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

Fundamentals

Adequate balance sheet and slightly overvalued.


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


Market Performance


7 Day Return

2.3%

SWX:SRCG

0.9%

CH Telecom

-0.4%

CH Market


1 Year Return

-14.9%

SWX:SRCG

4.0%

CH Telecom

6.2%

CH Market

SRCG underperformed the Telecom industry which returned 4% over the past year.

SRCG underperformed the Market in Switzerland which returned 6.2% over the past year.


Share holder returns

SRCGIndustryMarket
7 Day2.3%0.9%-0.4%
30 Day3.9%4.8%4.5%
90 Day7.6%-1.8%2.2%
1 Year-9.8%-14.9%9.4%4.0%11.7%6.2%
3 Year36.8%17.3%7.9%-5.5%34.1%17.0%
5 Yearn/a6.9%-14.0%33.6%12.7%

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 based on future cash flows and its price relative to the stock market?

49%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Sunrise Communications Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Sunrise Communications Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Sunrise Communications Group is overvalued based on earnings compared to the Europe Telecom industry average.

Sunrise Communications Group is overvalued based on earnings compared to the Switzerland market.


Price Based on Expected Growth

Sunrise Communications Group is poor value based on expected growth next year.


Price Based on Value of Assets

Sunrise Communications Group is overvalued based on assets compared to the Europe Telecom industry average.


Next Steps

Future Growth

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

18.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sunrise Communications Group's revenue is expected to grow by 0.6% yearly, however this is not considered high growth (20% yearly).

Sunrise Communications Group's earnings are expected to grow by 18.9% yearly, however this is not considered high growth (20% yearly).

Sunrise Communications Group's revenue growth is positive but not above the Switzerland market average.

Sunrise Communications Group's earnings growth is expected to exceed the Switzerland market average.

Sunrise Communications Group's earnings growth is expected to exceed the low risk savings rate of 3.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Sunrise Communications Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

53.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sunrise Communications Group has delivered over 20% year on year earnings growth in the past 5 years.

Sunrise Communications Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Sunrise Communications Group's 1-year earnings growth is negative, it can't be compared to the Europe Telecom industry average.


Return on Equity

Sunrise Communications Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Sunrise Communications Group used its assets less efficiently than the Europe Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Sunrise Communications Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sunrise Communications Group's financial position?


Financial Position Analysis

Sunrise Communications Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Sunrise Communications Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Sunrise Communications Group's level of debt (117.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (344.2% vs 117.1% today).

Debt is well covered by operating cash flow (34.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.2x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

6.02%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Sunrise Communications Group's pays a higher dividend yield than the bottom 25% of dividend payers in Switzerland (1.93%).

Sunrise Communications Group's dividend is above the markets top 25% of dividend payers in Switzerland (3.7%).

Whilst dividend payments have been stable, Sunrise Communications Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but Sunrise Communications Group only paid a dividend in the past 4 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (0.6x coverage).


Next Steps

Management

What is the CEO of Sunrise Communications Group's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Olaf Swantee (53yo)

3.3yrs

Tenure

CHF2,191,000

Compensation

Mr. Olaf Swantee servedas Director of T-Mobile US, Inc. since June 13, 2018 until June 2019. He has been Chief Executive Officer and Member of Management Board at Sunrise Communications Group AG since May  ...


CEO Compensation Analysis

Olaf's remuneration is higher than average for companies of similar size in Switzerland.

Olaf's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.8yrs

Average Tenure

52yo

Average Age

The tenure for the Sunrise Communications Group management team is about average.


Board Age and Tenure

3.4yrs

Average Tenure

59yo

Average Age

The tenure for the Sunrise Communications Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Bruno Duarte (53yo)

    Chief Consumer Officer & Member of Management Board

    • Tenure: 2.3yrs
  • Elmar Grasser (54yo)

    CTO & Member of Management Board

    • Tenure: 0yrs
  • Carl Wich

    Head of Business Customers Unit

    • Tenure: 12.7yrs
  • Olaf Swantee (53yo)

    CEO & Member of Management Board

    • Tenure: 3.3yrs
    • Compensation: CHF2.19m
  • André Krause (49yo)

    CFO & Member of Management Board

    • Tenure: 8.7yrs
  • Françoise Clemes (52yo)

    Chief Services Officer & Member of Management Board

    • Tenure: 3.3yrs
  • Patrick Meier (37yo)

    Director of Legal

    • Tenure: 1.1yrs
  • Uwe Schiller

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Marcel Huber

    Chief Administrative Officer

    • Tenure: 0.6yrs
  • Tobias Foster (44yo)

    Chief HR Officer & Member of the Executive Leadership Team

    • Tenure: 0.7yrs

Board Members

  • Peter Kurer (70yo)

    Chairman of the Board of Directors

    • Tenure: 3.4yrs
    • Compensation: CHF381.00k
  • Jens Ovesen (62yo)

    Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: CHF163.00k
  • Michael Krammer (59yo)

    Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: CHF130.00k
  • Robin Bienenstock (51yo)

    Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: CHF139.00k
  • Christoph Vilanek (51yo)

    Non-Executive Director

    • Tenure: 3.4yrs
    • Compensation: CHF130.00k
  • Ingrid Deltenre (59yo)

    Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: CHF118.00k
  • Ingo Arnold

    Director

    • Tenure: 0.4yrs
  • Peter Schöpfer (62yo)

    Vice Chairman

    • Tenure: 4.2yrs
    • Compensation: CHF161.00k

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: CHF3.450b
  • 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 voi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/14 22:44
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.