# Swisscom AG (SCMN.SW)

Canonical: https://gigainvestors.com/s/SCMN.SW

Analysis as of: 2026-10-16T07:34:03.952Z. Financial observations: FY1998–FY2026.

Listing currency: CHF. Reporting currency: CHF.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CHF 659.50 per share; close as of 2026-10-15.

Estimated value: low CHF 401.69 per share, central CHF 457.08 per share, high CHF 530.81 per share. Buy at or below the central value CHF 457.08 per share. Valuation as of 2026-10-16T07:34:03.952Z; scenarios are not confidence intervals.

Expected annual return: 7.8% at the stated quote. About 7.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CH 10-year bond 0.5% + 4 points).

## Checklist

### understandable: pass

- 5 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 0

- Operating margin variation: 0.12×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.18×

- FY2018: 0.18×

- FY2019: 0.17×

- FY2020: 0.18×

- FY2021: 0.18×

- FY2022: 0.18×

- FY2023: 0.20×

- FY2024: 0.18×

- FY2025: 0.13×

- LTM to Jun 2026: 0.15×

### moat: fail

- Recent gross margin fell 24.9pp below the typical margin (limit 4pp)

- ROIC, median of available years: 15.9%

- ROIC, second-lowest year: 12.8%

- Typical minus recent gross margin: 24.9 pp

- Typical gross margin (annual median): 79.9%

- Recent gross margin (lower of latest and 3-year median): 55.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 20.5%

- ROIC including acquisitions, ten-year median: 8.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 16.8%

- FY2018: 15.4%

- FY2019: 16.5%

- FY2020: 13.8%

- FY2021: 13.5%

- FY2022: 12.8%

- FY2023: 22.3%

- FY2024: 20.4%

- FY2025: 18.3%

- LTM to Jun 2026: 8.2%

### economics: pass

- Owner earnings / net income, 5-yr: 0.98×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CHF 7.8B

- Net income, five-year total: CHF 8.0B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.6 pp

- Working capital / revenue, change between three-year averages: -3.8 pp

- Working capital / revenue, final three-year average: 7.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.86×

- FY2022: 0.81×

- FY2023: 0.83×

- FY2024: 0.85×

- FY2025: 1.73×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 16.8% vs 20.4%

- Per-share earnings: 30.30 to 29.77 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.0%

- Ordinary dilution, 5-year annual growth: -0.0%

- Market cap gain: CHF 6.2B

- Cumulative retained earnings: CHF 6.1B

- Diluted shares, 10-year annual growth: 0.0%

- Diluted shares, 5-year annual growth: -0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -0.2%

- Per-share value change: CHF -0.53

- Per-share value, starting three-year median: CHF 30.30

- Per-share value, ending three-year median: CHF 29.77

- Average buyback yield: 0.0%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: CHF 5.7B

- Cumulative net income, 10 years: CHF 16B

- ROIC, first three-year median: 16.8%

- ROIC, last three-year median: 20.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: CHF 30.98

- FY2017: CHF 30.30

- FY2018: CHF 29.47

- FY2019: CHF 32.27

- FY2020: CHF 29.54

- FY2021: CHF 35.37

- FY2022: CHF 30.93

- FY2023: CHF 33.03

- FY2024: CHF 29.77

- FY2025: CHF 24.54

### accounting: pass

- Sloan accruals: -13.2%

- Receivables to sales index (DSRI): 0.66×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.73×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -10.5%

- FY2017: -11.4%

- FY2018: -9.7%

- FY2019: -9.5%

- FY2020: -10.5%

- FY2021: -8.9%

- FY2022: -9.2%

- FY2023: -9.4%

- FY2024: -6.5%

- FY2025: -13.2%

## Holders

## Price story

Price needs cash profits to grow 5.5% a year for ten years · sales -1.5%

Story as of 2026-10-16T09:59:58.940Z; price observation 2026-10-15.

