SWISSCOM AG-REG (SWJ.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:SWJ - CH0008742519 - Common Stock
655 EUR
+6 (+0.92%)
SWJ gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 35 industry peers in the Diversified Telecommunication Services industry. There are concerns on the financial health of SWJ while its profitability can be described as average. SWJ is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- SWJ had positive earnings in the past year.
- In the past year SWJ had a positive cash flow from operations.
- Each year in the past 5 years SWJ has been profitable.
- SWJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 3.51%, SWJ perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
- SWJ has a Return On Equity of 10.42%. This is comparable to the rest of the industry: SWJ outperforms 48.57% of its industry peers.
- SWJ has a Return On Invested Capital of 5.00%. This is in the lower half of the industry: SWJ underperforms 62.86% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SWJ is in line with the industry average of 8.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.51% | ||
| ROE | 10.42% | ||
| ROIC | 5% |
ROA(3y)5.85%
ROA(5y)6.25%
ROE(3y)13.92%
ROE(5y)14.96%
ROIC(3y)8.06%
ROIC(5y)8.1%
1.3 Margins
- The Profit Margin of SWJ (8.89%) is comparable to the rest of the industry.
- SWJ's Profit Margin has been stable in the last couple of years.
- SWJ has a Operating Margin (12.43%) which is comparable to the rest of the industry.
- SWJ's Operating Margin has improved in the last couple of years.
- SWJ has a better Gross Margin (78.48%) than 80.00% of its industry peers.
- In the last couple of years the Gross Margin of SWJ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.43% | ||
| PM (TTM) | 8.89% | ||
| GM | 78.48% |
OM growth 3Y2.23%
OM growth 5Y3.43%
PM growth 3Y-5.17%
PM growth 5Y-0.87%
GM growth 3Y-0.3%
GM growth 5Y-0.04%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SWJ is creating value.
- The number of shares outstanding for SWJ remains at a similar level compared to 1 year ago.
- The number of shares outstanding for SWJ remains at a similar level compared to 5 years ago.
- Compared to 1 year ago, SWJ has a worse debt to assets ratio.
2.2 Solvency
- SWJ has an Altman-Z score of 1.84. This is not the best score and indicates that SWJ is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of SWJ (1.84) is better than 85.71% of its industry peers.
- SWJ has a debt to FCF ratio of 5.87. This is a neutral value as SWJ would need 5.87 years to pay back of all of its debts.
- SWJ's Debt to FCF ratio of 5.87 is fine compared to the rest of the industry. SWJ outperforms 77.14% of its industry peers.
- A Debt/Equity ratio of 1.22 is on the high side and indicates that SWJ has dependencies on debt financing.
- SWJ's Debt to Equity ratio of 1.22 is in line compared to the rest of the industry. SWJ outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 5.87 | ||
| Altman-Z | 1.84 |
ROIC/WACC1.28
WACC3.92%
2.3 Liquidity
- A Current Ratio of 0.72 indicates that SWJ may have some problems paying its short term obligations.
- SWJ's Current ratio of 0.72 is on the low side compared to the rest of the industry. SWJ is outperformed by 60.00% of its industry peers.
- SWJ has a Quick Ratio of 0.72. This is a bad value and indicates that SWJ is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of SWJ (0.68) is worse than 65.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
- SWJ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.85%.
- Measured over the past years, SWJ shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.60% on average per year.
- SWJ shows a strong growth in Revenue. In the last year, the Revenue has grown by 27.12%.
- The Revenue has been decreasing by -0.74% on average over the past years.
EPS 1Y (TTM)-25.85%
EPS 3Y-5.59%
EPS 5Y-1.6%
EPS Q2Q%-18.77%
Revenue 1Y (TTM)27.12%
Revenue growth 3Y-0.44%
Revenue growth 5Y-0.74%
Sales Q2Q%37.15%
3.2 Future
- The Earnings Per Share is expected to grow by 1.27% on average over the next years.
- Based on estimates for the next years, SWJ will show a small growth in Revenue. The Revenue will grow by 5.78% on average per year.
EPS Next Y-15.73%
EPS Next 2Y-6.3%
EPS Next 3Y-1.27%
EPS Next 5Y1.27%
Revenue Next Year36.68%
Revenue Next 2Y16.37%
Revenue Next 3Y10.58%
Revenue Next 5Y5.78%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- SWJ is valuated rather expensively with a Price/Earnings ratio of 24.98.
- Based on the Price/Earnings ratio, SWJ is valued a bit more expensive than 60.00% of the companies in the same industry.
- SWJ's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
- The Price/Forward Earnings ratio is 23.02, which indicates a rather expensive current valuation of SWJ.
- SWJ's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. SWJ is more expensive than 65.71% of the companies in the same industry.
- SWJ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.98 | ||
| Fwd PE | 23.02 |
4.2 Price Multiples
- 62.86% of the companies in the same industry are cheaper than SWJ, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SWJ is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.8 | ||
| EV/EBITDA | 7.89 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-6.3%
EPS Next 3Y-1.27%
5. Dividend
5.1 Amount
- SWJ has a Yearly Dividend Yield of 3.65%.
- SWJ's Dividend Yield is comparable with the industry average which is at 3.26.
- Compared to an average S&P500 Dividend Yield of 1.82, SWJ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
5.2 History
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 91.35% of the earnings are spent on dividend by SWJ. This is not a sustainable payout ratio.
DP91.35%
EPS Next 2Y-6.3%
EPS Next 3Y-1.27%
SWISSCOM AG-REG / SWJ.DE FAQ
What is the ChartMill fundamental rating of SWISSCOM AG-REG (SWJ.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to SWJ.DE.
What is the valuation status of SWISSCOM AG-REG (SWJ.DE) stock?
ChartMill assigns a valuation rating of 1 / 10 to SWISSCOM AG-REG (SWJ.DE). This can be considered as Overvalued.
Can you provide the profitability details for SWISSCOM AG-REG?
SWISSCOM AG-REG (SWJ.DE) has a profitability rating of 5 / 10.
How financially healthy is SWISSCOM AG-REG?
The financial health rating of SWISSCOM AG-REG (SWJ.DE) is 3 / 10.
How sustainable is the dividend of SWISSCOM AG-REG (SWJ.DE) stock?
The dividend rating of SWISSCOM AG-REG (SWJ.DE) is 3 / 10 and the dividend payout ratio is 91.35%.