Sunrise Communications AG Class A (SUNN) AI Stock Analysis

• Market Cap: $126.02M
• Dividend Yield: N/A
• Average Volume (3M): 187.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CH
• Employees: 2,850
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): -0.74
• Shares Outstanding: 71,259,705
• 10 Day Avg. Volume: 139,776
• 30 Day Avg. Volume: 187,278
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 69.04
• Enterprise Value/Revenue: 5.98
• Enterprise Value/Gross Profit: 8.07
• Enterprise Value/Ebitda: 14.15
• 1Y Price Target: $47.51
• Price Target Upside: -1.10% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 64 Neutral
• Price Target: CHF55.00 ▲(14.49% Upside)

Sunrise Communications AG Class A has a moderate overall stock score. The company's strong technical indicators and attractive dividend yield are positive factors. However, profitability challenges and the lack of a P/E ratio are significant concerns. The reduction in leverage and resilience in cash flow metrics provide some stability.

Sunrise Communications AG Class A Business Overview & Revenue Model

Company Description

Sunrise Communications AG engages in the provision of telecommunications solutions. It offers mobile, broadband, television, and fixed-line telephony services to residential customers. It also provides mobile and broadband services, as well as a range of value-added portfolio services, including cloud services, cybersecurity, and automation to business customers. It operates through the following segments: Residential Customers, Business Customers and Wholesale, and Infrastructure and Support Functions. The Residential Customers segment provides fixed-line and mobile services to residential end customers as well as sales of handsets. The Business Customers and Wholesale segment offers a full range of products and services, from fixed-line and mobile communications to Internet and data services as well as integration services to different business areas. The Infrastructure and Support Functions segment includes support units such as network, information technology and operations as well as staff functions like finance, human resources and strategy. The company was founded in 2001 and is headquartered in Opfikon, Switzerland.

How the Company Makes Money

Sunrise Communications AG generates revenue through multiple streams, primarily from its mobile and fixed-line services. The key revenue sources include subscription fees from mobile phone plans, broadband internet services, and digital television packages. The company also earns additional income from value-added services such as cloud solutions and IoT (Internet of Things) offerings. Strategic partnerships with technology providers and content creators enhance its service offerings and contribute to customer retention and acquisition, ultimately driving revenue growth. Furthermore, Sunrise benefits from a strong brand presence and a focus on customer satisfaction, which helps to increase its market share in the competitive Swiss telecommunications landscape.

Sunrise Communications AG Class A Financial Statement Overview

Summary

Sunrise Communications AG Class A is facing profitability challenges with negative net income and low margins. However, the company has made progress in reducing leverage and shows resilience in cash flow metrics, with slight growth in free cash flow and strong operating cash flow coverage.

Income Statement

Sunrise Communications AG Class A has shown a slight decline in revenue over the past year, with a negative revenue growth rate of -0.57%. The company has a strong gross profit margin of approximately 72.5%, indicating efficient cost management. However, the net profit margin is negative at -12.12%, reflecting significant losses. The EBIT and EBITDA margins are relatively low, suggesting challenges in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved from 1.88 to 1.35, indicating a reduction in leverage, which is a positive sign. However, the return on equity remains negative at -8.39%, pointing to inefficiencies in generating returns for shareholders. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Sunrise Communications AG Class A has demonstrated a slight growth in free cash flow by 0.61%, which is a positive indicator. The operating cash flow to net income ratio is strong at 0.81, showing robust cash generation relative to net income. However, the free cash flow to net income ratio of 0.58 indicates that cash flow is not fully translating into profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.45B	3.02B	3.04B	3.04B	3.04B
Gross Profit	1.08B	2.19B	2.20B	2.22B	2.21B
EBITDA	614.90M	1.10B	1.18B	1.55B	1.33B
Net Income	-56.70M	-365.80M	-316.10M	80.50M	-71.80M
Balance Sheet
Total Assets	11.63B	12.06B	12.61B	13.21B	12.86B
Cash, Cash Equivalents and Short-Term Investments	133.80M	351.80M	4.80M	2.30M	5.50M
Total Debt	5.58B	5.90B	6.68B	7.16B	7.93B
Total Liabilities	7.52B	7.68B	9.03B	9.16B	9.80B
Stockholders Equity	4.09B	4.36B	3.55B	4.03B	3.04B
Cash Flow
Free Cash Flow	187.70M	738.00M	733.50M	835.30M	911.30M
Operating Cash Flow	461.60M	1.28B	1.20B	1.25B	1.27B
Investing Cash Flow	-277.20M	-478.70M	-760.60M	-543.00M	-333.20M
Financing Cash Flow	-402.10M	-454.40M	-440.10M	-714.00M	-945.40M

Sunrise Communications AG Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCMN	75 Outperform	30.23B	22.69	11.49%	3.82%	17.62%	-21.60%
SUNN	64 Neutral	$126.02M	―		―	―	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%