Swisscom AG (SCMN.SW) stock analysis
In our weekly check, Swisscom AG is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 5, red flags: 6.
About Swisscom AG
Swisscom AG is a Communication Services company (Telecommunications Services) based in Switzerland, listed on SIX as SCMN.SW.
What our checks show for SCMN.SW
Red flags
- The net margin fell by 7.5 points over 5 years, to 8.9%: the company keeps less of each sale as profit.
- The gross margin fell by 25.5 points, to 55%: costs are rising faster than prices.
- Analysts expect revenue to shrink about 0.4% a year.
- The dividend takes 103% of profit: little cushion if profit falls.
- Recovering from its deepest fall took about 4.6 years.
- Thinly traded (about 79 thousand shares a day): buying and selling can move the price.
Warning signs
- Net debt is 2.4x a year of EBITDA (debt/equity 1.43). That limits room in a downturn and raises refinancing risk.
- Earnings per share fell 6.4% a year over the last 3 years.
- Net profit fell 6.4% a year over the last 3 years.
- The net margin is only 8.9%: little room if costs rise.
- Return on capital (ROCE) is only 7.8%.
Strengths
- Operating cash flow is 4.65x net profit: the profit arrives as real cash.
- Analysts expect the net margin to improve by 2.7 points from today's 8.9%.
- Free cash flow is 21.7% of revenue: cash for dividends, buybacks or growth.
- A large company: market value $42.97 billion.
- The price moves calmly: 18.3% annual volatility.
- Beta 0.4: the stock usually moves less than the market.
Next earnings report: 2026-11-05
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Questions
What grade does Swisscom AG (SCMN.SW) have?
In our weekly check, Swisscom AG is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 5, red flags: 6. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of SCMN.SW stock?
This week's biggest flags for Swisscom AG: Margins falling, Gross margin falling, Weak revenue forecast. In total 11 of 25 checks show a warning or a red flag.
What does Swisscom AG do?
Swisscom AG is a Communication Services company (Telecommunications Services) based in Switzerland, listed on SIX as SCMN.SW.
When does Swisscom AG report earnings next?
The next earnings report is expected on 2026-11-05. We re-run the checks every week, so the grade can change after it.
The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.
Updated 2026-10-24
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