Sonova Holding AG (SOON) AI Stock Analysis

• Market Cap: CHF14.75B
• Dividend Yield: 1.66%
• Average Volume (3M): 153.41K
• Price to Earnings (P/E): 28.3
• Beta (1Y): 0.93
• Revenue Growth: 6.58%
• EPS Growth: -10.02%
• Country: CH
• Employees: 18,335
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Devices
• EPS (TTM): 7.07
• Shares Outstanding: 59,626,810
• 10 Day Avg. Volume: 145,109
• 30 Day Avg. Volume: 153,405
• PEG Ratio: -4.51
• Price to Book (P/B): 6.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF254.22
• Price Target Upside: -0.85% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 10

• Rating: 74 Outperform
• Price Target: CHF287.00 ▲(11.93%Upside)

Sonova Holding AG's strong financial performance is the primary driver of its stock score, supported by effective cost and cash flow management. However, technical indicators present a mixed view, and the stock's valuation suggests it might be overvalued relative to the market.

Sonova Holding AG Business Overview & Revenue Model

Company Description

Sonova Holding AG designs, develops, manufactures, and distributes hearing care solutions for adults and children. It operates through two segments, Hearing Instruments and Cochlear Implants segments. The company offers wireless communication products; rechargeable hearing aids; wireless headsets, speech enhanced hearables, audiophile headphones, microphones, and wireless transmission systems; and audiological care services. It also provides hearing instruments under the Phonak, Unitron, and Hansaton brand names; cochlear implants under the Advanced Bionics brand; consumer hearing products under the Sennheiser brand; and audiological care services under the AudioNova, Audium, Audition Santé, Boots Hearingcare, Connect Hearing, Geers, Hansaton, Lapperre, Schoonenberg, and Triton brands. The company sells its products through independent distributors; and provides hearing care services through a network of approximately 3,600 stores and clinics. It operates in the United States, Europe, the Middle East, Africa, and the Asia Pacific. The company was formerly known as Phonak Holding AG and changed its name to Sonova Holding AG in August 2007. Sonova Holding AG was founded in 1947 and is headquartered in Stäfa, Switzerland.

How the Company Makes Money

Sonova Holding AG generates revenue primarily through the sale of its hearing care products, including hearing aids, cochlear implants, and related accessories. The company leverages a diverse portfolio of brands and products to cater to different market segments and customer needs. Key revenue streams include direct sales to consumers, sales through a network of audiologists and hearing care professionals, and distribution partnerships with healthcare providers. Additionally, Sonova benefits from after-sales services and support, which provide ongoing revenue through maintenance, repairs, and product upgrades. Strategic acquisitions and partnerships, along with continuous innovation and research, play a significant role in maintaining and expanding its market presence, thus contributing to its earnings.

Sonova Holding AG Financial Statement Overview

Summary

Sonova Holding AG shows strong financial health with robust profitability margins and effective cash flow management. The moderate debt-to-equity ratio and a healthy equity base highlight manageable leverage. Despite a slight revenue decline and rising net debt, the overall financial stability is commendable.

Income Statement

Sonova Holding AG has demonstrated strong profitability with a consistent gross profit margin, maintaining above 70% in recent years. However, the revenue has shown a slight decline of approximately 3% from the previous year. Despite this, the company maintains a healthy EBIT and EBITDA margin, indicating efficient cost management and operational performance. The net profit margin remains robust, although slightly affected by the revenue dip.

Balance Sheet

The balance sheet shows good financial structure with a moderate debt-to-equity ratio of 0.73, indicating manageable leverage levels. The equity ratio is healthy at around 42.7%, suggesting a solid equity base relative to total assets. However, there has been a slight increase in net debt, which could pose a risk if revenue continues to decline.

