Sonova Holding AG Fundamental Analysis (SIX: SOON.SW)
Sonova Holding AG (SIX: SOON.SW) shows moderate financial fundamentals with a PE ratio of 33.89, profit margin of 14.90%, and ROE of 21.31%. The company generates $3.5B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.5/100 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 SOON.SW's fundamental strength across five key dimensions:
Efficiency Score
WeakSOON.SW struggles to generate sufficient returns from assets.
Valuation Score
ModerateSOON.SW shows balanced valuation metrics.
Growth Score
ModerateSOON.SW shows steady but slowing expansion.
Financial Health Score
ExcellentSOON.SW maintains a strong and stable balance sheet.
Profitability Score
ModerateSOON.SW maintains healthy but balanced margins.
Key Financial Metrics
Is SOON.SW Expensive or Cheap?
P/E Ratio
SOON.SW trades at 33.89 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SOON.SW's PEG of -1.67 indicates potential undervaluation.
Price to Book
The market values Sonova Holding AG at 5.66 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.65 times EBITDA. This is generally considered low.
How Well Does SOON.SW Make Money?
Net Profit Margin
For every $100 in sales, Sonova Holding AG keeps $14.90 as profit after all expenses.
Operating Margin
Core operations generate 18.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.31 in profit for every $100 of shareholder equity.
ROA
Sonova Holding AG generates $9.54 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 $673.03M, showing steady but balanced cash generation.
Free Cash Flow
Sonova Holding AG generates strong free cash flow of $592.94M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $9.98 in free cash annually.
FCF Yield
SOON.SW converts 4.14% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.04
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
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How SOON.SW Stacks Against Its Sector Peers
| Metric | SOON.SW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.89 | 32.14 | Neutral |
| ROE | 21.31% | 550.00% | Weak |
| Net Margin | 14.90% | 30133.00% | Weak |
| Debt/Equity | 0.65 | 0.56 | Neutral |
| Current Ratio | 1.75 | 5.70 | Neutral |
| ROA | 9.54% | 3.00% | Excellent |
SOON.SW outperforms its industry in 1 out of 6 key metrics, particularly excelling in ROA, 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
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation