Intrinsic Value ALSO Holding AG (ALSN.SW)

• Previous Close: CHF198.80
• Intrinsic Value: CHF3,719.54
• Upside potential: +1,771%

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 portfolio caters to 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 deep industry expertise to maintain a competitive edge in the fragmented ICT distribution market. The company’s focus on digital transformation and as-a-service models aligns with evolving industry trends, reinforcing its relevance in a rapidly changing technological landscape. As a subsidiary of Special Distribution Holding GmbH, it benefits from strategic backing while maintaining operational agility to adapt to market demands.

Revenue Profitability And Efficiency

ALSO Holding AG reported revenue of CHF 9.51 billion for the period, with net income of CHF 115 million, reflecting a net margin of approximately 1.2%. The company generated CHF 322.9 million in operating cash flow, demonstrating efficient cash conversion despite modest profitability. Capital expenditures were minimal at CHF -12.3 million, indicating a capital-light business model focused on distribution efficiency rather than heavy infrastructure investment.

Earnings Power And Capital Efficiency

The company’s diluted EPS stood at CHF 9.39, supported by its ability to scale operations across multiple geographies. With a capital expenditure-to-revenue ratio of just 0.1%, ALSO Holding AG exhibits strong capital efficiency, reinvesting minimally while sustaining growth. Its operating cash flow covers debt obligations comfortably, underscoring sustainable earnings power.

Balance Sheet And Financial Health

ALSO Holding AG maintains a robust balance sheet, with CHF 730.9 million in cash and equivalents against total debt of CHF 151.5 million, yielding a net cash position. This liquidity provides flexibility for strategic initiatives or acquisitions. The low leverage ratio reflects prudent financial management, reducing risk in cyclical market conditions.

Growth Trends And Dividend Policy

The company’s growth is tied to ICT market expansion and its ability to capture demand for digital transformation services. A dividend of CHF 5.1 per share signals a shareholder-friendly policy, with a payout ratio of approximately 54%, balancing reinvestment and returns. Future growth may hinge on scaling cloud and as-a-service offerings.

Valuation And Market Expectations

With a market capitalization of CHF 3.15 billion and a beta of 0.884, ALSO Holding AG is perceived as a stable player with moderate market sensitivity. The valuation reflects its role as a reliable distributor rather than a high-growth tech firm, aligning with its steady cash flows and defensive industry positioning.

Strategic Advantages And Outlook

ALSO Holding AG’s strategic advantages include its extensive distribution network, diversified customer base, and adaptability to ICT trends. The outlook remains stable, supported by sustained demand for ICT infrastructure and services. Risks include margin pressure from competitive pricing and reliance on broader tech sector health, but its asset-light model and strong balance sheet provide resilience.

Sources

Company filings, market data