SWISSCOM AG-REG (SWJ.DE) Stock Fundamental Analysis
FRA:SWJ - Deutsche Boerse Ag - CH0008742519 - Common Stock - Currency: EUR
Taking everything into account, SWJ scores 4 out of 10 in our fundamental rating. SWJ was compared to 31 industry peers in the Diversified Telecommunication Services industry. While SWJ has a great profitability rating, there are quite some concerns on its financial health. SWJ does not seem to be growing, but still is valued expensively.
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.
SWJ had positive earnings in each of the past 5 years.
Each year in the past 5 years SWJ had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SWJ (3.90%) is better than 67.74% of its industry peers.
SWJ has a Return On Equity of 11.54%. This is in the better half of the industry: SWJ outperforms 70.97% of its industry peers.
SWJ's Return On Invested Capital of 5.09% is on the low side compared to the rest of the industry. SWJ is outperformed by 61.29% of its industry peers.
SWJ had an Average Return On Invested Capital over the past 3 years of 8.06%. This is in line with the industry average of 7.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.9% | ||
| ROE | 11.54% | ||
| ROIC | 5.09% |
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
Looking at the Profit Margin, with a value of 12.02%, SWJ belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
In the last couple of years the Profit Margin of SWJ has remained more or less at the same level.
The Operating Margin of SWJ (15.45%) is better than 61.29% of its industry peers.
In the last couple of years the Operating Margin of SWJ has grown nicely.
Looking at the Gross Margin, with a value of 78.56%, SWJ belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
SWJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.45% | ||
| PM (TTM) | 12.02% | ||
| GM | 78.56% |
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
SWJ has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
SWJ has about the same amout of shares outstanding than it did 1 year ago.
SWJ has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for SWJ is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.71, we must say that SWJ is in the distress zone and has some risk of bankruptcy.
SWJ has a better Altman-Z score (1.71) than 83.87% of its industry peers.
The Debt to FCF ratio of SWJ is 7.14, which is on the high side as it means it would take SWJ, 7.14 years of fcf income to pay off all of its debts.
SWJ has a Debt to FCF ratio of 7.14. This is comparable to the rest of the industry: SWJ outperforms 58.06% of its industry peers.
SWJ has a Debt/Equity ratio of 1.23. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.23, SWJ is not doing good in the industry: 67.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 7.14 | ||
| Altman-Z | 1.71 |
ROIC/WACC1.32
WACC3.84%
2.3 Liquidity
A Current Ratio of 0.85 indicates that SWJ may have some problems paying its short term obligations.
The Current ratio of SWJ (0.85) is better than 61.29% of its industry peers.
SWJ has a Quick Ratio of 0.85. This is a bad value and indicates that SWJ is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.81, SWJ perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
SWJ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.66%.
The Earnings Per Share has been decreasing by -1.60% on average over the past years.
The Revenue has grown by 9.65% in the past year. This is quite good.
Measured over the past years, SWJ shows a decrease in Revenue. The Revenue has been decreasing by -0.74% on average per year.
EPS 1Y (TTM)-15.66%
EPS 3Y-5.59%
EPS 5Y-1.6%
EPS Q2Q%-19.36%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y-0.44%
Revenue growth 5Y-0.74%
Sales Q2Q%39.07%
3.2 Future
Based on estimates for the next years, SWJ will show a small growth in Earnings Per Share. The EPS will grow by 1.48% on average per year.
The Revenue is expected to grow by 5.92% on average over the next years.
EPS Next Y-3.62%
EPS Next 2Y0.57%
EPS Next 3Y2.69%
EPS Next 5Y1.48%
Revenue Next Year32.13%
Revenue Next 2Y14.77%
Revenue Next 3Y11.02%
Revenue Next 5Y5.92%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 19.82, SWJ is valued on the expensive side.
SWJ's Price/Earnings ratio is in line with the industry average.
SWJ is valuated rather cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.48, the valuation of SWJ can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SWJ is valued a bit more expensive than 61.29% of the companies in the same industry.
SWJ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.82 | ||
| Fwd PE | 18.48 |
4.2 Price Multiples
64.52% 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 | 12.53 | ||
| EV/EBITDA | 9.1 |
4.3 Compensation for Growth
The decent profitability rating of SWJ may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.57%
EPS Next 3Y2.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.90%, SWJ has a reasonable but not impressive dividend return.
SWJ's Dividend Yield is comparable with the industry average which is at 4.51.
