Swisscom SCMN.SW
Swisscom is Switzerland's leading telecommunications company, offering fixed-line and mobile telephony, internet, and television services to consumers and businesses, with a growing presence in the enterprise IT market. Swisscom shows acceptable financial health (6.52) with an attractive FCF yield of 8.09%, but its high leverage (ND/EBITDA 3.76) and a 102% payout limit its appeal. Earnings growth of 30.4% contrasts with a 2.0% revenue decline, reflecting efficient cost management in a mature market.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Swisscom is Switzerland's leading telecommunications company, offering fixed-line and mobile telephony, internet, and television services to consumers and businesses, with a growing presence in the enterprise IT market. Swisscom shows acceptable financial health (6.52) with an attractive FCF yield of 8.09%, but its high leverage (ND/EBITDA 3.76) and a 102% payout limit its appeal. Earnings growth of 30.4% contrasts with a 2.0% revenue decline, reflecting efficient cost management in a mature market.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.5 |
| Quality / Moat | 5.8 |
| Valuation | 5.8 |
| Growth | 5.4 |
| Dividend | 4.6 |
| Momentum | 6.2 |
| Risk & Context | 8.1 |
OVERALL SCORE: 6.2/10
Context and risks
Moderate regulatory risk in Switzerland. Swisscom, as the dominant operator, is subject to oversight by the Federal Communications Commission (ComCom) regarding tariffs and network access, which may limit its pricing flexibility.
News considered in the analysis
- Swisscom AG (SCMWY) (Q2 2026) Earnings Call Highlights: EBITDAaL Surges 6. ... — Resultados del segundo trimestre con EBITDAaL al alza, señal positiva de eficiencia operativa, aunque el crecimiento de ingresos sigue negativo.
- BofA explains how telecom companies can evolve to be AI winners — Artículo de opinión general sobre el sector, sin información específica sobre Swisscom.
- DTEGY vs. SCMWY: Which Stock Is the Better Value Option? — Comparativa genérica de valor entre dos ADRs, sin información nueva material.
- DTEGY vs. SCMWY: Which Stock Should Value Investors Buy Now? — Listículo de comparación de valor, sin información nueva.
- DTEGY or SCMWY: Which Is the Better Value Stock Right Now? — Listículo de comparación de valor, sin información nueva.
Verdict: Hold. The combination of a solid FCF yield and a stable business provides support, but high leverage and an unsustainable payout warrant caution.
Main risk: High leverage (Net Debt/EBITDA of 3.76) and a payout ratio of 102.44% that exceeds net income, limiting financial flexibility and pressuring dividend sustainability.
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