Here's What's Concerning About Swisscom's (VTX:SCMN) Returns On Capital
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 06 2025
0mins
Should l Buy ?
Source: Yahoo Finance
Swisscom's Financial Performance: Swisscom has a low return on capital employed (ROCE) of 6.9%, which is below the telecom industry average of 11%. The company's ROCE has decreased from 10% over the past five years, indicating shrinking returns despite increased capital utilization.
Investment Outlook: While Swisscom is reinvesting in its business, the lack of significant sales growth raises concerns about future profitability. Investors seeking high-return opportunities may find better prospects elsewhere, as Swisscom has only delivered a 23% total return to shareholders over the last five years.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
