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On Holding AG
(NYSE:ONON)
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Rating:72Outperform
Price Target:
$38.00
▲(31.81% Upside)
Action:Reiterated
Date:09/23/26
The score is driven primarily by strong financial performance (high margins, improving profitability, solid cash generation) and a constructive earnings outlook (low-20s growth with 65%+ gross margin and ~20% EBITDA margin). These positives are tempered by weak technicals (downtrend and negative momentum) and moderate valuation support (P/E ~20 with no dividend yield).
Positive Factors
DTC Momentum
Rapid DTC growth strengthens control over pricing, customer relationships, and brand presentation while improving sales mix. A larger owned-channel base can support durable margin quality and reduce reliance on third-party retailers as On expands internationally.
Negative Factors
Wholesale Weakness
Slower wholesale growth, particularly in the Americas, indicates that some retail partners are seeing weaker sell-through in a promotional marketplace. Persistent channel softness could moderate revenue growth and make inventory and product-launch execution more important.
Read all positive and negative factors
Positive Factors
Negative Factors
DTC Momentum
Rapid DTC growth strengthens control over pricing, customer relationships, and brand presentation while improving sales mix. A larger owned-channel base can support durable margin quality and reduce reliance on third-party retailers as On expands internationally.
Read all positive factors
On Holding AG Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where On Holding AG is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where On Holding AG is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
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The Fly
On Holding AG (ONON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.27B
Dividend YieldN/A
Average Volume (3M)11.51M
Price to Earnings (P/E)23.5
Beta (1Y)1.61
Revenue Growth29.34%
EPS Growth222.74%
CountryUS
Employees3,963
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)1.20
Shares Outstanding296,873,350
10 Day Avg. Volume9,414,589
30 Day Avg. Volume11,509,912
Financial Highlights & Ratios
PEG Ratio-4.69
Price to Book (P/B)7.43
Price to Sales (P/S)4.03
P/FCF Ratio47.98
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue3.45
Enterprise Value/Gross Profit5.32
Enterprise Value/Ebitda19.17
Forecast
1Y Price Target
$43.09Price Target Upside49.47% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering24
EPS Forecast (FY)1.43
Revenue Forecast (FY)$3.52B
On Holding AG Business Overview & Revenue Model
Company Description
On Holding AG, together with its subsidiaries, develops and distributes performance sports products under the On brand in Switzerland, the rest of Europe, the Middle East, Africa, the United States, the rest of the Americas, and the Asia-Pacific. ...
How the Company Makes Money
On primarily makes money by selling branded athletic footwear, apparel, and accessories. Its revenue is generated through two main routes: (1) direct-to-consumer (DTC) sales, where On sells products through its own e-commerce websites and company-...
On Holding AG Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Positive
The call presents a strong set of financial and commercial achievements: double-digit constant-currency revenue growth, exceptional gross margin expansion (65.4%), robust DTC momentum (34.3% CC growth; 45.7% of sales), large APAC and apparel outperformance, meaningful innovation milestones, and a fortified balance sheet (net cash > CHF 1.2bn). The primary near-term challenges are deliberate wholesale sell-in reductions—mainly in the Americas—resulting in moderated wholesale growth, an inventory increase (~30%), and exposure to a promotional wholesale environment and tariff timing. Management frames the wholesale actions as strategic and temporary to protect premium positioning and to set up a stronger innovation-led 2027 rollout. Given the breadth and scale of the operational, product and financial positives versus a limited set of intentional, strategic near-term trade-offs, the overall tone is decidedly favorable.Positive Updates
Record Quarterly Net Sales
Net sales reached CHF 850 million in Q2 FY2026, up 21.6% at constant currency (13.5% reported), driven by broad-based demand.
Negative Updates
Wholesale Underperformance, Especially in the Americas
Wholesale growth decelerated to 12.7% at constant currency (4.8% reported); Americas growth was only 13.0% at constant currency (4.5% reported), with everyday running franchises selling out below ambitions in a highly promotional multi-brand marketplace.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Net Sales
Net sales reached CHF 850 million in Q2 FY2026, up 21.6% at constant currency (13.5% reported), driven by broad-based demand.
