On Holding AG (ONON) AI Stock Analysis

• Market Cap: $16.72B
• Dividend Yield: N/A
• Average Volume (3M): 4.31M
• Price to Earnings (P/E): 62.6
• Beta (1Y): 1.36
• Revenue Growth: 38.94%
• EPS Growth: 81.82%
• Country: US
• Employees: 3,254
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.54
• Shares Outstanding: 296,675,350
• 10 Day Avg. Volume: 3,843,978
• 30 Day Avg. Volume: 4,305,012
• PEG Ratio: 0.38
• Price to Book (P/B): 12.11
• Price to Sales (P/S): 7.27
• P/FCF Ratio: 37.81
• Enterprise Value/Market Cap: 0.65
• Enterprise Value/Revenue: 3.75
• Enterprise Value/Gross Profit: 6.01
• Enterprise Value/Ebitda: 27.08
• 1Y Price Target: $60.79
• Price Target Upside: 20.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $51.00 ▲(0.73% 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 Business Overview & Revenue Model

Company Description

On Holding AG develops and distributes sports products worldwide. It offers athletic footwear, apparel, and accessories. The company offers its products through independent retailers and distributors, online, and stores. On Holding AG was founded in 2010 and is headquartered in Zurich, Switzerland.

How the Company Makes Money

On 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 Financial Statement Overview

Summary

On Holding AG shows strong revenue growth and a solid gross profit margin, indicating effective cost management. However, declining net profit margins and cash flow challenges suggest areas for improvement. The balance sheet is stable with prudent leverage.

Income Statement

On Holding AG has demonstrated strong revenue growth over the years, with a TTM revenue growth rate of 5.84%. The company maintains a solid gross profit margin of 62.40% TTM, indicating efficient cost management. However, the net profit margin has decreased to 7.80% TTM from 10.45% in the previous year, suggesting some pressure on profitability. EBIT and EBITDA margins have also declined, reflecting potential challenges in operational efficiency.

Balance Sheet

The company's balance sheet is stable with a manageable debt-to-equity ratio of 0.33 TTM, indicating a conservative approach to leverage. The return on equity has slightly decreased to 15.50% TTM from 17.41% in the previous year, which may reflect the impact of reduced net income. The equity ratio remains strong, showcasing a solid capital structure.

Cash Flow

On Holding AG's cash flow performance shows some concerns, with a negative free cash flow growth rate of -66.10% TTM, indicating potential cash flow challenges. The operating cash flow to net income ratio is 0.55 TTM, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio of 0.83 TTM indicates that a significant portion of net income is being converted into free cash flow, albeit at a reduced level compared to previous periods.

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

• Technical Analysis Sentiment: Positive
• Last Price: 50.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 50.63 is above the 20-day moving average (MA) of 48.16, above the 50-day MA of 43.99, and above the 200-day MA of 47.18, indicating a bullish trend. The MACD of 1.13 indicates Negative momentum. The RSI at 67.04 is Neutral, neither overbought nor oversold. The STOCH value of 75.19 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ONON	79 Outperform	$16.72B	62.65	15.38%	―	38.94%	81.82%
AEO	77 Outperform	$4.70B	23.15	12.36%	2.09%	-1.15%	-0.98%
GAP	76 Outperform	$10.57B	12.68	25.10%	2.45%	0.29%	3.65%
LULU	75 Outperform	$24.96B	14.81	41.02%	―	8.76%	3.41%
BOOT	72 Outperform	$5.87B	28.47	18.74%	―	17.82%	34.88%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

On Holding AG Corporate Events

On Holding AG Reports Record Q3 2025 Results and Raises Full-Year Guidance

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.

The most recent analyst rating on (ONON) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on On Holding AG stock, see the ONON Stock Forecast page.