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ONEX Corporation
(TSX:ONEX)
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Rating:66Neutral
Price Target:
C$119.00
â–²(11.59% Upside)
Action:Downgraded
Date:06/14/26
The score is driven primarily by solid profitability and a currently strong, low-leverage balance sheet, tempered by weak recent cash flow and declining revenue. Valuation is supportive due to the low P/E, while technical indicators are mixed and do not add strong momentum support.
Positive Factors
Diversified Fee + Investment Model
Onex combines recurring management fees, performance fees and returns on its own invested capital. This dual revenue mix provides durable fee income while alignment via co-investment supports long-term client relationships and incentive alignment across cycles.
Negative Factors
Weak Cash Generation
Recent TTM cash-flow reversal to negative operating and free cash flow reduces financial flexibility. Persistent weak cash conversion raises reliance on asset realizations, valuation marks or external funding to support distributions and investment activity over coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified Fee + Investment Model
Onex combines recurring management fees, performance fees and returns on its own invested capital. This dual revenue mix provides durable fee income while alignment via co-investment supports long-term client relationships and incentive alignment across cycles.
Read all positive factors
ONEX Corporation (ONEX) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$9.00B
Dividend Yield0.35%
Average Volume (3M)81.86K
Price to Earnings (P/E)10.0
Beta (1Y)0.82
Revenue Growth1.85%
EPS Growth-9.67%
CountryCA
Employees340
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$145.67Price Target Upside36.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
ONEX Corporation Business Overview & Revenue Model
Company Description
Onex Corporation functions as a private equity firm, primarily focused on strategic acquisitions and building out platform companies. Its diverse investment strategies include management buyouts, growth equity injections, recapitalizations, operat...
How the Company Makes Money
Onex makes money primarily through (1) asset management fees earned for managing third-party capital and (2) investment returns earned on capital it invests directly.
1) Asset management revenues (fee-related earnings)
- Management fees: Onex ear...
ONEX Corporation Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 06, 2026
Earnings Call Sentiment Positive
The call conveyed solid operational and strategic progress — led by Convex's strong underwriting performance, premium growth, improved combined ratio, robust LTM adjusted earnings growth, a meaningful shift in investing-capital mix, rapid NAV loan paydown, and growth in credit fee-generating AUM and structured-credit FRE. Key challenges noted were mark-to-market losses (principally in fixed-income and some CLO positions), softening pricing in short-tail insurance lines, selective private equity markdowns that produced a flat/negative quarterly PE result, and the dependence on a successful Onex Partners VI first close to hit the stated FRE target. On balance, the positives around Convex, balance-sheet improvement, realizations, and clear path to resume buybacks and grow FRE outweigh the near-term mark-to-market and fundraising execution risks.Positive Updates
Convex: Premium Growth and Strong Underwriting Performance
Gross premiums written of $1.9B in Q2, up 8% year-over-year; net income of $169M in the quarter; quarter combined ratio 85% and last-12-month combined ratio improved to 84% from 94% year-over-year (10 percentage-point improvement); adjusted net income for the last 12 months increased 38% to $719M (from $520M); return on average tangible equity rose 350 basis points to 20.3%.
Negative Updates
Investment Mark-to-Market Losses Reduced Net Investment Returns
Convex net investment returns were $45M lower than the prior-year period due primarily to mark-to-market losses on fixed income positions; Convex experienced $62M of mark-to-market losses year-to-date — a drag on reported results (management transitioned fixed income to available-for-sale to record future unrealized changes outside net income).
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Q2-2026 Updates
Positive
Negative
Convex: Premium Growth and Strong Underwriting Performance
Gross premiums written of $1.9B in Q2, up 8% year-over-year; net income of $169M in the quarter; quarter combined ratio 85% and last-12-month combined ratio improved to 84% from 94% year-over-year (10 percentage-point improvement); adjusted net income for the last 12 months increased 38% to $719M (from $520M); return on average tangible equity rose 350 basis points to 20.3%.
Read all positive updates
Company Guidance
Onex reiterated a clear path to $35 million of exit run‑rate fee‑related earnings (FRE) by the end of 2026—contingent on a first close of Onex Partners VI expected later this year—and said it will resume share repurchases immediately now that the NAV loan has been reduced to $220 million (from a $700 million draw), cash and near‑cash stood at $287 million, and $600 million of revolver capacity remains available. Key metrics cited: total investing capital per share was $123.99 (CAD 176.02) with pro‑forma investing capital ≈ $4.4 billion; Convex is valued at USD 4.2 billion (CAD 76.83/sh) and comprises 44% of investing capital, with Q2 gross premiums written of $1.9 billion (+8% YoY), Q2 net income $169 million, a Q2 combined ratio of 85%, LTM adjusted net income $719 million (+38% YoY), LTM combined ratio 84% (loss ratio 48% vs 59%) and ROATE 20.3%; Convex faced $62 million of YTD mark‑to‑market investment losses but moved fixed income to available‑for‑sale. On the PE and credit side, private equity investing capital fell to $4.4 billion (46% of investing capital) from $5.6 billion (65% at YE2025), OP V DPI = 1.0 and ~ $1.4 billion of PE realizations were generated in the past 12 months (ex‑Convex); fee‑generating AUM was $43.2 billion (+6% LTM) with credit FGAUM $30.6 billion and PE FGAUM $12.6 billion, run‑rate management fees $211 million, Q2 in‑year FRE $4 million (structured credit delivered $19 million FRE—the best quarter to date), H1 CLO activity added $4.4 billion of fee‑generating AUM across 10 CLOs, OSCO II closed with > $500 million committed, unfunded commitments are $275 million (down from $330M YE), and direct lending is ~1% of Credit AUM.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 | -104.00M | 671.00M | 174.00M | 60.00M | -392.00M | 361.00M |
| Operating Cash Flow | -104.00M | 671.00M | 174.00M | 68.00M | -384.00M | 361.00M |
| Investing Cash Flow | 233.00M | 150.00M | 38.00M | 55.00M | 234.00M | -55.00M |
| Financing Cash Flow | -582.00M | -421.00M | 453.00M | 30.00M | -282.00M | -465.00M |
ONEX Corporation Technical Analysis
Positive
106.64
Price Trends
108.98
Positive
109.05
Positive
109.35
Positive
Market Momentum
2.07
Negative
60.40
Neutral
87.88
Negative
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 106.64 is below the 20-day moving average (MA) of 110.14, below the 50-day MA of 108.98, and below the 200-day MA of 109.35, indicating a bullish trend. The MACD of 2.07 indicates Negative momentum. The RSI at 60.40 is Neutral, neither overbought nor oversold. The STOCH value of 87.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | C$20.69B | 17.91 | 12.91% | 2.84% | 19.92% | 20.90% | |
78 Outperform | C$124.23B | 31.21 | 30.37% | 3.96% | 129.18% | 15.58% | |
74 Outperform | C$1.13B | 10.43 | 9.03% | 1.24% | -102.62% | -2.25% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | C$9.00B | 10.01 | 6.52% | 0.38% | 1.85% | -9.67% | |
50 Neutral | C$8.31B | -4.25 | -18.05% | 0.78% | 95.36% | 34.59% |
* Financial Sector Average
TSE:ONEX
ONEX Corporation
115.51
2.08
1.83%
TSE:IGM
IGM Financial
89.01
42.49
91.35%
TSE:CVG
Clairvest
84.25
11.16
15.27%
TSE:BBUC
Brookfield Business Corp. Class A
40.81
-1.88
-4.42%
TSE:BAM
Brookfield Asset Management Ltd. Class A
75.35
-6.48
-7.92%
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.