Sonova Holding AG (SOON) AI Stock Analysis

• Market Cap: CHF12.16B
• Dividend Yield: 2.14%
• Average Volume (3M): 194.70K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.78
• Revenue Growth: 3.79%
• EPS Growth: -7.84%
• Country: US
• Employees: 18,335
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 3.56
• Shares Outstanding: 59,626,810
• 10 Day Avg. Volume: 113,155
• 30 Day Avg. Volume: 194,698
• PEG Ratio: -2.82
• Price to Book (P/B): 5.74
• Price to Sales (P/S): 3.95
• P/FCF Ratio: 23.30
• 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: CHF212.60
• Price Target Upside: -4.06% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: CHF240.00 ▲(8.30% Upside)

Sonova Holding AG's overall stock score reflects strong financial performance and positive earnings call sentiment. However, bearish technical indicators and moderate valuation weigh down the score. The company's ability to maintain growth in key segments and manage challenges in others will be crucial for future performance.

Positive Factors

High margins and profitably

Sustained high gross and operating margins indicate durable pricing power, efficient manufacturing, and cost control in core hearing businesses. These margin levels support reinvestment in R&D and service, funding product development and premium positioning over multiple years.

Strong cash conversion

Consistent free cash flow and strong cash-to-income conversion provide lasting financial flexibility. This underpins sustainable R&D investment, strategic M&A, dividend capacity and resilience to cyclical demand, reducing reliance on external financing for growth initiatives.

Market share gains in core segments

Outperforming market growth in key segments suggests competitive advantages in product mix, distribution and clinician relationships. Sustained above-market growth should translate into permanent share gains, scale benefits and stronger service networks across major geographies.

Negative Factors

Cochlear implants sales decline

A structural sales decline in cochlear implants highlights exposure to regional demand shocks and competitive or regulatory pressures in China. If persistent, this reduces long-term diversification of revenue streams and may require investment or strategic repositioning to restore growth.

Consumer hearing demand weakness

A meaningful drop in consumer hearing sales signals vulnerability in the direct-to-consumer channel and product cadence. Prolonged weakness could erode brand engagement and long-term upgrade cycles, pressuring unit volumes and necessitating renewed innovation or marketing investment.

Margin pressure from regionalization

Margin compression from restructuring and regionalization costs points to execution risk in supply chain strategy. If transition costs or inefficiencies persist, they can permanently depress profitability and slow reinvestment, making margin recovery and ROI on regionalization critical over coming quarters.

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 generates revenue primarily through the sale of hearing aids and related products, including accessories and batteries. The company operates through multiple distribution channels, including direct-to-consumer sales, partnerships with audiology professionals, and collaborations with healthcare providers. Key revenue streams include the sale of hearing aids, which represents a significant portion of their income, as well as service and maintenance contracts for their devices. Furthermore, Sonova benefits from strategic partnerships with healthcare institutions and audiology clinics, enhancing their market reach and customer base. Factors contributing to their earnings include a strong focus on research and development, enabling the introduction of cutting-edge products, as well as an increasing global demand for hearing solutions driven by an aging population and greater awareness of hearing health.

Sonova Holding AG Financial Statement Overview

Summary

Sonova Holding AG demonstrates strong financial performance with robust revenue growth, solid profit margins, and effective cash flow management. The company maintains a healthy balance between debt and equity, supporting its growth trajectory in the medical device industry.

Income Statement

Sonova Holding AG demonstrates strong revenue growth with a 6.6% increase in the most recent year, alongside solid profit margins. Gross Profit Margin has remained robust at approximately 72% and Net Profit Margin at 14% for the latest fiscal year. The EBIT and EBITDA margins are healthy at 17.9% and 24%, respectively, indicating effective cost management and operational efficiency.

Balance Sheet

The balance sheet shows a stable structure with a Debt-to-Equity Ratio of 0.66, reflecting moderate leverage. The Return on Equity is commendable at 20.3%, indicating effective utilization of equity to generate profits. The Equity Ratio stands at 45%, suggesting a balanced approach between debt and equity financing, though there's room for improvement in reducing liabilities.

