Swisscom AG
Swisscom AG Fundamental Analysis
Swisscom AG (SWZCF) shows weak financial fundamentals with a PE ratio of 28.37, profit margin of 8.45%, and ROE of 10.50%. The company generates $15.0B in annual revenue with weak year-over-year growth of -0.33%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SWZCF's fundamental strength across five key dimensions:
Efficiency Score
WeakSWZCF struggles to generate sufficient returns from assets.
Valuation Score
WeakSWZCF trades at a premium to fair value.
Growth Score
WeakSWZCF faces weak or negative growth trends.
Financial Health Score
ModerateSWZCF shows balanced financial health with some risks.
Profitability Score
WeakSWZCF struggles to sustain strong margins.
Key Financial Metrics
Is SWZCF Expensive or Cheap?
P/E Ratio
SWZCF trades at 28.37 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SWZCF's PEG of 20.02 indicates potential overvaluation.
Price to Book
The market values Swisscom AG at 2.94 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.91 times EBITDA. This is generally considered low.
How Well Does SWZCF Make Money?
Net Profit Margin
For every $100 in sales, Swisscom AG keeps $8.45 as profit after all expenses.
Operating Margin
Core operations generate 13.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.50 in profit for every $100 of shareholder equity.
ROA
Swisscom AG generates $3.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Swisscom AG generates strong operating cash flow of $6.01B, reflecting robust business health.
Free Cash Flow
Swisscom AG generates strong free cash flow of $3.00B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $57.97 in free cash annually.
FCF Yield
SWZCF converts 8.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
20.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.30
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How SWZCF Stacks Against Its Sector Peers
| Metric | SWZCF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.37 | 21.66 | Worse (Expensive) |
| ROE | 10.50% | 1190.00% | Weak |
| Net Margin | 8.45% | -55754.00% (disorted) | Weak |
| Debt/Equity | 0.30 | 1.32 | Strong (Low Leverage) |
| Current Ratio | 0.76 | 1.59 | Weak Liquidity |
| ROA | 3.53% | -202359.00% (disorted) | Weak |
SWZCF outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Swisscom AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-3.64%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
-7.78%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
-0.10%
Industry Style: Growth, Technology, Streaming
Declining