$58.13
arrow_drop_up3.45%Is ONON a Buy or Sell based on AI Analysis?
Fundamental Analysis
On Holding AG is a stock with a score of 64, indicating moderate fundamental strength. The company's current price of $28.65 is significantly lower than the previous close of $33.62, resulting in a price change of -14.78%. With a market capitalization of $8.12B and a price-to-sales ratio of 6.15, the company's valuation appears reasonable. Additionally, the company's return on equity of 7.78% and return on assets of 5.95% suggest that management is effectively utilizing assets to generate profits. Despite a recent decline in stock price, On Holding AG demonstrates strong revenue growth of 40.06% year-over-year. The company's operating margin of 12.03% indicates efficient cost management, while the net margin of 4.67% reflects profitability. The company's debt-to-equity ratio of 0.19 and net debts of -$176.2M suggest a strong financial position with ample room for growth and expansion.
Positive Development
The company's stock price has been steadily increasing over the past weeks, indicating investor confidence in the company's future performance. The company's growth strategy through expansion and innovation is being recognized by the market, which could drive further growth. The company has been named as a good investment by brokers, which could attract more investors. The company's financials show a positive gross margin and EPS, indicating a strong financial position.
Negative Development
The company's stock price has recently experienced a slight decrease, which could indicate a potential reversal of the positive trend. The company's long-term debt to total assets and equity ratios are relatively high, which could indicate a potential risk for the company's financial health. The company's stock is considered highly sought-after by analysts, which could lead to a potential overvaluation. The company's EBIT per share and FCF per share are negative, which could indicate a potential financial burden.
Technical Analysis
On Holding AG, a stock with the symbol ONON, is currently showing a neutral technical rating based on various indicators. The stock has a trailing PE ratio of 124.52 and a beta of 2.18, indicating a higher level of volatility compared to the overall market. The company's technical analysis shows that there are 1 buy indicator and 5 hold indicators for the month, while 2 sell indicators have also been identified. The stock's price has experienced a significant decrease of 14.78% compared to the previous close, with a seven-day price change percent of -15.30%. Additionally, the stock is trading at a price-to-book ratio of 8.45 and a price-to-cashflow ratio of 233.68, suggesting potential overvaluation. Despite the recent price decline, On Holding AG's technical analysis also reveals some positive signs. The company has a current ratio of 3.35, indicating strong short-term liquidity and the ability to meet its obligations. Furthermore, the stock has a return on equity of 7.78% and a return on assets of 5.95%, demonstrating the company's profitability and efficiency in generating returns for shareholders. The market score for the stock is 64, indicating moderate performance in comparison to the market benchmarks. Overall, investors should consider the various technical indicators and financial ratios before making investment decisions on On Holding AG.
Conclusion and recommendation
Based on the data provided for On Holding AG, it appears to be a stock with a neutral technical rating and a current price of $28.65. The company has a market capitalization of $8.12 billion and a price-to-sales ratio of 6.15. On Holding AG has seen a significant decrease in its stock price recently, with a 14.78% decline compared to the previous close. However, the company has shown resilience with a year-to-date price change of 7.02%. With a return on equity of 7.78% and a net margin of 4.67%, On Holding AG demonstrates solid financial performance and profitability. In conclusion, while On Holding AG has experienced a recent decline in its stock price, it still presents a promising opportunity for investors. The company's strong financial metrics, including a healthy return on equity and net margin, indicate a sound and stable business. Furthermore, with a positive year-to-date price change and a neutral technical rating, On Holding AG may present a buying opportunity for investors looking for long-term growth potential. It is recommended that investors conduct further research and analysis to fully understand the company's potential and make informed investment decisions.