Swisscom AG (SCMWY) AI Stock Analysis

• Market Cap: $36.56B
• Dividend Yield: 3.5%
• Average Volume (3M): 291.00
• Price to Earnings (P/E): 22.0
• Beta (1Y): -0.05
• Revenue Growth: 9.45%
• EPS Growth: -15.74%
• Country: US
• Employees: 23,717
• Sector: Communication Services
• Sector Strength: 87
• Industry: Telecommunications Services
• EPS (TTM): 0.86
• Shares Outstanding: 518,020,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 291
• PEG Ratio: 0.17
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: $74.00 ▲(6.69%Upside)

Swisscom AG's overall stock score of 76 reflects its strong financial performance, particularly in profitability and cash flow management. The stock's technical indicators suggest a favorable market position, while the valuation indicates a slightly high price point. The earnings call reveals ongoing challenges in Italy but also highlights strategic progress. Overall, Swisscom is a solid performer with some areas requiring careful monitoring.

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 AG generates revenue through multiple streams primarily centered around its telecommunications services. The company earns from subscription fees for mobile and fixed-line telephony services, broadband internet, and digital TV packages. Additionally, Swisscom capitalizes on the growing demand for data services and value-added services, including cloud computing and IT solutions for businesses. The company also engages in partnerships and collaborations with other technology and media firms to enhance its service offerings and customer experience. Revenue is further supplemented by Swisscom's ventures in international markets, although its core earnings are predominantly driven by its domestic operations in Switzerland.

Swisscom AG Financial Statement Overview

Summary

Swisscom AG presents a robust financial profile characterized by strong revenue growth, profitability, and efficient cash flow management. The income statement shows solid margins and growth, while the balance sheet reflects a healthy capital structure with manageable leverage. The cash flow statement highlights strong cash generation capabilities. Overall, Swisscom AG is well-positioned financially, but monitoring of rising liabilities and investing cash flows is advised to maintain stability.

Income Statement

Swisscom AG shows a strong income statement with healthy profitability metrics. The TTM (Trailing-Twelve-Months) gross profit margin stands at 68.08%, reflecting efficient cost management. The net profit margin is 12.02%, indicating solid profitability. Revenue growth is positive at 9.56% from the previous period, showcasing robust top-line growth. EBIT and EBITDA margins are 16.32% and 42.04%, respectively, highlighting strong operational performance. Despite fluctuations in net income, overall profitability remains strong.

Balance Sheet

Swisscom AG's balance sheet reflects stability with a debt-to-equity ratio of 0.31, suggesting conservative leverage. Return on equity is impressive at 11.54%, showcasing effective utilization of shareholders' equity. The equity ratio of 33.80% indicates a solid capital structure with a healthy proportion of equity financing. While total assets have grown, stockholders' equity has increased, reflecting a robust financial position. However, total liabilities have also risen, warranting careful monitoring.

Cash Flow

The cash flow statement is strong, with a free cash flow growth rate of 36.21% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 3.27, reflecting strong cash conversion efficiency. The free cash flow to net income ratio is 1.58, which is healthy and suggests that the company generates significant cash relative to its net income. However, the investing cash flow is negative, primarily due to capital expenditures, which could impact future liquidity if not managed well.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.09B	11.04B	11.07B	11.11B	11.18B	11.10B
Gross Profit	8.23B	8.72B	8.81B	9.09B	9.00B	8.90B
EBITDA	5.08B	4.46B	4.55B	4.43B	4.71B	4.35B
Net Income	1.45B	1.54B	1.71B	1.60B	1.83B	1.53B
Balance Sheet
Total Assets	37.26B	37.21B	24.75B	24.62B	24.80B	24.26B
Cash, Cash Equivalents and Short-Term Investments	1.05B	1.59B	198.00M	185.00M	494.00M	510.00M
Total Debt	3.95B	3.64B	1.92B	1.91B	2.02B	1.99B
Total Liabilities	24.66B	25.06B	13.13B	13.45B	13.99B	14.77B
Stockholders Equity	12.60B	12.15B	11.62B	11.17B	10.81B	9.49B
Cash Flow
Free Cash Flow	2.30B	1.69B	1.76B	1.59B	1.77B	1.88B
Operating Cash Flow	4.76B	3.98B	4.03B	3.88B	4.04B	4.07B
Investing Cash Flow	-9.47B	-9.28B	-2.32B	-2.43B	-2.12B	-2.23B
Financing Cash Flow	5.50B	6.82B	-1.67B	-1.72B	-1.86B	-1.82B

Swisscom AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 69.36 is above the 20-day moving average (MA) of 68.91, above the 50-day MA of 67.06, and above the 200-day MA of 60.26, indicating a bullish trend. The MACD of 0.80 indicates Positive momentum. The RSI at 65.38 is Neutral, neither overbought nor oversold. The STOCH value of 80.05 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TLK	79 Outperform	$15.72B	10.77	16.28%	6.25%	-5.14%	-7.47%
VIV	78 Outperform	$18.01B	17.70	7.95%	0.69%	-5.69%	-0.05%
SCMWY	76 Outperform	$36.56B	22.04	11.82%	3.50%	9.45%	-15.74%
AMX	71 Outperform	$52.37B	31.53	8.54%	5.76%	―	―
Sector *	61 Neutral	$39.88B	-1.09	-14.68%	3.94%	2.46%	-73.46%
TEF	59 Neutral	$29.88B	―	-0.55%	4.56%	-2.29%	-182.68%
VOD	57 Neutral	$25.68B	9.21	-7.17%	4.85%	0.89%	-494.16%