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Sonova Holding Ag Unsponsored Adr (SONVY)
:SONVY
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Sonova Holding AG
(OTC:SONVY)
70Outperform
Sonova Holding AG (SONVY) vs. S&P 500 (SPY)
Market Cap
$17.89B
Dividend Yield0.92%
Average Volume (3M)15.53K
Price to Earnings (P/E)29.0
Beta (1Y)0.76
Revenue Growth5.75%
EPS Growth-1.50%
CountryUS
Employees17,073
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)2.15
Shares Outstanding298,134,030
10 Day Avg. Volume18,532
30 Day Avg. Volume15,531
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.99
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$247.96Price Target Upside295.47% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering0
Sonova Holding AG Business Overview & Revenue Model
Company DescriptionSonova Holding AG is a leading provider of hearing care solutions, headquartered in Stäfa, Switzerland. The company operates primarily within the healthcare and medical devices sectors, offering a wide range of products and services designed to enhance hearing and improve communication for individuals with hearing loss. Sonova's core offerings include hearing instruments, cochlear implants, and wireless communication devices, supported by a comprehensive service portfolio that includes audiological care and after-sales support. The company is known for its innovation and commitment to delivering high-quality, technologically advanced solutions that cater to the diverse needs of its customers globally.
How the Company Makes MoneySonova Holding AG generates revenue through the sale of its hearing solutions and related services. The company's primary revenue streams include the sale of hearing instruments, such as hearing aids, and cochlear implants, which are advanced medical devices designed to provide a sense of sound to individuals with severe hearing loss. Additionally, Sonova earns income from its audiological care services, including diagnostics, fitting, and aftercare support, which ensure optimal performance and customer satisfaction. The company also benefits from strategic partnerships and collaborations with healthcare professionals, clinics, and distributors, which enhance its market reach and facilitate the adoption of its products. Furthermore, Sonova invests in research and development to continually innovate and expand its product offerings, thereby maintaining its competitive edge in the global hearing care market.
Sonova Holding AG Financial Statement Overview
Summary
Sonova Holding AG demonstrates solid financial health with good profitability and cash flow metrics. The balance sheet is stable, although there is a need to monitor revenue trends closely due to recent declines. Overall, the company is well-positioned in the Medical Equipment & Supplies industry, with room for growth if revenue challenges are addressed.Income Statement
The company exhibits a solid gross profit margin and maintains stable profitability with a consistent EBIT margin. However, the recent decline in revenue and net income in the latest year suggests challenges in sustaining growth. The net profit margin remains robust, indicating good cost control.75
Positive
Balance Sheet
Sonova's balance sheet shows moderate leverage with a stable debt-to-equity ratio. The equity ratio indicates a healthy proportion of equity financing. The return on equity is strong, reflecting efficient use of equity capital, though there is a slight decrease in equity over the years.72
Positive
Cash Flow
The company has a strong operating cash flow to net income ratio, indicating efficient cash generation. Free cash flow growth is positive, despite some fluctuation in capital expenditures. The free cash flow to net income ratio is favorable, suggesting good cash conversion from profits.78
Positive
| Breakdown | ||||
| Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.63B | 3.74B | 3.36B | 2.60B | 2.92B | Gross Profit |
| 2.62B | 2.59B | 2.42B | 1.84B | 2.04B | EBIT |
| 669.90M | 761.80M | 785.10M | 559.20M | 510.90M | EBITDA |
| 921.70M | 978.70M | 960.90M | 755.30M | 711.00M | Net Income Common Stockholders |
| 601.00M | 647.50M | 649.00M | 581.00M | 483.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 513.80M | 414.80M | 612.00M | 1.77B | 452.70M | Total Assets |
| 5.79B | 5.55B | 5.59B | 5.93B | 4.49B | Total Debt |
| 1.79B | 1.81B | 1.48B | 1.83B | 1.06B | Net Debt |
| 1.28B | 1.40B | 873.80M | 61.60M | 608.10M | Total Liabilities |
| 3.30B | 3.32B | 3.16B | 3.15B | 2.46B | Stockholders Equity |
| 2.47B | 2.21B | 2.41B | 2.75B | 2.01B |
| Cash Flow | Free Cash Flow | |||
| 624.70M | 609.10M | 815.90M | 665.50M | 711.60M | Operating Cash Flow |
| 753.30M | 763.40M | 922.50M | 754.70M | 840.40M | Investing Cash Flow |
| -234.00M | -429.50M | -707.00M | -123.60M | -213.40M | Financing Cash Flow |
| -415.30M | -523.50M | -1.37B | 687.60M | -545.40M |
Sonova Holding AG Technical Analysis
Negative
62.70
Price Trends
66.38
Negative
68.40
Negative
67.06
Negative
Market Momentum
-1.25
Positive
34.41
Neutral
21.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SONVY, the sentiment is Negative. The current price of 62.7 is below the 20-day moving average (MA) of 64.86, below the 50-day MA of 66.38, and below the 200-day MA of 67.06, indicating a bearish trend. The MACD of -1.25 indicates Positive momentum. The RSI at 34.41 is Neutral, neither overbought nor oversold. The STOCH value of 21.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SONVY.
