1Wk·

Modern value with substance: I have analyzed these 4 AAA stocks for you

🧠 Background

The idea for this article came from the current Saturday episode of Alles auf Aktien (AAA) with Frank Fischer as a guest. He heads Shareholder Value Management AG and is responsible for the Frankfurt UCITS ETF Modern Value, among other things. In the episode, he presented his Modern Value Investing approach with a focus on profitable, high-growth companies that are still reasonably valued.

I found four stocks from this episode particularly exciting: $NOW (-1.82%) , $A1OS (-2.23%) , $MCE (-2.27%) and $APP (-4.1%) . I took a closer look at these stocks and compiled the latest cash flow figures, market capitalization and a brief assessment for you.

📊 Company overview

ServiceNow (NOW) - Enterprise Software, USA

Operating cash flow (TTM): approx. USD 4.7 billion

Free cash flow: approx. USD 3.85 billion

Market capitalization: around USD 201 bn

Assessment: Cloud platform for digital workflows. Impressive cash flow, established market position, but ambitious valuation

All for One Group (A1OS) - IT consulting, Germany

Operating cash flow: EUR 46.6m

Free cash flow: approx. EUR 42m

Market capitalization: approx. USD 280m

Assessment: Small IT service provider with focus on SAP projects. Solid cash flows, but heavily dependent on the DACH market

CHAPTERS Group (CHG) - investment company, Germany

Operating cash flow: approx. EUR 11.5m

Free cash flow: approx. EUR 7.8m

Market capitalization: approx. USD 1.1 bn

Assessment: Active investor in SMEs and services. Young listed model with high valuation level, but exciting approach

AppLovin (APP) - AdTech, USA

Operating cash flow (TTM): approx. USD 2.5 bn

Free cash flow (Q1 2025): USD 826 million

Market capitalization: approx. USD 120 billion

Assessment: Profitable provider in the mobile ad ecosystem. Very strong cash flow, aggressive growth. Somewhat overheated, but strategically focused

🚀 My takeaways

1. the selection reflects the Modern Value approach well. Cash flow strong, technology driven, but no classic hype stocks.

2. AppLovin and ServiceNow have global scale. The German stocks look like targeted small or mid cap building blocks with defensive substance

3. in terms of valuation, you have to take a closer look at AppLovin and CHAPTERS. High growth, but also a lot of expectation priced in.

❓ Question for the community

Do you already know any of these companies in detail? Do you have ServiceNow, AppLovin, All for One or CHAPTERS in your portfolio or have you already analyzed them? How do you currently rate the risk/return ratio of these stocks?

Source

Inspiration: All about stocks Saturday episode with Frank Fischer

Data status: July 2025 (via stockanalysis, Yahoo Finance, Morningstar, company websites)

9 Comments

investment_guru_2035@investment_guru_2035

1Wk

I also listened to the episode - the fact that it was also about Servicenow and AppLovin somehow passed me by 🧐 Frank Fischer doesn't even have those two in his portfolio at the moment: https://www.shareholdervalue.de/frankfurter-fonds/frankfurter-ucits-etf-modern-value
I actually found Ashtead $AHT, Diploma $DPLM and Interpump $IP worth a second look after the presentations - I've put all three on my watchlist.

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Elsa E.@EpsEra

1Wk

@investment_guru_2035
The two titles you mentioned, ServiceNow and AppLovin, were brought up by the moderators and also briefly discussed. I also found them interesting and therefore did some research.
Regarding the three stocks you mentioned, Ashtead, Diploma and Interpump, I also looked at them and found them interesting. The majority of analysts' opinions and my own research have not yet convinced me, but they definitely belong on the watch list. It's worth taking a second look.

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investment_guru_2035@investment_guru_2035

1Wk

@EpsEra Hm, I must have already grayed out Servicenow and AppLovin and concentrated on the stocks that were new to me 😅 But it was an exciting episode. None of the stocks mentioned are currently of interest to me for an entry, but as written: I'll keep an eye on them.

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Elsa E.@EpsEra

1Wk

@investment_guru_2035
Thank you for your plausible assessment. I also found the episode very interesting, especially the Modern Value approach. One example that Mr. Fischer mentioned was Constellation Software. A few years ago, the share was at around 500 euros, but because it seemed overvalued to him at the time, he didn't get in. Today it is around 3000 euros. That shows quite well how difficult it can be to get the timing right when investing.

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investment_guru_2035@investment_guru_2035

1Wk

@EpsEra I've had Constellation Software on my list for more than a year, but it's always been too expensive for me. Even the April dip wasn't big enough for me, I always had the feeling I had to be able to get in at €2000 - €2200. But I'm afraid that ship has sailed.

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Chris@Multibagger

1Wk

I currently have $NOW with a derivative in my portfolio. I know $APP and have already held it. I have not yet dealt with the other two

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Elsa E.@EpsEra

1Wk

@Multibagger
Thank you for your assessment. I also find the topic of derivatives and trading them very exciting, but so far I haven't found the time to look into it more intensively. When I do and questions arise, I'll be happy to get in touch with you. Okay?

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Chris@Multibagger

1Wk

@EpsEra you can do. You can also take a look at my posts in the Best of section for a quick overview. You'll also get an initial overview there

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Elsa E.@EpsEra

1Wk

@Multibagger
Is noted 👍

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