Compared to an average S&P500 Dividend Yield of 2.40, SWJ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
5.2 History
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SWJ pays out 78.40% of its income as dividend. This is not a sustainable payout ratio.
DP78.4%
EPS Next 2Y0.57%
EPS Next 3Y2.69%
FRA:SWJ (6/17/2025, 7:00:00 PM)
592.5
-0.5 (-0.08%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners18.26%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap30.69B
Analysts54.17
Price Target576.42 (-2.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
Yearly Dividend23.51
Dividend Growth(5Y)0%
DP78.4%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.97%
Min EPS beat(2)-8.14%
Max EPS beat(2)34.08%
EPS beat(4)2
Avg EPS beat(4)5.82%
Min EPS beat(4)-8.14%
Max EPS beat(4)34.08%
EPS beat(8)4
Avg EPS beat(8)2.97%
EPS beat(12)7
Avg EPS beat(12)4.4%
EPS beat(16)11
Avg EPS beat(16)7.44%
Revenue beat(2)0
Avg Revenue beat(2)-1.92%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)-1.85%
Revenue beat(4)1
Avg Revenue beat(4)-1.73%
Min Revenue beat(4)-3.41%
Max Revenue beat(4)0.33%
Revenue beat(8)1
Avg Revenue beat(8)-2.12%
Revenue beat(12)1
Avg Revenue beat(12)-2.14%
Revenue beat(16)1
Avg Revenue beat(16)-2.15%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.82 | ||
| Fwd PE | 18.48 | ||
| P/S | 2.38 | ||
| P/FCF | 12.53 | ||
| P/OCF | 6.06 | ||
| P/B | 2.29 | ||
| P/tB | 1200.68 | ||
| EV/EBITDA | 9.1 |
EPS(TTM)29.9
EY5.05%
EPS(NY)32.07
Fwd EY5.41%
FCF(TTM)47.29
FCFY7.98%
OCF(TTM)97.85
OCFY16.51%
SpS248.63
BVpS259.03
TBVpS0.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.9% | ||
| ROE | 11.54% | ||
| ROCE | 6.15% | ||
| ROIC | 5.09% | ||
| ROICexc | 5.27% | ||
| ROICexgc | 9.22% | ||
| OM | 15.45% | ||
| PM (TTM) | 12.02% | ||
| GM | 78.56% | ||
| FCFM | 19.02% |
ROA(3y)5.85%
ROA(5y)6.25%
ROE(3y)13.92%
ROE(5y)14.96%
ROIC(3y)8.06%
ROIC(5y)8.1%
ROICexc(3y)8.23%
ROICexc(5y)8.29%
ROICexgc(3y)13.09%
ROICexgc(5y)12.99%
ROCE(3y)9.76%
ROCE(5y)9.81%
ROICexcg growth 3Y-4.3%
ROICexcg growth 5Y-2.65%
ROICexc growth 3Y-9.26%
ROICexc growth 5Y-5.03%
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%
F-Score3
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.23 | ||
| Debt/FCF | 7.14 | ||
| Debt/EBITDA | 3.19 | ||
| Cap/Depr | 82.41% | ||
| Cap/Sales | 20.34% | ||
| Interest Coverage | 10.67 | ||
| Cash Conversion | 98.08% | ||
| Profit Quality | 158.18% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.71 |
F-Score3
WACC3.84%
ROIC/WACC1.32
Cap/Depr(3y)95.31%
Cap/Depr(5y)93.98%
Cap/Sales(3y)20.66%
Cap/Sales(5y)20.4%
Profit Quality(3y)103.76%
Profit Quality(5y)107.52%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.66%
EPS 3Y-5.59%
EPS 5Y-1.6%
EPS Q2Q%-19.36%
EPS Next Y-3.62%
EPS Next 2Y0.57%
EPS Next 3Y2.69%
EPS Next 5Y1.48%
Revenue 1Y (TTM)9.65%
Revenue growth 3Y-0.44%
Revenue growth 5Y-0.74%
Sales Q2Q%39.07%
Revenue Next Year32.13%
Revenue Next 2Y14.77%
Revenue Next 3Y11.02%
Revenue Next 5Y5.92%
EBIT growth 1Y-14.82%
EBIT growth 3Y1.78%
EBIT growth 5Y2.66%
EBIT Next Year181.93%
EBIT Next 3Y46.66%
EBIT Next 5Y20.51%
FCF growth 1Y31.96%
FCF growth 3Y-1.62%
FCF growth 5Y1.2%
OCF growth 1Y17.39%
OCF growth 3Y-0.56%
OCF growth 5Y-0.02%