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On Holding AG (ONON)
NYSE:ONON
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On Holding AG
(NYSE:ONON)
Rating:70Neutral
Price Target:
$55.00
▲(20.46% Upside)
Positive Factors
Growth Potential
On holds the greatest capacity for sustained growth within the athletic footwear landscape, given greater opportunity to iterate on product and grow category extensions.
Market Position
ONON maintains a strong position in a favorable sportswear market, which supports an Overweight rating.
Sales Performance
E-commerce traffic at On.com increased by 28% in the quarter, indicating strong online engagement.
Negative Factors
Financial Charges
The operational earnings rise should be more than offset by higher non-cash financial charges, leading to a halving of the net earnings yoy.
Foreign Exchange Impact
The weakening of the USD versus the CHF lowers revenue estimates and is likely to create foreign exchange pressure below the EBITDA line.
Investor Concerns
Investor anxieties have not changed, centered mostly on the sustainability of growth and how much of On’s success is fleeting.
On Holding AG (ONON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.79B
Dividend YieldN/A
Average Volume (3M)5.86M
Price to Earnings (P/E)63.2
Beta (1Y)1.47
Revenue Growth34.75%
EPS Growth60.65%
CountryUS
Employees3,254
SectorConsumer Cyclical
Sector Strength73
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.26
Shares Outstanding289,296,360
10 Day Avg. Volume6,437,713
30 Day Avg. Volume5,857,116
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue5.56
Enterprise Value/Gross Profit9.18
Enterprise Value/Ebitda39.90
Forecast
1Y Price Target
$66.11Price Target Upside44.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
On Holding AG Business Overview & Revenue Model
Company DescriptionOn 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 MoneyOn Holding AG generates revenue primarily through the sale of its athletic footwear and apparel. The company sells its products through a combination of direct-to-consumer channels, including its online store and flagship retail locations, as well as through wholesale distribution channels, which include third-party retailers and specialty stores globally. On Holding AG leverages its brand partnerships and endorsements from professional athletes to enhance its market presence and drive sales. Additionally, the company's focus on innovation and patented technology in its product offerings helps to maintain a competitive edge and attract a loyal customer base, contributing to its financial performance.
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:May 13, 2025
(Q1-2025)
| % Change Since: -11.01%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call presents a very positive outlook with significant growth in net sales and profitability, driven by strong D2C and apparel performance. While there are challenges related to tariffs and foreign exchange volatility, the overall sentiment remains optimistic due to strong brand momentum and successful product launches.Q1-2025 Updates
Positive Updates
Record-Breaking Net Sales
Net sales exceeded CHF725 million, reflecting a year-over-year growth of 40% on a constant currency basis.
Increased Gross Profit Margin
Gross profit margin increased to 59.9%, up from 59.7% in Q1 2024, driven by the strength of the direct-to-consumer business.
Strong Performance in Asia Pacific
Net sales in Asia Pacific grew by 130.1% on a reported basis to CHF120.6 million, with China achieving the strongest growth across the region.
Apparel Net Sales Surge
Apparel net sales reached CHF38.1 million, the highest quarterly net sales in history, increasing by 93.1% year-over-year.
Successful Product Launches
Cloudsurfer 2 and Cloud 6 launches were highly successful, with Cloud 6 setting a record as the largest product launch ever.
D2C Channel Growth
The direct-to-consumer channel grew by 45.3% year-over-year on a reported basis, reaching CHF276.9 million.
Strong Cash Position
Cash position was CHF871.8 million at the end of Q1, maintaining a robust financial standing.
Negative Updates
Challenges with Tariffs and FX
Potential incremental tariffs in the United States and volatile foreign exchange rates introduce uncertainty into planning.
Decreased Cash Position
Cash position decreased from CHF924.3 million at the end of 2024 to CHF871.8 million at the end of Q1 2025.
