On Holding AG
On Holding AG Fundamental Analysis
On Holding AG (ONON) shows moderate financial fundamentals with a PE ratio of 39.34, profit margin of 8.05%, and ROE of 15.91%. The company generates $3.1B in annual revenue with strong year-over-year growth of 24.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ONON's fundamental strength across five key dimensions:
Efficiency Score
WeakONON struggles to generate sufficient returns from assets.
Valuation Score
ModerateONON shows balanced valuation metrics.
Growth Score
ModerateONON shows steady but slowing expansion.
Financial Health Score
ExcellentONON maintains a strong and stable balance sheet.
Profitability Score
ModerateONON maintains healthy but balanced margins.
Key Financial Metrics
Is ONON Expensive or Cheap?
P/E Ratio
ONON trades at 39.34 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ONON's PEG of 1.91 indicates fair valuation.
Price to Book
The market values On Holding AG at 5.62 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 24.59 times EBITDA. This signals the market has high growth expectations.
How Well Does ONON Make Money?
Net Profit Margin
For every $100 in sales, On Holding AG keeps $8.05 as profit after all expenses.
Operating Margin
Core operations generate 13.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.91 in profit for every $100 of shareholder equity.
ROA
On Holding AG generates $8.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
On Holding AG produces operating cash flow of $390.77M, showing steady but balanced cash generation.
Free Cash Flow
On Holding AG produces free cash flow of $308.83M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.93 in free cash annually.
FCF Yield
ONON converts 3.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
39.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.91
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.18
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How ONON Stacks Against Its Sector Peers
| Metric | ONON Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 39.34 | 23.71 | Worse (Expensive) |
| ROE | 15.91% | 1187.00% | Weak |
| Net Margin | 8.05% | 2531.00% | Weak |
| Debt/Equity | 0.34 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 2.98 | 2.82 | Strong Liquidity |
| ROA | 8.53% | -8521.00% (disorted) | Weak |
ONON outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews On Holding AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
527.97%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
756.38%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
2137.48%
Industry Style: Cyclical, Growth, Discretionary
High Growth