SWX:SRCG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Sunrise Communications Group

Executive Summary

Sunrise Communications Group AG, together with its subsidiaries, provides telecommunications services to residential and business customers, and other carriers in Switzerland. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Sunrise Communications Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SRCG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.09%

SRCG

-1.3%

CH Telecom

-0.9%

CH Market


1 Year Return

41.5%

SRCG

-15.3%

CH Telecom

2.7%

CH Market

Return vs Industry: SRCG exceeded the Swiss Telecom industry which returned -14.8% over the past year.

Return vs Market: SRCG exceeded the Swiss Market which returned 2.2% over the past year.


Shareholder returns

SRCGIndustryMarket
7 Day0.09%-1.3%-0.9%
30 Day0.5%-4.1%0.6%
90 Day30.5%-6.0%2.4%
1 Year49.4%41.5%-11.2%-15.3%6.2%2.7%
3 Year57.3%33.6%-11.1%-22.1%18.2%3.9%
5 Year156.1%97.8%-11.2%-28.2%37.7%14.8%

Price Volatility Vs. Market

How volatile is Sunrise Communications Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sunrise Communications Group undervalued compared to its fair value and its price relative to the market?

46.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SRCG (CHF109.1) is trading below our estimate of fair value (CHF205.17)

Significantly Below Fair Value: SRCG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SRCG is poor value based on its PE Ratio (129.3x) compared to the XE Telecom industry average (19.3x).

PE vs Market: SRCG is poor value based on its PE Ratio (129.3x) compared to the Swiss market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: SRCG is poor value based on its PEG Ratio (5.1x)


Price to Book Ratio

PB vs Industry: SRCG is overvalued based on its PB Ratio (4.1x) compared to the XE Telecom industry average (1.8x).


Next Steps

Future Growth

How is Sunrise Communications Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

25.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRCG's forecast earnings growth (25.5% per year) is above the savings rate (-0.2%).

Earnings vs Market: SRCG's earnings (25.5% per year) are forecast to grow faster than the Swiss market (11.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SRCG's revenue (1.6% per year) is forecast to grow slower than the Swiss market (4.6% per year).

High Growth Revenue: SRCG's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SRCG's Return on Equity is forecast to be high in 3 years time (20.1%)


Next Steps

Past Performance

How has Sunrise Communications Group performed over the past 5 years?

24.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRCG has a large one-off loss of CHF56.1M impacting its June 30 2020 financial results.

Growing Profit Margin: SRCG's current net profit margins (2%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: SRCG has become profitable over the past 5 years, growing earnings by 24.8% per year.

Accelerating Growth: SRCG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SRCG had negative earnings growth (-70.1%) over the past year, making it difficult to compare to the Telecom industry average (6.5%).


Return on Equity

High ROE: SRCG's Return on Equity (3.2%) is considered low.


Next Steps

Financial Health

How is Sunrise Communications Group's financial position?


Financial Position Analysis

Short Term Liabilities: SRCG's short term assets (CHF698.0M) do not cover its short term liabilities (CHF728.3M).

Long Term Liabilities: SRCG's short term assets (CHF698.0M) do not cover its long term liabilities (CHF2.1B).


Debt to Equity History and Analysis

Debt Level: SRCG's debt to equity ratio (140.3%) is considered high.

Reducing Debt: SRCG's debt to equity ratio has reduced from 160.1% to 140.3% over the past 5 years.

Debt Coverage: SRCG's debt is well covered by operating cash flow (28.4%).

Interest Coverage: SRCG's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


Next Steps

Dividend

What is Sunrise Communications Group current dividend yield, its reliability and sustainability?

4.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SRCG's dividend (4.03%) is higher than the bottom 25% of dividend payers in the Swiss market (1.93%).

High Dividend: SRCG's dividend (4.03%) is in the top 25% of dividend payers in the Swiss market (3.7%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SRCG has been paying a dividend for less than 10 years.

Growing Dividend: SRCG's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (521.6%), SRCG's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SRCG's dividends in 3 years are not forecast to be well covered by earnings (96.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

André Krause (50 yo)

0.67

Tenure

Mr. André Krause is Chief Executive Officer at Sunrise Communications AG since January 3, 2020. Mr. Krause was a.i. Chief Consumer Officer at Sunrise Communications AG since January 3, 2020 until September ...


Leadership Team

NamePositionTenureCompensationOwnership
André Krause
CEO & Member of Management Board0.67yrno data0.043%
CHF 2.1m
Uwe Schiller
Chief Financial Officer0.67yrno datano data
Elmar Grasser
CTO & Member of Management Boardno datano data0.010%
CHF 494.3k
Françoise Clemes
Chief Services Officer & Member of Management Board4.25yrsno data0.033%
CHF 1.6m
Robert Wigger
Chief Business Officer & Member of the Management Boardno datano data0.011%
CHF 552.6k
Marcel Huber
Chief Administrative Officerno datano data0.0046%
CHF 229.1k
Tobias Foster
Chief HR Officer & Member of the Executive Leadership Team1.67yrsno data0.010%
CHF 506.2k
Giuseppe Bonina
Chief Consumer Officer & Member of Management Boardno datano data0.0033%
CHF 164.0k
Carl Wich
Head of Business Customers Unit13.67yrsno datano data
Christoph Richartz
Chief YOL Officerno datano datano data

1.7yrs

Average Tenure

53yo

Average Age

Experienced Management: SRCG's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Thomas Karlovits
Director0.42yrno datano data
Michael Krammer
Independent Vice Chairman of the board0.42yrCHF130.00k0.0061%
CHF 299.8k
Christoph Vilanek
Independent Non-Executive Director4.42yrsCHF130.00k0.0061%
CHF 299.8k
Henriette Wendt
Director0.42yrno datano data
Ingrid Deltenre
Independent Non-Executive Director2.42yrsCHF140.00k0.0029%
CHF 143.7k
Ingo Arnold
Independent Director1.42yrsCHF110.00k0.0015%
CHF 75.1k
Sonja Stirnimann
Director0.42yrno datano data
Thomas Meyer
Chairman of the Board0.42yrno datano data

0.4yrs

Average Tenure

53.5yo

Average Age

Experienced Board: SRCG's board of directors are not considered experienced ( 0.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sunrise Communications Group AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sunrise Communications Group AG
  • Ticker: SRCG
  • Exchange: SWX
  • Founded: 2015
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: CHF4.938b
  • Shares outstanding: 45.27m
  • Website: https://www.sunrise.ch

Number of Employees


Location

  • Sunrise Communications Group AG
  • Thurgauerstrasse 101B
  • Glattpark (Opfikon)
  • Zürich
  • Zurich
  • 8152
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRCGSWX (SIX Swiss Exchange)YesCommon SharesCHCHFFeb 2015
SR2DB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 2015
0R5GLSE (London Stock Exchange)YesCommon SharesGBCHFFeb 2015
SNMM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 2015
SRCGESWX (SIX Swiss Exchange)CHF1 (TENDERED 2ND LINE)CHCHFSep 2020

Biography

Sunrise Communications Group AG, together with its subsidiaries, provides telecommunications services to residential and business customers, and other carriers in Switzerland. The company offers mobile voi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/29 21:09
End of Day Share Price2020/09/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.