Stock Analysis & Valuation ALSO Holding AG (ALSN.SW)

• Previous Close: CHF198.80
• Sector Valuation Confidence Level: Low

Valuation method	Value, CHF	Upside, %
Artificial intelligence (AI)	163.40	-18
Intrinsic value (DCF)	3719.54	1771
Graham-Dodd Method	40.90	-79
Graham Formula	32.60	-84

Strategic Investment Analysis

Company Overview

ALSO Holding AG (ALSN.SW) is a leading technology service provider in the ICT industry, operating across Switzerland, Germany, the Netherlands, Poland, and other international markets. Headquartered in Emmen, Switzerland, the company specializes in distributing a wide range of ICT products, including hardware, software, and IT services. Additionally, ALSO offers value-added services such as cloud solutions, logistics, and financial services, catering to retailers, e-tailers, SMEs, corporate resellers, and value-added resellers. Founded in 1984 and rebranded from ALSO-Actebis Holding AG in 2013, ALSO Holding AG is a subsidiary of Special Distribution Holding GmbH. With a market capitalization of CHF 3.15 billion, the company plays a pivotal role in the technology distribution sector, ensuring seamless access to cutting-edge ICT solutions for businesses across Europe and beyond.

Investment Summary

ALSO Holding AG presents a stable investment opportunity within the technology distribution sector, supported by its diversified product portfolio and strong market presence in Europe. The company's revenue of CHF 9.51 billion and net income of CHF 115 million in the latest fiscal year reflect its operational efficiency. With a diluted EPS of CHF 9.39 and a dividend yield of approximately 5.1%, ALSO offers attractive returns to investors. The company's low beta of 0.884 suggests lower volatility compared to the broader market, making it a relatively safer bet in the tech sector. However, investors should monitor competitive pressures and margin trends in the ICT distribution space, which could impact profitability.

Competitive Analysis

ALSO Holding AG holds a competitive edge in the ICT distribution market through its extensive product range and value-added services, including cloud and logistics solutions. The company's strong foothold in key European markets like Switzerland, Germany, and the Netherlands enhances its ability to serve a diverse clientele, from SMEs to large corporate resellers. ALSO's subsidiary status under Special Distribution Holding GmbH provides financial stability and potential synergies. However, the ICT distribution industry is highly competitive, with low barriers to entry and price sensitivity among customers. ALSO differentiates itself through integrated service offerings, but it faces stiff competition from global and regional players who may have broader geographic reach or stronger vendor relationships. The company's ability to maintain margins while expanding its service portfolio will be critical in sustaining its competitive position.

Major Competitors

• TD Synnex Corp (SNX): TD Synnex is a global leader in IT distribution and logistics, with a broader geographic footprint than ALSO. Its strengths include extensive vendor partnerships and a robust supply chain network. However, its focus on North America and Asia-Pacific may limit its competitiveness in ALSO's core European markets. Synnex's larger scale allows for better pricing power, but ALSO's localized service offerings provide a niche advantage.
• Ingram Micro Inc. (IMB.L): Ingram Micro, now part of Platinum Equity, is one of the world's largest technology distributors, with a strong presence in cloud and mobility solutions. Its global reach and extensive product catalog overshadow ALSO's regional focus. However, ALSO's specialization in European markets and tailored services for SMEs give it a competitive edge in its core regions. Ingram's sheer size may lead to less flexibility in customer service compared to ALSO.
• WIBU-SYSTEMS AG (WIBG.DE): WIBU-SYSTEMS specializes in software protection and licensing solutions, competing indirectly with ALSO's software distribution segment. While WIBU has strong technological expertise in digital rights management, ALSO's broader ICT product range and distribution network provide more comprehensive solutions for resellers. WIBU's niche focus limits its market reach compared to ALSO's diversified offerings.
• Belimo Holding AG (BEAN.SW): Belimo operates in the HVAC and building automation sector, overlapping with ALSO's ICT solutions for smart buildings. Belimo's strength lies in its specialized actuators and sensors, whereas ALSO provides broader IT infrastructure. While Belimo has a strong brand in its niche, ALSO's diversified ICT distribution model offers more scalability across different technology segments.