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1. Company Snapshot

1.a. Company Description

Sonova Holding AG designs, develops, manufactures, and distributes hearing care solutions for adults and children.It operates through two segments, Hearing Instruments and Cochlear Implants segments.The company offers wireless communication products; rechargeable hearing aids; wireless headsets, speech enhanced hearables, audiophile headphones, microphones, and wireless transmission systems; and audiological care services.


It also provides hearing instruments under the Phonak, Unitron, and Hansaton brand names; cochlear implants under the Advanced Bionics brand; consumer hearing products under the Sennheiser brand; and audiological care services under the AudioNova, Audium, Audition Santé, Boots Hearingcare, Connect Hearing, Geers, Hansaton, Lapperre, Schoonenberg, and Triton brands.The company sells its products through independent distributors; and provides hearing care services through a network of approximately 3,600 stores and clinics.It operates in the United States, Europe, the Middle East, Africa, and the Asia Pacific.


The company was formerly known as Phonak Holding AG and changed its name to Sonova Holding AG in August 2007.Sonova Holding AG was founded in 1947 and is headquartered in Stäfa, Switzerland.

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1.b. Last Insights on SOON

Sonova Holding AG faces headwinds in Consumer Hearing and Cochlear Implants, as reported in its recent earnings call. The company's fair value estimate was adjusted downward to CHF 246.65, citing a slight increase in the discount rate and revised revenue growth projections. Institutional owners hold 44% of the shares, implying significant influence over the company's direction. A recent upgrade to Strong Buy by Zacks Rank may drive the stock higher, but caution is warranted amid evolving market conditions.

1.c. Company Highlights

2. Sonova's Strong H1 Performance Driven by Hearing Instruments and Audiological Care

Sonova reported a robust first-half performance for the 2025-2026 period, with revenue reaching CHF 1.8 billion, up 4.9% in local currencies. The Hearing Instruments and Audiological Care segments combined saw a 7% growth in local currencies, outpacing the estimated market growth. Normalized EBITA was CHF 316 million, a 16% increase in local currencies, with a significant margin expansion of 180 basis points. Earnings per share (EPS) grew 20% in local currencies, coming in at 3.56, slightly below estimates of 3.93.

Publication Date: Nov -18

📋 Highlights
  • Sales Revenue:: CHF 1.8 billion, up 4.9% in local currencies.
  • Combined Segment Growth:: Hearing Instruments and Audiological Care sales rose 7% to CHF 1.8 billion, doubling the estimated market growth rate.
  • EBITA Margin Expansion:: Normalized EBITA surged 16% to CHF 316 million, with a 180-basis-point margin improvement to 17.5%.
  • Product Launch Impact:: Phonak Infinio and Infinio Sphere drove 7.9% growth in Hearing Instruments to EUR 880 million in H1.
  • Full-Year Guidance:: Maintains sales growth of 5–9% and normalized EBITA growth of 14–18% at constant exchange rates.
  • Financial Strength:: Free cash flow reached CHF 38 million, leverage dropped to 1.5x net debt/EBITDA, and ROCE climbed to 17.5%.

Segmental Performance

The Hearing Instruments segment drove growth with a 7.9% increase in local currencies to EUR 880 million, fueled by the success of Phonak Infinio and Infinio Sphere platforms. Audiological Care sales were CHF 707 million, up 5.8% in local currencies. However, Consumer Hearing sales declined 12% in local currencies due to weak markets and a lack of significant product launches, while Cochlear Implants sales were down 5% in local currencies, impacted by volume-based procurement in China.

Regional Performance and Outlook

Regional performance showed positive growth across the board, with EMEA up 4.5%, the U.S. up 7%, and APAC up 0.5% in local currencies. The company maintains its full-year outlook, targeting 5-9% sales growth and 14-18% normalized EBITA growth. New product launches, including Infinio Ultra and Virto R, are expected to drive growth in the second half. Eric Bernard noted that despite slowed market growth, demographics remain unchanged, ensuring rising demand for hearing solutions.

Valuation and Profitability Metrics

With a P/E Ratio of 21.61 and an EV/EBITDA of 13.76, the market appears to have priced in a significant level of growth. The company's return on capital employed rose to 17.5%, driven by higher profitability, and the ROE stands at 21.82%. The net debt-to-EBITDA ratio is 1.16, indicating a manageable leverage level. Analysts estimate next year's revenue growth at 0.8%, suggesting a potential slowdown.

