Sonova Holding AG (SOON) AI Stock Analysis

• Market Cap: CHF14.81B
• Dividend Yield: 1.71%
• Average Volume (3M): 154.55K
• Price to Earnings (P/E): 27.7
• Beta (1Y): 0.94
• Revenue Growth: 6.58%
• EPS Growth: -10.02%
• Country: CH
• Employees: 18,335
• Sector: Healthcare
• Sector Strength: 58
• Industry: Medical - Devices
• EPS (TTM): 7.07
• Shares Outstanding: 59,626,810
• 10 Day Avg. Volume: 144,659
• 30 Day Avg. Volume: 154,553
• PEG Ratio: 7.89
• Price to Book (P/B): 7.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.56
• 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: CHF250.45
• Price Target Upside: -0.26% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 11

• Rating: 74 Outperform
• Price Target: CHF287.00 ▲(14.30%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 demonstrates strong financial performance with solid revenue growth, robust profit margins, and effective cash flow management. The company's leverage is moderate, but it maintains a healthy balance between debt and equity.

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
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
3.87B	3.63B	3.74B	3.36B	2.60B
	Gross Profit
2.78B	2.61B	2.59B	2.46B	1.87B
	EBIT
691.90M	669.90M	761.80M	785.10M	619.50M
	EBITDA
927.00M	917.90M	974.50M	893.10M	818.60M
	Net Income Common Stockholders
540.50M	601.00M	647.50M	649.00M	581.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
687.10M	513.80M	414.80M	612.00M	1.77B
	Total Assets
5.92B	5.79B	5.55B	5.59B	5.93B
	Total Debt
1.76B	1.79B	1.81B	1.48B	1.83B
	Net Debt
1.07B	1.28B	1.40B	873.80M	61.60M
	Total Liabilities
3.24B	3.30B	3.32B	3.16B	3.15B
	Stockholders Equity
2.66B	2.47B	2.21B	2.41B	2.75B
Cash Flow		Free Cash Flow
656.10M	624.70M	609.10M	815.90M	665.50M
	Operating Cash Flow
793.70M	753.30M	763.40M	922.50M	754.70M
	Investing Cash Flow
-212.70M	-234.00M	-429.50M	-707.00M	-123.60M
	Financing Cash Flow
-401.80M	-415.30M	-523.50M	-1.37B	687.60M

Sonova Holding AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 251.10
• 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 251.1 is below the 20-day moving average (MA) of 264.67, below the 50-day MA of 254.01, and below the 200-day MA of 289.45, indicating a neutral trend. The MACD of -1.03 indicates Positive momentum. The RSI at 46.48 is Neutral, neither overbought nor oversold. The STOCH value of 65.37 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	77 Outperform	CHF17.15B	43.27		0.88%	3.82%	57.08%
SOON	74 Outperform	CHF14.81B	27.69		1.71%	6.58%	-10.02%
Sector *	54 Neutral	$5.41B	3.27	-45.10%	3.29%	16.81%	0.02%
0QND		CHF4.15B	34.48	8.87%	1.55%	―	―
MEDGF		$3.42B	42.55	20.81%	0.50%	―	―
0QLQ		CHF5.62B	64.18	13.49%	0.47%	―	―
GALE		CHF4.24B	23.33		2.69%	―	―

Sonova Holding AG Corporate Events

Sonova Shareholders Approve All Board Proposals at 40th General Meeting

At the 40th General Meeting, Sonova shareholders approved all proposals from the Board of Directors, including financial statements, a gross dividend of CHF 4.40 per share, and the re-election of board members. Gilbert Achermann was elected as the new Chairman, succeeding Robert F. Spoerry. The meeting also confirmed Ernst & Young AG as the auditor and approved compensation packages for the Board and Executive Board. These decisions reflect strong shareholder support and ensure continuity in leadership and strategic direction for Sonova.

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 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.