Ascom Holding AG Fundamental Analysis (SIX: ASCN.SW)
Ascom Holding AG (SIX: ASCN.SW) shows moderate financial fundamentals with a PE ratio of 10.33, profit margin of 6.27%, and ROE of 24.40%. The company generates $0.3B in annual revenue with weak year-over-year growth of 1.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ASCN.SW's fundamental strength across five key dimensions:
Efficiency Score
WeakASCN.SW struggles to generate sufficient returns from assets.
Valuation Score
ExcellentASCN.SW trades at attractive valuation levels.
Growth Score
WeakASCN.SW faces weak or negative growth trends.
Financial Health Score
ExcellentASCN.SW maintains a strong and stable balance sheet.
Profitability Score
ModerateASCN.SW maintains healthy but balanced margins.
Key Financial Metrics
Is ASCN.SW Expensive or Cheap?
P/E Ratio
ASCN.SW trades at 10.33 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ASCN.SW's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Ascom Holding AG at 2.76 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.88 times EBITDA. This is generally considered low.
How Well Does ASCN.SW Make Money?
Net Profit Margin
For every $100 in sales, Ascom Holding AG keeps $6.27 as profit after all expenses.
Operating Margin
Core operations generate 7.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.40 in profit for every $100 of shareholder equity.
ROA
Ascom Holding AG generates $9.54 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ascom Holding AG generates limited operating cash flow of $24.10M, signaling weaker underlying cash strength.
Free Cash Flow
Ascom Holding AG produces free cash flow of $23.25M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.68 in free cash annually.
FCF Yield
ASCN.SW converts 13.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.33
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How ASCN.SW Stacks Against Its Sector Peers
| Metric | ASCN.SW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.33 | 35.20 | Better (Cheaper) |
| ROE | 24.40% | 749.00% | Weak |
| Net Margin | 6.27% | -2813.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.59 | Strong (Low Leverage) |
| Current Ratio | 1.55 | 6.19 | Neutral |
| ROA | 9.54% | 328.00% | Weak |
ASCN.SW outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ascom Holding AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
5.70%
Industry Style: Growth, Innovation, High Beta
GrowingEPS CAGR
136.22%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-26.50%
Industry Style: Growth, Innovation, High Beta
Declining