Intrinsic Value Mobilezone Holding Ag (MOZN.SW)

• Previous Close: CHF14.10
• Intrinsic Value: CHF4.72
• Upside potential: -67%

Stock Valuation Context

Business Model And Market Position

mobilezone holding ag operates as a key player in the Swiss and German telecommunications retail sector, specializing in mobile and fixed-line telephony, internet, and digital TV services. The company generates revenue through device sales (mobile phones, tablets, wearables), subscription services (post- and pre-paid), and value-added offerings like consulting, fleet management, and insurance products. Its multi-channel distribution includes online portals, partner-managed shops, and branded retail outlets (TalkTalk in Switzerland, High in Germany), supported by a network of 124 shops as of 2021. The firm’s market position is bolstered by its dual focus on hardware retail and service brokerage, catering to both consumer and business segments. Operating in a competitive industry, mobilezone differentiates through integrated solutions, repair logistics, and strategic partnerships with network operators. Its niche in repair services and contract brokerage adds resilience against pure-play retailers, while its regional footprint in Switzerland and Germany provides localized market penetration.

Revenue Profitability And Efficiency

In its latest fiscal year, mobilezone reported revenue of CHF 1.00 billion, with net income of CHF 16.98 million, reflecting a net margin of approximately 1.7%. Operating cash flow stood at CHF 60.83 million, underscoring efficient working capital management. Capital expenditures were modest at CHF 2.38 million, indicating a capital-light model focused on leveraging existing retail and digital infrastructure.

Earnings Power And Capital Efficiency

The company’s diluted EPS of CHF 0.39 demonstrates moderate earnings power, supported by its diversified revenue streams. Operating cash flow coverage of net income (3.6x) highlights strong cash conversion, while a lean capex-to-revenue ratio (0.2%) suggests high capital efficiency in its asset-light operations.

Balance Sheet And Financial Health

mobilezone maintains a solid liquidity position with CHF 91.25 million in cash and equivalents against total debt of CHF 180.47 million, yielding a conservative net debt position. The balance sheet reflects a retail-centric structure with minimal long-term asset intensity, though debt levels warrant monitoring given the cyclical nature of consumer electronics demand.

Growth Trends And Dividend Policy

The company’s growth is tied to telecom retail trends, with a dividend payout of CHF 0.90 per share signaling a shareholder-friendly policy. However, net income volatility—partly due to device sales cyclicality—calls for cautious assessment of sustainable dividend capacity absent clearer revenue diversification.

Valuation And Market Expectations

At a market cap of CHF 515 million, the stock trades at a P/E of ~30x (based on diluted EPS), pricing in expectations of steady service revenue growth. The beta of 0.61 suggests lower volatility relative to the broader market, aligning with its defensive telecom retail exposure.

Strategic Advantages And Outlook

mobilezone’s hybrid retail-service model and repair logistics network provide competitive moats in a fragmented market. Near-term challenges include margin pressure from hardware commoditization, but its brokerage and consulting services offer higher-margin upside. Strategic focus on digital channels and operator partnerships could drive incremental growth.

Sources

Company description, financials, and market data sourced from publicly disclosed ticker information and exchange filings.