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ONEX Corporation (TSE:ONEX)
:ONEX
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ONEX Corporation
(TSX:ONEX)
57Neutral
ONEX Corporation (ONEX) vs. S&P 500 (SPY)
Market Cap
C$7.03B
Dividend Yield0.4%
Average Volume (3M)140.72K
Price to Earnings (P/E)18.5
Beta (1Y)0.96
Revenue Growth-17.78%
EPS Growth-41.13%
CountryCA
Employees492
SectorFinancial
Sector Strength77
IndustryAsset Management Services
Share Statistics
EPS (TTM)5.43
Shares Outstanding71,658,050
10 Day Avg. Volume219,546
30 Day Avg. Volume140,720
Financial Highlights & Ratios
PEG Ratio0.40
Price to Book (P/B)N/A
Price to Sales (P/S)2536.38
Price to Cash Flow (P/CF)20.50
P/FCF Ratio20.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$137.00Price Target Upside39.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
ONEX Corporation Business Overview & Revenue Model
Company DescriptionONEX Corporation is a leading private equity firm and alternative asset manager headquartered in Toronto, Canada. The company operates primarily in the sectors of private equity, credit, and wealth management. ONEX invests in a diverse range of industries, including healthcare, manufacturing, and technology, through its various investment platforms, offering both capital and strategic support to businesses for growth and expansion.
How the Company Makes MoneyONEX Corporation generates revenue through management fees and carried interest from its private equity and credit investments. The company earns management fees from overseeing and managing the assets within its investment funds. Additionally, ONEX benefits from carried interest, which is a share of the profits from investments made by its funds, contingent upon achieving a minimum return threshold. ONEX also earns returns on its proprietary investments made alongside its funds, further contributing to its revenue. The firm's earnings are influenced by successful investment strategies, market conditions, and its ability to grow its assets under management through strategic partnerships and acquisitions.
ONEX Corporation Financial Statement Overview
Summary
ONEX Corporation presents a mixed financial picture. While the balance sheet is stable with a strong equity base and manageable leverage, the income statement shows significant revenue fluctuations and declining profitability. Cash flow generation is inconsistent, posing challenges in converting income to cash consistently.Income Statement
ONEX Corporation has experienced significant revenue fluctuations, with a sharp decline in the most recent year. The gross profit margin is healthy at approximately 66.6%, but the EBIT margin is notably absent, indicating potential operational challenges. Net income dropped significantly, impacting the net profit margin. Overall, the income statement reflects volatility and declining profitability.45
Neutral
Balance Sheet
The balance sheet is relatively stable with a strong equity base. The debt-to-equity ratio is manageable at approximately 0.62, indicating moderate leverage. The equity ratio stands at 60.3%, suggesting financial stability. However, a slight increase in total debt could pose a future risk.65
Positive
Cash Flow
Cash flow generation is inconsistent, with a recent positive free cash flow growth rate. The operating cash flow to net income ratio is low, indicating potential issues in converting income to cash. Although free cash flow turned positive, historical volatility suggests ongoing cash management challenges.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 647.00M | 1.12B | 437.00M | 2.03B | 1.14B | Gross Profit |
| 431.00M | 908.00M | 163.00M | 1.74B | 917.00M | EBIT |
| 0.00 | 789.00M | 242.00M | 1.41B | 835.00M | EBITDA |
| 331.00M | 569.00M | 302.00M | 1.47B | 892.00M | Net Income Common Stockholders |
| 303.00M | 529.00M | 235.00M | 1.41B | 730.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 929.00M | 265.00M | 161.00M | 790.00M | 706.00M | Total Assets |
| 13.96B | 12.90B | 12.16B | 12.89B | 11.87B | Total Debt |
| 5.20B | 3.94B | 3.56B | 3.83B | 4.12B | Net Debt |
| 4.27B | 3.67B | 3.45B | 3.28B | 3.41B | Total Liabilities |
| 5.54B | 4.33B | 3.91B | 4.51B | 4.63B | Stockholders Equity |
| 8.42B | 8.56B | 8.25B | 8.37B | 7.24B |
| Cash Flow | Free Cash Flow | |||
| 174.00M | 60.00M | -392.00M | 361.00M | 381.00M | Operating Cash Flow |
| 174.00M | 68.00M | -384.00M | 361.00M | 382.00M | Investing Cash Flow |
| 38.00M | 55.00M | 234.00M | -55.00M | -9.00M | Financing Cash Flow |
| 453.00M | 30.00M | -282.00M | -465.00M | -657.00M |
ONEX Corporation Technical Analysis
Negative
97.95
Price Trends
109.55
Negative
109.43
Negative
101.81
Negative
Market Momentum
-3.11
Positive
29.77
Positive
12.82
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ONEX, the sentiment is Negative. The current price of 97.95 is below the 20-day moving average (MA) of 105.21, below the 50-day MA of 109.55, and below the 200-day MA of 101.81, indicating a bearish trend. The MACD of -3.11 indicates Positive momentum. The RSI at 29.77 is Positive, neither overbought nor oversold. The STOCH value of 12.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ONEX.