Cash Flow

Sonova exhibits strong cash flow management with a stable free cash flow, maintaining positive growth. The operating cash flow to net income ratio indicates efficient cash generation from operations. Moreover, the company has sustained a high free cash flow to net income ratio, highlighting its ability to generate cash profitably. Positive trends in cash flow metrics suggest resilience in its cash-generating capabilities.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
3.71B	3.63B	3.74B	3.36B	2.60B	2.92B
	Gross Profit
2.68B	2.61B	2.59B	2.42B	1.84B	2.04B
	EBIT
643.50M	669.90M	761.80M	785.10M	559.20M	510.90M
	EBITDA
809.50M	917.90M	974.50M	970.80M	818.60M	711.00M
	Net Income Common Stockholders
564.70M	601.00M	647.50M	649.00M	581.00M	483.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
513.80M	513.80M	414.80M	612.00M	1.77B	452.70M
	Total Assets
5.79B	5.79B	5.55B	5.59B	5.93B	4.49B
	Total Debt
1.79B	1.79B	1.81B	1.48B	1.83B	1.06B
	Net Debt
1.28B	1.28B	1.40B	873.80M	61.60M	608.10M
	Total Liabilities
3.30B	3.30B	3.32B	3.16B	3.15B	2.46B
	Stockholders Equity
2.47B	2.47B	2.21B	2.41B	2.75B	2.01B
Cash Flow		Free Cash Flow
612.90M	624.70M	609.10M	815.90M	665.50M	711.60M
	Operating Cash Flow
715.60M	753.30M	763.40M	922.50M	754.70M	840.40M
	Investing Cash Flow
-238.10M	-234.00M	-429.50M	-707.00M	-123.60M	-213.40M
	Financing Cash Flow
-455.90M	-415.30M	-523.50M	-1.37B	687.60M	-545.40M

Sonova Holding AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 256.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SOON, the sentiment is Negative. The current price of 256.4 is below the 20-day moving average (MA) of 265.79, above the 50-day MA of 254.40, and below the 200-day MA of 290.01, indicating a neutral trend. The MACD of -1.10 indicates Positive momentum. The RSI at 45.09 is Neutral, neither overbought nor oversold. The STOCH value of 26.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:SOON.

Sonova Holding AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STMN	78 Outperform	CHF16.96B	43.85		0.88%	3.82%	57.08%
SOON	74 Outperform	CHF14.75B	28.27		1.66%	6.58%	-10.02%
Sector *	54 Neutral	$5.31B	3.29	-45.39%	2.79%	16.77%	-0.07%
0QND		CHF4.05B	33.70	8.87%	1.57%	―	―
MEDGF		$3.28B	41.56	20.81%	0.48%	―	―
0QLQ		CHF5.65B	64.80	13.49%	0.48%	―	―
GALE		CHF4.26B	23.43		2.67%	―	―

Sonova Holding AG Corporate Events

Sonova Releases 2024/25 Annual Report Highlighting Strong Financial Performance

Sonova Holding AG has released its Annual Report for the fiscal year 2024/25, detailing audited financial statements and corporate strategy insights. The report highlights a sales achievement of CHF 3.9 billion and a net profit of CHF 547 million, underscoring Sonova’s strong market position and operational success. This announcement is significant for stakeholders as it reflects the company’s robust financial health and strategic direction in the hearing solutions industry.

The most recent analyst rating on (CH:SOON) stock is a Sell with a CHF224.00 price target. To see the full list of analyst forecasts on Sonova Holding AG stock, see the CH:SOON Stock Forecast page.

Sonova Reports Strong Fiscal Year Results and Announces CEO Transition

Sonova Holding AG reported strong financial results for the fiscal year 2024/25, with market share gains across all business areas and a 7.6% increase in sales in local currencies. The company successfully launched new hearing aid platforms, which contributed to growth despite challenges such as unfavorable exchange rates and a weakening private market for hearing aids in the USA. Sonova also announced a leadership change, with Eric Bernard set to take over as CEO in October 2025, positioning the company for continued growth and resilience in a challenging macroeconomic environment.

Sonova Completes Strategic Share Buyback Program

Sonova Holding AG has completed its share buyback program, initially announced in April 2022, repurchasing 1,532,910 shares valued at approximately CHF 419.8 million. The buyback aimed at capital reduction was executed on the SIX Swiss Exchange, reflecting Sonova’s strategic financial management and potentially enhancing shareholder value.