Future Prospects and Strategy

The company is optimistic about its CIC category growing and is working on a new strategy to be unveiled in the first half of 2026. The launch of new products is expected to drive growth, and the company has a solid plan in place to improve customer centricity with its new organizational structure. With no significant restructuring costs involved, Sonova is poised to stick to its normalized EBITDA guidance.

3. NewsRoom

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Sonova Holding AG (SONVF) (Half Year 2026) Earnings Call Highlights: Strong Growth in Core ...

Nov -14

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How Analyst Views Are Shaping the Evolving Story for Sonova Holding

Oct -18

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SONOVA HOLDING (SONVY) Upgraded to Strong Buy: What Does It Mean for the Stock?

Oct -17

Source:

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Don't Overlook These 2 Highly Ranked Medical Stocks: COLL, MASI

Sep -26

Source: zacks.com

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Eric Bernard Takes Over as Sonova CEO Effective September 15, 2025

Sep -16

Source:

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Sep -09

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Enel (BIT:ENEL): Is the Current Valuation Overlooking Subtle Shifts in Performance?

Sep -09

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Telecom Italia (BIT:TIT): Fresh Valuation Perspectives After Strong Share Price Momentum

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.37%)

6. Segments

Hearing Instruments

Expected Growth: 8.37%

Sonova Holding AG's 8.37% growth in Hearing Instruments is driven by increasing demand for hearing aids, particularly in emerging markets, and the company's strong brand portfolio, including Phonak and Unitron. Additionally, advancements in technology, such as rechargeable batteries and artificial intelligence, are enhancing product offerings and driving sales.

Cochlear Implants

Expected Growth: 8.37%

Strong demand for Cochlear Implants from Sonova Holding AG, driven by increasing prevalence of hearing loss, advancements in technology, and expanding access to healthcare in emerging markets. Additionally, growing awareness and adoption of cochlear implants among pediatric and adult populations, as well as strategic partnerships and investments in research and development, contribute to the 8.37% growth.

7. Detailed Products

Hearing Aids

Sonova's hearing aids are designed to improve communication and quality of life for individuals with hearing loss. They offer a range of styles, from discreet and invisible to stylish and sleek.

Cochlear Implants

Sonova's cochlear implants are designed to restore hearing for individuals with severe to profound sensorineural hearing loss. They bypass damaged hair cells in the ear and directly stimulate the auditory nerve.

Bone Conduction Implants

Sonova's bone conduction implants are designed to restore hearing for individuals with conductive hearing loss, single-sided deafness, or mixed hearing loss. They use the skull to transmit sound waves to the inner ear.

Wireless Accessories

Sonova's wireless accessories, such as remote controls and streamers, enable seamless connectivity between hearing aids and other devices, enhancing the listening experience.

Auditory Diagnostics

Sonova's auditory diagnostics solutions are designed to identify and diagnose hearing loss, providing accurate and reliable results for healthcare professionals.

8. Sonova Holding AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Sonova Holding AG is medium, as there are alternative products available in the market, but they are not highly attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for Sonova Holding AG is low, as customers have limited options and the company has a strong brand presence.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Sonova Holding AG is medium, as the company relies on a few key suppliers, but has some flexibility in its supply chain.

Threat Of New Entrants

The threat of new entrants for Sonova Holding AG is low, as the company has a strong brand presence and high barriers to entry in the hearing aid industry.

Intensity Of Rivalry

The intensity of rivalry for Sonova Holding AG is high, as the company operates in a highly competitive market with several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.16%
Debt Cost 3.95%
Equity Weight 60.84%
Equity Cost 8.80%
WACC 6.90%
Leverage 64.35%

11. Quality Control: Sonova Holding AG passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Synektik

A-Score: 5.9/10

Value: 1.8

Growth: 9.8

Quality: 7.5

Yield: 5.0

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
GSK

A-Score: 5.7/10

Value: 3.9

Growth: 2.2

Quality: 6.5

Yield: 6.9

Momentum: 7.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
STERIS

A-Score: 5.2/10

Value: 2.0

Growth: 6.6

Quality: 6.5

Yield: 1.2

Momentum: 6.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Sonova

A-Score: 4.5/10

Value: 2.5

Growth: 4.6

Quality: 7.3

Yield: 3.1

Momentum: 1.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Novo Nordisk

A-Score: 4.4/10

Value: 3.5

Growth: 8.8

Quality: 8.0

Yield: 5.0

Momentum: 0.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Philips

A-Score: 3.5/10

Value: 2.4

Growth: 1.7

Quality: 2.9

Yield: 6.9

Momentum: 1.5

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

202.3$

Current Price

202.3$

Potential

-0.00%

Expected Cash-Flows