Cash Flow

Cash flow analysis reveals consistent positive cash generation with a Free Cash Flow Growth Rate of 5.0%. Operating Cash Flow to Net Income Ratio is strong at 1.47, suggesting efficient conversion of income into cash. The Free Cash Flow to Net Income Ratio is also healthy at 1.21, reflecting the company's ability to maintain liquidity and fund operations effectively.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.85B	3.87B	3.63B	3.74B	3.36B	2.60B
Gross Profit	2.71B	2.78B	2.61B	2.59B	2.46B	1.87B
EBITDA	892.00M	927.00M	917.90M	974.50M	893.10M	818.60M
Net Income	520.50M	540.50M	601.00M	647.50M	649.00M	581.00M
Balance Sheet
Total Assets	5.51B	5.92B	5.79B	5.55B	5.59B	5.93B
Cash, Cash Equivalents and Short-Term Investments	511.00M	687.10M	513.80M	414.80M	612.00M	1.77B
Total Debt	1.85B	1.76B	1.79B	1.81B	1.48B	1.83B
Total Liabilities	3.06B	3.24B	3.30B	3.32B	3.16B	3.15B
Stockholders Equity	2.43B	2.66B	2.47B	2.21B	2.41B	2.75B
Cash Flow
Free Cash Flow	713.20M	656.10M	624.70M	609.10M	815.90M	665.50M
Operating Cash Flow	816.60M	793.70M	753.30M	763.40M	922.50M	754.70M
Investing Cash Flow	-259.30M	-212.70M	-234.00M	-429.50M	-707.00M	-123.60M
Financing Cash Flow	-312.50M	-401.80M	-415.30M	-523.50M	-1.37B	687.60M

Sonova Holding AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 221.60
• 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 221.6 is above the 20-day moving average (MA) of 214.97, above the 50-day MA of 207.29, and below the 200-day MA of 228.38, indicating a neutral trend. The MACD of 2.47 indicates Positive momentum. The RSI at 46.64 is Neutral, neither overbought nor oversold. The STOCH value of 27.74 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	72 Outperform	CHF14.91B	37.95	―	1.02%	4.49%	45.08%
MOVE	71 Outperform	CHF3.40B	37.81	23.83%	0.45%	16.59%	65.76%
YPSN	70 Outperform	CHF4.21B	21.74	27.15%	0.67%	27.63%	160.67%
SOON	68 Neutral	CHF12.16B	24.21	―	2.14%	3.79%	-7.84%
TECN	65 Neutral	CHF1.76B	27.78	4.57%	2.31%	-9.34%	-37.50%
MED	62 Neutral	CHF1.29B	-2,316.33	―	―	7.29%	-112.70%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Sonova Holding AG Corporate Events

Sonova Expands Digital Health Portfolio with SilentCloud™ Acquisition

Sonova has acquired SilentCloud™, a digital tinnitus management app, to enhance its digital health portfolio and integrate digital tinnitus therapy into its hearing care ecosystem. This acquisition aims to address the needs of over 740 million people worldwide affected by tinnitus and strengthen Sonova’s position as a leader in holistic hearing care. The company plans to expand SilentCloud™ into new markets and work with health authorities to explore prescription and reimbursement options, further solidifying its commitment to improving hearing health and serving veterans in the US market.

The most recent analyst rating on (CH:SOON) stock is a Hold with a CHF215.00 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 Growth Amidst Currency Challenges

Sonova Holding AG reported strong sales and profit growth for the first half of the fiscal year 2025/26, with a 4.9% increase in revenue in local currencies and a 16.0% rise in normalized EBITA. Despite unfavorable currency developments affecting results in Swiss francs, the company maintained its growth momentum through market share gains and product innovations. Organizational changes are planned to enhance customer orientation and regional responsiveness, with a focus on expanding in high-potential regions like Asia-Pacific. The company remains optimistic about continued growth, driven by new product launches and AI capabilities.

The most recent analyst rating on (CH:SOON) stock is a Hold with a CHF237.00 price target. To see the full list of analyst forecasts on Sonova Holding AG stock, see the CH:SOON Stock Forecast page.