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On Holding Ag Class A (ONON)
:ONON
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On Holding AG
(NYSE:ONON)77Outperform
Positive Factors
Brand Positioning
ONON's positioning as a premium brand is unique, without facing promotional pressure or demand volatility experienced by peers.
Financial Performance
Management's initial FY25 guidance highlights robust growth and improved margin expansion.
Negative Factors
Valuation Concerns
Expensive valuation is the number one concern for ONON's stock, despite having some of the best fundamentals in the consumer space.
On Holding AG (ONON) vs. S&P 500 (SPY)
Market Cap
$16.37B
Dividend YieldN/A
Average Volume (3M)4.83M
Price to Earnings (P/E)113.9
Beta (1Y)1.49
Revenue Growth30.65%
EPS Growth56.51%
CountryUS
Employees2,353
SectorConsumer Cyclical
Sector Strength53
IndustryApparel & Luxury
Share Statistics
EPS (TTM)0.44
Shares Outstanding288,759,640
10 Day Avg. Volume5,969,579
30 Day Avg. Volume4,834,228
Financial Highlights & Ratios
PEG Ratio2.02
Price to Book (P/B)N/A
Price to Sales (P/S)15.35
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$65.24Price Target Upside28.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
On Holding AG Business Overview & Revenue Model
Company DescriptionOn Holding AG (ONON) is a Swiss-based company that specializes in the design and manufacturing of performance sports footwear and apparel. It operates in the athletic footwear industry, offering innovative products that focus on providing comfort and enhancing athletic performance. The company's flagship product is its patented CloudTec technology, which provides unique cushioning and impact protection. On Holding AG caters to a global market, targeting both professional athletes and casual fitness enthusiasts.
How the Company Makes MoneyOn Holding AG primarily generates revenue through the sale of its athletic footwear and apparel. The company's key revenue streams include direct-to-consumer sales via its e-commerce platforms and physical retail stores, as well as wholesale distribution to sporting goods retailers and specialty stores worldwide. Significant partnerships with athletes and sports teams also play a crucial role in brand promotion and sales growth. The company's focus on innovation and high-performance products allows it to maintain a strong market presence and attract a diverse customer base.
On Holding AG Financial Statement Overview
Summary
On Holding AG's financial health is robust with strong revenue growth, high profitability margins, and impressive cash flow management. The balance sheet's debt-free status and high equity ratio further enhance financial stability.Income Statement
The company shows strong revenue growth, with a significant increase from prior years, indicating a robust upward trajectory. Gross profit margin is healthy, contributing to a solid net profit margin. The EBIT and EBITDA margins reflect efficient operational management, although there is room for improvement in net income.85
Very Positive
Balance Sheet
The balance sheet is strong with a solid equity base and no debt, indicating financial stability. The equity ratio is high, which is favorable, and return on equity showcases effective reinvestment strategies. The absence of debt minimizes risk, providing a solid foundation for future growth.88
Very Positive
Cash Flow
Cash flow metrics are impressive with significant growth in free cash flow and operating cash flow. The company efficiently converts its net income into cash, indicating strong cash management. Free cash flow growth rate is positive, supporting future investments and debt-free operations.90
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.15B | ― | ― | ― | ― | ― | Gross Profit |
| 1.30B | 1.07B | 684.90M | 430.29M | 231.10M | 143.12M | EBIT |
| 198.34M | 180.30M | 78.70M | -144.66M | -17.09M | 5.69M | EBITDA |
| 237.88M | ― | 124.30M | -128.18M | -12.04M | 8.61M | Net Income Common Stockholders |
| 130.17M | 79.60M | 57.70M | -170.23M | -27.52M | -1.47M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| ― | ― | ― | ― | ― | ― | Total Assets |
| 1.59B | 1.59B | 1.38B | 1.24B | 382.57M | 143.63M | Total Debt |
| 0.00 | 0.00 | 0.00 | 0.00 | 23.73M | 20.20M | Net Debt |
| -494.60M | -494.60M | -9.20M | -653.08M | -84.05M | 2.33M | Total Liabilities |
| 518.50M | 518.50M | 446.50M | 418.18M | 137.48M | 79.21M | Stockholders Equity |
| ― | ― | ― | ― | ― | ― |
| Cash Flow | Free Cash Flow | ||||
| 383.79M | 185.00M | -310.00M | -19.30M | -33.33M | -14.44M | Operating Cash Flow |
| 445.93M | 232.20M | -227.00M | 16.95M | -14.73M | -5.22M | Investing Cash Flow |
| -62.45M | ― | ― | ― | ― | ― | Financing Cash Flow |
| -42.20M | ― | ― | ― | ― | ― |
On Holding AG Technical Analysis
Neutral
50.63
Price Trends
55.37
Negative
54.06
Negative
48.29
Positive
Market Momentum
-2.34
Positive
44.36
Neutral
39.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONON, the sentiment is Neutral. The current price of 50.63 is below the 20-day moving average (MA) of 52.37, below the 50-day MA of 55.37, and above the 200-day MA of 48.29, indicating a neutral trend. The MACD of -2.34 indicates Positive momentum. The RSI at 44.36 is Neutral, neither overbought nor oversold. The STOCH value of 39.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ONON.
