Stock Analysis & Valuation ALSO Holding AG (0QLW.L)

• Previous Close: £198.72
• Sector Valuation Confidence Level: Low

Valuation method	Value, £	Upside, %
Artificial intelligence (AI)	155.20	-22
Intrinsic value (DCF)	2164.80	989
Graham-Dodd Method	38.70	-81
Graham Formula	30.80	-85

Strategic Investment Analysis

Company Overview

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 wide range of ICT products, including hardware, software, and IT services, while also offering cloud and as-a-service solutions, logistics, and financial services. With a strong presence in Europe, ALSO serves a diverse clientele, including retailers, e-tailers, SMEs, corporate resellers, and value-added resellers. Founded in 1984 and headquartered in Emmen, Switzerland, ALSO Holding AG has evolved into a key player in the technology distribution sector, backed by its parent company, Special Distribution Holding GmbH. The company’s comprehensive portfolio and logistics expertise position it as a critical enabler for businesses navigating digital transformation.

Investment Summary

ALSO Holding AG presents a stable investment opportunity within the ICT distribution sector, supported by its diversified revenue streams and strong market presence in Europe. The company’s FY 2023 financials show solid revenue of CHF 9.96 billion, though net income of CHF 123.66 million reflects modest profitability. With a market cap of CHF 3.14 billion and a beta of 0.884, ALSO exhibits lower volatility compared to the broader market. The company maintains a healthy balance sheet with CHF 665.37 million in cash and equivalents, offset by manageable debt of CHF 334.27 million. A dividend yield of CHF 5.1 per share adds appeal for income-focused investors. However, competitive pressures in the ICT distribution space and thin operating margins could pose risks to long-term growth.

Competitive Analysis

ALSO Holding AG competes in the highly fragmented ICT distribution market, where scale, logistics efficiency, and value-added services are critical differentiators. The company’s competitive advantage lies in its broad product portfolio, pan-European distribution network, and integrated services such as cloud solutions and financial support for resellers. ALSO’s ability to serve both traditional resellers and e-commerce platforms strengthens its market positioning. However, the sector is characterized by low margins, requiring operational excellence to sustain profitability. ALSO faces competition from global distributors with deeper financial resources and regional players with specialized offerings. Its subsidiary status under Special Distribution Holding GmbH provides stability but may limit strategic flexibility compared to independent peers. The company’s focus on digital transformation trends, including cloud and as-a-service models, aligns with industry shifts but requires continuous investment to stay ahead of rivals.

Major Competitors

• TD Synnex Corp (SNX): TD Synnex is a global leader in IT distribution and solutions, offering a vast product portfolio and value-added services. Its scale and geographic reach surpass ALSO’s, but it faces margin pressures similar to the industry. Synnex’s strong presence in North America contrasts with ALSO’s European focus.
• Ingram Micro Inc. (IMB.L): Ingram Micro, owned by Platinum Equity, is a major global IT distributor with extensive logistics capabilities. Its broad service offerings and cloud solutions compete directly with ALSO. However, its private ownership structure may limit transparency compared to ALSO’s public listing.
• Tech Data Corporation (TECD): Tech Data (now part of TD Synnex) was a key competitor before its merger, known for its strong vendor relationships and advanced logistics. ALSO’s regional focus in Europe allows for more tailored services compared to Tech Data’s broader but less specialized approach.
• Westcoast PLC (WPG.L): Westcoast is a leading UK-based IT distributor with a strong presence in Europe. While smaller than ALSO, its focus on value-added services and reseller support makes it a direct competitor. ALSO’s wider geographic footprint gives it an edge in pan-European deals.
• Adesso SE (AD.DE): Adesso specializes in IT services and consulting, overlapping with ALSO’s service offerings. However, Adesso’s focus on software development and digital solutions differentiates it from ALSO’s distribution-centric model. ALSO’s broader hardware distribution network provides a competitive advantage in bundled offerings.