tiprankstipranks
Trending News
More News >
ONEX Corporation (TSE:ONEX)
:ONEX
Advertisement

ONEX Corporation (ONEX) AI Stock Analysis

Compare
194 Followers

Top Page

TSE:ONEX

ONEX Corporation

(TSX:ONEX)

Rating:72Outperform
Price Target:
C$116.00
▲(4.69% 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 (ONEX) vs. iShares MSCI Canada ETF (EWC)

ONEX Corporation Business Overview & Revenue Model

Company DescriptionONEX Corporation is a leading private equity firm and diversified holding company headquartered in Toronto, Canada. Established in 1984, ONEX operates through various segments, including private equity, credit, and wealth management. The company is renowned for its ability to acquire and transform businesses in sectors such as healthcare, industrials, technology, and financial services, leveraging its vast industry expertise and operational capabilities.
How the Company Makes MoneyONEX Corporation makes money primarily through its private equity investments, where it acquires and manages a portfolio of companies, enhancing their value and ultimately profiting from their sale or public offering. Additionally, ONEX generates revenue from its credit platform, which provides bespoke lending solutions and investment opportunities in credit markets. The company's wealth management division also contributes to its earnings by offering investment advisory services and managing assets for institutional and high-net-worth clients. Key partnerships and strategic alliances further enable ONEX to capitalize on market opportunities, thereby bolstering its financial performance.

ONEX Corporation Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q1-2025)
|
% Change Since: 8.83%|
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong fundraising achievements, a profitable WestJet transaction, and growth in fee-generating AUM. Despite these positives, challenges such as a slowdown in M&A activity and market volatility due to global trade concerns were noted. Overall, the highlights outweigh the lowlights, indicating a positive sentiment.
Q1-2025 Updates
Positive Updates
Successful Fundraising Achievements
Onex Partners closed its Opportunities Fund with $1.2 billion in commitments, exceeding the initial target. ONCAP V also had a successful final closing with $1.3 billion in commitments, increasing third-party capital by 54%.
WestJet Transaction
Onex announced a 25% sale of its equity investment in WestJet to Delta, Korean Air, and Air France KLM, at more than a 25% premium to the current NAV, fully realizing the original cost.
Growth in Fee-Generating Assets Under Management (AUM)
The Credit team executed 10 CLO transactions, raising $2.5 billion of new fee-generating AUM and resetting $1.8 billion of AUM. Total fee-generating AUM increased by 5% to $37 billion.
Strong Credit Performance
Credit investments delivered an $11 million net gain (1% return) in Q1, with structured credit strategies contributing significantly.
Share Buyback Program
Onex repurchased 1.4 million shares in Q1 and 800,000 additional shares in April, capitalizing on market volatility to buy shares below NAV.
Negative Updates
M&A Activity Slowdown
The M&A environment has slowed over the past two months, making it more difficult to return capital to LPs, impacting realizations at OP and ONCAP.
Market Volatility and Trade Concerns
Financial markets experienced pressure due to global trade developments, impacting publicly-traded investments and causing potential second and third order impacts.
Asset Management Earnings
The Asset Management segment generated $25 million of earnings in Q1, with fee-related earnings being relatively low at $2 million after managing costs and investments.
Company Guidance
During the first quarter of 2025, Onex Corporation provided guidance reflecting a solid start to the year, with a focus on long-term value creation and strategic initiatives. Key financial metrics highlighted include a 3% increase in investing capital per share to $116.97, with a 9% increase over the past year. The private equity portfolio returned 2% in the quarter, outperforming the MSCI World MidCap Index, which was essentially flat. Onex announced a 25% sale of its equity investment in WestJet, achieving a significant premium of over 25% to the current NAV, while retaining 75% ownership. The company successfully raised $1.2 billion for its Onex Partners Opportunities Fund and $1.3 billion for ONCAP V, with the latter increasing third-party capital by 54% from the previous fund. Onex's Credit team executed 10 CLO transactions, raising $2.5 billion in new fee-generating AUM, contributing to a total of $37 billion in fee-generating AUM by the end of the quarter. These efforts underscore Onex's commitment to compounding NAV, increasing fee-related earnings, and returning capital to shareholders through share buybacks, facilitated by a large discount to NAV.

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
72
Positive
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
68
Positive
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
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue647.00M1.12B437.00M2.03B1.14B
Gross Profit431.00M908.00M163.00M1.74B917.00M
EBITDA331.00M569.00M302.00M1.47B892.00M
Net Income303.00M529.00M235.00M1.41B730.00M
Balance Sheet
Total Assets13.96B12.90B12.16B12.89B11.87B
Cash, Cash Equivalents and Short-Term Investments929.00M265.00M161.00M790.00M706.00M
Total Debt5.20B3.94B3.56B3.83B4.12B
Total Liabilities5.54B4.33B3.91B4.51B4.63B
Stockholders Equity8.42B8.56B8.25B8.37B7.24B
Cash Flow
Free Cash Flow174.00M60.00M-392.00M361.00M381.00M
Operating Cash Flow174.00M68.00M-384.00M361.00M382.00M
Investing Cash Flow38.00M55.00M234.00M-55.00M-9.00M
Financing Cash Flow453.00M30.00M-282.00M-465.00M-657.00M

ONEX Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price110.80
Price Trends
50DMA
109.53
Positive
100DMA
103.37
Positive
200DMA
106.28
Positive
Market Momentum
MACD
0.84
Positive
RSI
54.70
Neutral
STOCH
36.45
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 110.8 is below the 20-day moving average (MA) of 113.07, above the 50-day MA of 109.53, and above the 200-day MA of 106.28, indicating a bullish trend. The MACD of 0.84 indicates Positive momentum. The RSI at 54.70 is Neutral, neither overbought nor oversold. The STOCH value of 36.45 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
C$10.97B11.6812.84%4.84%-3.85%-4.41%
77
Outperform
C$1.06B8.6210.05%0.14%120.44%
75
Outperform
C$136.78B43.5225.13%2.76%283.20%33.30%
72
Outperform
C$7.77B13.105.40%0.36%-10.83%-34.83%
67
Neutral
C$152.65B223.681.36%0.53%-16.50%-50.14%
62
Neutral
AU$10.23B9.2711.82%5.04%33.79%41.40%
51
Neutral
C$4.11B-301.45%0.86%-2.34%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ONEX
ONEX Corporation
113.31
26.03
29.82%
TSE:BN
Brookfield Corporation
92.58
31.95
52.70%
TSE:IGM
IGM Financial
46.47
12.16
35.44%
TSE:CVG
Clairvest
73.88
6.15
9.08%
TSE:BBUC
Brookfield Business Corp. Class A
42.53
14.21
50.19%
TSE:BAM
Brookfield Asset Management Ltd. Class A
84.82
32.09
60.86%

ONEX Corporation Corporate Events

Business Operations and StrategyFinancial Disclosures
Onex Corporation Reports Strong Q1 2025 Financial Results
Positive
May 9, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Delta and Korean Air to Acquire 25% Stake in WestJet
Positive
May 9, 2025

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.

Executive/Board ChangesShareholder Meetings
Onex Corporation Confirms Board Elections and Key Resolutions
Positive
May 8, 2025

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.

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.Date of analysis: May 17, 2025