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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:68Neutral
Price Target:
$61.00
▲(15.29% Upside)
Action:DowngradedDate:11/17/25
Sonova Holding AG's overall stock score reflects strong financial performance and a positive earnings outlook, tempered by bearish technical indicators and a relatively high valuation. The company's robust growth in key segments and successful product launches are significant strengths, while market volatility and currency impacts pose challenges.
Positive Factors
Strong cash generation
Consistent operating cash conversion and rising free cash flow provide durable funding for R&D, product launches and reinvestment. Strong cash generation underpins financial flexibility to support innovation, service expansion and modest debt reduction over the medium term.
High margins and profitability
Sustained high gross and EBIT margins reflect differentiated products, service revenues and disciplined cost control. These structural margins support reinvestment in technology and aftercare services, making earnings more resilient to cyclical swings in unit volumes over several quarters.
Market share gains from product innovation
Outperforming market growth in core Hearing Instruments and Audiological Care, driven by recent platform launches, indicates durable competitive advantage. Successful new products and lead-generation investments support continued share gains and longer-term revenue momentum.
Negative Factors
Gross margin pressure from regionalization costs
Margin contraction tied to regionalizing manufacturing and logistics may persist while new footprints scale. If cost saves take longer to materialize, structural margin recovery could be delayed and offset part of operating leverage from higher sales.
Weakness in smaller business segments
Underperformance in Consumer Hearing and Cochlear Implants reduces diversification of growth streams. Structural procurement and upgrade-cycle issues in key markets like China can depress volumes and slow overall revenue mix improvement for multiple quarters.
Material currency headwinds
Significant FX translation impacts create recurring volatility in reported top-line and margin metrics given a Swiss reporting currency and global revenue footprint. Persistent currency strength can structurally depress reported growth absent hedging or pricing adjustments.
Sonova Holding AG (SONVY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.39B
Dividend Yield2.08%
Average Volume (3M)3.58K
Price to Earnings (P/E)24.6
Beta (1Y)0.70
Revenue Growth7.71%
EPS Growth-5.36%
CountryUS
Employees18,335
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.90
Shares Outstanding298,134,030
10 Day Avg. Volume2,397
30 Day Avg. Volume3,581
Financial Highlights & Ratios
PEG Ratio-2.90
Price to Book (P/B)5.77
Price to Sales (P/S)3.98
P/FCF Ratio23.42
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue3.42
Enterprise Value/Gross Profit4.83
Enterprise Value/Ebitda15.55
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 cochlear implants, which account for the majority of its revenue. The company operates a multi-channel distribution model that includes wholesale sales to audiological clinics and retailers, as well as direct-to-consumer channels. Key revenue streams include the sale of hearing aids, accessories, and related services such as fitting and maintenance. Additionally, Sonova benefits from recurring revenue through service contracts and aftercare for its devices. Strategic partnerships with healthcare providers and audiologists enhance its market reach and customer base, while ongoing investments in research and development enable the company to innovate and maintain a competitive edge in the hearing technology market.
Sonova Holding AG Earnings Call Summary
Earnings Call Date:Nov 14, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Neutral
The earnings call presented a strong performance in the larger business segments with significant market share gains, supported by successful product launches and innovation. However, challenges in smaller segments, currency headwinds, and a decline in gross margins were notable concerns. The outlook remains positive with growth expectations, but market volatility and currency impacts pose challenges.Q2-2026 Updates
Positive Updates
Strong Sales Growth in Hearing Instruments and Audiological Care
Combined sales growth of 7% in local currencies for Hearing Instruments and Audiological Care, approximately twice the estimated market growth, indicating significant market share gains.
Significant Margin Expansion
Normalized EBITA increased by 16% in local currencies, translating into a strong margin expansion of 180 basis points.
Successful Product Launches
Launch of Phonak Infinio and Infinio Sphere platforms contributed to growth. The introduction of the Virto R rechargeable ITE hearing aid received a strong market response.
Positive Outlook for Full Year
Outlook for the full year 2025-2026 maintained with expected sales growth of 5% to 9% and normalized EBITA growth of 14% to 18% at constant exchange rates.
Innovation in AI and Product Design
Launch of Infinio Ultra and EasyGuard wax management system highlights continued innovation, with improvements in AI-driven features and user convenience.
