OTCPK:SCMW.Y

Stock Analysis Report

Executive Summary

Swisscom AG provides telecommunication services primarily in Switzerland, Italy, and internationally.

Snowflake

Fundamentals

6 star dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has Swisscom's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.4%

SCMW.Y

0.6%

US Telecom

0.07%

US Market


1 Year Return

16.6%

SCMW.Y

8.4%

US Telecom

8.9%

US Market

Return vs Industry: SCMW.Y exceeded the US Telecom industry which returned 8.4% over the past year.

Return vs Market: SCMW.Y exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

SCMW.YIndustryMarket
7 Day2.4%0.6%0.07%
30 Day4.4%0.6%-0.3%
90 Day6.9%10.7%-1.6%
1 Year21.1%16.6%14.1%8.4%11.3%8.9%
3 Year26.0%13.0%28.0%9.3%46.3%36.8%
5 Year7.0%-10.4%40.7%8.4%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Swisscom undervalued compared to its fair value and its price relative to the market?

16.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SCMW.Y ($51.92) is trading below our estimate of fair value ($62.03)

Significantly Below Fair Value: SCMW.Y is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SCMW.Y is poor value based on its PE Ratio (17.5x) compared to the Telecom industry average (16x).

PE vs Market: SCMW.Y is good value based on its PE Ratio (17.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: SCMW.Y is poor value based on its PEG Ratio (47.9x)


Price to Book Ratio

PB vs Industry: SCMW.Y is overvalued based on its PB Ratio (3.4x) compared to the US Telecom industry average (1.5x).


Next Steps

Future Growth

How is Swisscom forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCMW.Y's forecast earnings growth (0.4% per year) is below the savings rate (2.7%).

Earnings vs Market: SCMW.Y's earnings (0.4% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: SCMW.Y's earnings are forecast to grow, but not significantly.

Revenue vs Market: SCMW.Y's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: SCMW.Y's revenue is forecast to decline over the next 3 years (-0.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SCMW.Y's Return on Equity is forecast to be low in 3 years time (15.8%).


Next Steps

Past Performance

How has Swisscom performed over the past 5 years?

-1.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SCMW.Y's earnings have declined by -1.2% per year over the past 5 years.

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

Earnings vs Industry: SCMW.Y had negative earnings growth (-0.07%) over the past year, making it difficult to compare to the Telecom industry average (-23%).


Return on Equity

High ROE: SCMW.Y's Return on Equity (19.2%) is considered low.


Return on Assets

ROA vs Industry: SCMW.Y has a higher Return on Assets than the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: SCMW.Y's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Swisscom's financial position?


Financial Position Analysis

Short Term Liabilities: SCMW.Y's short term assets (CHF3.9B) do not cover its short term liabilities (CHF4.9B)

Long Term Liabilities: SCMW.Y's short term assets (3.9B) do not cover its long term liabilities (11.4B)


Debt to Equity History and Analysis

Debt Level: SCMW.Y's debt to equity ratio (108.5%) is considered high

Reducing Debt: SCMW.Y's debt to equity ratio has reduced from 157.1% to 108.5% over the past 5 years.

Debt Coverage: SCMW.Y's debt is well covered by operating cash flow (46.5%).

Interest Coverage: SCMW.Y's interest payments on its debt are well covered by EBIT (16x coverage).


Balance Sheet

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

Debt Coverage by Assets: SCMW.Y's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Swisscom's current dividend yield, its reliability and sustainability?

4.29%

Current Dividend Yield


Dividend Yield vs Market

company4.3%marketbottom25%1.4%markettop25%3.7%industryaverage4.8%forecastin3Years4.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SCMW.Y's dividend (4.29%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SCMW.Y's dividend (4.29%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: SCMW.Y's dividends per share have been stable in the past 10 years.

