ONEX Corporation (ONEX) AI Stock Analysis

• Market Cap: C$7.31B
• Dividend Yield: 0.38%
• Average Volume (3M): 327.10K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.92
• Revenue Growth: -10.83%
• EPS Growth: -34.83%
• Country: CA
• Employees: 373
• Sector: Financial
• Sector Strength: 73
• Industry: Asset Management
• EPS (TTM): 3.40
• Shares Outstanding: 68,856,950
• 10 Day Avg. Volume: 162,336
• 30 Day Avg. Volume: 327,099
• PEG Ratio: -0.21
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.44
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 2.13
• Enterprise Value/Gross Profit: 13.54
• Enterprise Value/Ebitda: 3.71
• 1Y Price Target: C$134.00
• Price Target Upside: 26.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: C$116.00 ▲(9.40%Upside)

ONEX Corporation's overall stock score reflects a solid financial foundation with strong profitability and efficient cash flow management. The company's strategic initiatives and successful fundraising efforts underscore its potential for growth. However, challenges such as declining revenue growth and moderate valuation pose risks. Technical indicators suggest caution with potential resistance, while low dividend yield limits income potential. Optimism from earnings calls and corporate events provides a balanced outlook.

ONEX Corporation Business Overview & Revenue Model

Company Description

Onex Corporation is a private equity firm specializing in acquisitions and platform acquisitions. The firm makes investments in buyouts, large- middle market, large-cap, mid-cap, and small-cap market and distressed companies. It also invests in recapitalization, growth capital, corporate carve-outs of subsidiaries and mission-critical supply divisions from multinational corporations, operational restructurings of undervalued businesses, and builds up. The firm seeks to invest in technology, electronics manufacturing services, industrial, aerospace, healthcare, retail, restaurants, industrials products, customer care services, metal services, building products, entertainment, gaming, cabinetry products, commercial vehicles, commercial and investment banking, financial services, commercial and multi-unit residential real estate. It invests in global businesses headquartered in North America, including United States and Canada, or Europe. The firm seeks to invest between $125 million and $1 billion in companies that have minimum revenues of $300 million. It does not consider size if the company is in an industry in which the firm already has presence. The firm seeks to make direct as well as co-investments through managed private equity, real estate and credit funds. It seeks to acquire a control position in its portfolio companies. Onex Corporation was founded in 1984 and is based in Toronto, Canada with additional offices in New York, New York; Englewood Cliffs, New Jersey; Boston, Massachusetts and London, United Kingdom.

How the Company Makes Money

ONEX Corporation makes money primarily through its private equity investments and asset management services. The company generates revenue by acquiring businesses, improving their operations, and eventually selling them at a profit. Additionally, ONEX earns management fees and performance-based incentives from managing third-party capital. The firm also has a credit platform, which provides loans and credit solutions, generating interest income and fees. Partnerships with institutional investors and co-investment arrangements also contribute to ONEX's earnings, enhancing its ability to leverage capital for larger acquisitions and investments.

ONEX Corporation Financial Statement Overview

Summary

ONEX Corporation exhibits a generally healthy financial position with strong profitability and efficient cash flow generation. The company maintains a solid balance sheet with controlled leverage, although there is a need for enhanced returns on equity. Despite strong margins, the significant decline in revenue growth is a key concern that could impact future performance.

Income Statement

ONEX Corporation shows a mixed performance in its income statement metrics. The Gross Profit Margin for TTM (Trailing-Twelve-Months) stands at 73.19%, indicating strong cost management and profitability. The Net Profit Margin of 60.58% is impressive, reflecting efficient operations. However, the Revenue Growth Rate from the previous annual period is -33.23%, suggesting a significant decline in sales. EBIT and EBITDA Margins are also strong at 63.74% and 65.57%, respectively, showcasing operational efficiency. Despite strong profitability, the negative revenue growth is a concern.

Balance Sheet

ONEX Corporation's balance sheet reflects a stable financial position with some risks. The Debt-to-Equity Ratio is 0.55, indicating moderate leverage and a manageable debt level. The Return on Equity (ROE) is 5.44%, which is relatively low, suggesting a need for improved profitability on equity investments. The Equity Ratio is 63.54%, signifying a strong equity base and financial stability. While leverage is controlled, the low ROE points to potential inefficiencies in generating returns on shareholder investments.