On Holding AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $20.30B | 21.71 | 35.81% | ― | 19.40% | 32.70% | |
77 Outperform | $16.37B | 113.90 | 10.06% | ― | 30.65% | 56.51% | |
74 Outperform | $115.98B | 24.22 | 34.81% | 1.93% | -4.77% | -5.99% | |
73 Outperform | $9.21B | 14.09 | 13.52% | ― | 12.11% | 19.16% | |
71 Outperform | $4.61B | 21.81 | 12.54% | 1.43% | -3.35% | -6.09% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
42 Neutral | $2.83B | ― | -6.76% | ― | -7.47% | -131.70% |
* Consumer Cyclical Sector Average
Performance Comparison
ONON
On Holding AG
50.63
17.60
53.28%
COLM
Columbia Sportswear
83.24
4.56
5.80%
DECK
Deckers Outdoor
133.78
-17.36
-11.49%
NKE
Nike
77.32
-19.19
-19.88%
SKX
Skechers USA
57.76
-2.88
-4.75%
UAA
Under Armour
6.67
-1.99
-22.98%
On Holding AG Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: 5.81% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance for On Holdings AG with significant growth across multiple segments and regions. While there were operational challenges and some concerns about economic conditions, the highlights significantly outweigh the lowlights, indicating a positive sentiment.Highlights
Record Net Sales Growth
On Holdings AG reported a constant currency growth rate of over 33%, reaching CHF 2.32 billion in net sales for 2024.
Strong D2C Channel Expansion
The company expanded its D2C share by more than 3 percentage points, contributing to premium margins with a gross profit margin of 60.6%.
Apparel Segment Milestone
On Holdings AG achieved more than CHF 100 million in net sales from apparel, with the category growing 51% in constant currency terms.
APAC Region Growth
APAC net sales grew by 117.5% on a reported basis and 124.6% on a constant currency basis, driven by strong performance in Japan and China.
Expansion of Retail Footprint
In 2024, On Holdings opened 19 new retail stores in iconic locations, enhancing brand visibility and regional awareness.
Positive Cash Flow and Profitability
Operating cash flow reached CHF 510.6 million, with a total cash balance of CHF 924.3 million at the end of the year.
Lowlights
Operational Challenges in Atlanta
The company faced operational disruptions at its Atlanta warehouse, affecting distribution efficiency and incurring potential incremental costs during ramp-up.
Apparel Segment Lagging Behind
Despite strong growth, the apparel segment is slightly behind midterm expectations, indicating room for improvement.
Macro-Economic Environment Concerns
The company expressed caution regarding the macroeconomic environment, potentially impacting future growth projections.
Company Guidance
During the On Holdings AG Q4 and Fiscal Year 2024 results call, the company provided a positive outlook for 2025, expecting to achieve a constant currency growth rate of at least 27%, translating to CHF 2.94 billion in net sales. The guidance reflects an anticipated gross profit margin of approximately 60.5% and an adjusted EBITDA margin between 17% and 17.5%, showcasing ongoing financial strength. The call highlighted On's strategic focus on expanding its premium brand presence globally, particularly in China, increasing its D2C share, and leveraging partnerships with high-profile talents like Zendaya and Roger Federer. The company plans significant investments in operational excellence, including warehouse automation in Atlanta, to support future growth. The call also emphasized On's commitment to innovation and sustainability, with plans to launch new products, such as the Cloudboom Max, and expand its retail presence, especially in emerging markets.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.