SWISSCOM AG-REG (SWJ.DE) Stock Fundamental Analysis
Europe - FRA:SWJ - CH0008742519 - Common Stock
617.5 EUR
+8 (+1.31%)
We assign a fundamental rating of 4 out of 10 to SWJ. SWJ was compared to 30 industry peers in the Diversified Telecommunication Services industry. While SWJ is still in line with the averages on profitability rating, there are concerns on its financial health. SWJ has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SWJ was profitable.
SWJ had a positive operating cash flow in the past year.
SWJ had positive earnings in each of the past 5 years.
In the past 5 years SWJ always reported a positive cash flow from operatings.
1.2 Ratios
SWJ has a Return On Assets (3.71%) which is in line with its industry peers.
SWJ has a Return On Equity (11.49%) which is in line with its industry peers.
With a Return On Invested Capital value of 5.02%, SWJ perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SWJ is in line with the industry average of 7.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.71% | ||
| ROE | 11.49% | ||
| ROIC | 5.02% |
ROA(3y)5.85%
ROA(5y)6.25%
ROE(3y)13.92%
ROE(5y)14.96%
ROIC(3y)8.06%
ROIC(5y)8.1%
1.3 Margins
SWJ's Profit Margin of 10.22% is fine compared to the rest of the industry. SWJ outperforms 70.00% of its industry peers.
In the last couple of years the Profit Margin of SWJ has remained more or less at the same level.
SWJ has a Operating Margin of 13.60%. This is in the better half of the industry: SWJ outperforms 63.33% of its industry peers.
SWJ's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 78.53%, SWJ is doing good in the industry, outperforming 80.00% of the companies in the same industry.
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 | 13.6% | ||
| PM (TTM) | 10.22% | ||
| GM | 78.53% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SWJ is creating value.
Compared to 1 year ago, SWJ has about the same amount of shares outstanding.
The number of shares outstanding for SWJ remains at a similar level compared to 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 1.74, we must say that SWJ is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.74, SWJ belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
The Debt to FCF ratio of SWJ is 6.58, which is on the high side as it means it would take SWJ, 6.58 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.58, SWJ is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 1.32 is on the high side and indicates that SWJ has dependencies on debt financing.
SWJ's Debt to Equity ratio of 1.32 is on the low side compared to the rest of the industry. SWJ is outperformed by 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 1.74 |
ROIC/WACC1.28
WACC3.91%
2.3 Liquidity
A Current Ratio of 0.74 indicates that SWJ may have some problems paying its short term obligations.
The Current ratio of SWJ (0.74) is comparable to the rest of the industry.
A Quick Ratio of 0.70 indicates that SWJ may have some problems paying its short term obligations.
SWJ has a Quick ratio of 0.70. This is comparable to the rest of the industry: SWJ outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The earnings per share for SWJ have decreased strongly by -21.62% in the last year.
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.
Looking at the last year, SWJ shows a quite strong growth in Revenue. The Revenue has grown by 17.62% in the last year.
The Revenue has been decreasing by -0.74% on average over the past years.
EPS 1Y (TTM)-21.62%
EPS 3Y-5.59%
EPS 5Y-1.6%
EPS Q2Q%-32.07%
Revenue 1Y (TTM)17.62%
Revenue growth 3Y-0.44%
Revenue growth 5Y-0.74%
Sales Q2Q%34.02%
3.2 Future
SWJ is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.07% yearly.
SWJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.43% yearly.
EPS Next Y-10.9%
EPS Next 2Y-2.54%
EPS Next 3Y1.53%
EPS Next 5Y3.07%
Revenue Next Year37.14%
Revenue Next 2Y16.78%
Revenue Next 3Y10.85%
Revenue Next 5Y6.43%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
SWJ is valuated rather expensively with a Price/Earnings ratio of 22.47.
The rest of the industry has a similar Price/Earnings ratio as SWJ.
The average S&P500 Price/Earnings ratio is at 27.67. SWJ is around the same levels.
Based on the Price/Forward Earnings ratio of 20.43, 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 63.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SWJ to the average of the S&P500 Index (23.13), we can say SWJ is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.47 | ||
| Fwd PE | 20.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SWJ is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
SWJ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.15 | ||
| EV/EBITDA | 8.61 |
4.3 Compensation for Growth
SWJ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.54%
EPS Next 3Y1.53%
5. Dividend
5.1 Amount
SWJ has a Yearly Dividend Yield of 3.82%. Purely for dividend investing, there may be better candidates out there.