Read all positive updates
Company Guidance
The company guided to full‑year net sales growth in the low‑20s percent at constant currency, a full‑year gross margin of at least 65% and a reiterated adjusted EBITDA margin of 19.5%–20% (guidance excludes potential tariff‑refund benefits, which management expects to begin recognizing in Q3); management also said Q3 growth should be lower than Q4 as they deliberately manage wholesale sell‑in while expecting continued very strong DTC momentum and significant DTC mix expansion for the rest of the year (Q2 figures for context: net sales CHF 850m, ~+22% CC; DTC CHF 388m, +34.3% CC and 45.7% of sales; Q2 gross margin 65.4%; Q2 adjusted EBITDA margin 19.8%). Balance‑sheet and operating metrics noted alongside the outlook included net cash just over CHF 1.2bn (cash up CHF 185.2m), capex CHF 28.2m, net working capital improvement of CHF 14.9m and NWC below 20% of sales, and inventory up ~30% (driven mainly by volume and FX).On Holding AG Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
79
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.24B | 3.01B | 2.32B | 1.79B | 1.22B | 724.60M |
| Gross Profit | 2.10B | 1.89B | 1.41B | 1.07B | 684.90M | 430.30M |
| EBITDA | 582.46M | 354.50M | 400.00M | 244.70M | 128.60M | -125.80M |
| Net Income | 398.60M | 203.70M | 242.30M | 79.60M | 57.70M | -170.20M |
Balance Sheet | ||||||
| Total Assets | 3.24B | 2.84B | 2.38B | 1.59B | 1.38B | 1.24B |
| Cash, Cash Equivalents and Short-Term Investments | 1.24B | 1.02B | 968.00M | 512.40M | 397.30M | 676.80M |
| Total Debt | 562.50M | 581.66M | 347.60M | 229.00M | 160.40M | 180.80M |
| Total Liabilities | 1.33B | 1.20B | 984.90M | 518.50M | 412.90M | 388.10M |
| Stockholders Equity | 1.91B | 1.63B | 1.39B | 1.07B | 969.50M | 848.40M |
Cash Flow | ||||||
| Free Cash Flow | 424.16M | 253.18M | 445.60M | 184.90M | -310.00M | -19.30M |
| Operating Cash Flow | 513.49M | 322.80M | 510.60M | 232.10M | -227.00M | 16.90M |
| Investing Cash Flow | -96.66M | -75.07M | -64.90M | -47.10M | -82.90M | -36.40M |
| Financing Cash Flow | -73.18M | -54.44M | -55.40M | -21.80M | 6.30M | 595.90M |
On Holding AG Technical Analysis
Neutral
28.83
Price Trends
30.55
Positive
33.79
Positive
37.08
Negative
Market Momentum
1.31
Negative
58.94
Neutral
36.38
Neutral
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 28.83 is below the 20-day moving average (MA) of 33.14, below the 50-day MA of 30.55, and below the 200-day MA of 37.08, indicating a neutral trend. The MACD of 1.31 indicates Negative momentum. The RSI at 58.94 is Neutral, neither overbought nor oversold. The STOCH value of 36.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ONON.
On Holding AG Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $11.90B | 12.11 | 43.56% | ― | 7.48% | 8.03% | |
72 Outperform | $11.27B | 23.51 | 23.26% | ― | 29.34% | 222.74% | |
70 Outperform | $5.75B | 15.63 | 12.12% | ― | 19.55% | 19.15% | |
68 Neutral | $5.82B | 10.16 | 43.41% | ― | -2.03% | 205.97% | |
66 Neutral | $1.65B | 15.47 | 26.26% | 1.99% | 7.16% | 24.85% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
49 Neutral | $56.26B | 17.96 | 21.24% | 4.37% | -1.36% | 6.80% |
* Consumer Cyclical Sector Average
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On Holding AG Corporate Events
On Holding Sets Aggressive 2029 Growth Targets and Launches $1 Billion Buyback at Investor Day
Sep 22, 2026
On Holding AG used its Investor Day in Zurich on September 22, 2026 to outline a new strategy and financial ambitions for 2026–2029, positioning itself to “redefine what a sportswear brand can be” for the so‑called Movement...
On Holding AG Files Q2 2026 Interim Financials and Updates U.S. Registrations
Aug 11, 2026
On Holding AG, the Swiss athletic footwear and apparel maker, filed a Form 6-K with the U.S. Securities and Exchange Commission on August 11, 2026, covering its financial reporting for the second quarter ended June 30, 2026. The filing, signed by ...
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.