SWX:ASCN

Stock Analysis Report

Executive Summary

Ascom Holding AG, together with its subsidiaries, provides healthcare ICT and mobile workflow solutions worldwide.

Rewards

Trading at 47.1% below its fair value

Earnings are forecast to grow 13.5% per year

Risk Analysis

High level of non-cash earnings

Unstable dividend track record



Snowflake Analysis

Excellent balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has Ascom Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ASCN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.5%

ASCN

2.2%

CH Healthcare Services

1.9%

CH Market


1 Year Return

-19.1%

ASCN

14.2%

CH Healthcare Services

18.3%

CH Market

Return vs Industry: ASCN underperformed the Swiss Healthcare Services industry which returned 13.3% over the past year.

Return vs Market: ASCN underperformed the Swiss Market which returned 18.9% over the past year.


Shareholder returns

ASCNIndustryMarket
7 Day-5.5%2.2%1.9%
30 Day0.8%2.0%1.8%
90 Day2.8%7.4%8.4%
1 Year-16.4%-19.1%15.7%14.2%24.0%18.3%
3 Year-30.8%-37.3%29.8%25.0%41.6%23.3%
5 Year-10.3%-23.0%111.9%99.8%57.3%32.2%

Price Volatility Vs. Market

How volatile is Ascom Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ascom Holding undervalued compared to its fair value and its price relative to the market?

49.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ASCN (CHF10.78) is trading below our estimate of fair value (CHF20.39)

Significantly Below Fair Value: ASCN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ASCN is good value based on its PE Ratio (17.3x) compared to the Healthcare Services industry average (34x).

PE vs Market: ASCN is good value based on its PE Ratio (17.3x) compared to the Swiss market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: ASCN is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: ASCN is overvalued based on its PB Ratio (5.5x) compared to the XE Healthcare Services industry average (4.2x).


Next Steps

Future Growth

How is Ascom Holding forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASCN's forecast earnings growth (13.5% per year) is above the savings rate (-0.6%).

Earnings vs Market: ASCN's earnings (13.5% per year) are forecast to grow faster than the Swiss market (10.4% per year).

High Growth Earnings: ASCN's earnings are forecast to grow, but not significantly.

Revenue vs Market: ASCN's revenue (4% per year) is forecast to grow faster than the Swiss market (3.6% per year).

High Growth Revenue: ASCN's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ASCN's Return on Equity is forecast to be high in 3 years time (22.4%)


Next Steps

Past Performance

How has Ascom Holding performed over the past 5 years?

-12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASCN has a high level of non-cash earnings.

Growing Profit Margin: ASCN's current net profit margins (7.3%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: ASCN's earnings have declined by -12.6% per year over the past 5 years.

Accelerating Growth: ASCN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ASCN had negative earnings growth (-8.9%) over the past year, making it difficult to compare to the Healthcare Services industry average (8%).


Return on Equity

High ROE: ASCN's Return on Equity (32.1%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ascom Holding's financial position?


Financial Position Analysis

Short Term Liabilities: ASCN's short term assets (CHF128.0M) exceed its short term liabilities (CHF102.9M).

Long Term Liabilities: ASCN's short term assets (CHF128.0M) exceed its long term liabilities (CHF25.7M).


Debt to Equity History and Analysis

Debt Level: ASCN's debt to equity ratio (35.7%) is considered satisfactory.

Reducing Debt: ASCN's debt to equity ratio has increased from 21.8% to 35.7% over the past 5 years.

Debt Coverage: ASCN's debt is well covered by operating cash flow (44.4%).

Interest Coverage: ASCN earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: ASCN has a low level of unsold assets or inventory.

Debt Coverage by Assets: ASCN's debt is covered by short term assets (assets are 5.1x debt).


Next Steps

Dividend

What is Ascom Holding's current dividend yield, its reliability and sustainability?

4.38%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%1.7%markettop25%3.4%industryaverage1.5%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: ASCN's dividend (4.17%) is higher than the bottom 25% of dividend payers in the Swiss market (1.73%).

High Dividend: ASCN's dividend (4.17%) is in the top 25% of dividend payers in the Swiss market (3.42%)


Stability and Growth of Payments

Stable Dividend: ASCN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ASCN's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72%), ASCN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ASCN's dividends in 3 years are forecast to be covered by earnings (76.8% payout ratio).


Next Steps

Management

What is the CEO of Ascom Holding's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Jeannine Pilloud (55yo)

1yrs

Tenure

0

Ms. Jeannine Pilloud is serves as Chief Executive officer at Ascom Holding AG since August 2019. Ms. Pilloud served as Chairperson at Ascom Holding AG since April 10, 2019 until 2019. Ms. Pilloud served as ...


Management Age and Tenure

2.0yrs

Average Tenure

54yo

Average Age

Experienced Management: ASCN's management team is considered experienced (2 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

61yo

Average Age

Experienced Board: ASCN's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jeannine Pilloud (55yo)

    Chief Executive Officer

    • Tenure: 1yrs
  • Daniel Lack

    Company Secretary and Senior VP of Legal

    • Francis Schmeer (47yo)

      Chief Sales & Marketing Officer and Member of the Executive Board

      • Tenure: 5.3yrs
      • Compensation: CHF430.61k
    • Claes Ödman (54yo)

      COO & Member of the Executive Board

      • Tenure: 8.6yrs
      • Compensation: CHF405.55k
    • André Neu

      Chief Technology Officer

      • Tenure: 2yrs
    • Dominik Maurer

      CFO & Member of Executive Board

      • Tenure: 0.3yrs

    Board Members

    • Andreas Umbach (56yo)

      Director

      • Tenure: 9.8yrs
    • Valentin Rueda (63yo)

      Chairman of the Board

      • Tenure: 1yrs
    • Christina Stercken (61yo)

      Director

      • Tenure: 5.8yrs
    • Jürg Fedier (64yo)

      Director

      • Tenure: 2.8yrs
    • Harald Deutsch (57yo)

      Director

      • Tenure: 6yrs

    Company Information

    Ascom Holding AG's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Ascom Holding AG
    • Ticker: ASCN
    • Exchange: SWX
    • Founded:
    • Industry: Health Care Technology
    • Sector: Healthcare
    • Market Cap: CHF369.688m
    • Shares outstanding: 35.96m
    • Website: https://www.ascom.com

    Number of Employees


    Location

    • Ascom Holding AG
    • Zugerstrasse 32
    • Baar
    • Zug
    • 6340
    • Switzerland

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    ASCNSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFJan 1992
    AH2NDB (Deutsche Boerse AG)YesRegistered SharesDEEURJan 1992
    ACML.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDJan 1992
    0QONLSE (London Stock Exchange)YesRegistered SharesGBCHFJan 1992

    Biography

    Ascom Holding AG, together with its subsidiaries, provides healthcare ICT and mobile workflow solutions worldwide. It offers application and management software, smartphone applications, and clinical and system integration solutions, as well as mobile devices, and wireless paging and IP-DECT infrastructures. The company also provides solutions for hospitals, senior care, police stations, courthouse and administrative buildings, retail stores, and automotive, manufacturing, and hospitality industries, as well as for psychiatric and correctional facilities. Ascom Holding AG is headquartered in Baar, Switzerland. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/19 20:35
    End of Day Share Price2020/01/17 00:00
    Earnings2019/06/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.