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On Holding AG (ONON)
NYSE:ONON
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On Holding AG
(NYSE:ONON)
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Rating:69Neutral
Price Target:
$43.00
▲(22.86% Upside)
On Holding AG's strong financial performance and positive earnings call are the most significant factors driving the score. However, the high valuation and bearish technical indicators present risks that temper the overall outlook.
Positive Factors
Revenue Growth
On Holding AG's robust revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.
Direct-to-Consumer Channel Success
The significant growth in the DTC channel highlights On Holding AG's successful direct engagement with consumers, enhancing brand loyalty and margins.
APAC Region Growth
Triple-digit growth in the APAC region underscores On Holding AG's effective market penetration and potential for continued expansion in emerging markets.
Negative Factors
Profit Margin Pressure
Decreasing profit margins indicate rising costs or pricing pressures, which could impact On Holding AG's profitability if not addressed.
Net Financial Loss Due to Forex Impact
The forex-related financial loss highlights exposure to currency fluctuations, which can affect On Holding AG's financial stability and earnings predictability.
Increased Tariffs Impact
Rising tariffs on key imports could pressure On Holding AG's cost structure, potentially affecting pricing strategies and competitive positioning.
On Holding AG (ONON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.78B
Dividend YieldN/A
Average Volume (3M)5.79M
Price to Earnings (P/E)76.1
Beta (1Y)1.38
Revenue Growth39.16%
EPS Growth-14.16%
CountryUS
Employees3,254
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.11
Shares Outstanding293,047,730
10 Day Avg. Volume7,034,201
30 Day Avg. Volume5,792,114
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 Cap1.42
Enterprise Value/Revenue6.18
Enterprise Value/Gross Profit10.12
Enterprise Value/Ebitda61.82
Forecast
1Y Price Target
$61.53Price Target Upside75.80% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
On Holding AG Business Overview & Revenue Model
Company DescriptionOn 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 MoneyOn 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 Key Performance Indicators (KPIs)
Any
Revenue by Distribution Type
Examines revenue from various sales channels, such as direct-to-consumer and wholesale, providing insight into distribution strategy effectiveness and potential shifts in consumer purchasing behavior.
Examines revenue from various sales channels, such as direct-to-consumer and wholesale, providing insight into distribution strategy effectiveness and potential shifts in consumer purchasing behavior.
Data provided by:
Main Street Data
Main Street DataOn Holding AG Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in net sales, gross profit margin, DTC channel success, and expansion in the APAC region and apparel business. However, challenges such as a net financial loss due to forex impact and increased tariffs were noted. Overall, the positive aspects outweigh the negative trends.Q2-2025 Updates
Positive Updates
Record Net Sales Growth
Net sales grew by 38% on a constant currency basis to CHF 749.2 million, beating expectations and setting a new record for the company.
Strong Gross Profit Margin
Gross profit margin expanded to 61.5%, driven by premium positioning and strong performance across all regions, channels, and product categories.
DTC Channel Success
Direct-to-Consumer net sales reached CHF 308.3 million, up 54.3% year-over-year at constant currency, with the DTC mix hitting a new second quarter high of 41.1% of sales.
APAC Region Growth
APAC region net sales were up 110.9% year-over-year in Q2, marking the third successive quarter of triple-digit growth, now accounting for a mid-teens percentage of net sales.
Apparel Business Expansion
Apparel net sales grew by 75.5% at constant exchange rates, with increased consumer engagement and repeat transactions.
Innovative Manufacturing Recognition
On was named one of the world's 50 most innovative companies by Fast Company for its LightSpray technology.
Negative Updates
Net Financial Loss Due to Forex Impact
A net loss of CHF 40.9 million was recorded, primarily driven by an unrealized foreign exchange impact due to the valuation of U.S. dollar-based assets.
Increased Tariffs Impact
New tariffs imposed on imports from Vietnam and Indonesia increased costs significantly, posing a challenge to maintain profit margins.