SWJ's Dividend Yield is a higher than the industry average which is at 4.23.
Compared to an average S&P500 Dividend Yield of 2.41, SWJ pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
5.2 History
Dividend Growth(5Y)0%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
SWJ pays out 85.59% of its income as dividend. This is not a sustainable payout ratio.
DP85.59%
EPS Next 2Y-2.54%
EPS Next 3Y1.53%
FRA:SWJ (9/29/2025, 7:00:00 PM)
617.5
+8 (+1.31%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryDiversified Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners23.12%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap31.99B
Analysts54.07
Price Target580.15 (-6.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
Yearly Dividend23.58
Dividend Growth(5Y)0%
DP85.59%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-19.7%
Min EPS beat(2)-31.26%
Max EPS beat(2)-8.14%
EPS beat(4)2
Avg EPS beat(4)-0.39%
Min EPS beat(4)-31.26%
Max EPS beat(4)34.08%
EPS beat(8)4
Avg EPS beat(8)-0.46%
EPS beat(12)7
Avg EPS beat(12)2.13%
EPS beat(16)10
Avg EPS beat(16)5.23%
Revenue beat(2)0
Avg Revenue beat(2)-2.31%
Min Revenue beat(2)-2.64%
Max Revenue beat(2)-1.98%
Revenue beat(4)0
Avg Revenue beat(4)-2.47%
Min Revenue beat(4)-3.41%
Max Revenue beat(4)-1.85%
Revenue beat(8)1
Avg Revenue beat(8)-2.04%
Revenue beat(12)1
Avg Revenue beat(12)-2.08%
Revenue beat(16)1
Avg Revenue beat(16)-2.26%
PT rev (1m)1.16%
PT rev (3m)0.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.21%
EPS NY rev (1m)-0.89%
EPS NY rev (3m)-7.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)3.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.47 | ||
| Fwd PE | 20.43 | ||
| P/S | 2.3 | ||
| P/FCF | 12.15 | ||
| P/OCF | 5.91 | ||
| P/B | 2.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.61 |
EPS(TTM)27.48
EY4.45%
EPS(NY)30.22
Fwd EY4.89%
FCF(TTM)50.84
FCFY8.23%
OCF(TTM)104.46
OCFY16.92%
SpS268.79
BVpS239.2
TBVpS-13.22
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.71% | ||
| ROE | 11.49% | ||
| ROCE | 6.07% | ||
| ROIC | 5.02% | ||
| ROICexc | 5.05% | ||
| ROICexgc | 8.74% | ||
| OM | 13.6% | ||
| PM (TTM) | 10.22% | ||
| GM | 78.53% | ||
| FCFM | 18.91% |
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 Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 6.58 | ||
| Debt/EBITDA | 2.87 | ||
| Cap/Depr | 73.07% | ||
| Cap/Sales | 19.95% | ||
| Interest Coverage | 7.15 | ||
| Cash Conversion | 95.01% | ||
| Profit Quality | 184.99% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.74 |
F-Score3
WACC3.91%
ROIC/WACC1.28
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)-21.62%
EPS 3Y-5.59%
EPS 5Y-1.6%
EPS Q2Q%-32.07%
EPS Next Y-10.9%
EPS Next 2Y-2.54%
EPS Next 3Y1.53%
EPS Next 5Y3.07%
Revenue 1Y (TTM)17.62%
Revenue growth 3Y-0.44%
Revenue growth 5Y-0.74%
Sales Q2Q%34.02%
Revenue Next Year37.14%
Revenue Next 2Y16.78%
Revenue Next 3Y10.85%
Revenue Next 5Y6.43%
EBIT growth 1Y-18.42%
EBIT growth 3Y1.78%
EBIT growth 5Y2.66%
EBIT Next Year197.75%
EBIT Next 3Y47.04%
EBIT Next 5Y27.8%
FCF growth 1Y38.66%
FCF growth 3Y-1.62%
FCF growth 5Y1.2%
OCF growth 1Y22.8%
OCF growth 3Y-0.56%
OCF growth 5Y-0.02%