Swisscom AG

Swisscom's capital structure is characterized by a debt-to-equity ratio of 0.57, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 0.94, suggesting limited short-term liquidity cushion. Free cash flow of 452 million CHF supports operational flexibility, though net cash is negative after subtracting total debt, signaling potential refinancing needs.

Profitability metrics show a return on equity of 3.74% and a return on assets of 1.78%, both below the industry median for integrated telecommunications services. Operating income of 568 million CHF reflects a 21.0% margin, which is in line with the sector average but leaves room for improvement in cost efficiency.

Geographically, Swisscom's revenue is heavily concentrated in Switzerland, with international operations contributing a smaller but growing share. The company's exposure to domestic markets increases regulatory and macroeconomic risks, particularly in a high-cost environment like Switzerland. No material revenue concentration in any single segment is reported, though wired telecommunications remains the core business.

Growth trajectory is modest, with revenue of 2.7 billion CHF in the latest period. Analysts project a mean price target of 564.46 CHF, implying limited upside from the current share price. Capital expenditures of 590 million CHF suggest ongoing investment in infrastructure, but the company's diluted share count remains stable, indicating low dilution risk.

Risk factors include medium liquidity risk due to the current ratio and negative net cash position. Dilution is assessed as low, with no near-term pressure from share issuance. Regulatory compliance and macroeconomic volatility in Switzerland are key concerns, though the company's strong market position mitigates some of these risks.

Recent events include stable analyst recommendations, with a mean rating of 3.30 (Hold). No material changes in business strategy or regulatory environment have been disclosed in the latest filings. The company's focus on wired telecommunications and digital services aligns with long-term industry trends.

Free cash flow surged 105.8% year-over-year to CHF 1.77 billion, indicating strong cash generation capabilities despite revenue stagnation.

Cash conversion of 1.94 outperforms the cohort median of 1.64, suggesting effective translation of earnings into actual cash flow.

Revenue is projected to grow 36.6% year-over-year to CHF 15.05 billion, driven by significant expansion in the latest fiscal period.

Long-term debt more than doubled to CHF 16.04 billion in FY-1, raising significant concerns about leverage and financial flexibility.

Return on equity of 3.74% falls below the cohort median of 4.76%, indicating less efficient use of shareholder capital than peers.

The company faces a high credit risk flag, suggesting potential difficulties in meeting financial obligations or maintaining creditworthiness.

Revenue CHF 3.87B, +35,6% YoY; Operating income +47,2% YoY.

• ▍Revenue CHF 3.87B, +35,6% YoY
• ▍Operating income +47,2% YoY
• ▍Net income +8,9% YoY
• ▍Free cash flow +45,0% YoY
• ▍Net margin 7.3%

Revenue CHF 3.73B, +37,4% YoY; Operating income −4,6% YoY.

• ▍Revenue CHF 3.73B, +37,4% YoY
• ▍Operating income −4,6% YoY
• ▍Net income −18,8% YoY
• ▍Free cash flow +47,6% YoY
• ▍Net margin 9.7%

Revenue CHF 3.69B, +34,4% YoY; Operating income −18,0% YoY.

• ▍Revenue CHF 3.69B, +34,4% YoY
• ▍Operating income −18,0% YoY
• ▍Net income −32,0% YoY
• ▍Free cash flow +17,0% YoY
• ▍Net margin 7.0%

Revenue CHF 3.76B, +39,1% YoY; Operating income −8,6% YoY.

• ▍Revenue CHF 3.76B, +39,1% YoY
• ▍Operating income −8,6% YoY
• ▍Net income −19,3% YoY
• ▍Free cash flow +71,0% YoY
• ▍Net margin 9.8%

Revenue CHF 2.86B; Operating income CHF 299.0M.

• ▍Revenue CHF 2.86B
• ▍Operating income CHF 299.0M
• ▍Net margin 9.1%

Revenue CHF 2.71B; Operating income CHF 565.0M.

• ▍Revenue CHF 2.71B
• ▍Operating income CHF 565.0M
• ▍Net margin 16.5%

Revenue CHF 2.74B; Operating income CHF 521.0M.

• ▍Revenue CHF 2.74B
• ▍Operating income CHF 521.0M
• ▍Net margin 13.9%

Revenue CHF 2.70B; Operating income CHF 568.0M.

• ▍Revenue CHF 2.70B
• ▍Operating income CHF 568.0M
• ▍Net margin 16.8%

Revenue CHF 15.05B, +36,6% YoY; Operating income −1,4% YoY.

• ▍Revenue CHF 15.05B, +36,6% YoY
• ▍Operating income −1,4% YoY
• ▍Net income −17,6% YoY
• ▍Free cash flow +105,8% YoY
• ▍Net margin 8.4%

Revenue CHF 11.02B, −0,5% YoY; Operating income −11,4% YoY.

• ▍Revenue CHF 11.02B, −0,5% YoY
• ▍Operating income −11,4% YoY
• ▍Net income −9,9% YoY
• ▍Free cash flow +29,0% YoY
• ▍Net margin 14.0%

Revenue CHF 11.07B, +0,2% YoY; Operating income +8,1% YoY.

• ▍Revenue CHF 11.07B, +0,2% YoY
• ▍Operating income +8,1% YoY
• ▍Net income +6,8% YoY
• ▍Free cash flow +29,1% YoY
• ▍Net margin 15.5%

Revenue CHF 11.05B, −1,2% YoY; Operating income −10,7% YoY.

• ▍Revenue CHF 11.05B, −1,2% YoY
• ▍Operating income −10,7% YoY
• ▍Net income −12,6% YoY
• ▍Free cash flow −37,6% YoY
• ▍Net margin 14.5%