SWX:SRCG

Stock Analysis Report

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.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.5%

SRCG

1.2%

CH Telecom

2.7%

CH Market


1 Year Return

8.8%

SRCG

-16.6%

CH Telecom

-5.4%

CH Market

Return vs Industry: SRCG exceeded the Swiss Telecom industry which returned -16.8% over the past year.

Return vs Market: SRCG exceeded the Swiss Market which returned -5.2% over the past year.


Shareholder returns

SRCGIndustryMarket
7 Day4.5%1.2%2.7%
30 Day-5.3%-11.9%-9.4%
90 Day-0.3%-15.5%-13.8%
1 Year15.3%8.8%-13.5%-16.6%-0.7%-5.4%
3 Year21.8%4.5%-13.7%-24.0%15.4%3.6%
5 Year12.8%-8.0%-26.4%-40.2%15.5%-3.4%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SRCG (CHF78.2) is trading below our estimate of fair value (CHF218.5)

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 (63.4x) compared to the Telecom industry average (16.4x).

PE vs Market: SRCG is poor value based on its PE Ratio (63.4x) compared to the Swiss market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: SRCG is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: SRCG is overvalued based on its PB Ratio (2.6x) compared to the XE Telecom industry average (1.5x).


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?

26.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRCG's forecast earnings growth (26.1% per year) is above the savings rate (-0.6%).

Earnings vs Market: SRCG's earnings (26.1% per year) are forecast to grow faster than the Swiss market (8.3% per year).

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

Revenue vs Market: SRCG's revenue (1.2% per year) is forecast to grow slower than the Swiss market (2.2% per year).

High Growth Revenue: SRCG's revenue (1.2% 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 low in 3 years time (16.9%).


Next Steps

Past Performance

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

44.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRCG has a large one-off loss of CHF35.2M impacting its December 31 2019 financial results.

Growing Profit Margin: SRCG's current net profit margins (2.9%) are lower than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: SRCG has become profitable over the past 5 years, growing earnings by 44.2% 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 (-48%) over the past year, making it difficult to compare to the Telecom industry average (10.4%).


Return on Equity

High ROE: SRCG's Return on Equity (4.1%) 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 (CHF686.6M) exceed its short term liabilities (CHF624.7M).

Long Term Liabilities: SRCG's short term assets (CHF686.6M) do not cover its long term liabilities (CHF2.1B).


Debt to Equity History and Analysis

Debt Level: SRCG's debt to equity ratio (117.6%) is considered high.

Reducing Debt: SRCG had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: SRCG's debt is well covered by operating cash flow (27.6%).

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


Balance Sheet

Inventory Level: SRCG has a high level of physical assets or inventory.

Debt Coverage by Assets: SRCG's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

5.60%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SRCG's dividend (5.63%) is higher than the bottom 25% of dividend payers in the Swiss market (2.08%).

High Dividend: SRCG's dividend (5.63%) is in the top 25% of dividend payers in the Swiss market (4.36%)


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 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (356.8%), 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 (96.1% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

André Krause (49yo)

0.25

Tenure

Mr. André Krause is Chief Executive Officer and a.i. Chief Consumer Officer at Sunrise Communications AG since January 3, 2020. Mr. Krause served as Chief Financial Officer at Sunrise Communications Group  ...


Leadership Team

NamePositionTenureCompensationOwnership
Olaf Swantee
Executive Officer0.25yrCHF2.45m0.11% CHF4.1m
André Krause
CEO, a.i. Chief Consumer Officer & Member of Management Board0.25yrno data0.043% CHF1.5m
Uwe Schiller
Chief Financial Officer0.25yrno datano data
Elmar Grasser
CTO & Member of Management Boardno datano data0.010% CHF356.0k
Françoise Clemes
Chief Services Officer & Member of Management Board3.83yrsno data0.033% CHF1.2m
Robert Wigger
Chief Business Officer & Member of the Management Boardno datano data0.011% CHF398.2k
Marcel Huber
Chief Administrative Officerno datano data0.0047% CHF165.1k
Tobias Foster
Chief HR Officer & Member of the Executive Leadership Team1.25yrsno data0.010% CHF364.5k
Giuseppe Bonina
Chief YOL Officer & Member of Management Boardno datano data0.0033% CHF118.0k
Carl Wich
Head of Business Customers Unit13.25yrsno datano data

0.8yrs

Average Tenure

52yo

Average Age

Experienced Management: SRCG's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Peter Kurer
Independent Chairman of the Board of Directors4yrsCHF381.00k0.025% CHF872.5k
Jesper Ovesen
Independent Non-Executive Director5.25yrsCHF160.00k0.017% CHF595.8k
Michael Krammer
Independent Non-Executive Director4yrsCHF130.00k0.0061% CHF216.1k
Robin Bienenstock
Independent Non-Executive Director4yrsCHF140.00k0.0061% CHF216.1k
Christoph Vilanek
Independent Non-Executive Director4yrsCHF130.00k0.0061% CHF216.1k
Ingrid Deltenre
Independent Non-Executive Director2yrsCHF140.00k0.0029% CHF103.4k
Ingo Arnold
Independent Director1yrCHF110.00k0.0015% CHF54.2k
Peter Schöpfer
Independent Vice Chairman4.75yrsCHF161.00k0.0090% CHF318.1k

4.0yrs

Average Tenure

59yo

Average Age

Experienced Board: SRCG's board of directors are considered experienced (4 years average tenure).


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: CHF3.542b
  • Shares outstanding: 45.07m
  • Website: https://www.sunrise.ch

Number of Employees


Location

  • Sunrise Communications Group AG
  • Binzmühlestrasse 130
  • Zürich
  • Zurich
  • 8050
  • 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

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 voice and data on postpaid and prepaid basis, landline voice and Internet, and Internet protocol television services; system integration and managed services; and voice hubbing services based on the landline network. It also provides other value-added services, such as international calls, roaming, extra SIM, hardware insurance, and network browsing protection, as well as access to Sunrise TV products through mobile hardware; and mobile phones, tablets, and other hardware and accessories. In addition, the company provides infrastructure services, such as carrier and roaming services to telecom service providers and mobile virtual network operators. It markets its prepaid voice and data services under the Sunrise, ALDI SUISSE mobile, yallo, Ortel, and Lebara brand names. The company serves approximately 3.5 million customers. It operates approximately 92 retail locations in Switzerland. Sunrise Communications Group AG was founded in 2015 and is headquartered in Zürich, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 02:28
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.