On Holding AG (ONON) AI Stock Analysis

• Market Cap: $14.89B
• Dividend Yield: N/A
• Average Volume (3M): 6.76M
• Price to Earnings (P/E): 97.7
• Beta (1Y): 1.43
• Revenue Growth: 39.16%
• EPS Growth: -14.16%
• Country: US
• Employees: 3,254
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -0.11
• Shares Outstanding: 293,047,730
• 10 Day Avg. Volume: 5,642,136
• 30 Day Avg. Volume: 6,763,770
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 6.18
• Enterprise Value/Gross Profit: 10.12
• Enterprise Value/Ebitda: 61.82
• 1Y Price Target: $65.47
• Price Target Upside: 43.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

• Rating: 71 Outperform
• Price Target: $50.00 ▲(9.67% Upside)

On Holding AG's strong financial performance and positive earnings call are the most significant factors driving the score. However, the high valuation and bearish technical indicators temper the overall outlook. The company's robust growth potential and strategic clarity are promising, but investors should be cautious of the high P/E ratio and current market trends.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective sales strategies, positioning On Holding AG for sustained expansion in the athletic and outdoor sectors.

Direct-to-Consumer Channel Success

The success of the DTC channel enhances profitability and brand control, reducing reliance on third-party retailers and strengthening customer relationships.

APAC Region Growth

The rapid growth in the APAC region underscores On Holding AG's effective market penetration and potential for further expansion in high-growth markets.

Negative Factors

Profit Margin Pressure

Declining profit margins suggest rising costs or pricing pressures, which could impact long-term profitability if not addressed through cost management or pricing strategies.

Forex Impact

Forex losses highlight the vulnerability to currency fluctuations, which can affect financial stability and necessitate hedging strategies to mitigate risks.

Increased Tariffs

Rising tariffs on imports could erode profit margins and necessitate strategic adjustments in supply chain management to maintain cost competitiveness.

On Holding AG Business Overview & Revenue Model

Company Description

On Holding AG, commonly referred to as On, is a Swiss-based sportswear company specializing in high-performance footwear, apparel, and accessories for running and outdoor activities. Founded in 2010, the company has quickly gained recognition for its innovative CloudTec® technology, which provides a unique cushioning experience for runners. On operates in the athletic and outdoor sectors, targeting both amateur and professional athletes, and has expanded its product line to include a variety of running shoes, lifestyle footwear, and performance apparel.

How the Company Makes Money

On generates revenue primarily through the sale of its footwear and apparel products. The company's revenue model is based on direct-to-consumer sales via its online platform and physical retail stores, as well as wholesale partnerships with various sporting goods retailers worldwide. Key revenue streams include high-margin running shoes, which represent a significant portion of sales, along with complementary apparel and accessories. On has established strategic partnerships with professional athletes and sports teams to enhance brand visibility and credibility, contributing to its strong market presence. Additionally, seasonal product launches and limited-edition collaborations help drive consumer interest and sales.

On Holding AG Financial Statement Overview

Summary

On Holding AG exhibits strong financial health with consistent revenue growth and solid cash flow generation. While profitability margins have faced some pressure, the company's balance sheet remains robust with manageable leverage. Overall, the financial statements reflect a company with strong growth potential and effective cash management, though attention to profitability improvements is warranted.

Income Statement

On Holding AG has demonstrated strong revenue growth with a 7.16% increase in TTM, supported by a solid gross profit margin of 61.00%. However, the net profit margin has decreased to 5.00% from 10.45% in the previous year, indicating some pressure on profitability. The EBIT and EBITDA margins have also seen a decline, suggesting increased operational costs or other expenses impacting earnings.

Balance Sheet

The company maintains a healthy balance sheet with a manageable debt-to-equity ratio of 0.36, reflecting prudent leverage. The return on equity stands at 9.86%, indicating effective use of equity to generate profits, although it has decreased from the previous year. The equity ratio is strong, showing a stable financial position with equity covering a significant portion of total assets.

Cash Flow

On Holding AG has shown impressive free cash flow growth of 153.20% in TTM, highlighting robust cash generation capabilities. The operating cash flow to net income ratio is 0.61, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio of 0.84 suggests strong cash flow relative to net income, although slightly lower than the previous year.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.72B	2.32B	1.79B	1.22B	724.60M	425.30M
Gross Profit	1.66B	1.41B	1.07B	684.90M	430.30M	231.10M
EBITDA	271.50M	400.00M	141.00M	128.60M	-125.80M	-12.00M
Net Income	135.90M	242.30M	79.60M	57.70M	-170.20M	-27.50M
Balance Sheet
Total Assets	2.54B	2.38B	1.59B	1.38B	1.24B	382.57M
Cash, Cash Equivalents and Short-Term Investments	898.50M	968.00M	512.40M	397.30M	676.80M	100.51M
Total Debt	497.80M	347.60M	229.00M	160.40M	180.80M	23.73M
Total Liabilities	1.15B	984.90M	518.50M	412.90M	388.10M	137.48M
Stockholders Equity	1.40B	1.39B	1.07B	969.50M	848.40M	245.09M
Cash Flow
Free Cash Flow	347.70M	445.60M	184.90M	-310.00M	-19.30M	-33.33M
Operating Cash Flow	416.20M	510.60M	232.10M	-227.00M	16.95M	-14.73M
Investing Cash Flow	-68.30M	-64.90M	-47.10M	-82.90M	-36.44M	-18.62M
Financing Cash Flow	-66.60M	-55.40M	-21.80M	6.30M	595.90M	124.80M

On Holding AG Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 45.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONON, the sentiment is Neutral. The current price of 45.59 is above the 20-day moving average (MA) of 44.55, below the 50-day MA of 46.95, and below the 200-day MA of 51.08, indicating a neutral trend. The MACD of -0.51 indicates Negative momentum. The RSI at 53.51 is Neutral, neither overbought nor oversold. The STOCH value of 88.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ONON.

On Holding AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOOT	76 Outperform	5.36B	27.70	16.68%	―	16.70%	27.76%
GAP	75 Outperform	8.39B	9.57	25.90%	2.79%	-0.05%	15.17%
ONON	71 Outperform	$14.89B	97.66	9.66%	―	39.16%	-14.16%
AEO	66 Neutral	3.04B	18.17	12.76%	2.79%	-2.73%	-16.71%
LULU	65 Neutral	21.45B	11.87	40.70%	―	9.16%	12.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

On Holding AG Corporate Events

On Holding AG Reports Strong Q2 2025 Financial Results

On Holding AG reported its financial results for the second quarter ended June 30, 2025, showing a notable increase in net sales and gross profit compared to the previous year. The company’s operating result also improved significantly, reflecting strong market demand and effective cost management strategies.