Company Guidance
During On Holding AG's Q2 2025 earnings call, the company reported robust growth and increased guidance across key financial metrics. Net sales soared by 38% year-over-year on a constant currency basis, reaching CHF 749.2 million, while gross profit margin expanded to 61.5%, and adjusted EBITDA margin improved to 18.2%. The company continues to experience strong momentum across all regions, channels, and product categories, with the Direct-to-Consumer (DTC) channel showing a significant 54.3% increase in net sales at constant currency. The APAC region led with a 110.9% sales increase, and the Americas saw a 23.6% rise. With ongoing investments in technological innovation and a strategic focus on premium positioning, On Holding is set to achieve at least 31% net sales growth for the full year, adjusting its guidance upwards to CHF 2.91 billion at constant currency rates. The company's leadership emphasized resilience and strategic clarity, with a focus on long-term growth and premium brand positioning, supported by new product launches and expanding their retail footprint.On Holding AG Financial Statement Overview
Summary
On Holding AG shows strong financial health with consistent revenue growth and solid cash flow generation. However, profitability margins have faced some pressure, and attention to profitability improvements is warranted.Income Statement
On Holding AG has demonstrated strong revenue growth with a 7.16% 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 seen a decline, suggesting increased operational costs or other expenses impacting earnings.85
Very Positive
Balance Sheet
The company maintains a healthy balance sheet with a manageable debt-to-equity ratio of 0.36, reflecting prudent leverage. The return on equity stands at 9.86%, indicating effective use of equity to generate profits, although it has decreased from the previous year. The equity ratio is strong, showing a stable financial position with equity covering a significant portion of total assets.78
Positive
Cash Flow
On Holding AG has shown impressive free cash flow growth of 153.20% in TTM, highlighting robust cash generation capabilities. The operating cash flow to net income ratio is 0.61, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio of 0.84 suggests strong cash flow relative to net income, although slightly lower than the previous year.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.72B | 2.32B | 1.79B | 1.22B | 724.60M | 425.30M |
| Gross Profit | 1.66B | 1.41B | 1.07B | 684.90M | 430.30M | 231.10M |
| EBITDA | 271.50M | 400.00M | 141.00M | 128.60M | -125.80M | -12.00M |
| Net Income | 135.90M | 242.30M | 79.60M | 57.70M | -170.20M | -27.50M |
Balance Sheet | ||||||
| Total Assets | 2.54B | 2.38B | 1.59B | 1.38B | 1.24B | 382.57M |
| Cash, Cash Equivalents and Short-Term Investments | 898.50M | 968.00M | 512.40M | 397.30M | 676.80M | 100.51M |
| Total Debt | 497.80M | 347.60M | 229.00M | 160.40M | 180.80M | 23.73M |
| Total Liabilities | 1.15B | 984.90M | 518.50M | 412.90M | 388.10M | 137.48M |
| Stockholders Equity | 1.40B | 1.39B | 1.07B | 969.50M | 848.40M | 245.09M |
Cash Flow | ||||||
| Free Cash Flow | 347.70M | 445.60M | 184.90M | -310.00M | -19.30M | -33.33M |
| Operating Cash Flow | 416.20M | 510.60M | 232.10M | -227.00M | 16.95M | -14.73M |
| Investing Cash Flow | -68.30M | -64.90M | -47.10M | -82.90M | -36.44M | -18.62M |
| Financing Cash Flow | -66.60M | -55.40M | -21.80M | 6.30M | 595.90M | 124.80M |
On Holding AG Technical Analysis
Negative
35.00
Price Trends
42.22
Negative
46.00
Negative
48.52
Negative
Market Momentum
-2.04
Positive
26.12
Positive
8.48
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONON, the sentiment is Negative. The current price of 35 is below the 20-day moving average (MA) of 39.91, below the 50-day MA of 42.22, and below the 200-day MA of 48.52, indicating a bearish trend. The MACD of -2.04 indicates Positive momentum. The RSI at 26.12 is Positive, neither overbought nor oversold. The STOCH value of 8.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.57B | 27.62 | 18.74% | ― | 17.82% | 34.88% | |
69 Neutral | $11.78B | 76.07 | 9.66% | ― | 39.16% | -14.16% | |
69 Neutral | $8.69B | 10.07 | 28.07% | 2.75% | -0.05% | 15.17% | |
69 Neutral | $2.81B | 15.98 | 12.17% | 2.92% | -2.73% | -16.71% | |
67 Neutral | $20.73B | 11.20 | 42.42% | ― | 9.16% | 12.74% | |
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
35.00
-16.49
-32.03%
AEO
American Eagle
17.10
-0.89
-4.95%
FL
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24.01
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-2.79%
GAP
Gap Inc
23.46
2.45
11.66%
BOOT
Boot Barn
186.68
51.54
38.14%
LULU
Lululemon Athletica
166.13
-142.40
-46.15%
On Holding AG Corporate Events
On Holding AG Reports Strong Q2 2025 Financial Results
Aug 12, 2025
On Holding AG reported its financial results for the second quarter ended June 30, 2025, showing a notable increase in net sales and gross profit compared to the previous year. The company’s operating result also improved significantly, reflecting strong market demand and effective cost management strategies.
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.