Sonova Holding AG (SOON) AI Stock Analysis

• Market Cap: CHF13.28B
• Dividend Yield: 1.99%
• Average Volume (3M): 179.18K
• Price to Earnings (P/E): 25.5
• Beta (1Y): 0.93
• Revenue Growth: 6.58%
• EPS Growth: -10.02%
• Country: CH
• Employees: 18,335
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 7.07
• Shares Outstanding: 59,626,810
• 10 Day Avg. Volume: 316,082
• 30 Day Avg. Volume: 179,179
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: CHF258.80
• Price Target Upside: 16.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: CHF260.00 ▲(17.43% Upside)

Sonova Holding AG's strong financial performance is the primary driver of its stock score, supported by effective cost management and positive cash flow. Technical analysis indicates a neutral market position, while valuation metrics suggest the stock is fairly valued. The absence of recent earnings call data and corporate events limits additional insights.

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, which constitute the bulk of its income. The company operates through multiple channels, including direct sales to consumers, partnerships with audiology clinics, and distribution agreements with hearing care professionals. Additionally, Sonova's revenue model includes ongoing service and maintenance contracts for its devices, as well as accessories and other hearing-related products. Significant partnerships with healthcare providers and advancements in technology, such as Bluetooth connectivity in hearing aids, bolster its market position and drive sales growth. The company also benefits from a strong focus on research and development, allowing it to introduce innovative products that meet evolving consumer demands.

Sonova Holding AG Financial Statement Overview

Summary

Sonova Holding AG exhibits a robust financial position with strong revenue growth, solid profit margins, and effective cost management. The balance sheet is stable with moderate leverage, and cash flow is consistently positive, indicating efficient income conversion and liquidity maintenance.

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 2024	Dec 2023	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: 221.40
• 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 221.4 is below the 20-day moving average (MA) of 234.98, below the 50-day MA of 231.07, and below the 200-day MA of 258.65, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 32.86 is Neutral, neither overbought nor oversold. The STOCH value of 16.72 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
SOON	73 Outperform	CHF13.28B	25.54	―	1.99%	6.58%	-10.02%
MOVE	73 Outperform	3.03B	34.16	19.20%	0.46%	16.59%	65.76%
STMN	71 Outperform	14.35B	36.83	19.03%	1.06%	4.49%	45.08%
TECN	67 Neutral	1.98B	31.61	4.71%	1.94%	-9.34%	-37.50%
MED	61 Neutral	1.21B	-2,262.76	1.31%	―	7.29%	-112.70%
YPSN	56 Neutral	4.81B	54.59	12.87%	0.62%	36.54%	11.60%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Sonova Holding AG Corporate Events

Sonova Enters Rechargeable In-Ear Hearing Aid Market with Phonak Virto R Infinio

Sonova has launched the Phonak Virto R Infinio, its first rechargeable in-ear hearing aid, marking the company’s entry into this growing market segment. This product, available initially in the USA, combines advanced technology for better speech understanding and connectivity, and represents a significant step in expanding Sonova’s product portfolio to meet diverse customer needs.

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.