Sonova Holding AG (SONVY) AI Stock Analysis

• Market Cap: $17.18B
• Dividend Yield: 1.81%
• Average Volume (3M): 2.40K
• Price to Earnings (P/E): 29.2
• Beta (1Y): 0.78
• Revenue Growth: 6.46%
• EPS Growth: -10.22%
• Country: US
• Employees: 18,335
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 1.71
• Shares Outstanding: 298,134,030
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 2,401
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 5.12
• Enterprise Value/Gross Profit: 7.16
• Enterprise Value/Ebitda: 22.36
• 1Y Price Target: $65.00
• Price Target Upside: 8.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: $65.00 ▲(8.84% Upside)

Sonova Holding AG's strong financial performance is the most significant factor contributing to its overall stock score. The company's effective cost management and robust cash flow generation support a positive outlook. However, technical indicators suggest potential resistance in the medium to long term, and the valuation indicates the stock may be overvalued, which tempers the overall score.

Positive Factors

Strong Financial Performance

Sonova's consistent revenue and profit growth, along with effective cost management, indicate a resilient business model capable of sustaining long-term profitability.

Cash Flow Generation

Strong cash flow generation provides Sonova with the flexibility to reinvest in growth opportunities, reduce debt, and enhance shareholder value over time.

Stable Capital Structure

A stable capital structure with a robust equity ratio and manageable leverage ensures financial stability and supports long-term strategic initiatives.

Negative Factors

Earnings Decline

A decline in earnings per share growth suggests potential challenges in maintaining profitability, which could impact future financial performance.

Increasing Liabilities

An increase in liabilities, although slight, could strain financial resources and limit flexibility if not managed effectively over time.

Valuation Concerns

Perceived overvaluation could limit stock price appreciation and investor interest, potentially affecting capital raising and market perception.

Sonova Holding AG Business Overview & Revenue Model

Company Description

Sonova Holding AG is a leading provider of innovative hearing care solutions, based in Switzerland. The company operates primarily in the healthcare sector, focusing on the design, manufacturing, and distribution of hearing aids, cochlear implants, and wireless communication solutions. Sonova offers a wide range of products under several well-known brands, including Phonak, Unitron, and Advanced Bionics, catering to the needs of individuals with hearing loss and related disorders.

How the Company Makes Money

Sonova makes money primarily through the sale of hearing aids and related products, which account for a significant portion of its revenue. The company generates income by selling its devices directly to consumers as well as through partnerships with audiologists and hearing care professionals who provide fitting and aftercare services. Additionally, Sonova earns revenue from its cochlear implant segment, which includes advanced solutions for severe hearing loss. The company also benefits from ongoing service contracts and accessories that enhance the user experience. Strategic partnerships with healthcare providers, clinics, and distributors further amplify its reach and revenue potential. Furthermore, Sonova invests in research and development to innovate and expand its product offerings, helping to maintain a competitive advantage in the market.

Sonova Holding AG Financial Statement Overview

Summary

Sonova Holding AG demonstrates strong financial performance with consistent revenue and profit growth, effective cost management, and robust cash flow generation. The company maintains a stable capital structure with low leverage, though slight increases in liabilities should be monitored.

Income Statement

Sonova Holding AG demonstrates strong profitability with a consistent gross profit margin of approximately 72% and a solid net profit margin of 14% for the latest fiscal year. The company has shown a stable revenue growth rate of 7% from the previous year, indicating healthy business expansion. The EBIT margin stands at 18%, and the EBITDA margin is at 24%, both reflecting effective cost management and operational efficiency.

Balance Sheet

The balance sheet of Sonova Holding AG shows a robust equity ratio of 45%, highlighting a stable capital structure. The debt-to-equity ratio is relatively low at 0.66, indicating manageable leverage levels. Return on equity is strong at 20%, showcasing effective utilization of shareholder funds. However, the total liabilities have slightly increased, which requires monitoring.

Cash Flow

Cash flow analysis reveals a healthy operating cash flow to net income ratio of 1.47, suggesting strong cash generation relative to net earnings. The free cash flow has grown by 5% compared to the previous year, and the free cash flow to net income ratio is 1.21, indicating efficient cash management and sufficient free cash flow for reinvestment or debt reduction.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.63B	3.87B	3.63B	3.74B	3.36B	2.60B
Gross Profit	2.59B	2.78B	2.62B	2.59B	2.42B	1.84B
EBITDA	830.40M	927.00M	921.70M	978.70M	960.90M	755.30M
Net Income	601.00M	540.50M	601.00M	647.50M	649.00M	581.00M
Balance Sheet
Total Assets	5.79B	5.92B	5.79B	5.55B	5.59B	5.93B
Cash, Cash Equivalents and Short-Term Investments	513.80M	687.10M	513.80M	414.80M	612.00M	1.77B
Total Debt	1.79B	1.76B	1.79B	1.81B	1.48B	1.83B
Total Liabilities	3.30B	3.24B	3.30B	3.32B	3.16B	3.15B
Stockholders Equity	2.47B	2.66B	2.47B	2.21B	2.41B	2.75B
Cash Flow
Free Cash Flow	663.50M	656.10M	624.70M	609.10M	815.90M	665.50M
Operating Cash Flow	748.80M	793.70M	753.30M	763.40M	922.50M	754.70M
Investing Cash Flow	-235.70M	-212.70M	-234.00M	-429.50M	-707.00M	-123.60M
Financing Cash Flow	-409.10M	-401.80M	-415.30M	-523.50M	-1.37B	687.60M

Sonova Holding AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SONVY, the sentiment is Positive. The current price of 59.72 is above the 20-day moving average (MA) of 58.29, above the 50-day MA of 57.53, and below the 200-day MA of 61.63, indicating a neutral trend. The MACD of 0.85 indicates Negative momentum. The RSI at 58.22 is Neutral, neither overbought nor oversold. The STOCH value of 83.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SONVY.

Sonova Holding AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STE	79 Outperform	$24.61B	37.89	9.73%	0.94%	2.47%	63.68%
ZBH	79 Outperform	$20.42B	25.10	6.52%	0.93%	4.11%	-14.43%
SNN	78 Outperform	$16.53B	33.42	9.20%	1.99%	5.78%	61.52%
PODD	76 Outperform	$24.06B	104.01	19.18%	―	25.99%	-40.46%
SONVY	73 Outperform	$17.18B	29.19	21.18%	1.81%	6.46%	-10.22%
PHG	56 Neutral	$26.80B	―	-7.10%	3.14%	-0.76%	-55.03%
Sector *	51 Neutral	$7.93B	-0.35	-43.30%	2.25%	22.54%	-2.22%