Sonova Holding AG (SOON) AI Stock Analysis

• Market Cap: CHF12.41B
• Dividend Yield: 2.22%
• Average Volume (3M): 194.70K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.90
• Revenue Growth: 3.79%
• EPS Growth: -7.84%
• Country: CH
• 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: CHF223.29
• Price Target Upside: 12.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: CHF221.00 ▲(10.97% 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

Strong Revenue Growth

Consistent revenue growth indicates robust market demand and effective business strategies, supporting long-term financial stability and expansion.

Successful Product Launches

Innovative product launches enhance competitive positioning and drive future growth by meeting consumer needs and expanding market share.

Effective Cash Flow Management

Strong cash flow management ensures liquidity and supports reinvestment into growth opportunities, sustaining long-term operational success.

Negative Factors

Challenges in Cochlear Implants

Declining sales in key segments like Cochlear Implants can hinder growth and require strategic adjustments to regain market traction.

Impact of Swiss Franc Strength

Currency fluctuations can adversely affect financial performance, necessitating strategies to mitigate foreign exchange risks.

Gross Profit Margin Challenges

Decreasing profit margins may indicate rising costs or pricing pressures, impacting profitability and requiring cost management strategies.

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 solid revenue growth, robust profit margins, and effective cash flow management. The company maintains a healthy balance between debt and equity, supporting its growth trajectory.

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

Sonova Holding AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 199.15
• 50DMA: Negative
• 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 199.15 is below the 20-day moving average (MA) of 207.84, below the 50-day MA of 217.30, and below the 200-day MA of 240.51, indicating a bearish trend. The MACD of -6.81 indicates Positive momentum. The RSI at 36.12 is Neutral, neither overbought nor oversold. The STOCH value of 23.49 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	CHF15.11B	38.46	―	1.00%	4.49%	45.08%
MOVE	71 Outperform	$2.97B	33.09	23.83%	0.45%	16.59%	65.76%
YPSN	70 Outperform	CHF4.54B	23.42	27.15%	0.66%	27.63%	160.67%
SOON	68 Neutral	CHF12.41B	23.78	―	2.22%	3.79%	-7.84%
TECN	62 Neutral	CHF1.80B	28.26	4.57%	2.15%	-9.34%	-37.50%
MED	62 Neutral	CHF1.06B	-1,989.80	―	―	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 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.

Sonova Expands AI Leadership with New Hearing Aid Innovations

Sonova Holding AG has announced the expansion of its AI leadership in hearing care with the launch of the Infinio Ultra Sphere and an advanced Infinio hearing aid line at the EUHA 2025. These innovations focus on improving speech understanding in noisy environments, extending battery life, and enhancing user-friendliness with a new cerumen management system. The DEEPSONICTM chip, which mimics the human brain’s processing of acoustic information, is a key component of these products, offering exceptional speech intelligibility. The Infinio Ultra line also features improved adaptability, universal connectivity, and longer battery performance, reinforcing Sonova’s position as an innovation leader in the hearing aid industry.

The most recent analyst rating on (CH:SOON) stock is a Sell with a CHF190.00 price target. To see the full list of analyst forecasts on Sonova Holding AG stock, see the CH:SOON Stock Forecast page.

Sonova Tops Swiss Innovation Ranking for Second Year

Sonova has been recognized as the top innovator among Swiss Market Index companies for the second consecutive year, highlighting its commitment to innovation in the hearing solutions industry. The company has recently launched the Phonak Audéo Sphere Infinio, a groundbreaking hearing aid platform using real-time AI, and the Phonak Virto R Infinio, the smallest in-ear hearing aid, showcasing its continuous advancements in technology to improve speech understanding in noisy environments.

The most recent analyst rating on (CH:SOON) stock is a Buy with a CHF260.00 price target. To see the full list of analyst forecasts on Sonova Holding AG stock, see the CH:SOON Stock Forecast page.