Swisscom AG (SCMWY) AI Stock Analysis

• Market Cap: $37.78B
• Dividend Yield: 3.44%
• Average Volume (3M): 173.00
• Price to Earnings (P/E): 25.6
• Beta (1Y): -0.05
• Revenue Growth: 32.48%
• EPS Growth: -22.94%
• Country: US
• Employees: 23,717
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.87
• Shares Outstanding: 518,020,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 173
• PEG Ratio: -1.75
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 2.39
• P/FCF Ratio: 15.60
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 4.45
• Enterprise Value/Gross Profit: 5.64
• Enterprise Value/Ebitda: 10.94
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $77.00 ▲(7.24% Upside)

Swisscom AG's overall stock score is driven by strong financial performance and effective cash management. However, technical analysis indicates bearish momentum, and valuation metrics suggest potential overvaluation. The earnings call highlighted operational efficiencies but also noted revenue challenges, particularly in the B2B segment.

Positive Factors

Operational Efficiency

The achievement of cost savings targets through digitization and AI applications enhances Swisscom's operational efficiency, supporting long-term profitability and competitiveness.

Network Expansion

Extensive network expansion in 5G and fiber positions Swisscom to capitalize on future demand for high-speed connectivity, strengthening its market position.

Innovation and Customer Service

Winning service tests and launching innovative services like AI chatbots enhance customer satisfaction and loyalty, providing a competitive edge.

Negative Factors

Revenue Decline

A decline in revenue indicates potential challenges in maintaining growth, which could affect long-term financial performance if not addressed.

B2B Revenue Erosion

Erosion in B2B revenue due to price competition and macroeconomic factors may impact Swisscom's ability to sustain its business model in this segment.

Challenges in Italian B2B Segment

The decline in Italian B2B revenue highlights vulnerabilities in project-based income, potentially affecting long-term revenue stability.

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 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 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.

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.

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.

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	4.58B	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: 71.80
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 71.8 is below the 20-day moving average (MA) of 72.96, below the 50-day MA of 73.13, and above the 200-day MA of 67.93, indicating a neutral trend. The MACD of -0.37 indicates Positive momentum. The RSI at 48.50 is Neutral, neither overbought nor oversold. The STOCH value of 40.84 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIV	77 Outperform	$21.34B	20.05	8.36%	4.91%	-3.16%	4.70%
CHT	76 Outperform	$32.83B	26.75	10.10%	3.99%	5.74%	7.12%
TLK	75 Outperform	$21.24B	16.57	15.54%	5.75%	-5.21%	-7.45%
SCMWY	67 Neutral	$37.78B	25.60	10.09%	3.44%	32.48%	-22.94%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
VOD	58 Neutral	$29.71B	―	-7.08%	3.94%	19.67%	-278.51%
TEF	45 Neutral	$24.45B	―	-0.70%	8.04%	-5.49%	-75.51%

Swisscom AG Corporate Events

Swisscom AG Reports Mixed H1 2025 Financial Results

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

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.