Intrinsic Value ALSO Holding AG (0QLW.L)

• Previous Close: £198.72
• Intrinsic Value: £2,164.80
• Upside potential: +989%

Stock Valuation Context

Business Model And Market Position

ALSO Holding AG is a leading technology service provider in the ICT industry, operating across Switzerland, Germany, the Netherlands, Poland, and other international markets. The company specializes in distributing a broad range of ICT products, including hardware, software, and IT services, while also offering value-added solutions such as cloud services, logistics, and financial support. Its diversified client base spans retailers, e-tailers, SMEs, corporate resellers, and value-added resellers, positioning it as a critical intermediary in the technology supply chain. ALSO Holding AG leverages its extensive distribution network and service capabilities to maintain a competitive edge in a fragmented market. The company’s subsidiary structure under Special Distribution Holding GmbH further strengthens its operational and financial flexibility. With a history dating back to 1984, ALSO has established itself as a trusted partner in the ICT sector, adapting to evolving industry trends such as digital transformation and cloud computing.

Revenue Profitability And Efficiency

In FY 2023, ALSO Holding AG reported revenue of CHF 9.96 billion, reflecting its scale as a major ICT distributor. Net income stood at CHF 123.7 million, with diluted EPS of CHF 10.07, indicating stable profitability. Operating cash flow was robust at CHF 384.8 million, supported by efficient working capital management. Capital expenditures were modest at CHF -8.8 million, suggesting a capital-light business model focused on scalability.

Earnings Power And Capital Efficiency

The company’s earnings power is underscored by its ability to generate consistent net income despite operating in a competitive, low-margin distribution sector. Its capital efficiency is evident in the high operating cash flow relative to net income, reflecting effective receivables and inventory management. The modest capital expenditures further highlight the asset-light nature of its operations.

Balance Sheet And Financial Health

ALSO Holding AG maintains a solid balance sheet, with cash and equivalents of CHF 665.4 million providing liquidity. Total debt of CHF 334.3 million is manageable, indicating a conservative leverage profile. The company’s financial health is further supported by strong operating cash flows, which comfortably cover debt obligations and dividend payments.

Growth Trends And Dividend Policy

The company’s growth is driven by its ability to capitalize on ICT market trends, including cloud adoption and digital transformation. ALSO Holding AG has demonstrated a commitment to shareholder returns, with a dividend per share of CHF 5.1 in FY 2023. Its dividend policy reflects a balance between reinvestment for growth and returning capital to shareholders.

Valuation And Market Expectations

With a market capitalization of CHF 3.14 billion and a beta of 0.884, ALSO Holding AG is perceived as a relatively stable investment within the technology sector. The market appears to value its consistent profitability, strong cash flow generation, and strategic positioning in the ICT distribution market.

Strategic Advantages And Outlook

ALSO Holding AG’s strategic advantages include its extensive distribution network, diversified product portfolio, and value-added services. The company is well-positioned to benefit from ongoing digital transformation trends. Its outlook remains positive, supported by stable financial performance and adaptability to evolving market demands.

Sources

Company filings, market data