Ascom Holding AG (ASCN) AI Stock Analysis

• Market Cap: CHF192.56M
• Dividend Yield: 2.75%
• Average Volume (3M): 60.39K
• Price to Earnings (P/E): 64.1
• Beta (1Y): 0.72
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CH
• Employees: 1,415
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.06
• Shares Outstanding: 36,000,000
• 10 Day Avg. Volume: 58,599
• 30 Day Avg. Volume: 60,386
• PEG Ratio: -0.51
• Price to Book (P/B): 2.01
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 9.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: CHF5.50 ▲(43.98% Upside)

The score is driven primarily by weakened 2024 profitability and revenue decline despite a resilient, debt-free balance sheet and improved free cash flow. Technicals are positive but overextended, while valuation is a key headwind due to the high P/E alongside only a modest dividend yield.

Positive Factors

Debt-free balance sheet

No reported debt materially reduces financial risk and interest burden, giving management durable flexibility to fund product development, services expansion, or absorb contract timing shocks. This improves resilience in healthcare contracting cycles over 2–6 months.

Improved free cash flow

Rising operating cash flow and FCF (15.6M, ~20% YoY growth) strengthens internal funding for maintenance, software updates, and service delivery. FCF exceeding net income supports earnings quality and funds recurring-service investments without new leverage.

Mission-critical healthcare focus and recurring revenue

A product mix centered on mission‑critical clinical communications and lifecycle services creates high customer switching costs and recurring revenue streams. Installed-base upgrades and long-term service contracts support more predictable revenues and stickiness.

Negative Factors

Revenue decline in 2024

A falling revenue trend reduces operating leverage and may reflect weakening demand or competitive pressure in core healthcare markets. Sustained top-line decline limits reinvestment capacity and raises execution risk over the next several quarters.

Sharp profitability compression

Large declines in operating and net margins indicate structural cost pressures, adverse mix, or nonrecurring hits. Margin deterioration reduces free cash generation sensitivity and undermines returns on a stable balance sheet, raising medium-term earnings volatility.

Uneven historical cash conversion

Prior years of negative FCF and weaker operating cash relative to revenue signal cash‑conversion risk tied to working capital or project timing. This variability can force tradeoffs between support investment, R&D, or shareholder returns during downturns.

Ascom Holding AG Business Overview & Revenue Model

Company Description

Ascom Holding AG, together with its subsidiaries, provides healthcare ICT and mobile workflow solutions worldwide. The company offers nurse call and monitoring systems, including teleCARE IP that provides nurse call, alerts, messaging, monitoring, and wander management solution; and Telligence, a patient response system. It also provides Digistat software, suite of clinical workflows; Unite software, a workflow orchestration platform that integrates data and events from source systems, as well as alerts, chats, and tasks to enable users on various endpoint platforms. In addition, the company provides mobile devices, DECT and VoWiFi handsets, pagers, and IP-DECT solutions. Further, it offers consulting, implementation, training, support, and maintenance services. The company offers its solutions for hospitals acute care facilities; enterprises, including retail, security, and hospitality industries; and long-term care facilities. The company is headquartered in Baar, Switzerland.

How the Company Makes Money

Ascom Holding AG Financial Statement Overview

Summary

Mixed fundamentals: the balance sheet is strong with no reported debt (2023–2024) and cash generation improved in 2024 (FCF 15.6M), but financial performance weakened materially as revenue declined in 2024 and profitability fell sharply (net margin ~1.3% vs ~5.9% in 2023; EBIT margin ~2.7% vs ~7.0%).

Income Statement

Revenue has been broadly flat across 2021–2023 and declined in 2024 (annual revenue down from 297.3M to 286.7M). Profitability also weakened materially in 2024: net margin fell to ~1.3% (from ~5.9% in 2023) and operating profitability compressed (EBIT margin ~2.7% vs ~7.0% in 2023), despite gross margin remaining relatively steady in the mid‑40% range. Strength is stable gross profitability, but the sharp drop in operating and net income suggests cost pressure, weaker mix, or elevated one-offs, increasing earnings volatility risk.

Balance Sheet

The balance sheet is conservatively positioned with no reported debt in 2023–2024 (after modest leverage in 2020–2022), which reduces financial risk and interest burden. Equity is stable (74.4M in 2024 vs 78.7M in 2023) and assets are steady (189.9M in 2024 vs 197.2M in 2023). The main weakness is that shareholder returns fell sharply as profitability declined (return on equity ~5.0% in 2024 vs ~22.1% in 2023), indicating the balance sheet strength is not currently translating into strong earnings power.

Cash Flow

Cash generation improved in 2024 with operating cash flow of 20.0M and free cash flow of 15.6M, and free cash flow grew ~20% year over year. Free cash flow also exceeded net income in 2024 (free cash flow to net income ~0.78), supporting earnings quality. However, cash flow has been uneven over time (negative free cash flow in 2021 and 2022), and operating cash flow relative to revenue remains modest (about 23% in 2024 versus 36% in 2023), pointing to working-capital or cash conversion variability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	284.60M	286.70M	297.30M	297.40M	291.50M	281.00M
Gross Profit	133.30M	133.30M	141.40M	135.40M	135.60M	131.90M
EBITDA	15.40M	13.80M	31.30M	25.90M	28.80M	25.20M
Net Income	3.00M	3.70M	17.40M	11.00M	13.50M	6.50M
Balance Sheet
Total Assets	190.50M	189.90M	197.20M	201.80M	194.70M	203.10M
Cash, Cash Equivalents and Short-Term Investments	29.50M	18.60M	24.70M	26.60M	29.50M	31.80M
Total Debt	0.00	0.00	0.00	10.00M	0.00	19.00M
Total Liabilities	118.30M	115.50M	118.50M	128.40M	114.70M	132.00M
Stockholders Equity	72.20M	74.40M	78.70M	73.40M	80.00M	71.10M
Cash Flow
Free Cash Flow	27.50M	15.60M	16.30M	-3.20M	-100.00K	34.40M
Operating Cash Flow	29.90M	20.00M	32.50M	10.20M	11.60M	45.10M
Investing Cash Flow	-11.70M	-15.50M	-16.20M	-14.00M	5.20M	-10.00M
Financing Cash Flow	-9.50M	-10.80M	-17.20M	2.20M	-19.00M	-21.10M

Ascom Holding AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MED	62 Neutral	CHF1.23B	-2,293.37	―	―	7.29%	-112.70%
ASCN	58 Neutral	CHF192.56M	64.07	4.02%	2.75%	―	―
MEDX	56 Neutral	CHF472.87M	-80.53	―	4.54%	-2.42%	-222.68%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%