Price needs cash profits to grow 5.5% a year for ten years

### Sales · FY2025–2026

sales -1.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: CHF 12B 

- FY2018: CHF 12B 

- FY2019: CHF 11B 

- FY2020: CHF 11B 

- FY2021: CHF 11B 

- FY2022: CHF 11B 

- FY2023: CHF 11B 

- FY2024: CHF 11B 

- FY2025: CHF 15B 

- FY2026: CHF 15B 

### Gross margin · FY2026

gross margin 55%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 81.5% 

- FY2018: 78.7% 

- FY2019: 79.9% 

- FY2020: 80.2% 

- FY2021: 80.5% 

- FY2022: 81.1% 

- FY2023: 79.6% 

- FY2024: 79.0% 

- FY2025: 80.0% 

- FY2026: 55.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in telecom services; annual sales are CHF 15 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.952Z); FY2025: revenue 15048000000; grossProfit 12034000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SCMN.SW: Swisscom AG provides telecommunication services in Switzerland, Italy, and internationally. It operates through Switzerland, Italy, and Other segments. The company offers mobile communications, fixed network telephony, broadband, and TV to residential customers; telecommunications services and IT service solutions for corporate, public administration, and SME customers; business ICT infrastructure; range from individual products to end-to-end solutions to ICT infrastructure business; and makes network infrastructure to other telecommunications; and plans, operates, and maintains the network and IT infrastructure. It also provides network construction and maintenance, broadcasting services, and local search activities, as well as electronic signatures, digital certificates, and other trust services. In addition, the company offers integrated communication solutions, IT infrastructure, security, and cloud services to various workplace and other software solutions, IoT, and artificial intelligence; outsourcing services for financial and healthcare and public sectors; AI-supported services; and telecommunications provide a range of wholesale services for own use, refinement or resale based on copper, fibre-optic or mobile networks. Further, it provides broadband connections, leased lines, network connections, mobile virtual network operators, IP peering, co-location, and cable ducts; wholesale voice connections and roaming contracts; manages and markets digital booking platform; builds radio networks for broadcasting, security, and professional mobile radio networks; safety and security solutions; and ICT and network infrastructures for bandwidth, as well as road and tunnel construction. Additionally, the company provides FastwebAI Suite, a platform of generative artificial intelligence (AI) solutions designed for businesses and public authorities. Swisscom AG was incorporated in 1998 and is headquartered in Worblaufen, Switzerland.

### Why customers stay

Margins ranged from 79% to 80% during 2023–25; it earns 15.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.952Z); FY2023: grossProfit / revenue = 79.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.952Z); FY2024: grossProfit / revenue = 79%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.952Z); FY2025: grossProfit / revenue = 80%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.952Z); 10-year return on capital observations [[2017,0.16791096227715946],[2018,0.15393230781873357],[2019,0.16462483309206047],[2020,0.1380734233851866],[2021,0.13533401071013923],[2022,0.1275655683440221],[2023,0.22270886584062857],[2024,0.2044450074944127],[2025,0.1827511745673456],[2026,0.08217965037421408]]; median 0.159278570455397. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 81% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.952Z); Gross margin observations: [[2021,0.8049718322453724],[2022,0.8111483123699212],[2023,0.7961524566473989]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.952Z); FY2016: growth capex 0; upkeep 2416000000; owner earnings 1333000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.952Z); FY2017: growth capex 16212929.726615429; upkeep 2361787070.2733846; owner earnings 1372212929.7266154. Growth capex / owner earnings = 0.011815170499701905.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.952Z); FY2018: growth capex 45716206.77093744; upkeep 2358283793.2290626; owner earnings 1312716206.7709374. Growth capex / owner earnings = 0.03482565884014769.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.952Z); FY2019: growth capex 0; upkeep 2390000000; owner earnings 1324600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.952Z); FY2020: growth capex 0; upkeep 2188000000; owner earnings 1379400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.952Z); FY2021: growth capex 0; upkeep 2270000000; owner earnings 1570600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.952Z); FY2022: growth capex 0; upkeep 2289000000; owner earnings 1296800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.952Z); FY2023: growth capex 0; upkeep 2272000000; owner earnings 1422000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.952Z); FY2024: growth capex 0; upkeep 2288000000; owner earnings 1305800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.952Z); FY2025: growth capex 0; upkeep 3008000000; owner earnings 2197200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.952Z); Dividend observations: [[2016,1140000000],[2017,1140000000],[2018,1140000000],[2019,1140000000],[2020,1140000000],[2021,1140000000],[2022,1140000000],[2023,1140000000],[2024,1140000000],[2025,1140000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 51% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SCMN.SW SharesStats.PercentInsiders = 50.979 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 5.5% yearly over ten years; actual growth was 8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.952Z); Ten-year compound average after fade. Initial solved rate 0.06569425271861495. Price 659.5; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 19.692716397854653 → FY2025 42.415760161385286. Closing-price date 2026-10-15.

