OTCPK:SWZC.F

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

0%

SWZC.F

0.01%

US Telecom

-0.6%

US Market


1 Year Return

9.3%

SWZC.F

8.2%

US Telecom

0.7%

US Market

SWZC.F outperformed the Telecom industry which returned 8.1% over the past year.

SWZC.F outperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

SWZC.FIndustryMarket
7 Day0%0.01%-0.6%
30 Day0%7.9%4.9%
90 Day-1.3%9.5%1.7%
1 Year9.3%9.3%13.9%8.2%3.0%0.7%
3 Year3.4%3.4%15.7%-1.1%44.8%35.4%
5 Year-11.0%-11.0%36.3%5.1%62.0%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 based on future cash flows and its price relative to the stock market?

20%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Swisscom's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Swisscom's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Swisscom is overvalued based on earnings compared to the US Telecom industry average.

Swisscom is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Swisscom is poor value based on expected growth next year.


Price Based on Value of Assets

Swisscom is overvalued based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

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

0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Swisscom's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Swisscom's earnings are expected to grow by 0.3% yearly, however this is not considered high growth (20% yearly).

Swisscom's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Swisscom's earnings growth is positive but not above the United States of America market average.

Swisscom's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

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


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

Swisscom's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

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

Swisscom's 1-year earnings growth is negative, it can't be compared to the US Telecom industry average.


Return on Equity

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


Return on Assets

Swisscom used its assets more efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Swisscom's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Swisscom's financial position?


Financial Position Analysis

Swisscom's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Swisscom's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Swisscom's level of debt (108.5%) 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 (157.1% vs 108.5% today).

Debt is well covered by operating cash flow (46.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 16x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

4.46%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Swisscom's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Swisscom's dividend is above the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.3x coverage).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Urs Schaeppi (59yo)

5.8yrs

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

Urs's remuneration is lower than average for companies of similar size in United States of America.

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


Management Age and Tenure

5.2yrs

Average Tenure

52yo

Average Age

The average tenure for the Swisscom management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

2.4yrs

Average Tenure

58yo

Average Age

The average tenure for the Swisscom board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Urs Schaeppi (59yo)

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

    • Tenure: 5.8yrs
    • Compensation: CHF1.83m
  • Mario Rossi (59yo)

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

    • Tenure: 6.7yrs
  • Louis Schmid (48yo)

    Head of Investor Relations

    • Tenure: 4.2yrs
  • Martin Vögeli (50yo)

    Head of Group Strategy & Board Services

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

    Chief Personnel Officer

    • Tenure: 8yrs
    • Compensation: CHF55.00k
  • Marc Werner (52yo)

    Head of Sales & Services Division and Member of Executive Board

    • Tenure: 5.7yrs
  • Marcel Walker

    Head of Banking Division and Cloud & Data Centre Services

    • Tenure: 5.2yrs
  • Dirk Wierzbitzki (54yo)

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

    • Tenure: 3.7yrs
  • Urs Lehner (51yo)

    Head of Enterprise Customers & Member of Executive Board

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

    Head of IT

    • Tenure: 0.6yrs

Board Members

  • Roland Abt (62yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: CHF252.00k
  • Hansueli Loosli (64yo)

    Chairman of the Board of Directors

    • Tenure: 8yrs
    • Compensation: CHF563.00k
  • Frank Esser (61yo)

    Vice Chairman

    • Tenure: 1.4yrs
    • Compensation: CHF245.00k
  • Alain Carrupt (64yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: CHF182.00k
  • Barbara Frei (49yo)

    Director

    • Tenure: 7.7yrs
    • Compensation: CHF207.00k
  • Renzo Simoni (58yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: CHF252.00k
  • Anna Mossberg (47yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: CHF149.00k
  • Sandra Lathion-Zweifel (43yo)

    Director

    • Tenure: 0.4yrs
  • Michael Rechsteiner (56yo)

    Director

    • Tenure: 0.4yrs

Company Information

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


Key Information

  • Name: Swisscom AG
  • Ticker: SWZC.F
  • Exchange: OTCPK
  • Founded: 1998
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: CHF25.600b
  • Listing Market Cap: CHF25.771b
  • 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 Analysis2019/09/23 00:14
End of Day Share Price2019/08/13 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.