Sonova Holding AG (SOON) AI Stock Analysis

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Sonova Holding AG

(SOON)

69Neutral

Sonova Holding AG demonstrates solid financial performance with effective cash management and profitability. However, technical analysis indicates bearish trends, which might reflect near-term market skepticism. The valuation appears fair, with modest dividend yield. The mixed earnings call sentiments suggest a cautious optimism, with growth in cochlear implants and new product launches counterbalancing profitability pressures.

Sonova Holding AG (SOON) vs. S&P 500 (SPY)

Market Cap

CHF14.63B

Dividend Yield1.67%

Average Volume (3M)166.57K

Price to Earnings (P/E)27.2

Beta (1Y)0.92

Revenue Growth1.71%

EPS Growth-5.72%

CountryCH

Employees18,554

SectorHealthcare

Sector Strength50

IndustryMedical - Devices

Share Statistics

EPS (TTM)7.07

Shares Outstanding59,626,810

10 Day Avg. Volume119,492

30 Day Avg. Volume166,568

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

CHF265.14

Price Target Upside1.16% Upside

Rating ConsensusModerate Sell

Number of Analyst Covering7

Sonova Holding AG Business Overview & Revenue Model

Company DescriptionSonova Holding AG (SOON) is a leading provider in the hearing care solutions sector. Headquartered in Switzerland, the company specializes in the design, development, and distribution of innovative hearing aids, cochlear implants, and wireless communication solutions. Sonova operates through several brands, including Phonak, Unitron, and Advanced Bionics, serving a global customer base across various age groups and hearing needs.

How the Company Makes MoneySonova 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

Positive

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

Positive

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

Very Positive

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.

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

Sonova Holding AG Technical Analysis

Technical Analysis Sentiment

Positive

Last Price262.10

Price Trends

50DMA

258.52

Positive

100DMA

280.54

Negative

200DMA

291.27

Negative

Market Momentum

MACD

0.60

Negative

RSI

61.76

Neutral

STOCH

49.36

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SOON, the sentiment is Positive. The current price of 262.1 is above the 20-day moving average (MA) of 245.15, above the 50-day MA of 258.52, and below the 200-day MA of 291.27, indicating a neutral trend. The MACD of 0.60 indicates Negative momentum. The RSI at 61.76 is Neutral, neither overbought nor oversold. The STOCH value of 49.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:SOON.

Sonova Holding AG Peers Comparison

Overall Rating

UnderperformOutperform

Sector (52)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STMN	73 Outperform	CHF16.96B	43.85		0.90%	3.82%	57.08%
BANB	70 Outperform	CHF3.80B	31.58	8.87%	1.58%	4.84%	7.45%
SOON	69 Neutral	CHF14.63B	27.17		1.67%	1.71%	-5.72%
MOVE	61 Neutral	$2.69B	38.55	20.81%	0.37%	13.35%	50.65%
YPSN	60 Neutral	CHF4.75B	63.90	12.44%	0.57%	21.33%	2.72%
Sector *	52 Neutral	$5.17B	3.59	-42.19%	2.82%	15.05%	-0.04%

* Healthcare Sector Average

Performance Comparison

CH:SOON

Sonova Holding AG

262.10

-1.57

-0.60%

CH:STMN

Straumann Holding AG

106.90

-12.25

-10.28%

CH:YPSN

Ypsomed Holding AG

357.50

27.14

8.22%

CH:MOVE

Medacta Group SA

139.00

23.57

20.42%

CH:BANB

Bachem Holding AG

50.65

-32.01

-38.72%

Sonova Holding AG Earnings Call Summary

Earnings Call Date:May 09, 2025

(Q2-2025)

% Change Since: 3.39%|

Next Earnings Date:Nov 14, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mixed sentiment. While the company achieved solid sales growth and positive market response to new products, profitability pressures, challenges in the Audiological Care segment, and a declining Consumer Hearing segment pose concerns. The positive reception of Infinio and Sphere, along with market share gains in the U.S., provide optimism for future growth.

Q2-2025 Updates

Positive Updates

Solid Sales Growth

Sonova achieved a 5.9% increase in sales in local currencies, driven by a 7% growth in the Hearing Instruments segment and a 12.5% growth in the Cochlear Implant business.

Positive Market Response to Infinio and Sphere

The Infinio and Sphere platforms have received very positive feedback, with Sphere accounting for over 50% of sales in the initial launch markets, indicating strong demand.

Cochlear Implants Segment Performance

The Cochlear Implants segment showed strong momentum with 12.5% growth, with system sales increasing by 18.2%.

Improved Gross Margin

Gross profit margin improved to 71.9%, up 50 basis points in local currency from last year, benefiting from higher volumes and lower component costs.

Market Share Gains in the U.S.

Sonova gained approximately 5 percentage points in market share in the U.S. commercial market following the launch of Infinio and Sphere.

Negative Updates

Profitability Pressures

EBITA decreased by 3.7% in local currency, driven by ASP pressure, launch and manufacturing costs, and elevated lead generation costs.

Audiological Care Segment Challenges

Audiological Care organic growth was only 1.1%, impacted by high lead generation costs and a challenging European market.

Consumer Hearing Segment Decline

The Consumer Hearing business declined by 1.7%, in line with market trends, with ongoing challenges in the true wireless segment.

Negative Currency Impact

FX reduced reported sales by CHF23 million, translating to a minus 1.3% impact on sales and a further 40 basis point impact on the EBITA margin.

Inventory and Cash Flow Concerns

Operating free cash flow decreased by 30.7%, impacted by high inventory levels from recent platform launches and more linear CapEx phasing.

Company Guidance

During the Sonova Holding AG Half Year Results 2024-2025 Conference Call, the company confirmed its full-year guidance for both the top line and bottom line, despite challenging market conditions. Key metrics highlighted include a 5.9% sales growth in local currencies and an organic growth rate of 4.5%. The EBITDA margin decreased by 180 basis points in local currencies, primarily due to product launch costs and lead generation expenses. The EPS was reported at CHF 3.74, reflecting a 9.6% decrease in local currency terms. The company also achieved a notable 12.5% growth in its cochlear implant business. Sonova's strategy includes maintaining strong momentum with new product launches, particularly the Infinio and Sphere hearing aids, which have received positive customer feedback. The company is undertaking cost-tightening measures, especially in the Audiological Care segment, to counteract the headwinds from high lead generation costs and market slowdowns.

Sonova Holding AG Corporate Events

Sonova Completes Strategic Share Buyback Program

Apr 17, 2025

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.

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.