Cash Flow

The cash flow statement for ONEX Corporation highlights strong cash management and operational efficiency. The Free Cash Flow Growth Rate is 13.22%, suggesting improved cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 0.43, which is reasonable but indicates room for better cash conversion from profits. The Free Cash Flow to Net Income Ratio is 0.43, further supporting strong cash flow generation. Overall, the company demonstrates robust cash flow management, contributing positively to its financial stability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
761.00M	647.00M	1.12B	437.00M	2.03B	1.14B
	Gross Profit
557.00M	431.00M	908.00M	163.00M	1.74B	917.00M
	EBIT
485.00M	326.00M	700.00M	242.00M	1.41B	835.00M
	EBITDA
499.00M	331.00M	569.00M	302.00M	1.47B	892.00M
	Net Income Common Stockholders
461.00M	303.00M	529.00M	235.00M	1.41B	730.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
265.00M	929.00M	265.00M	161.00M	790.00M	706.00M
	Total Assets
12.90B	13.96B	12.90B	12.16B	12.89B	11.87B
	Total Debt
3.94B	5.20B	3.94B	3.56B	3.83B	4.12B
	Net Debt
3.67B	4.27B	3.67B	3.45B	3.28B	3.41B
	Total Liabilities
4.33B	5.54B	4.33B	3.91B	4.51B	4.63B
	Stockholders Equity
8.56B	8.42B	8.56B	8.25B	8.37B	7.24B
Cash Flow		Free Cash Flow
197.00M	174.00M	60.00M	-392.00M	361.00M	381.00M
	Operating Cash Flow
197.00M	174.00M	68.00M	-384.00M	361.00M	382.00M
	Investing Cash Flow
-43.00M	38.00M	55.00M	234.00M	-55.00M	-9.00M
	Financing Cash Flow
169.00M	453.00M	30.00M	-282.00M	-465.00M	-657.00M

ONEX Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 106.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ONEX, the sentiment is Positive. The current price of 106.03 is above the 20-day moving average (MA) of 104.23, above the 50-day MA of 99.33, and above the 200-day MA of 103.24, indicating a bullish trend. The MACD of 1.88 indicates Negative momentum. The RSI at 56.67 is Neutral, neither overbought nor oversold. The STOCH value of 74.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ONEX.

ONEX Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ONEX	72 Outperform	C$7.31B	12.26	5.40%	0.38%	-10.83%	-34.83%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.06%	12.07%	-7.97%
BN		$95.25B	195.43	1.36%	0.62%	―	―
IGIFF		$7.62B	11.09	12.84%	4.93%	―	―
CVG	77 Outperform	C$1.02B	8.11	10.69%	1.12%	120.44%	―
BBUC		$2.73B	―	-247.20%	0.89%	―	―
BAM	69 Neutral	C$119.65B	38.07	18.95%	3.25%	27.17%	16.13%

ONEX Corporation Corporate Events

Onex Corporation Reports Strong Q1 2025 Financial Results

Onex Corporation reported strong financial results for the first quarter of 2025, with net earnings of $168 million, a significant increase from $10 million in the previous year. The company raised $2.5 billion in fee-generating capital and achieved key milestones in its private equity and credit platforms, enhancing its market position and providing substantial returns to investors.

Delta and Korean Air to Acquire 25% Stake in WestJet

Delta Air Lines and Korean Air have announced plans to strengthen their partnerships with WestJet by acquiring a combined 25% equity stake in the Canadian airline from Onex Partners. This strategic move aims to enhance connectivity and customer benefits across North America, Europe, and Asia, while maintaining Onex Group’s control over WestJet. The investment reflects Delta and Korean’s commitment to expanding their global networks and providing seamless travel experiences, further solidifying their positions in the aviation industry.

Onex Corporation Confirms Board Elections and Key Resolutions

Onex Corporation announced the election of its board of directors during the annual meeting of shareholders, with all nominees receiving strong support. The company welcomed Robert Shanfield as a new director, highlighting his extensive experience in the private equity industry. Additionally, shareholders voted on key resolutions, including the endorsement of the company’s executive compensation approach and the appointment of PricewaterhouseCoopers LLP as the auditor. These developments reflect Onex’s commitment to strong corporate governance and strategic leadership, which are expected to enhance its operational success and stakeholder confidence.

Onex Corporation Renews Share Repurchase Program

Onex Corporation has announced the renewal of its Normal Course Issuer Bid, allowing the company to repurchase up to 10% of its public float in Subordinate Voting Shares over the next year. This move is seen as beneficial for the company and its shareholders, as it allows Onex to buy back shares when they are trading at prices that offer an attractive risk-adjusted return, thereby potentially enhancing shareholder value.

ONCAP V Fund Closes with $1.3 Billion in Commitments, Boosting Onex’s Investment Momentum

ONCAP, a mid-market private equity platform of Onex Corporation, announced the final close of its ONCAP V fund with $1.3 billion in commitments, including $250 million from Onex. The fund has already deployed 40% of its capital across four investments and returned $530 million to its Limited Partners in 2024. This successful fundraising reflects ONCAP’s strong market position and investment framework, enabling it to deliver robust returns and attract new investors. Onex Corporation continues to demonstrate momentum across its investment platforms, with significant capital raised in Onex Partners and Onex Credit, further solidifying its industry positioning.