On Holding AG (ONON) AI Stock Analysis

• Market Cap: $14.36B
• Dividend Yield: N/A
• Average Volume (3M): 8.76M
• Price to Earnings (P/E): 54.4
• Beta (1Y): 1.40
• Revenue Growth: 38.94%
• EPS Growth: 81.82%
• Country: US
• Employees: 3,254
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.53
• Shares Outstanding: 293,047,730
• 10 Day Avg. Volume: 8,434,844
• 30 Day Avg. Volume: 8,755,841
• 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: 0.95
• Enterprise Value/Revenue: 4.74
• Enterprise Value/Gross Profit: 7.60
• Enterprise Value/Ebitda: 34.24
• 1Y Price Target: $61.06
• Price Target Upside: 41.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): 0.91
• Revenue Forecast (FY): $3.73B

• Rating: 69 Neutral
• Price Target: $45.00 ▲(4.19% Upside)

On Holding AG's strong earnings call performance and robust revenue growth are significant positives. However, the stock's overvaluation and bearish technical indicators weigh down the overall score. The company must address profitability pressures and cash flow challenges to improve its financial standing.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective market penetration, supporting long-term business expansion and sustainability.

Cash Flow Generation

Robust cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and strengthening the balance sheet.

Strategic Expansion

Significant growth in Asia Pacific highlights successful market expansion, positioning the company for continued global market share gains.

Negative Factors

Profit Margin Pressure

Declining profit margins suggest rising costs or pricing pressures, which could impact long-term profitability if not managed effectively.

Tariff Challenges

Tariff challenges could increase costs and reduce competitiveness, potentially affecting profitability and market positioning over time.

Currency Exchange Headwinds

Currency exchange headwinds can erode earnings and margins, posing a risk to financial performance if adverse conditions persist.

On Holding AG Business Overview & Revenue Model

Company Description

On Holding AG, commonly referred to as On, is a Swiss-based sportswear company specializing in high-performance footwear, apparel, and accessories for running and outdoor activities. Founded in 2010, the company has quickly gained recognition for its innovative CloudTec® technology, which provides a unique cushioning experience for runners. On operates in the athletic and outdoor sectors, targeting both amateur and professional athletes, and has expanded its product line to include a variety of running shoes, lifestyle footwear, and performance apparel.

How the Company Makes Money

On generates revenue primarily through the sale of its footwear and apparel products. The company's revenue model is based on direct-to-consumer sales via its online platform and physical retail stores, as well as wholesale partnerships with various sporting goods retailers worldwide. Key revenue streams include high-margin running shoes, which represent a significant portion of sales, along with complementary apparel and accessories. On has established strategic partnerships with professional athletes and sports teams to enhance brand visibility and credibility, contributing to its strong market presence. Additionally, seasonal product launches and limited-edition collaborations help drive consumer interest and 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.

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.

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.

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: 43.19
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 43.19 is above the 20-day moving average (MA) of 39.29, above the 50-day MA of 41.38, and below the 200-day MA of 47.33, indicating a neutral trend. The MACD of 0.45 indicates Negative momentum. The RSI at 59.30 is Neutral, neither overbought nor oversold. The STOCH value of 38.92 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
BOOT	77 Outperform	$5.92B	28.72	18.74%	―	17.82%	34.88%
GAP	76 Outperform	$10.24B	12.33	25.10%	2.66%	0.29%	3.65%
AEO	73 Outperform	$3.43B	19.50	12.17%	2.45%	-2.73%	-16.71%
ONON	69 Neutral	$14.36B	54.43	15.38%	―	38.94%	81.82%
LULU	67 Neutral	$22.51B	12.46	42.42%	―	9.16%	12.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FL	44 Neutral	―	―	―	―	-3.58%	-4.20%

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.