Company Guidance
During the ON Holding AG Q1 2025 results conference call, the company provided optimistic guidance for the fiscal year. Net sales exceeded CHF 725 million, marking a 40% year-over-year growth on a constant currency basis, and the company increased its constant currency growth outlook for 2025 to at least 28%, with projected net sales reaching at least CHF 2.8 billion. The adjusted EBITDA margin reached 16.5% in the first quarter, driven by a strong direct-to-consumer (D2C) performance and an increased gross profit margin of 59.9%. The D2C channel, which grew by 45.3% year-over-year, now represents 38.1% of total sales. The wholesale business also showed robust performance with a 41.5% increase. By region, Asia Pacific led the growth with a 130.1% increase. Looking ahead, ON Holding emphasized its focus on premium positioning, innovation, and operational efficiency, acknowledging potential uncertainties from tariffs and currency fluctuations.On Holding AG Financial Statement Overview
Summary
On Holding AG exhibits a solid financial performance with significant revenue growth and improved profitability. The balance sheet remains robust with low leverage, while cash flow metrics indicate efficient cash management. The company is on a positive trajectory, although attention to liability growth is advisable to maintain financial stability.Income Statement
On Holding AG has demonstrated robust revenue growth from $267.1M in 2019 to $2.32B in 2024, showcasing a strong upward trajectory. The gross profit margin has improved significantly, reflecting effective cost management. The net profit margin has turned positive, growing from a loss in 2019 to a net income of $242.3M in 2024, indicating enhanced profitability. EBIT and EBITDA margins have also shown improvement, further underlining operational efficiency.85
Very Positive
Balance Sheet
The company maintains a healthy balance sheet with a strong equity position. The debt-to-equity ratio remains low due to a substantial equity base of $1.39B in 2024, reflecting low leverage risk. The equity ratio has improved, indicating financial stability. However, the increase in total liabilities warrants monitoring to ensure continued financial health.78
Positive
Cash Flow
Operating cash flow has seen substantial growth, reaching $510.6M in 2024 from negative values in prior years, highlighting improved cash generation capabilities. Free cash flow has also turned positive, indicating better cash utilization and financial health. The operating cash flow to net income ratio suggests efficient cash management practices.82
Very Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.32B | 1.79B | 1.22B | 724.60M | 425.30M |
| Gross Profit | 1.41B | 1.07B | 684.90M | 430.30M | 231.10M |
| EBITDA | 400.00M | 141.00M | 128.60M | -125.80M | -12.00M |
| Net Income | 242.30M | 79.60M | 57.70M | -170.20M | -27.50M |
Balance Sheet | |||||
| Total Assets | 2.38B | 1.59B | 1.38B | 1.24B | 382.57M |
| Cash, Cash Equivalents and Short-Term Investments | 980.60M | 512.40M | 404.20M | 683.13M | 107.78M |
| Total Debt | 347.60M | 229.00M | 160.40M | 180.86M | 23.73M |
| Total Liabilities | 984.90M | 518.50M | 412.80M | 388.14M | 137.48M |
| Stockholders Equity | 1.39B | 1.07B | 969.60M | 848.38M | 245.09M |
Cash Flow | |||||
| Free Cash Flow | 445.60M | 184.90M | -310.00M | -19.30M | -33.33M |
| Operating Cash Flow | 510.60M | 232.10M | -227.00M | 16.95M | -14.73M |
| Investing Cash Flow | -64.90M | -47.10M | -82.90M | -36.44M | -18.62M |
| Financing Cash Flow | -55.40M | -21.80M | 6.30M | 595.90M | 124.80M |
On Holding AG Technical Analysis
Negative
45.66
Price Trends
52.79
Negative
50.52
Negative
52.18
Negative
Market Momentum
-1.91
Positive
32.03
Neutral
8.67
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 45.66 is below the 20-day moving average (MA) of 50.21, below the 50-day MA of 52.79, and below the 200-day MA of 52.18, indicating a bearish trend. The MACD of -1.91 indicates Positive momentum. The RSI at 32.03 is Neutral, neither overbought nor oversold. The STOCH value of 8.67 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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $5.07B | 26.20 | 18.15% | ― | 16.70% | 27.76% | |
73 Outperform | $7.39B | 8.63 | 29.16% | 3.18% | 1.07% | 28.03% | |
72 Outperform | $2.16B | 12.73 | 12.19% | 4.02% | -0.95% | -10.51% | |
71 Outperform | $23.67B | 12.93 | 42.49% | ― | 9.39% | 17.28% | |
70 Neutral | $14.79B | 63.19 | 15.84% | ― | 34.75% | 60.65% | |
63 Neutral | €17.86B | 13.44 | 15.56% | 3.61% | -0.66% | -125.70% | |
55 Neutral | $2.35B | 194.63 | -12.85% | ― | -2.62% | 0.93% |
* Consumer Cyclical Sector Average
Performance Comparison
ONON
On Holding AG
45.66
6.11
15.45%
AEO
American Eagle
12.44
-7.75
-38.39%
FL
Foot Locker
24.60
-6.50
-20.90%
GAP
Gap Inc
19.80
-1.69
-7.86%
BOOT
Boot Barn
166.06
29.09
21.24%
LULU
Lululemon Athletica
189.43
-50.27
-20.97%
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.