficient cash conversion. The free cash flow to net income ratio of 0.48 suggests good cash flow management, though there is room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.03B	11.04B	11.07B	11.05B	11.18B	11.10B
Gross Profit	9.02B	8.72B	8.81B	8.96B	9.00B	8.90B
EBITDA	5.48B	4.46B	4.55B	4.43B	4.71B	4.35B
Net Income	1.33B	1.54B	1.71B	1.60B	1.83B	1.53B
Balance Sheet
Total Assets	35.91B	37.21B	24.75B	24.62B	24.80B	24.26B
Cash, Cash Equivalents and Short-Term Investments	200.00M	1.59B	198.00M	185.00M	494.00M	510.00M
Total Debt	3.73B	3.64B	1.92B	1.91B	2.02B	1.99B
Total Liabilities	24.31B	25.06B	13.13B	13.45B	13.99B	14.77B
Stockholders Equity	11.59B	12.15B	11.62B	11.17B	10.81B	9.49B
Cash Flow
Free Cash Flow	2.46B	1.69B	1.76B	1.59B	1.77B	1.88B
Operating Cash Flow	5.06B	3.98B	4.03B	3.88B	4.04B	4.07B
Investing Cash Flow	-9.67B	-9.28B	-2.32B	-2.43B	-2.12B	-2.23B
Financing Cash Flow	489.00M	6.82B	-1.67B	-1.72B	-1.86B	-1.82B

Swisscom AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 603.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 603 is above the 20-day moving average (MA) of 587.08, above the 50-day MA of 584.51, and above the 200-day MA of 550.09, indicating a bullish trend. The MACD of 1.14 indicates Negative momentum. The RSI at 60.68 is Neutral, neither overbought nor oversold. The STOCH value of 64.93 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCMN	74 Outperform	CHF29.89B	22.44	―	3.65%	17.62%	-21.60%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SUNN	52 Neutral	$111.51M	―	―	―	―	―