Growing Dividend: SCMW.Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75%), SCMW.Y's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SCMW.Y's dividends in 3 years are forecast to be covered by earnings (75.2% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Urs Schaeppi (59yo)

5.9yrs

Tenure

CHF1,829,000

Compensation

Mr. Urs Schaeppi, dipl. Ing. ETH, lic. oec. HSG, has been the Chief Executive Officer and Head of Swisscom - Switzerland at Swisscom AG since November 7, 2013 and January 1, 2013 respectively. Mr. Schaeppi ...


CEO Compensation Analysis

Compensation vs. Market: Urs's total compensation ($USD1.85M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Urs's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.3yrs

Average Tenure

52yo

Average Age

Experienced Management: SCMW.Y's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

58yo

Average Age

Experienced Board: SCMW.Y's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Urs Schaeppi (59yo)

    CEO, Head of Swisscom - Switzerland & Member of Executive Board

    • Tenure: 5.9yrs
    • Compensation: CHF1.83m
  • Mario Rossi (59yo)

    CFO, Head of Business Steering Switzerland & Member of Executive Board

    • Tenure: 6.8yrs
  • Louis Schmid (48yo)

    Head of Investor Relations

    • Tenure: 4.3yrs
  • Martin Vögeli (50yo)

    Head of Group Strategy & Board Services

    • Tenure: 0yrs
  • Hans Werner (59yo)

    Chief Personnel Officer

    • Tenure: 8.1yrs
    • Compensation: CHF55.00k
  • Marc Werner (52yo)

    Head of Sales & Services Division and Member of Executive Board

    • Tenure: 5.8yrs
  • Marcel Walker

    Head of Banking Division and Cloud & Data Centre Services

    • Tenure: 5.3yrs
  • Dirk Wierzbitzki (54yo)

    Head of Products & Marketing Business Division and Member of Executive Board

    • Tenure: 3.8yrs
  • Urs Lehner (51yo)

    Head of Enterprise Customers & Member of Executive Board

    • Tenure: 2.3yrs
  • Christoph Aeschlimann (42yo)

    Head of IT

    • Tenure: 0.7yrs

Board Members

  • Roland Abt (62yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: CHF252.00k
  • Hansueli Loosli (64yo)

    Chairman of the Board of Directors

    • Tenure: 8.1yrs
    • Compensation: CHF563.00k
  • Frank Esser (61yo)

    Vice Chairman

    • Tenure: 1.5yrs
    • Compensation: CHF245.00k
  • Alain Carrupt (64yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: CHF182.00k
  • Barbara Frei (49yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: CHF207.00k
  • Renzo Simoni (58yo)

    Director

    • Tenure: 2.5yrs
    • Compensation: CHF252.00k
  • Anna Mossberg (47yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: CHF149.00k
  • Sandra Lathion-Zweifel (43yo)

    Director

    • Tenure: 0.5yrs
  • Michael Rechsteiner (56yo)

    Director

    • Tenure: 0.5yrs

Company Information

Swisscom AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Swisscom AG
  • Ticker: SCMW.Y
  • Exchange: OTCPK
  • Founded: 1998
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: CHF26.574b
  • Listing Market Cap: CHF26.839b
  • Shares outstanding: 51.80m
  • Website: https://www.swisscom.ch

Number of Employees


Location

  • Swisscom AG
  • Alte Tiefenaustrasse 6
  • Bern
  • Bern
  • 3050
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCMW.YOTCPK (Pink Sheets LLC)SPON LVL3 ADR EACH REP 1/10 CHF9(RG)USUSDOct 1998
SWJDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1998
SCMNSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFOct 1998
0QKILSE (London Stock Exchange)YesOrdinary SharesGBCHFOct 1998
SWJXTRA (XETRA Trading Platform)YesOrdinary SharesDEEUROct 1998
SWZC.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1998
SWJADB (Deutsche Boerse AG)SPON LVL3 ADR EACH REP 1/10 CHF9(RG)DEEUROct 1998

Biography

Swisscom AG provides telecommunication services primarily in Switzerland, Italy, and internationally. The company operates through three segments: Swisscom Switzerland, Fastweb, and Other Operating. It off ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:44
End of Day Share Price2019/10/23 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.