Sonova Holding AG
Sonova Holding AG Fundamental Analysis
Sonova Holding AG (SONVY) shows moderate financial fundamentals with a PE ratio of 23.23, profit margin of 15.12%, and ROE of 21.53%. The company generates $3.5B in annual revenue with moderate year-over-year growth of 6.58%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SONVY's fundamental strength across five key dimensions:
Efficiency Score
WeakSONVY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSONVY trades at attractive valuation levels.
Growth Score
ModerateSONVY shows steady but slowing expansion.
Financial Health Score
ExcellentSONVY maintains a strong and stable balance sheet.
Profitability Score
ExcellentSONVY achieves industry-leading margins.
Key Financial Metrics
Is SONVY Expensive or Cheap?
P/E Ratio
SONVY trades at 23.23 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SONVY's PEG of -66.86 indicates potential undervaluation.
Price to Book
The market values Sonova Holding AG at 4.82 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.26 times EBITDA. This signals the market has high growth expectations.
How Well Does SONVY Make Money?
Net Profit Margin
For every $100 in sales, Sonova Holding AG keeps $15.12 as profit after all expenses.
Operating Margin
Core operations generate 18.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.53 in profit for every $100 of shareholder equity.
ROA
Sonova Holding AG generates $9.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sonova Holding AG produces operating cash flow of $679.70M, showing steady but balanced cash generation.
Free Cash Flow
Sonova Holding AG generates strong free cash flow of $598.87M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.02 in free cash annually.
FCF Yield
SONVY converts 4.99% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.23
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-66.86
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How SONVY Stacks Against Its Sector Peers
| Metric | SONVY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.23 | 28.32 | Better (Cheaper) |
| ROE | 21.53% | 733.00% | Weak |
| Net Margin | 15.12% | -53055.00% (disorted) | Strong |
| Debt/Equity | 0.65 | 0.38 | Weak (High Leverage) |
| Current Ratio | 1.75 | 4.03 | Neutral |
| ROA | 9.64% | -19488.00% (disorted) | Weak |
SONVY outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sonova Holding AG's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
42.16%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
20.00%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
1.31%
Industry Style: Defensive, Growth, Innovation
Growing