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On Holding AG (ONON)
NYSE:ONON
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On Holding AG
(NYSE:ONON)
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Rating:79Outperform
Price Target:
$51.00
▲(5.00% Upside)
On Holding AG's strong financial performance and positive earnings call sentiment are the primary drivers of the stock score. Technical indicators support a bullish outlook, although high valuation metrics and cash flow challenges present some risks.
Positive Factors
Revenue Growth
Strong revenue growth indicates expanding market reach and successful product adoption, enhancing long-term business prospects.
Market Expansion
Significant growth in Asia Pacific highlights successful regional expansion, positioning the company for sustained global market presence.
Product Innovation
Strong growth in apparel sales reflects successful product innovation and diversification, strengthening the company's competitive edge.
Negative Factors
Cash Flow Challenges
Cash flow challenges may limit the company's ability to reinvest in growth opportunities, impacting long-term financial flexibility.
Profit Margin Pressure
Declining profit margins suggest potential operational inefficiencies, which could affect long-term profitability and competitiveness.
Tariff and FX Risks
Tariff and currency exchange headwinds pose risks to profitability, potentially affecting the company's cost structure and pricing strategy.
On Holding AG (ONON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.04B
Dividend YieldN/A
Average Volume (3M)8.04M
Price to Earnings (P/E)60.1
Beta (1Y)1.36
Revenue Growth38.94%
EPS Growth81.82%
CountryUS
Employees3,254
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.54
Shares Outstanding296,675,350
10 Day Avg. Volume4,776,293
30 Day Avg. Volume8,035,394
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)12.11
Price to Sales (P/S)7.27
P/FCF Ratio37.81
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue4.74
Enterprise Value/Gross Profit7.60
Enterprise Value/Ebitda34.24
Forecast
1Y Price Target
$60.95Price Target Upside25.49% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering21
EPS Forecast (FY)0.91
Revenue Forecast (FY)$3.77B
On Holding AG Business Overview & Revenue Model
Company DescriptionOn Holding AG (ONON) is a Swiss sportswear company that specializes in the design, development, and marketing of high-performance footwear and apparel. Founded in 2010, the company has gained recognition for its innovative running shoes that incorporate unique cloud technology, designed to provide cushioning and support. Operating primarily in the athletic footwear market, On focuses on environmentally sustainable practices and aims to enhance the performance of athletes across various sports sectors, including running, training, and lifestyle.
How the Company Makes MoneyOn Holding AG generates revenue primarily through the sale of its footwear and apparel products. The company's business model includes direct-to-consumer sales through its own branded retail stores and e-commerce platforms, as well as wholesale distribution to sporting goods retailers and specialty stores. Key revenue streams include the sale of running shoes, training shoes, and related apparel, which cater to both amateur and professional athletes. Significant partnerships with professional sports teams and athletes serve to enhance brand visibility and credibility, contributing to increased sales. Additionally, On's commitment to sustainability and innovation helps attract environmentally conscious consumers, further bolstering its revenue potential.
On Holding AG Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where On Holding AG is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where On Holding AG is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyOn Holding AG Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment driven by strong revenue growth, record profitability, and significant expansion in the Asia Pacific and apparel segments. The company raised its full-year outlook, showing confidence in its premium strategy. However, challenges such as tariffs and currency exchange headwinds remain concerns.Q3-2025 Updates
Positive Updates
Strong Revenue Growth
Net sales in Q3 2025 approached CHF 800 million, growing 24.9% year-over-year on a reported basis and by 34.5% at constant exchange rates.
Record Profitability
Gross profit margin reached 65.7%, with an adjusted EBITDA margin of 22.6%, and nearly 50% year-over-year adjusted EBITDA growth.
Asia Pacific Growth
Asia Pacific delivered net sales of CHF 144.9 million, up 94.2% year-over-year on a reported basis and 109.2% at constant currency.
Apparel Segment Expansion
Apparel net sales reached CHF 50.1 million, an increase of 86.9% year-over-year on a reported basis and 100.2% at constant currency.
Raised 2025 Outlook
The company raised its constant currency net sales growth guidance to 34% year-over-year, with an expectation of CHF 2.98 billion in reported net sales.
Negative Updates
Challenges from Tariffs
The company anticipates the full impact of additional U.S. tariffs in future quarters, which could affect profitability.
Currency Exchange Headwinds
The current FX environment negatively impacted SG&A and adjusted EBITDA margin.
Conservative Q4 Growth Outlook
Despite strong Q3 performance, the guidance for Q4 implies a mid-20s growth rate, suggesting a conservative outlook given potential market uncertainties.
