-0.39%
1.78%
-3.57%
-3.02%
0.92%
-2.34%
-3.30%

Company Description

Swisscom AG provides telecommunication services primarily in Switzerland, Italy, and internationally.It operates through three segments: Swisscom Switzerland, Fastweb, and Other Operating.The company offers mobile and fixed-network services, such as telephony, broadband, TV, and mobile offerings, as well as sells terminal equipment; and telecom and communications solutions for large corporations and small and medium-sized enterprises.


It also provides cloud, outsourcing, workplace, mobile phone, networking, business process optimization, SAP, and security and authentication solutions, as well as a range of services to the banking industry; Internet of Things solutions; digitization services to the healthcare sector; IT systems for health insurance companies; fixed-line and mobile networks by other telecommunication service providers; and roaming to foreign operators whose customers use its mobile networks, as well as broadband services and regulated products.In addition, the company plans, operates, and maintains network infrastructure and IT systems; provides support functions to finance, human resource, and strategy, as well as management of real estate and vehicle fleet; and offers broadband and mobile services, such as telephony, mobile offerings, and broadband services, as well as ICT solutions for residential, business, and wholesale customers.Further, it provides IT and network services; online and telephone directories; and cross-platform retail media and security communication services, as well as builds and maintains wired and wireless networks.


The company was founded in 1852 and is based in Bern, Switzerland.

Market Data

Last Price 513.5
Change Percentage -0.39%
Open 515.5
Previous Close 515.5
Market Cap ( Millions) 26600
Volume 128780
Year High 571
Year Low 486.8
M A 50 507.66
M A 200 521.06

Financial Ratios

FCF Yield 6.57%
Dividend Yield 4.28%
ROE 14.24%
Debt / Equity 16.02%
Net Debt / EBIDTA -28.42%
Price To Book 2.23
Price Earnings Ratio 15.8
Price To FCF 15.23
Price To sales 2.41
EV / EBITDA 5.34

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Swisscom Switzerland

Expected Growth : 0.0 %

What the company do ?

Swisscom Switzerland is a leading telecommunications provider in Switzerland, offering a range of services including mobile, fixed network, and IT solutions.

Why we expect these perspectives ?

Swisscom Switzerland's stagnant growth is attributed to intense competition in the telecom market, regulatory pressures, and high capital expenditures for 5G network infrastructure. Additionally, declining voice and messaging revenues, coupled with limited opportunities for growth in the mature Swiss market, contribute to the flat growth rate.

Segment nΒ°2 -> Fastweb

Expected Growth : 2.0 %

What the company do ?

Fastweb is a Swiss telecommunications company owned by Swisscom AG, offering high-speed internet, TV, and phone services to residential and business customers.

Why we expect these perspectives ?

Fastweb's 2.0% growth driven by increasing demand for high-speed internet and digital services, Swisscom's strategic investments in fiber-optic infrastructure, and growing adoption of 5G technology, enabling Fastweb to capitalize on the rising need for reliable and fast connectivity in Switzerland.

Segment nΒ°3 -> Other Operating

Expected Growth : 1.5 %

What the company do ?

Other Operating from Swisscom AG refers to the company's miscellaneous operating expenses, including costs not attributed to specific business segments.

Why we expect these perspectives ?

Swisscom AG's 1.5% growth in Other Operating is driven by increasing demand for digital services, cost savings from operational efficiency initiatives, and strategic partnerships. Additionally, the company's focus on 5G network expansion and investments in IT infrastructure have contributed to this growth.

Swisscom Ag Products

Product Range What is it ?
Mobile Subscriptions Swisscom offers a range of mobile subscriptions for individuals and businesses, including voice, data, and SMS services.
Fixed Network Services Swisscom provides fixed network services, including broadband internet, TV, and landline phone services for homes and businesses.
ICT Solutions Swisscom offers customized ICT solutions for businesses, including cloud services, cybersecurity, and data analytics.
Digital Business Solutions Swisscom provides digital business solutions, including IoT, artificial intelligence, and blockchain services.
Cybersecurity Services Swisscom offers cybersecurity services, including threat detection, incident response, and security consulting.
Cloud Services Swisscom provides cloud services, including infrastructure, platform, and software as a service.

Swisscom AG's Porter Forces

Swisscom AG operates in a highly competitive market, and customers have various alternatives for their telecommunications needs. However, the company's strong brand reputation and extensive network coverage mitigate the threat of substitutes.

Swisscom AG's customers have some bargaining power due to the availability of alternative service providers. However, the company's strong market position and diversified product offerings reduce the bargaining power of customers.

Swisscom AG has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position and long-term contracts with suppliers also mitigate the bargaining power of suppliers.

The telecommunications industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This reduces the threat of new entrants and allows Swisscom AG to maintain its market position.

The Swiss telecommunications market is highly competitive, with several major players competing for market share. Swisscom AG faces intense competition from rivals such as Sunrise Communications and Salt Mobile.

Capital Structure

Value
Debt Weight 14.15%
Debt Cost 4.75%
Equity Weight 85.85%
Equity Cost 4.75%
WACC 4.75%
Leverage 16.48%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
T AT&T Inc. provides telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, and carrying …
VOD.L Vodafone Group Public Limited Company engages in telecommunication services in Europe and internationally. The company offers mobile services that enable customers to call, text, and access data; fixed line services, …
VZ Verizon Communications Inc., through its subsidiaries, offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. Its Consumer segment provides postpaid and prepaid service …
ORA.PA Orange S.A. provides various fixed telephony and mobile telecommunications, data transmission, and other value-added services to customers, businesses, and other telecommunications operators in France and internationally. It operates through France; …
OPL.WA Orange Polska S.A., together with its subsidiaries, provides telecommunications services in Poland. It offers mobile and fixed telecommunications services, including calls, messaging, content, and access to the Internet and TV; …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
513.5$
Current Price
513.5$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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