Quick Facts
- Provider of holistic IT solutions based in Switzerland with a presence in 144 countries through Partnership as a Solution (PaaS) partners
- A leading provider of information and communication technologies with a workforce of approximately 4200 employees
- ALSO Group is one of the 36 companies in the Obermatt Swiss Pearls Index (OMSP1)
Pros
- New management to embrace technological advances ✔
- Steadily rising dividend per share and dividend yield of 2.10% ✔
- Innovation and investment in AI coupled with strong historic growth ✔
Cons
- Low profit margins due to intense competition ❌
- Risk of not being able to take advantage of disruptive technologies such as AI ❌
- The new CEO hasn’t been named yet, and the new management may turn out to be a flop ❌
Just a few weeks ago, big changes were announced at ALSO Group, a leading technology provider for the ICT industry. A new management setup is being implemented and the current CEO, Gustavo Möller-Hergt, is stepping down as CEO of ALSO, making way for the new generation to take the lead. The new setup should make it possible for the company to take full advantage of the enticing advancements that come with AI and other technological developments, though the new CEO hasn’t been named yet.
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The company's focus on distributing hardware and software, developing IT solutions, and providing a wide array of cloud and lifecycle services positions it at the heart of digital transformation trends. With its global presence in 144 countries through Partnership as a Solution (PaaS) partners and a workforce of approximately 4200 employees, ALSO has been able to achieve significant growth and high returns on capital.
In the past it has been able to achieve high returns on capital employed, high growth, and a steadily rising dividend per share and a dividend yield of 2.10%. This financial stability is a testament to the company's robust business model and its ability to generate high returns on capital. The consistent dividend payments also indicate a strong commitment to returning value to shareholders, reinforcing investor confidence in ALSO's long-term prospects.
The strategic shift towards a new management setup comes at a critical time. The rapid pace of technological advancements, particularly in AI, presents both opportunities and challenges. Technological advancements combined with ALSO's solid financial performance and commitment to innovation, set a positive outlook for the future. However, the challenges of improving profit margins, capitalizing on disruptive technologies, and ensuring the success of the new management setup cannot be overlooked. Its ability to adapt and innovate in response to these developments will be crucial for its continued success and competitiveness. The coming years will be pivotal in determining whether ALSO can transform these challenges into opportunities, thereby reinforcing its position as a leader in the ICT industry.