Company Guidance
During the third quarter of 2025, On reported significant success with net sales reaching CHF 794.4 million, marking a 24.9% increase year-over-year on a reported basis and 34.5% at constant exchange rates. The company's focus on a premium strategy resulted in a strong gross profit margin of 65.7% and an adjusted EBITDA margin of 22.6%, representing nearly 50% year-over-year adjusted EBITDA growth. The direct-to-consumer (DTC) channel contributed substantially with net sales of CHF 314.7 million, growing 27.6% year-over-year on a reported basis and 37.5% at constant currency. In terms of regional performance, Asia Pacific demonstrated remarkable growth with net sales of CHF 144.9 million, up 94.2% year-over-year on a reported basis and 109.2% at constant currency, establishing itself as a key growth engine. The company's apparel category also showed impressive progress, with net sales increasing by 86.9% year-over-year on a reported basis, reaching CHF 50.1 million. Overall, the strong performance across various metrics has led On to raise its 2025 guidance, projecting a 34% year-over-year growth in constant currency net sales.On Holding AG Financial Statement Overview
Summary
On Holding AG shows strong revenue growth and a healthy balance sheet with low leverage. However, profitability margins have faced pressure, and cash flow generation has shown weaknesses.Income Statement
On Holding AG has demonstrated strong revenue growth with a 5.84% increase in TTM, supported by a solid gross profit margin of 61.00%. However, the net profit margin has decreased to 5.00% from 10.45% in the previous year, indicating some pressure on profitability. The EBIT and EBITDA margins have also declined, suggesting increased operational costs or other expenses.85
Very Positive
Balance Sheet
The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.36, indicating conservative leverage. The return on equity is at 9.86%, reflecting decent profitability relative to shareholder equity. The equity ratio stands at 56.02%, showcasing a strong equity base relative to total assets.78
Positive
Cash Flow
Cash flow performance shows some challenges, with a negative free cash flow growth rate of -20.10% in TTM. The operating cash flow to net income ratio is 0.61, indicating moderate cash generation from operations. The free cash flow to net income ratio is relatively strong at 0.84, suggesting efficient conversion of earnings into cash.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.88B | 2.32B | 1.79B | 1.22B | 724.60M | 425.30M |
| Gross Profit | 1.80B | 1.41B | 1.07B | 684.90M | 430.30M | 231.10M |
| EBITDA | 398.30M | 400.00M | 206.30M | 128.60M | -125.80M | -12.00M |
| Net Income | 224.30M | 242.30M | 79.60M | 57.70M | -170.20M | -27.50M |
Balance Sheet | ||||||
| Total Assets | 2.75B | 2.38B | 1.59B | 1.38B | 1.24B | 382.57M |
| Cash, Cash Equivalents and Short-Term Investments | 1.02B | 968.00M | 512.40M | 397.30M | 676.80M | 100.51M |
| Total Debt | 503.90M | 347.60M | 229.00M | 160.40M | 180.80M | 23.73M |
| Total Liabilities | 1.21B | 984.90M | 518.50M | 412.90M | 388.10M | 137.48M |
| Stockholders Equity | 1.54B | 1.39B | 1.07B | 969.50M | 848.40M | 245.09M |
Cash Flow | ||||||
| Free Cash Flow | 345.40M | 445.60M | 184.90M | -310.00M | -19.30M | -33.30M |
| Operating Cash Flow | 415.20M | 510.60M | 232.10M | -227.00M | 16.90M | -14.70M |
| Investing Cash Flow | -69.70M | -64.90M | -47.10M | -82.90M | -36.40M | -18.60M |
| Financing Cash Flow | -73.90M | -55.40M | -21.80M | 6.30M | 595.90M | 124.80M |
On Holding AG Technical Analysis
Positive
48.57
Price Trends
42.61
Positive
43.70
Positive
47.09
Positive
Market Momentum
1.88
Negative
64.32
Neutral
58.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONON, the sentiment is Positive. The current price of 48.57 is above the 20-day moving average (MA) of 46.25, above the 50-day MA of 42.61, and above the 200-day MA of 47.09, indicating a bullish trend. The MACD of 1.88 indicates Negative momentum. The RSI at 64.32 is Neutral, neither overbought nor oversold. The STOCH value of 58.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ONON.
On Holding AG Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $5.83B | 28.27 | 18.74% | ― | 17.82% | 34.88% | |
79 Outperform | $16.04B | 60.10 | 15.38% | ― | 38.94% | 81.82% | |
77 Outperform | $4.72B | 24.03 | 12.36% | 2.09% | -1.15% | -0.98% | |
76 Outperform | $10.42B | 12.55 | 25.10% | 2.30% | 0.29% | 3.65% | |
75 Outperform | $25.64B | 14.62 | 41.02% | ― | 8.76% | 3.41% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
44 Neutral | ― | ― | ― | ― | -3.58% | -4.20% |
* Consumer Cyclical Sector Average
ONON
On Holding AG
48.57
-8.08
-14.26%
AEO
American Eagle
27.84
11.73
72.81%
FL
Foot Locker
24.01
2.46
11.42%
GAP
Gap Inc
28.02
4.74
20.36%
BOOT
Boot Barn
191.12
43.14
29.15%
LULU
Lululemon Athletica
209.45
-174.04
-45.38%
On Holding AG Corporate Events
On Holding AG Reports Record Q3 2025 Results and Raises Full-Year Guidance
Nov 12, 2025
On Holding AG reported record financial results for the third quarter of 2025, with net sales increasing by 24.9% year-over-year to CHF 794.4 million, driven by strong demand across all channels and regions. The company achieved significant growth in its apparel category and expanded its global retail presence, leading to a gross profit margin of 65.7%. On’s strategic execution and premium positioning have resulted in a net income margin increase to 15.0%, and the company has raised its full-year guidance, expecting continued growth and profitability.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.