ONEX Corporation (ONEX) AI Stock Analysis

• Market Cap: C$7.84B
• Dividend Yield: 0.34%
• Average Volume (3M): 65.66K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.95
• Revenue Growth: -8.63%
• EPS Growth: -27.09%
• Country: CA
• Employees: 373
• Sector: Financial
• Sector Strength: 72
• Industry: Asset Management
• EPS (TTM): 4.59
• Shares Outstanding: 68,505,510
• 10 Day Avg. Volume: 56,730
• 30 Day Avg. Volume: 65,661
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$134.00
• Price Target Upside: 14.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: C$128.00 ▲(9.80% Upside)

ONEX Corporation's overall stock score is driven by strong financial performance, particularly in profitability and cash flow management, despite concerns about revenue growth. Technical indicators support a positive trend, and the stock appears undervalued with a low P/E ratio. The earnings call provided positive insights into asset management growth, though challenges in fee-related earnings were noted.

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

ONEX Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 116.58
• 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 116.58 is above the 20-day moving average (MA) of 113.55, above the 50-day MA of 112.45, and above the 200-day MA of 107.31, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 60.45 is Neutral, neither overbought nor oversold. The STOCH value of 63.30 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	76 Outperform	C$7.84B	11.25	6.19%	0.34%	-8.63%	-27.09%
Sector *	68 Neutral	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%
BN	―	$107.98B	144.61	1.83%	0.52%	―	―
IGIFF	―	$8.41B	12.03	12.60%	4.57%	―	―
CVG	77 Outperform	C$994.77M	8.34	9.77%	0.14%	132.11%	5511.22%
BBUC	―	$3.37B	―	-301.45%	0.72%	―	―
BAM	70 Neutral	C$133.83B	40.28	26.64%	2.74%	554.20%	37.48%

ONEX Corporation Corporate Events

Onex Corporation Reports Strong Q2 2025 Financial Results and Strategic Transactions

Onex Corporation reported strong financial results for the second quarter of 2025, showcasing growth in investing capital per share and net asset value. The company experienced a 4% return on private equity investments and a 4% return on credit strategies. Onex also announced significant transactions, including the sale of a portion of its investment in WestJet and the completion of a sale of a majority stake in Precision Concepts International. These developments highlight Onex’s ability to generate returns and strategically manage its investment portfolio, positioning the company favorably in the market.

The most recent analyst rating on (TSE:ONEX) stock is a Buy with a C$130.00 price target. To see the full list of analyst forecasts on ONEX Corporation stock, see the TSE:ONEX Stock Forecast page.