Negative Updates
Challenges in Consumer Hearing and Cochlear Implants
Consumer Hearing business faced weak markets and lack of significant product launches, while Cochlear Implants were affected by volume-based procurement issues in China and lower upgrade sales.
Currency Headwinds
Strength of the Swiss franc posed a major headwind, reducing reported sales by CHF 107 million or 5.8% due to FX translation.
Gross Margin Decline
Gross profit margin fell by 80 basis points in local currencies, affected by temporary costs related to regionalizing manufacturing and logistics.
Slow Market Growth Assumptions
Market growth expected to remain volatile and weak, with only 1% to 3% anticipated, influenced by macroeconomic uncertainties and tariffs.
Company Guidance
In the recent Sonova Half Year Results 2025-2026 Conference Call, the company reported robust performance, with a notable 7% sales growth in local currencies for its Hearing Instruments (HI) and Audiological Care (AC) businesses, a figure approximately double the estimated market growth. This success was largely attributed to the Phonak Infinio and Infinio Sphere platforms, launched in August 2024, and strategic investments in lead generation. Despite headwinds in the Consumer Hearing and Cochlear Implants segments, Sonova achieved a total sales increase of 4.9% in local currencies, reaching CHF 1.8 billion. The company maintained its full-year outlook, targeting 5% to 9% sales growth and 14% to 18% growth in normalized EBITA at constant exchange rates. Additionally, Sonova highlighted the introduction of new products, including the Virto R and Infinio Ultra, and announced an organizational shift to a four-region model to enhance customer proximity.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, although 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 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.81B | 3.87B | 3.63B | 3.74B | 3.36B | 2.60B |
| Gross Profit | 2.70B | 2.78B | 2.62B | 2.59B | 2.42B | 1.84B |
| EBITDA | 839.02M | 927.00M | 921.70M | 978.70M | 960.90M | 755.30M |
| Net Income | 516.46M | 540.50M | 601.00M | 647.50M | 649.00M | 581.00M |
Balance Sheet | ||||||
| Total Assets | 5.51B | 5.92B | 5.79B | 5.55B | 5.59B | 5.93B |
| Cash, Cash Equivalents and Short-Term Investments | 511.00M | 687.10M | 513.80M | 414.80M | 612.00M | 1.77B |
| Total Debt | 227.70M | 1.76B | 1.79B | 1.81B | 1.48B | 1.83B |
| Total Liabilities | 3.06B | 3.24B | 3.30B | 3.32B | 3.16B | 3.15B |
| Stockholders Equity | 2.43B | 2.66B | 2.47B | 2.21B | 2.41B | 2.75B |
Cash Flow | ||||||
| Free Cash Flow | 756.68M | 656.10M | 624.70M | 609.10M | 815.90M | 665.50M |
| Operating Cash Flow | 811.50M | 793.70M | 753.30M | 763.40M | 922.50M | 754.70M |
| Investing Cash Flow | -255.30M | -212.70M | -234.00M | -429.50M | -707.00M | -123.60M |
| Financing Cash Flow | -306.90M | -401.80M | -415.30M | -523.50M | -1.37B | 687.60M |
Sonova Holding AG Technical Analysis
Negative
52.91
Price Trends
52.96
Negative
53.05
Negative
56.21
Negative
Market Momentum
-0.89
Positive
31.18
Neutral
0.16
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 52.91 is below the 20-day moving average (MA) of 52.94, below the 50-day MA of 52.96, and below the 200-day MA of 56.21, indicating a bearish trend. The MACD of -0.89 indicates Positive momentum. The RSI at 31.18 is Neutral, neither overbought nor oversold. The STOCH value of 0.16 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $15.21B | 32.01 | 9.20% | 2.28% | 5.78% | 61.52% | |
69 Neutral | $24.20B | 34.19 | 10.44% | 0.94% | 5.15% | 60.30% | |
68 Neutral | $14.39B | 24.63 | 21.18% | 2.08% | 7.71% | -5.36% | |
68 Neutral | $17.26B | 70.06 | 18.12% | ― | 27.12% | -41.72% | |
65 Neutral | $19.54B | 28.03 | 5.60% | 1.05% | 5.47% | -23.03% | |
64 Neutral | $29.78B | 29.21 | ― | 3.30% | -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
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-22.86%
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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.