## Monthly share-price history (CHF per share)

- 2016-10: CHF 452.70 per share

- 2016-11: CHF 434.50 per share

- 2016-12: CHF 456.10 per share

- 2017-01: CHF 435.00 per share

- 2017-02: CHF 442.20 per share

- 2017-03: CHF 462.10 per share

- 2017-04: CHF 434.00 per share

- 2017-05: CHF 464.40 per share

- 2017-06: CHF 462.70 per share

- 2017-07: CHF 472.70 per share

- 2017-08: CHF 483.60 per share

- 2017-09: CHF 496.20 per share

- 2017-10: CHF 504.00 per share

- 2017-11: CHF 519.00 per share

- 2017-12: CHF 518.50 per share

- 2018-01: CHF 508.40 per share

- 2018-02: CHF 512.00 per share

- 2018-03: CHF 473.60 per share

- 2018-04: CHF 477.00 per share

- 2018-05: CHF 439.60 per share

- 2018-06: CHF 443.20 per share

- 2018-07: CHF 465.30 per share

- 2018-08: CHF 432.90 per share

- 2018-09: CHF 445.40 per share

- 2018-10: CHF 461.40 per share

- 2018-11: CHF 479.30 per share

- 2018-12: CHF 469.70 per share

- 2019-01: CHF 476.00 per share

- 2019-02: CHF 462.10 per share

- 2019-03: CHF 487.00 per share

- 2019-04: CHF 474.70 per share

- 2019-05: CHF 479.60 per share

- 2019-06: CHF 490.10 per share

- 2019-07: CHF 482.50 per share

- 2019-08: CHF 494.10 per share

- 2019-09: CHF 492.30 per share

- 2019-10: CHF 504.00 per share

- 2019-11: CHF 517.60 per share

- 2019-12: CHF 512.60 per share

- 2020-01: CHF 529.60 per share

- 2020-02: CHF 513.60 per share

- 2020-03: CHF 520.20 per share

- 2020-04: CHF 501.80 per share

- 2020-05: CHF 499.80 per share

- 2020-06: CHF 495.90 per share

- 2020-07: CHF 485.80 per share

- 2020-08: CHF 500.00 per share

- 2020-09: CHF 488.60 per share

- 2020-10: CHF 466.30 per share

- 2020-11: CHF 480.00 per share

- 2020-12: CHF 477.10 per share

- 2021-01: CHF 485.40 per share

- 2021-02: CHF 456.50 per share

- 2021-03: CHF 507.00 per share

- 2021-04: CHF 495.30 per share

- 2021-05: CHF 506.00 per share

- 2021-06: CHF 528.20 per share

- 2021-07: CHF 545.00 per share

- 2021-08: CHF 537.40 per share

- 2021-09: CHF 537.40 per share

- 2021-10: CHF 498.40 per share

- 2021-11: CHF 510.40 per share

- 2021-12: CHF 514.60 per share

- 2022-01: CHF 528.20 per share

- 2022-02: CHF 550.60 per share

- 2022-03: CHF 555.00 per share

- 2022-04: CHF 576.80 per share

- 2022-05: CHF 566.80 per share

- 2022-06: CHF 527.40 per share

- 2022-07: CHF 513.80 per share

- 2022-08: CHF 506.20 per share

- 2022-09: CHF 463.50 per share

- 2022-10: CHF 494.30 per share

- 2022-11: CHF 508.20 per share

- 2022-12: CHF 506.60 per share

- 2023-01: CHF 540.00 per share

- 2023-02: CHF 580.40 per share

- 2023-03: CHF 583.20 per share

- 2023-04: CHF 613.00 per share

- 2023-05: CHF 576.80 per share

- 2023-06: CHF 557.80 per share

- 2023-07: CHF 560.40 per share

- 2023-08: CHF 538.00 per share

- 2023-09: CHF 544.20 per share

- 2023-10: CHF 544.00 per share

- 2023-11: CHF 510.40 per share

- 2023-12: CHF 506.00 per share

- 2024-01: CHF 516.20 per share

- 2024-02: CHF 505.40 per share

- 2024-03: CHF 551.40 per share

- 2024-04: CHF 503.50 per share

- 2024-05: CHF 498.20 per share

- 2024-06: CHF 505.50 per share

- 2024-07: CHF 538.00 per share

- 2024-08: CHF 536.50 per share

- 2024-09: CHF 552.50 per share

- 2024-10: CHF 526.00 per share

- 2024-11: CHF 508.50 per share

- 2024-12: CHF 504.50 per share

- 2025-01: CHF 513.50 per share

- 2025-02: CHF 513.50 per share

- 2025-03: CHF 509.50 per share

- 2025-04: CHF 550.00 per share

- 2025-05: CHF 565.50 per share

- 2025-06: CHF 562.50 per share

- 2025-07: CHF 565.50 per share

- 2025-08: CHF 578.00 per share

- 2025-09: CHF 577.50 per share

- 2025-10: CHF 589.50 per share

- 2025-11: CHF 576.50 per share

- 2025-12: CHF 575.50 per share

- 2026-01: CHF 633.50 per share

- 2026-02: CHF 721.50 per share

- 2026-03: CHF 667.00 per share

- 2026-04: CHF 661.50 per share

- 2026-05: CHF 668.50 per share

- 2026-06: CHF 623.50 per share

- 2026-07: CHF 622.00 per share

- 2026-08: CHF 626.50 per share

- 2026-09: CHF 634.00 per share

- 2026-10: CHF 631.00 per share

## Annual estimated value (CHF per share)

- FY2016: low CHF 283.35 per share, central CHF 322.15 per share, high CHF 373.81 per share

- FY2017: low CHF 291.18 per share, central CHF 330.34 per share, high CHF 382.48 per share

- FY2018: low CHF 289.09 per share, central CHF 328.09 per share, high CHF 380.01 per share

- FY2019: low CHF 279.96 per share, central CHF 318.10 per share, high CHF 368.87 per share

- FY2020: low CHF 276.43 per share, central CHF 313.78 per share, high CHF 363.50 per share

- FY2021: low CHF 282.89 per share, central CHF 321.18 per share, high CHF 372.14 per share

- FY2022: low CHF 273.63 per share, central CHF 311.35 per share, high CHF 361.58 per share

- FY2023: low CHF 290.32 per share, central CHF 330.35 per share, high CHF 383.64 per share

- FY2024: low CHF 315.86 per share, central CHF 355.77 per share, high CHF 408.89 per share

- FY2025: low CHF 418.51 per share, central CHF 474.73 per share, high CHF 549.58 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:51.692Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.