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Sonova Holding AG Unsponsored ADR (SONVY)
OTHER OTC:SONVY
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Sonova Holding AG
(OTC:SONVY)
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Rating:70Outperform
Price Target:
$64.00
▲(16.03% Upside)
Sonova Holding AG's overall stock score reflects its strong financial performance, which is the most significant factor, supported by effective cost management and robust cash flow. The technical analysis presents a mixed outlook, with potential for upward momentum. However, the relatively high valuation suggests caution. The absence of earnings call and corporate events data means these factors do not influence the score.
Sonova Holding AG (SONVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.86B
Dividend Yield1.96%
Average Volume (3M)3.42K
Price to Earnings (P/E)27.0
Beta (1Y)0.77
Revenue Growth6.46%
EPS Growth-10.22%
CountryUS
Employees18,335
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.71
Shares Outstanding298,134,030
10 Day Avg. Volume8,347
30 Day Avg. Volume3,421
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue5.12
Enterprise Value/Gross Profit7.16
Enterprise Value/Ebitda22.36
Forecast
1Y Price Target
$64.00Price Target Upside16.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Sonova Holding AG Business Overview & Revenue Model
Company DescriptionSonova Holding AG designs, develops, manufactures, and distributes hearing care solutions for adults and children. It operates through two segments, Hearing Instruments and Cochlear Implants segments. The company offers wireless communication products; rechargeable hearing aids; wireless headsets, speech enhanced hearables, audiophile headphones, microphones, and wireless transmission systems; and audiological care services. It also provides hearing instruments under the Phonak, Unitron, and Hansaton brand names; cochlear implants under the Advanced Bionics brand; consumer hearing products under the Sennheiser brand; and audiological care services under the AudioNova, Audium, Audition Santé, Boots Hearingcare, Connect Hearing, Geers, Hansaton, Lapperre, Schoonenberg, and Triton brands. The company sells its products through independent distributors; and provides hearing care services through a network of approximately 3,600 stores and clinics. It operates in the United States, Europe, the Middle East, Africa, and the Asia Pacific. The company was formerly known as Phonak Holding AG and changed its name to Sonova Holding AG in August 2007. Sonova Holding AG was founded in 1947 and is headquartered in Stäfa, Switzerland.
How the Company Makes MoneySonova 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 Earnings Call Summary
Earnings Call Date:May 09, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 14, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture: solid sales growth and successful product launches were overshadowed by profitability challenges and underperformance in specific segments. While the company remains optimistic about the second half with product momentum, currency headwinds and market challenges persist.Q2-2025 Updates
Positive Updates
Solid Sales Growth in Hearing Instruments
Achieved 5.9% sales growth in local currencies, driven by share gains in hearing instruments and cochlear implants. Hearing instruments grew by 7% despite late cycle ASP pressure.
Successful Product Launches
Positive reception and strong momentum for Infinio and Sphere product launches, particularly in addressing hearing in noisy environments. Initial constraints on shipments resolved by end of September.
Cochlear Implants Growth
Cochlear implants segment showed 12.5% growth, with system sales up by 18.2%, attributed to remote functionality and lead generation from retail stores.
Improvement in Gross Profit Margin
Gross profit margin improved by 50 basis points in local currency, driven by higher volume in hearing instruments and lower component costs.
Negative Updates
Profitability Challenges
EBITA decreased by 3.7% year-over-year due to launch costs and ASP pressure, with an overall negative 180 basis points impact in local currency.
Audiological Care Underperformance
Audiological Care segment showed only 1.1% organic growth, affected by high lead generation costs and a mix issue with two-thirds of stores in Europe.
Consumer Hearing Market Decline
Consumer hearing segment declined by 1.7%, in line with market trends, with a challenging environment for true wireless products.
Headwinds from Swiss Franc
Currency headwinds negatively impacted sales by CHF 23 million and reduced EBITA by CHF 11.6 million, affecting profitability.
Company Guidance
During the Sonova Holding AG Half Year Results 2024-2025 Conference Call, CEO Arnd Kaldowski highlighted that the company achieved a solid 5.9% sales growth in local currencies, driven by strong performance in hearing instruments and cochlear implants. Despite challenging market conditions and headwinds in the Audiological Care segment, Sonova confirmed its guidance for the fiscal year, maintaining confidence in both top and bottom-line growth. The launch of the Infinio and Sphere platforms was well-received, contributing positively to market momentum, although profitability faced pressures from launch costs and lower average selling prices (ASP). The company is implementing cost-tightening measures and structural improvements, particularly in Audiological Care and G&A, to enhance efficiency. Key financial metrics reported include a gross profit margin of 71.9%, an adjusted EBITA margin of 17.7%, and EPS of CHF3.74, with expectations of improved profitability in the second half of the fiscal year.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.82
Very Positive
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.78
Positive
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.85
Very Positive
| 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
Negative
55.16
Price Trends
57.23
Negative
59.08
Negative
60.90
Negative
Market Momentum
-0.93
Positive
37.64
Neutral
12.30
Positive
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 55.16 is below the 20-day moving average (MA) of 57.97, below the 50-day MA of 57.23, and below the 200-day MA of 60.90, indicating a bearish trend. The MACD of -0.93 indicates Positive momentum. The RSI at 37.64 is Neutral, neither overbought nor oversold. The STOCH value of 12.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SONVY.
Sonova Holding AG Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $15.59B | 32.13 | 9.20% | 2.07% | 5.78% | 61.52% | |
75 Outperform | $23.88B | 36.77 | 9.73% | 0.96% | 2.47% | 63.68% | |
75 Outperform | $19.96B | 24.54 | 6.52% | 0.95% | 4.11% | -14.43% | |
70 Outperform | $15.86B | 26.96 | 21.18% | 1.96% | 6.46% | -10.22% | |
68 Neutral | $21.76B | 94.07 | 19.18% | ― | 25.99% | -40.46% | |
56 Neutral | $26.61B | ― | -7.10% | 3.16% | -0.76% | -55.03% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
SONVY
Sonova Holding AG
55.16
-18.28
-24.89%
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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.