Sonova Holding AG (SOON) AI Stock Analysis

• Market Cap: CHF10.27B
• Dividend Yield: 2.14%
• Average Volume (3M): 194.70K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.78
• 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: CHF198.67
• Price Target Upside: -10.35% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): 9.31
• Revenue Forecast (FY): CHF3.86B

• Rating: 68 Neutral
• Price Target: CHF195.00 ▼(-12.00% Downside)
• Action: Reiterated Date: 11/17/25
• Date: Action: Reiterated 11/17/25

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 & profitability

Sustained high gross and operating margins reflect pricing power, differentiated product mix and efficient cost controls. Margins near these levels support durable cash generation, fund R&D and retail services, and provide resilience to cyclical demand or input-cost volatility over the medium term.

Strong cash generation

Consistent positive FCF and conversion ratios above 1 indicate reliable ability to convert profits into cash. This funds capex, acquisitions, dividends and working-capital needs without over-reliance on new debt, underpinning financial flexibility for multi-quarter strategic investments and shareholder returns.

Market share gains & product launches

Outpacing the market and successful launches (Infinio platforms, Virto R) signal durable competitive advantages: strong R&D, channel relationships and an expanding installed base. These factors boost fittings, recurring service revenue and share gains that should sustain growth beyond near-term cycles.

Negative Factors

Cochlear implants weakness

A decline in cochlear implant sales tied to China exposes concentration and regulatory or market-cycle risk in a high-value segment. If persistent, this reduces diversification, pressures segment profitability and may require increased commercial investment or pricing adjustments to restore growth.

Consumer hearing demand slump

A significant fall in consumer hearing sales highlights vulnerability in the lower-margin, volume-driven consumer channel where innovation and retail execution matter. Prolonged weakness would dent retail earnings, compress segment margins and force heavier R&D or marketing spend to regain traction.

Margin pressure from restructuring

Regionalizing manufacturing and logistics is a structural change that can raise near-term costs and compress gross margins. Execution risk and transition costs could weigh on profitability for several quarters; net benefits depend on scale and efficiency gains that are not guaranteed.

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 primarily makes money by selling hearing-care products and services through a combination of wholesale distribution and owned retail. A core revenue stream is the sale of hearing instruments (hearing aids) and associated ecosystem products—such as wireless connectivity accessories and rechargeable/charging solutions—sold largely to hearing care professionals, audiology clinics, and distributors; Sonova generates revenue when these channel partners purchase devices for fitting to end users. A second major stream is revenue from its retail activities (AudioNova and related retail operations), where the company earns revenue directly from consumers via hearing assessments, device fitting, and the sale of hearing aids and accessories; these sales often bundle products with professional services. Sonova also earns revenue from cochlear implant solutions (including implant systems and related components) sold to clinics and hospitals, and from ongoing demand for compatible accessories and service support tied to its installed base. Additionally, the company participates in consumer hearing products (e.g., hearing-related audio devices) sold through consumer channels. Across these streams, recurring demand is supported by the need for device upgrades/replacements, servicing and follow-up care in retail settings, and the expansion of the installed base through new fittings. Significant factors contributing to earnings include its portfolio of brands and technology platforms, global distribution relationships with hearing care professionals, and vertical integration via its retail network.

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	Mar 2025	Mar 2024	Mar 2022	Mar 2021	Mar 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: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 193.36, above the 50-day MA of 202.90, and above the 200-day MA of 218.61, indicating a bearish trend. The MACD of -5.25 indicates Positive momentum. The RSI at 30.24 is Neutral, neither overbought nor oversold. The STOCH value of 5.03 is Positive, 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
YPSN	70 Outperform	CHF3.93B	7.66	27.15%	0.67%	27.63%	160.67%
MOVE	69 Neutral	CHF3.07B	34.95	23.76%	0.45%	16.59%	65.76%
SOON	68 Neutral	CHF10.27B	17.11	―	2.14%	3.79%	-7.84%
STMN	66 Neutral	CHF12.09B	41.72	―	1.02%	4.49%	45.08%
TECN	55 Neutral	CHF1.49B	-14.70	4.57%	2.31%	-9.34%	-37.50%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MED	51 Neutral	CHF1.08B	-168.33	―	―	7.29%	-112.70%