ONEX Corporation (TSE:ONEX)
TSX:ONEX
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ONEX Corporation
(TSX:ONEX)
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Rating:70Outperform
Price Target:
C$120.00
â–²(20.85% Upside)
Action:Upgraded
Date:05/17/26
The score is driven primarily by uneven financial performance (strong profitability and low current leverage offset by declining revenue and recently negative cash flow). Valuation is a clear positive due to the low P/E, and the latest earnings call supports the outlook with improving FRE guidance and strong Convex/AUM momentum, while technical signals remain mixed and slightly weak.
Positive Factors
Convex acquisition and scale
Owning a majority stake in Convex embeds a large, profitable insurance franchise into Onex, providing recurring underwriting earnings and scale. Convex's strong 2025 net income and management equity roll align incentives and materially diversify Onex’s earnings base over the medium term.
Negative Factors
Shrinking revenue trend
A near‑term pattern of declining revenue undermines the sustainability of current high margins and raises questions about the durability of fee and investment income. If AUM or realizations slow, recurring earnings could compress and pressure medium‑term profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Convex acquisition and scale
Owning a majority stake in Convex embeds a large, profitable insurance franchise into Onex, providing recurring underwriting earnings and scale. Convex's strong 2025 net income and management equity roll align incentives and materially diversify Onex’s earnings base over the medium term.
Read all positive factors
ONEX Corporation (ONEX) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$8.30B
Dividend Yield0.36%
Average Volume (3M)81.86K
Price to Earnings (P/E)10.5
Beta (1Y)0.82
Revenue Growth2.88%
EPS Growth32.70%
CountryCA
Employees373
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)8.31
Shares Outstanding76,186,485
10 Day Avg. Volume79,779
30 Day Avg. Volume81,864
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.65
Price to Sales (P/S)19.37
P/FCF Ratio8.46
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$132.00Price Target Upside32.93% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 re...
How the Company Makes Money
Onex makes money primarily through (1) investment management revenues earned for managing third-party capital and (2) investment returns on its own invested capital.
1) Investment management revenues (recurring and performance-based):
- Managemen...
ONEX Corporation Earnings Call Summary
Earnings Call Date:Feb 20, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call emphasized substantial strategic progress and strong operating results — notably the Convex acquisition, robust Convex financial performance (net income +25% vs Q3 LTM; +40% vs 2024), expansion of fee-generating AUM (+24% YoY), meaningful private equity realizations ($8B) and credit platform strength (28 CLOs, run-rate FRE $60M). Near-term headwinds include CLO mark-to-market impacts from spread compression, a modest firm-wide FRE loss for the quarter and timing/recognition delays for certain fee streams and MACV economics. Management presented conservative assumptions (excludes Convex contributions to FRE) and reiterated liquidity and capital allocation plans. Overall, positive operational momentum and high-impact strategic moves outweigh the manageable near-term financial and market challenges.Positive Updates
Convex Acquisition and Strategic Partnership
Completed acquisition of Convex valued at $7.0 billion with Onex and AIG owning ~63% and ~35% respectively; Convex management rolled ~$500 million of equity and accrued incentives, signaling strong alignment and confidence.
Negative Updates
Firm-wide FRE Near-Term Losses
Asset management reported quarterly firm-wide FRE loss of $4 million and a loss of $3 million for the year (Q4 Asset Management earnings $49 million but only $2 million of FRE from PE and credit), indicating fee income has not yet fully absorbed platform costs.
Read all updates
Q4-2025 Updates
Positive
Negative
Convex Acquisition and Strategic Partnership
Completed acquisition of Convex valued at $7.0 billion with Onex and AIG owning ~63% and ~35% respectively; Convex management rolled ~$500 million of equity and accrued incentives, signaling strong alignment and confidence.