Sonova Holding AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $17.89B | 29.01 | 25.48% | 0.92% | 5.75% | -1.50% | |
65 Neutral | $283.12M | 50.74 | 5.28% | ― | 25.72% | ― | |
64 Neutral | $8.98B | 116.65 | -25.23% | ― | 2.26% | -467.23% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% | |
36 Underperform | $2.18M | ― | 52.08% | ― | -32.57% | -15.03% |
* Healthcare Sector Average
Performance Comparison
SONVY
Sonova Holding AG
62.06
-2.22
-3.45%
CUTR
Cutera
0.10
-1.88
-94.95%
MASI
Masimo
167.67
33.55
25.01%
TBCH
Turtle Beach
14.41
3.38
30.64%
Sonova Holding AG Earnings Call Summary
Earnings Call Date: Nov 19, 2024 | % Change Since: -12.38% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed view with strong product launch feedback and solid sales growth, particularly in cochlear implants, but faced profitability pressures and challenging market conditions, especially in the Audiological Care segment.Highlights
Solid Sales Growth
Sonova Holding AG reported a solid sales growth of 5.9% in local currencies for the first half of fiscal year 2024-2025, driven by hearing instruments and cochlear implants.
Cochlear Implant Segment Performance
The cochlear implant business showed strong momentum with a 12.5% growth for the first half of the fiscal year, with system sales up by 18.2%.
Positive Product Launch Feedback
The launch of Infinio and Sphere received very positive feedback, with a high share of Sphere Infinio supporting strong ASP uplift.
Lowlights
Profitability Pressures
Sonova reported a decrease in adjusted EBITA by 3.7% in local currency, due to launch costs, lower ASPs, and high lead generation costs in the Audiological Care business.
Challenging Market Conditions
The company faced challenging market conditions, particularly in the consumer hearing business and in Europe, where growth was muted.
Audiological Care Growth
Audiological Care reported an organic growth of only 1.1%, impacted by market conditions and consumer confidence, with elevated lead generation costs.
Company Guidance
During the Sonova Holding AG Half Year Results 2024-2025 Conference Call, the company provided guidance confirming expectations for both top-line and bottom-line growth for the fiscal year. They reported a solid sales growth of 5.9% in local currencies, primarily driven by a 7% increase in the Hearing Instruments segment and a 12.5% growth in Cochlear Implants. The new Sphere and Infinio products, launched in August and September, received positive feedback, contributing to a strong momentum anticipated to carry into the second half of the year. The company acknowledged challenges such as market conditions, lead generation costs, and headwinds from the Swiss franc. However, they expressed confidence in achieving their guidance, supported by structural cost improvements, and strategic initiatives expected to enhance operating efficiency and profitability. Sonova highlighted a projected uplift in ASP (Average Selling Price) contributing positively to EBITDA growth, alongside incremental volume increases.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.