September 14, 2023
Top 10 Stock Ascom Strong Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Ascom Strong Buy

360 METRICS	September 14, 2023
VALUE
VALUE	54
GROWTH
GROWTH	82
SAFETY
SAFETY	86
SENTIMENT
SENTIMENT	100
360° VIEW
360° VIEW	100

ANALYSIS: With an Obermatt 360° View of 100 (better than 100% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock Ascom are very positive. The 360° View is based on consolidating four consolidated indicators, with all four indicators above average for Ascom. The consolidated Value Rank has an attractive rank of 54, which means that the share price of Ascom is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 54% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 82, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. The company is also safely financed with a Safety rank of 86. Finally, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 100. ...read more

RECOMMENDATION: With a consolidated 360° View of 100, Ascom is better positioned than 100% of all alternative stock investment opportunities based on the Obermatt Method. As all consolidated Obermatt Ranks exhibit excellent performance, such as good value (Value Rank of 54), above-average growth (Growth Rank of 82), safe financing practices (Safety Rank of 86), and a positive market sentiment in the professional investor community (Sentiment Rank of 100), it is a solid stock investment where the risk of paying too much for the shares is limited and disappointments are less likely to occur, unless information not publicly available. High-Value Ranks sometimes indicate that the company's future is challenging. If they are safely financed and have above average growth, and are still a good value, it may indicate that this will not continue. We recommend evaluating whether the future of Ascom is as difficult as the stock’s low price, despite what good growth and safe financing practice suggest. Since the professional community is optimistic, you might have less to worry about, and the stock is just not sufficiently visible, which may indicate good timing right now. ...read more

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Sentiment Strategy: Professional Market Sentiment for Ascom very positive

SENTIMENT METRICS	September 14, 2023
ANALYST OPINION
ANALYST OPINION	47
OPINIONS CHANGE
OPINIONS CHANGE	94
PRO HOLDINGS
PRO HOLDINGS	100
MARKET PULSE
MARKET PULSE	83
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	100

ANALYSIS: With an Obermatt Sentiment Rank of 100 (better than 100% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock Ascom is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for Ascom. Analyst Opinions are at a rank of 47 (worse than 53% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 94, which indicates a shift in stock research experts opinions for the better. In other words, they are getting more optimistic about stock investments in Ascom. Even better, the Professional Investors rank is 100, meaning that professional investors hold more stock in this company than in 100% of alternative investment opportunities. Pros tend to favor investing in this company. Furthermore, Market Pulse has a rank of 83, which means that the current professional news and professional social networks are upbeat when discussing this company (more positive news than for 83% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 100 (more positive than 100% compared with investment alternatives), Ascom has a reputation among professional investors that is significantly higher than that of its competitors. While analysts are still critical of the company, some are changing their minds. In addition, the professional news channels are optimistic, and many institutional investors have already bought stock in the company. These are encouraging signals, despite the still lower level of analyst recommendations. They may be due to a problematic past, and about to change. The positive sentiment signals are stronger than the negative. ...read more

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Value Strategy: Ascom Stock Price Value better than average

VALUE METRICS	September 14, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	51
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	47
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	19
DIVIDEND YIELD
DIVIDEND YIELD	86
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	54

ANALYSIS: With an Obermatt Value Rank of 54 (better than 54% compared with alternatives), Ascom shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for Ascom. Price-to-Sales (P/S) is 51, which means that the stock price compared with what market professionals expect for future sales is lower than for 51% of comparable companies, indicating a good value concerning Ascom's revenue size. The same is valid for dividend yields with a Dividend Yield rank of 86, which means that dividends are expected to be higher than for 86% of comparable investments. On the other hand, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is less favorable than for 81% of alternatives (only 19% of peers have an even higher ratio). The same is valid for the Price-to-Profit (or Price / Earnings, P/E) ratio, which is higher than for 53% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 54, is a buy recommendation based on Ascom's stock price compared with the company's operational size and dividend yields. This is a somewhat surprising picture, because it means that profits are low while dividends are high. One interpretation could be that profits are expected to increase, justifying the high dividend payments. But it could also mean that the company desperately keeps the high dividends to avoid a collapsing share price. This would be a rather dangerous constellation. ...read more

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Growth Strategy: Ascom Growth Momentum high

GROWTH METRICS	September 14, 2023
REVENUE GROWTH
REVENUE GROWTH	32
PROFIT GROWTH
PROFIT GROWTH	87
CAPITAL GROWTH
CAPITAL GROWTH	38
STOCK RETURNS
STOCK RETURNS	100
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	82

ANALYSIS: With an Obermatt Growth Rank of 82 (better than 82% compared with alternatives) for 2023, Ascom shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Ascom. Profit Growth has a rank of 87, which means that currently professionals expect the company to grow its profits more than 87% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 100 (above 100% of alternative investments). But Sales Growth has a below the median rank of 32, which means that, currently, professionals expect the company to grow less than 68% of its competitors, and Capital Growth also has a lower rank of 38. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 82, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Ascom. ...read more

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Safety Strategy: Ascom Debt Financing Safety very solid

SAFETY METRICS	September 14, 2023
LEVERAGE
LEVERAGE	73
REFINANCING
REFINANCING	42
LIQUIDITY
LIQUIDITY	79
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	86

ANALYSIS: With an Obermatt Safety Rank of 86 (better than 86% compared with alternatives) for 2023, the company Ascom has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Ascom is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Ascom. Leverage is at a rank of 73, meaning the company has a below-average debt-to-equity ratio. It has less debt than 73% of its competitors. Liquidity is also good at a rank of 79, meaning the company generates more profit to service its debt than 79% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 42, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 58% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 86 (better than 86% compared with alternatives), Ascom has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Ascom. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. ...read more

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Combined financial peformance: Ascom Top Financial Performance

COMBINED PERFORMANCE	September 14, 2023
VALUE
VALUE	54
GROWTH
GROWTH	82
SAFETY
SAFETY	79
COMBINED
COMBINED	98

ANALYSIS: With an Obermatt Combined Rank of 98 (better than 98% compared with investment alternatives), Ascom (Health Care Technology, Switzerland) shares have much better financial characteristics than comparable stocks. Shares of Ascom are a good value (attractively priced) with a consolidated Value Rank of 54 (better than 54% of alternatives), show above-average growth (Growth Rank of 82), and are safely financed (Safety Rank of 86), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 98, is a strong buy recommendation based on Ascom's financial characteristics. As the company Ascom's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 54), above-average growth (Obermatt Growth Rank of 82), and indicate that the company is safely financed (Obermatt Safety Rank of 86), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Ascom. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. ...read more

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