ONEX Corporation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $71.01B | 14.75 | 11.03% | 4.09% | 7.64% | 9.22% | |
71 Outperform | $43.79B | 8.27 | 16.48% | 1.13% | 20.32% | -16.64% | |
66 Neutral | C$11.39B | 13.01 | 13.26% | 2.69% | -17.69% | 29.19% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
58 Neutral | C$4.49B | ― | -55.59% | 2.71% | 3.21% | -9107.07% | |
57 Neutral | C$7.03B | 18.53 | 3.54% | 0.40% | -17.78% | -41.13% | |
54 Neutral | C$110.86B | 46.67 | 16.87% | 3.24% | ― | ― |
* Financial Sector Average
Performance Comparison
TSE:ONEX
ONEX Corporation
96.20
-6.04
-5.91%
TSE:MFC
Manulife Financial
41.29
9.92
31.61%
TSE:FFH
Fairfax Financial Holdings
1,959.36
482.24
32.65%
TSE:CIX
CI Financial
31.12
15.03
93.36%
TSE:IAG
iA Financial Corporation Inc
123.85
39.75
47.27%
TSE:BAM
Brookfield Asset Management Ltd. Class A
67.39
12.65
23.11%
ONEX Corporation Earnings Call Summary
Earnings Call Date: Feb 21, 2025 | % Change Since: -11.05% | Next Earnings Date: May 9, 2025
Earnings Call Sentiment Positive
Onex had a strong performance in 2024, especially in its credit and structured credit segments, with significant capital return and fundraising successes. However, challenges in healthcare and consumer sectors, along with foreign exchange impacts and modest FRE losses, indicate areas to monitor. Overall, the company remains optimistic about growth opportunities in 2025.Highlights
Significant Fundraising Success
Onex raised $1.5 billion across its private equity platforms in 2024, with strategic co-investment partnerships helping expand the client base. Additionally, Onex Partners completed fundraising for its Opportunities Fund, reaching $1.2 billion in commitments.
Return of Capital
OP and ONCAP returned over $3 billion of capital to investors, including $1 billion to Onex, which is 2.5 times more than what was achieved in 2023.
Structured Credit Growth
Onex ranked as the number seven issuer of global broadly syndicated CLOs, executing 30 transactions raising $13 billion of fee-generating AUM in 2024, with a 34% increase in fee-generating AUM over the last 12 months.
Share Repurchase Program
Onex completed a substantial issuer bid, repurchasing 2.3 million shares in Q4, bringing total repurchases for the year to 5.7 million shares. Over the last five years, Onex has repurchased approximately 28 million shares, reducing shares outstanding by almost 30%.
Strong Performance in Credit Investments
Credit investments delivered a $16 million net gain or a 2% return in Q4 and a 9% return for the year, driven by structured and opportunistic strategies.
Lowlights
Challenges in Healthcare and Consumer Companies
Returns were offset by challenging results in the healthcare and consumer sectors, impacting the overall performance.
Foreign Exchange Impact on PE Portfolio
Unfavorable foreign exchange from a strengthening U.S. dollar drove a mark-to-market loss of about $60 million on non-U.S. dollar investments.
Modest FRE Loss
A modest fee-related earnings loss of $1 million for Q4 was reported, with a $6 million contribution from the asset management platforms, indicating some challenges in reaching breakeven for non-credit operations.
Company Guidance
During the Onex Fourth Quarter Earnings Results Conference Call, the company provided guidance indicating strong performance across its platforms in 2024 and positive momentum for 2025. Onex's private equity team successfully returned over $3 billion of capital to investors, including $1 billion to Onex, a 2.5 times increase from 2023, while raising $1.5 billion in capital. The credit platform ranked as the seventh issuer of global broadly syndicated CLOs, executing 30 transactions and raising or extending $13 billion of fee-generating AUM. The company completed a substantial issuer bid, repurchasing 2.3 million shares, contributing to a total of 5.7 million shares repurchased in 2024. Onex ended the year with investing capital per share of $113.70, up 6% from the previous year, and maintained strong liquidity with $1.6 billion available. The structured credit business saw a 34% increase in fee-generating AUM over the last 12 months, contributing to a 45% increase in fee-related earnings for the year, with a run rate FRE contribution of $50 million at year-end. Looking ahead, Onex aims for further growth in 2025, with expectations to sustain positive fee-related earnings, particularly from the credit platform, and plans to remain active in share repurchases.ONEX Corporation Corporate Events
Business Operations and StrategyFinancial Disclosures
Onex Corporation Reports 2024 Financial Results with Strategic Focus on Growth
Neutral
Feb 21, 2025
Onex Corporation announced its fourth quarter and full year 2024 financial results, highlighting a challenging year with net earnings of $303 million, down from $529 million in 2023. Despite a decrease in net earnings, the company raised over $1.5 billion in private equity and over $13 billion in fee-generating assets through its Structured Credit platform. These activities underscore Onex’s strategic focus on long-term shareholder value and strengthening its market positioning.
Onex Corporation Completes Significant Share Buyback
Dec 27, 2024
Onex Corporation has announced a repurchase of 2,257,722 of its subordinate voting shares at $117 each, totaling approximately $264 million, as part of a substantial issuer bid. This move represents about 3.05% of the issued shares, and after the repurchase, 71,715,920 shares will remain outstanding.
Onex Adjusts Share Buyback Offer Details
Dec 12, 2024
Onex Corporation has revised the price range for its substantial issuer bid, now offering between $108.00 and $117.00 per share, and extended the bid expiry to December 23, 2024. Shareholders must retender their shares under the new terms to participate. This move affects up to 5% of the company’s outstanding subordinate voting shares.
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.