Swisscom AG (ADR) (SCMWY)
OTHER OTC:SCMWY
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Swisscom AG
(OTC:SCMWY)
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Rating:62Neutral
Price Target:
$92.00
▲(29.61% Upside)
Action:Downgraded
Date:05/14/26
The score is driven primarily by mixed fundamentals: strong margins and free cash flow are offset by a steep TTM revenue decline and higher leverage. The latest earnings call was cautiously constructive (guidance reaffirmed, synergies and cash flow improving, dividend increase proposed), while technicals are moderately positive. Valuation is balanced by a good yield but a relatively high P/E.
Swisscom AG (SCMWY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$44.01B
Dividend Yield3.48%
Average Volume (3M)173.00
Price to Earnings (P/E)27.8
Beta (1Y)-0.02
Revenue Growth36.27%
EPS Growth-5.93%
CountryUS
Employees23,717
SectorN/A
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.82
Shares Outstanding518,020,000
10 Day Avg. Volume0
30 Day Avg. Volume173
Financial Highlights & Ratios
PEG Ratio-1.32
Price to Book (P/B)2.44
Price to Sales (P/S)1.99
P/FCF Ratio9.96
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue3.46
Enterprise Value/Gross Profit5.11
Enterprise Value/Ebitda7.58
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Swisscom AG Business Overview & Revenue Model
Company Description
Swisscom AG is a leading telecommunications provider in Switzerland, offering a wide range of services including fixed-line and mobile telecommunications, broadband internet, and digital television. The company operates in several sectors, includi...
How the Company Makes Money
Swisscom makes money primarily by charging recurring subscription and usage fees for telecommunications connectivity and related digital services.
1) Consumer (Residential) telecommunications revenue
- Mobile services: Monthly plan subscriptions ...
Swisscom AG Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed a cautiously constructive tone: multiple operational and financial positives (notably higher operating free cash flow, stable EBITDAaL, strong Italy synergy delivery, wholesale and network coverage gains, energy/security momentum and improved IT profitability) that offset headwinds (group revenue and service revenue declines, broadband churn after Swiss price increases, hardware weakness in Italy, the upcoming PosteMobile wholesale headwind and the INWIT tower dispute). Management confirmed full-year guidance and proposed a higher dividend, indicating confidence. On balance, the positive execution items and cash-flow improvements outweigh the challenges, though risks and near-term execution issues remain.Positive Updates
Operating free cash flow ahead
Group operating free cash flow of CHF 494 million in Q1, up CHF 96 million year-on-year, driven by Italy synergy realization, phasing-related lower CapEx and a CHF 34 million contribution from Switzerland.
Negative Updates
Group revenue decline
Group revenue down CHF 153 million year-on-year in Q1 (CHF 44 million FX headwind), net of currency down CHF 109 million; Switzerland revenue down ~CHF 25 million and Italy revenue reported down ~CHF 81 million (quarterly breakdowns vary by line item).
Read all updates
Q1-2026 Updates
Positive
Negative
Operating free cash flow ahead
Group operating free cash flow of CHF 494 million in Q1, up CHF 96 million year-on-year, driven by Italy synergy realization, phasing-related lower CapEx and a CHF 34 million contribution from Switzerland.
Read all positive updates
Company Guidance
Swisscom confirmed its full‑year 2026 guidance and reiterated key targets: Swiss telco service revenue is expected to decline ~CHF120m while Swiss cost savings should be slightly more than CHF50m for the year; Italy synergy realization is on track to deliver ~CHF300m this year (Q1 run‑rate CHF77m) while Italy telco service revenue is guided to decline ~CHF150m (≈CHF100m from B2C). Management expects stable free cash flow in Switzerland and growing free cash flow in Italy enabling a proposed dividend of CHF27 for 2026; Q1 operating free cash flow was CHF494m (up CHF96m), Q1 EBITDAaL ~CHF1.28bn, and Q1 CapEx phasing drove a year‑to‑date CapEx reduction (group Q1 CapEx down CHF86m). Other quantified items reiterated: PosteMobile wholesale loss ~CHF75m in 2026 (≈CHF100m on a 12‑month basis into 2027) with a CHF75m indemnity to be recognized in one quarter this year, ~90% of 2026 energy needs hedged, and network coverage at end‑Q1 of FTTH 56% (Switzerland) / 58% (Italy) and 5G coverage ~89% (both).Swisscom AG Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
45
Neutral
Cash Flow
66
Positive
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Swisscom AG Technical Analysis
Neutral
70.98
Price Trends
85.04
Negative
84.11
Positive
77.45
Positive
Market Momentum
-0.01
Positive
42.19
Neutral
9.53
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCMWY, the sentiment is Neutral. The current price of 70.98 is below the 20-day moving average (MA) of 85.91, below the 50-day MA of 85.04, and below the 200-day MA of 77.45, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 42.19 is Neutral, neither overbought nor oversold. The STOCH value of 9.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SCMWY.
Swisscom AG Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
75 Outperform | $33.81B | 28.90 | 10.23% | 3.15% | 9.48% | 9.11% | |
70 Outperform | $21.57B | 16.68 | 9.28% | 5.03% | 10.34% | 17.26% | |
64 Neutral | $16.80B | 18.72 | 12.76% | 6.14% | -4.78% | -32.55% | |
62 Neutral | $44.01B | 27.81 | 10.53% | 3.48% | 36.27% | -5.93% | |
62 Neutral | $34.51B | -72.94 | -0.79% | 3.77% | 16.69% | 87.12% |
* Sector Average
SCMWY
Swisscom AG
84.28
17.20
25.63%
CHT
Chunghwa Telecom Co
45.18
2.87
6.78%
TLK
PT Telekomunikasi Indonesia Tbk
16.36
0.33
2.05%
VIV
Telefonica Brasil
13.19
3.53
36.51%
VOD
Vodafone
14.97
5.12
51.95%
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.