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Swisscom AG (ADR) (SCMWY)
:SCMWY
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Swisscom AG
(OTC:SCMWY)
Rating:75Outperform
Price Target:
$81.00
▲(9.99% Upside)
Swisscom AG (SCMWY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.14B
Dividend Yield3.36%
Average Volume (3M)1.39K
Price to Earnings (P/E)24.9
Beta (1Y)-0.08
Revenue Growth20.54%
EPS Growth-20.02%
CountryUS
Employees23,717
SectorCommunication Services
Sector Strength96
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.62
Shares Outstanding518,020,000
10 Day Avg. Volume1,841
30 Day Avg. Volume1,387
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.52
Enterprise Value/Revenue4.44
Enterprise Value/Gross Profit5.63
Enterprise Value/Ebitda10.91
Forecast
1Y Price Target
$81.00Price Target Upside9.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Swisscom AG Business Overview & Revenue Model
Company DescriptionSwisscom 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 MoneySwisscom generates revenue through various streams, primarily from its telecommunications services, which include mobile and fixed-line subscriptions, broadband internet access, and digital TV services. The company also earns revenue from IT services offered to business clients, which include cloud solutions, managed services, and system integration. Additionally, Swisscom has partnerships with various technology providers and content creators, enhancing its offerings and customer engagement. Key factors contributing to its earnings include a strong customer base in Switzerland, ongoing investments in network infrastructure, and the adoption of new technologies that drive demand for digital services.
Swisscom AG Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of stable performance and strategic progress in integration and network expansion, but faced challenges with revenue declines and service erosion, particularly in Italy. While there are positive developments in branding and network growth, financial pressures and market dynamics present ongoing challenges.Q2-2025 Updates
Positive Updates
Recognition as Strongest Telco Brand
Swisscom was nominated as the strongest telco brand in Switzerland and won another Connect Test on the mobile hotline with a record score of 490 out of 500.
Progress in Italy
Integration with Fastweb and Vodafone is on track, with synergy ramp-up and integration costs proceeding as planned.
Stable Revenue and EBITDA in Switzerland
Swisscom's revenue was relatively stable in Switzerland, with a minor decrease in EBITDAaL of CHF 6 million in the first half of the year.
Increase in Network Coverage
5G+ mobile coverage increased by 4% in Switzerland, covering 87% of the country, and FTTH rollout reached 54% coverage.
Growth in Wholesale Business
FTTH penetration in the wholesale business increased by 5.5%, leading to a 9% growth in access service revenue, totaling CHF 49 million.
Energy Offering Expansion in Italy
The Italian energy offering was expanded, doubling the sales speed and contributing to revenue growth.
Negative Updates
Decline in Group Revenue and EBITDA
Group revenue decreased by CHF 173 million, with a 5.5% decline in EBITDAaL, driven primarily by integration efforts in Italy.
Service Revenue Erosion in Italy
Service revenue in Italy declined by EUR 100 million in the first half, with B2C contributing EUR 77 million to this decline.
Challenges in B2B Market
B2B telco service revenue in Switzerland declined due to pricing pressures, resulting in a decrease of CHF 31 million in EBITDAaL.
ARPU Decline in Switzerland
Mobile ARPU in Switzerland declined by CHF 1, primarily due to a shift to second brands, leading to a 3% increase in second/third brand customer base.
Copper Phaseout Costs
While copper phaseout is progressing, it is currently a net negative issue due to migration costs, with significant savings expected only after complete shutdowns.
Company Guidance
In the Swisscom Q2 2025 Results Conference Call, the company confirmed its full-year guidance, projecting revenue to be at the lower end of CHF 15.0 billion to CHF 15.2 billion. Revenue for the first half of the year was CHF 7.44 billion, down 2.3%, while EBITDAaL was CHF 2.47 billion, down 5.5%. The decline in EBITDAaL was primarily attributed to integration costs in Italy, with a decrease of CHF 65 million, while Switzerland showed stability with a minor decrease of CHF 3 million in Q2. The company reported a stable RGU base in both Switzerland and Italy, with a growing postpaid mobile base in Switzerland. Swisscom also highlighted a new B2B connectivity portfolio launch in Switzerland and ongoing integration progress with Fastweb and Vodafone in Italy, expecting to meet synergy targets. Despite challenges with service revenue erosion, particularly in Italy, Swisscom remains focused on value strategies and expects to continue seeing stable or slightly improved trends in the latter half of 2025.Swisscom AG Financial Statement Overview
Summary
Swisscom AG exhibits strong financial health with robust revenue growth and profitability, despite slight margin pressures. The balance sheet is solid with low leverage and strong equity positions. Cash flow metrics indicate effective cash management and operational efficiency.Income Statement
Swisscom AG shows a strong revenue growth rate of 7.74% in the TTM, indicating robust demand and market position. The gross profit margin is healthy at 68.51%, although it has decreased from previous periods. Net profit margin is solid at 12.02%, but slightly lower than previous years, suggesting some pressure on net earnings. EBIT and EBITDA margins remain strong, reflecting efficient operations and cost management.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio is low at 0.31, indicating a conservative leverage strategy. Return on equity is stable at 12.06%, showing effective use of equity capital. The equity ratio is strong, suggesting a solid financial foundation with a good proportion of equity financing.78
Positive
Cash Flow
Operating cash flow is robust, with a good coverage ratio of 0.69 relative to net income, indicating strong cash generation capabilities. Free cash flow growth is positive at 7.13%, demonstrating effective cash management. The free cash flow to net income ratio is healthy, supporting the company's ability to sustain operations and invest in growth.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.03B | 11.04B | 11.07B | 11.11B | 11.18B | 11.10B |
| Gross Profit | 10.29B | 8.72B | 8.81B | 9.09B | 9.00B | 8.90B |
| EBITDA | 5.30B | 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
Positive
73.64
Price Trends
71.42
Positive
69.30
Positive
62.66
Positive
Market Momentum
0.45
Positive
60.08
Neutral
50.47
Neutral
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 73.64 is above the 20-day moving average (MA) of 72.64, above the 50-day MA of 71.42, and above the 200-day MA of 62.66, indicating a bullish trend. The MACD of 0.45 indicates Positive momentum. The RSI at 60.08 is Neutral, neither overbought nor oversold. The STOCH value of 50.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCMWY.
Swisscom AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $34.22B | 28.93 | 9.95% | 3.78% | 3.12% | 3.14% | |
75 Outperform | $38.14B | 24.89 | 11.17% | 3.36% | 20.54% | -20.02% | |
74 Outperform | $19.04B | 13.54 | 17.71% | 6.63% | -5.13% | -5.90% | |
72 Outperform | $20.18B | 19.89 | 8.20% | 4.27% | -6.51% | -0.21% | |
60 Neutral | $46.60B | 4.09 | -11.41% | 4.12% | 1.85% | -42.71% | |
60 Neutral | $28.58B | 9.21 | -7.17% | 4.19% | 0.89% | -494.16% | |
60 Neutral | $30.11B | ― | -3.55% | 6.68% | -4.73% | -251.31% |
* Communication Services Sector Average
Performance Comparison
SCMWY
Swisscom AG
73.64
10.46
16.56%
CHT
Chunghwa Telecom Co
44.18
6.50
17.25%
TLK
PT Telekomunikasi Indonesia Tbk
19.42
0.76
4.07%
VIV
Telefonica Brasil
12.47
3.22
34.81%
TEF
Telefonica
5.34
0.92
20.81%
VOD
Vodafone
11.81
2.28
23.92%
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.