Read all positive updates
Company Guidance
Onex guided 2026 firm‑wide fee‑related earnings (FRE) to the low‑to‑mid $20 million range and said it expects to exit 2026 with a run‑rate FRE more than twice the $17 million start‑of‑year run‑rate (i.e., >$34M, with management referencing a year‑end target around $35M); that outlook assumes only ~1/3 of AIG’s $2.0B commitment and no Convex allocations. Credit finished 2025 with run‑rate FRE of $60M, asset management ended Q4 with ~$44B of fee‑generating AUM (up 24% YoY) and Q4 asset management earnings of $49M (only $2M FRE from PE/credit), while firm‑wide FRE was a $4M loss in Q4 and a $3M loss for the year. Convex is expected to be a major earnings driver — 2025 net income $711M (ROE 20%), up 40% vs 2024 and 25% vs the Q3 LTM $566M figure, $5.9B gross premium written (+14% YoY), 89% combined ratio, tangible book value $3.8B — the $7B transaction leaves Onex and AIG with ~63%/35% ownership, Onex’s 63% share equates to ~$423M of Convex 2025 net income after pro‑forma interest, and management rolled ~$500M of equity/incentives. Balance‑sheet and liquidity guidance: Onex drew $700M on a NAV loan (vs $1.0B contemplated), retained ~ $400M cash/near‑cash, has $500M undrawn on the revolver (~$900M total liquidity), holds ~ $5B of PE investments with $735M unfunded commitments (only $330M in commitment period), and cited $8B of 2025 realizations that delivered >$800M to Onex (including OP distributions of $7.7B with $4.3B to co‑investors and ~ $310M MACV proceeds, bringing OP V DPI to 0.8x).ONEX Corporation Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 600.13M | 293.04M | 647.00M | 1.12B | 437.00M | 2.03B |
| Gross Profit | 472.53M | 221.82M | 431.00M | 865.00M | 163.00M | 1.74B |
| EBITDA | 614.71M | 653.24M | 331.00M | 569.00M | 302.00M | 1.47B |
| Net Income | 578.67M | 627.80M | 303.00M | 529.00M | 235.00M | 1.41B |
Balance Sheet | ||||||
| Total Assets | 10.35B | 11.24B | 13.96B | 12.90B | 12.16B | 12.89B |
| Cash, Cash Equivalents and Short-Term Investments | 116.08M | 1.33B | 929.00M | 265.00M | 161.00M | 790.00M |
| Total Debt | 30.02M | 32.94M | 5.20B | 3.94B | 3.56B | 3.83B |
| Total Liabilities | 794.56M | 2.47B | 5.54B | 4.33B | 3.91B | 4.51B |
| Stockholders Equity | 9.56B | 8.77B | 8.42B | 8.56B | 8.25B | 8.37B |
Cash Flow | ||||||
| Free Cash Flow | -84.51M | 671.00M | 174.00M | 60.00M | -392.00M | 361.00M |
| Operating Cash Flow | -84.51M | 671.00M | 174.00M | 68.00M | -384.00M | 361.00M |
| Investing Cash Flow | 227.00M | 150.00M | 38.00M | 55.00M | 234.00M | -55.00M |
| Financing Cash Flow | -575.61M | -421.00M | 453.00M | 30.00M | -282.00M | -465.00M |
ONEX Corporation Technical Analysis
Negative
99.30
Price Trends
107.10
Negative
108.85
Negative
112.28
Negative
Market Momentum
0.17
Positive
36.04
Neutral
19.63
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ONEX, the sentiment is Negative. The current price of 99.3 is below the 20-day moving average (MA) of 113.72, below the 50-day MA of 107.10, and below the 200-day MA of 112.28, indicating a bearish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 36.04 is Neutral, neither overbought nor oversold. The STOCH value of 19.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ONEX.
ONEX Corporation Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | C$18.05B | 13.67 | 13.19% | 3.59% | 17.16% | 22.85% | |
73 Outperform | C$108.09B | 29.74 | 30.06% | 3.37% | 247.78% | 9.76% | |
71 Outperform | C$1.03B | 2.39 | 5.72% | 0.14% | -57.36% | -41.04% | |
70 Outperform | C$8.30B | 10.50 | 6.52% | 0.36% | 2.88% | 32.70% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
50 Neutral | C$9.53B | 46.70 | -58.74% | 0.71% | 38.75% | -3.34% |
* Financial Sector Average
TSE:ONEX
ONEX Corporation
103.94
3.54
3.52%
TSE:IGM
IGM Financial
77.47
35.10
82.85%
TSE:CVG
Clairvest
75.66
3.48
4.82%
TSE:BBUC
Brookfield Business Corp. Class A
44.43
4.88
12.35%
TSE:BAM
Brookfield Asset Management Ltd. Class A
64.71
-12.11
-15.76%
ONEX Corporation Corporate Events
Business Operations and StrategyStock Buyback
Onex Renews Share Buyback Program for Up to 10% of Public Float
Positive
Apr 15, 2026
Onex Corporation has renewed its normal course issuer bid, securing approval from the Toronto Stock Exchange to repurchase for cancellation up to 10% of the public float of its Subordinate Voting Shares, or 6,388,348 shares, over the next 12 month...
Business Operations and StrategyPrivate Placements and Financing
Onex Partners Closes $1.6 Billion Continuation Vehicle for Three Core Portfolio Assets
Positive
Apr 9, 2026
Onex Partners, the upper middle market buyout platform of Onex Corporation, has closed a $1.6 billion multi-asset continuation vehicle anchored by leading global institutional investors. The new vehicle holds stakes in three market-leading busines...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Onex Highlights Strong 2025 Results at Convex and Boosts Investment
Positive
Mar 23, 2026
Onex Corporation, a Toronto-listed alternative asset manager, primarily allocates capital to private equity and related investment platforms for a broad base of global institutional and high-net-worth clients. The firm holds a 63% equity stake in ...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Onex Profits Surge as Convex Deal Caps Year of Strong Growth
Positive
Feb 20, 2026
Onex Corporation reported a sharp rise in profitability for 2025, with net earnings climbing to $617 million and diluted earnings per share more than doubling to $8.88, driven by stronger performance in both its investing and asset management segm...
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.