Swisscom AG (SCMWY) AI Stock Analysis

• Market Cap: $48.29B
• Dividend Yield: 3.48%
• Average Volume (3M): 173.00
• Price to Earnings (P/E): 23.5
• Beta (1Y): -0.06
• Revenue Growth: 32.48%
• EPS Growth: -22.94%
• Country: US
• Employees: 23,717
• Sector: N/A
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): 0.71
• Shares Outstanding: 518,020,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 173
• PEG Ratio: -1.32
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 9.96
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 2.70
• Enterprise Value/Gross Profit: 3.37
• Enterprise Value/Ebitda: 6.07
• 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: 66 Neutral
• Price Target: $99.00 ▲(39.48% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is driven primarily by above-average financial quality (strong cash flow and controlled leverage), supported by constructive 2026 free-cash-flow guidance and synergy progress. Offsetting this, technicals look overextended and valuation is demanding (high P/E), while ongoing revenue/ARPU pressure and integration costs add execution risk.

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, 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 Money

Swisscom 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 Financial Statement Overview

Summary

Strong and consistent cash generation (notably higher 2025 free cash flow) and manageable leverage support an above-average financial profile. The main offset is 2025 margin compression and weaker earnings conversion despite a revenue rebound, which raises monitoring risk on cost and profitability trends.

Income Statement

Profitability remains solid for a telecom operator, with consistently high gross margins (~79–82%) and healthy EBITDA margins (~39–44%) over the period. However, after several years of flat-to-slightly negative revenue growth (2022–2024), the 2025 rebound (+7.4%) came with notable margin compression: net margin fell to ~8.4% from mid-teens levels in 2021–2024, and EBIT margin also stepped down. Overall, the income statement shows strong underlying economics but a weaker 2025 earnings conversion that bears monitoring.

Balance Sheet

Leverage is moderate and generally well-controlled, with debt-to-equity mostly in the ~0.16–0.30 range, supporting balance-sheet resilience for a capital-intensive telecom business. Equity has been stable-to-growing across the period, and historical returns on equity (where provided) are healthy (low-to-mid teens in 2020–2024). The main drawback is the uptick in leverage versus 2022–2023 (debt-to-equity rising back toward ~0.30 in 2024–2025), which slightly reduces financial flexibility compared with the lower-leverage years.

Cash Flow

Cash generation is a clear strength: operating cash flow is consistently robust and free cash flow is meaningfully positive each year. 2025 showed a strong step-up in free cash flow (+13.5%) alongside higher operating cash flow, supporting funding capacity for dividends, debt service, and investment. That said, free cash flow has not consistently tracked earnings closely (free cash flow around ~41–50% of net income), and the cash-flow-to-earnings relationship has been uneven year-to-year, suggesting periodic working-capital or investment swings.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Swisscom AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.98
• 50DMA: Positive
• 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 70.98 is below the 20-day moving average (MA) of 90.87, below the 50-day MA of 82.40, and below the 200-day MA of 74.30, indicating a bullish trend. The MACD of 2.82 indicates Positive momentum. The RSI at 68.87 is Neutral, neither overbought nor oversold. The STOCH value of 37.92 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
Sector *	―	―	―	―	―	―	―
CHT	77 Outperform	$33.21B	26.19	10.10%	3.15%	5.74%	7.12%
TLK	75 Outperform	$18.19B	16.17	15.56%	6.14%	-5.21%	-7.45%
VIV	70 Outperform	$25.62B	17.32	9.03%	5.03%	-3.16%	4.70%
SCMWY	66 Neutral	$48.29B	23.53	10.09%	3.48%	32.48%	-22.94%
VOD	60 Neutral	$33.18B	7.35	-8.37%	3.77%	19.67%	-278.51%