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Swisscom AG (ADR) (SCMWY)
OTHER OTC:SCMWY
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Swisscom AG
(OTC:SCMWY)
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Rating:70Outperform
Price Target:
$78.00
▲(9.89% Upside)
Swisscom AG's overall stock score reflects strong financial performance and efficient cash flow management, offset by declining profit margins and increased leverage. Technical indicators suggest potential bearish momentum, while the valuation is moderate. The earnings call presented a balanced view with operational efficiencies but highlighted revenue challenges.
Swisscom AG (SCMWY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.85B
Dividend Yield3.5%
Average Volume (3M)173.00
Price to Earnings (P/E)25.2
Beta (1Y)-0.05
Revenue Growth32.48%
EPS Growth-22.94%
CountryUS
Employees23,717
SectorN/A
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.87
Shares Outstanding518,020,000
10 Day Avg. Volume0
30 Day Avg. Volume173
Financial Highlights & Ratios
PEG Ratio-1.75
Price to Book (P/B)2.17
Price to Sales (P/S)2.39
P/FCF Ratio15.60
Enterprise Value/Market Cap1.58
Enterprise Value/Revenue3.89
Enterprise Value/Gross Profit6.18
Enterprise Value/Ebitda9.35
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 DescriptionSwisscom 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, including telecommunications, IT services, and media, serving both residential and business customers. Swisscom is known for its advanced network infrastructure and commitment to innovation in digital solutions, making it a key player in the Swiss digital landscape.
How the Company Makes MoneySwisscom generates revenue primarily through its telecommunications services, which include mobile and fixed-line voice and data services. The company offers various subscription plans for individual consumers and businesses, which contribute significantly to its revenue. Additionally, Swisscom earns income from its broadband internet services and digital television offerings. The company also has a growing segment in IT services, providing cloud solutions, cybersecurity, and digital transformation services to enterprises. Significant partnerships with technology providers and local businesses enhance its service offerings and customer base, further contributing to its financial performance. Furthermore, Swisscom's investments in 5G technology and expansion of its fiber optic network are expected to drive future revenue growth.
Swisscom AG Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with Swisscom achieving operational efficiencies, successful integration in Italy, and technological advancements. However, there were significant revenue declines in both Switzerland and Italy, especially in the B2B segment, due to competitive pressures and macroeconomic factors.Q3-2025 Updates
Positive Updates
Successful Service Tests and Innovation in Switzerland
Swisscom won all 4 service tests for best customer service, reinforcing their commitment to customer satisfaction. They also launched a new AI chatbot service for private consumers, and a successful 'We are Family' offering for families.
Steady Integration and Synergy Realization in Italy
The integration of Swisscom's operations in Italy with Fastweb is proceeding as planned, with synergies and integration costs in line. A new aligned product portfolio was launched and SIM migration is on track to achieve approximately CHF 200 million in synergies by 2026.
Cost Savings and Operational Efficiency
Swisscom achieved their full-year cost savings target of CHF 50 million by the end of Q3 2025, driven by digitization and AI applications in customer service.
Network Expansion and Fiber Growth
5G plus coverage reached 88%, and fiber rollout is at 55% coverage in Switzerland. In Italy, 5G plus coverage is at 87%, and FTTH rollout stands at 54%.
Positive Trends in Italian B2C Mobile and Broadband
Churn decreased significantly, and net adds improved significantly in mobile and broadband segments, indicating a successful turnaround in the B2C market in Italy.
Negative Updates
Revenue Decline in Switzerland and Italy
Q3 revenue was slightly softer at CHF 3.7 billion, a decline of 1.8%. Year-to-date revenue is down 2.1%. The service revenue decline was notable in both Switzerland and Italy.
B2B Service Revenue Erosion
B2B service revenue in Switzerland saw a decline of CHF 45 million, attributed to price competition and lower IT service growth due to macroeconomic conditions.
Challenges in Italian B2B Segment
B2B Telco service revenue in Italy saw a decline due to the end of large public administration projects, impacting overall revenue performance.
Company Guidance
During the Q3 2025 earnings call, Swisscom confirmed its full-year guidance, projecting group revenues at the lower end of approximately CHF 15 billion and an EBITDAaL of CHF 5 billion, with CapEx expected between CHF 3.1 billion and CHF 3.2 billion, also towards the lower end. They reported a Q3 revenue of CHF 3.7 billion, marking a 1.8% decline. Despite this, Swiss operations remained stable with a slight decrease of CHF 11 million in EBITDAaL year-to-date. In Italy, the integration with Vodafone was progressing as planned, with service revenues stabilizing due to alignment in B2C and B2B portfolios, although there was a notable service revenue decline of EUR 166 million year-to-date. The company highlighted continued growth in net adds on the wholesale side in Switzerland and improvements in broadband net adds in Italy. Additionally, Swisscom achieved its full-year cost savings target of CHF 50 million by the end of Q3 and emphasized their commitment to further cost efficiencies and improvements in their IT and wholesale segments.Swisscom AG Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
65
Positive
Cash Flow
80
Positive
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Swisscom AG Technical Analysis
Positive
70.98
Price Trends
72.27
Negative
72.51
Negative
69.15
Positive
Market Momentum
-0.45
Negative
53.67
Neutral
99.97
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCMWY, the sentiment is Positive. The current price of 70.98 is above the 20-day moving average (MA) of 70.54, below the 50-day MA of 72.27, and above the 200-day MA of 69.15, indicating a neutral trend. The MACD of -0.45 indicates Negative momentum. The RSI at 53.67 is Neutral, neither overbought nor oversold. The STOCH value of 99.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCMWY.
Swisscom AG Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
77 Outperform | $19.04B | 17.89 | 8.36% | 5.03% | -3.16% | 4.70% | |
76 Outperform | $32.24B | 26.08 | 10.10% | 3.16% | 5.74% | 7.12% | |
75 Outperform | $20.23B | 15.47 | 15.54% | 6.16% | -5.21% | -7.45% | |
70 Outperform | $36.85B | 25.21 | 10.09% | 3.50% | 32.48% | -22.94% | |
58 Neutral | $30.29B | -7.01 | -7.08% | 3.83% | 19.67% | -278.51% | |
45 Neutral | $22.61B | -10.20 | -0.70% | 7.56% | -5.49% | -75.51% |
* Sector Average
SCMWY
Swisscom AG
71.56
17.42
32.18%
CHT
Chunghwa Telecom Co
41.06
4.23
11.49%
TLK
PT Telekomunikasi Indonesia Tbk
20.88
5.66
37.19%
VIV
Telefonica Brasil
11.80
4.45
60.54%
TEF
Telefonica
3.94
0.12
3.14%
VOD
Vodafone
12.84
4.83
60.30%
Swisscom AG Corporate Events
Swisscom AG Reports Mixed H1 2025 Financial Results
Aug 8, 2025
Swisscom AG, a leading telecommunications provider operating primarily in Switzerland and Italy, has released its interim earnings report for the first half of 2025, showcasing its financial performance and strategic developments.
Swisscom AG Earnings Call: Achievements Amid Challenges
Aug 8, 2025
Swisscom AG’s recent earnings call presented a mixed sentiment, highlighting both achievements and challenges. The company has maintained a strong brand presence in Switzerland and launched successful products. However, these positive aspects were overshadowed by revenue declines and integration costs, particularly in Italy, and challenges in the Italian B2C mobile market. While there are positive signals, such as network expansion and wholesale growth, the overall sentiment is weighed down by financial declines and ongoing integration challenges.
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.