The underlying tendency is to the upside for shares in Swisscom AG and the timing is opportune to get back into the stock. A comeback of the upward dynamic can be anticipated.
Summary
● The company has a good ESG score relative to its sector, according to MSCI.
Strengths
● Before interest, taxes, depreciation and amortization, the company's margins are particularly high.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
Weaknesses
● The company's earnings growth outlook lacks momentum and is a weakness.
● The company is in a hindered financial situation with significant debt and rather low EBITDA levels.
● With an enterprise value anticipated at 2.96 times the sales for the current fiscal year, the company turns out to be overvalued.
● For the past year, analysts have significantly revised downwards their profit estimates.
● For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.
● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.
● The average consensus view of analysts covering the stock has deteriorated over the past four months.
● The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.
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Swisscom AG is Switzerland's leading telecommunications operator. Net sales break down by activity as follows:
- fixed and mobile telecommunications services (67.5%): fixed and mobile telephony, data transmission, Internet access, TV and radio broadcasting services, etc.;
- realization, maintenance and operation of communication infrastructures (10.8%);
- interconnection services (8%): for telecommunications operators;
- sale of fixed and mobile telephones (7.2%);
- other (6.5%).
Net sales break down by market between private customers (50.8%), business customers (41.5%) and telecoms operators (7.7%).
Net sales are distributed geographically as follows: Switzerland (75.8%) and Italy (24.2%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
