On Holding AG (ONON) | Investment Case

1. Company Snapshot

1.a. Company Description

On Holding AG develops and distributes sports products worldwide.It offers athletic footwear, apparel, and accessories.The company offers its products through independent retailers and distributors, online, and stores.

On Holding AG was founded in 2010 and is headquartered in Zurich, Switzerland.

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1.b. Last Insights on ONON

Breaking News: On Holding AG recently reported its earnings release On Holding ONON reached 34.77 at the closing of the latest trading day reflecting a +2.2 percent change compared to its last close The company currently holds a strong position in the market Analysts at various firms have issued recommendations with some recommending a buy and others a hold There are no sell recommendations at this time On Holding AGs recent performance has garnered significant attention from investors and market analysts alike

1.c. Company Highlights

Last Price	33.03
Change Percentage	-5.00%
Open	33.7
Previous Close	34.77
Market Cap ( Millions)	10933
Volume	6208833
Year High	61.29
Year Low	31.41
M A 50	42.56
M A 200	45.12

FCF Yield	3.17%
Dividend Yield	0.00%
ROE	13.48%
Debt / Equity	35.59%
Net Debt / EBIDTA	-120.64%
Price To Book	5.33
Price Earnings Ratio	42.85
Price To FCF	31.55
Price To sales	2.9
EV / EBITDA	22.75

2. On Holding AG: Strong 2025 Results with Robust Growth Guidance

On Holding AG reported a strong financial performance for 2025, with net sales reaching CHF 3.0 billion, a 36% growth at constant currency. The company's gross profit margin stood at 62.8%, while the adjusted EBITDA margin was 18.8%. Earnings per share (EPS) came in at CHF 0.315, beating analyst estimates of CHF 0.26. The company's Q4 results were also impressive, with net sales growing 30.6% at constant currency to CHF 743.8 million. The direct-to-consumer (D2C) channel continued to drive growth, with sales increasing 30% at constant currency.

Publication Date: Mar -04

                                    📋 Highlights
                                    Revenue Milestone::
                                                On crossed CHF 3.0 billion net sales for 2025, a 36% growth at constant currency, driven by premium product innovation and brand strength.
Profitability Expansion::
                                                Achieved record gross profit margin of 62.8% and adjusted EBITDA margin of 18.8%, with Q4 gross margin hitting 63.9% (up 180 bps YoY).
Product Innovation Leadership::
                                                R&D team scaled 1,000% in 5 years, introducing breakthroughs like LightSpray (75% less CO2) and Cloud Surfer 3 (15% lighter, 20% softer).
Regional and Category Growth::
                                                Asia Pacific exceeded CHF 1.0 billion in 2025; apparel grew 75.5% and accessories 135.1% at constant currency, fueled by D2C strategy.

                                

Operational Highlights

The company's operational performance was anchored by its premium positioning, which generated high gross margins. On Holding AG's R&D team has been a key driver of innovation, with the upcoming Cloud Surfer 3 being a notable example. The company's LightSpray technology is also expected to revolutionize manufacturing. As David Allemann mentioned, "Our engineers have made several industry-changing innovation breakthroughs, including the upcoming Cloud Surfer 3, which is 15% lighter, 20% softer, and provides 15% more energy in push-offs."

Growth Guidance and Outlook

On Holding AG expects net sales to grow at least 23% at constant currency in 2026, driven by innovation in footwear and apparel. The company anticipates robust growth across all regions, with a stronger growth rate in its D2C channel. The guidance implies a three-year constant-currency CAGR from 2023 to 2026 of at least 30.5%. Analysts estimate next year's revenue growth at 19.8%, indicating that the company's guidance is slightly above expectations.

Valuation Metrics

On Holding AG's current valuation metrics indicate a premium valuation. The company's P/E Ratio stands at 51.05, P/B Ratio at 7.43, and P/S Ratio at 3.94. The EV/EBITDA ratio is 29.61, indicating a relatively high valuation. However, the company's strong growth prospects and premium positioning may justify the current valuation.

3. NewsRoom

On Holding (ONON) Rises Higher Than Market: Key Facts

Apr -01

Source: zacks.com

ON Target of Unusually High Options Trading (NYSE:ONON)

Mar -31

Source: defenseworld.net

ONON Investors Have Opportunity to Join On Holding AG Fraud Investigation with the Schall Law Firm

Mar -29

Source: businesswire.com

ON (NYSE:ONON) Hits New 1-Year Low After Insider Selling

Mar -27

Source: defenseworld.net

INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of On Holding AG - ONON

Mar -27

Source: prnewswire.com

On Holding AG Shareholders Are Encouraged to Reach Out to Johnson Fistel for More Information About Potentially Recovering Their Losses

Mar -26

Source: globenewswire.com

Struggling Sneaker Stock Sinks on C-Suite Exit

Mar -26

Source: schaeffersresearch.com

Breakfast News: Landmark Case Puts Tech on Notice

Mar -26

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.96%)

6. Segments

Shoes

Expected Growth: 9.95%

On Holding AG's 9.95% growth in shoes is driven by increasing demand for sustainable and high-performance footwear, particularly among health-conscious millennials and Gen Z consumers. The brand's innovative technology, such as its patented CloudTec cushioning, and strategic partnerships with influential athletes and events, have also contributed to its rapid expansion.

Apparel

Expected Growth: 10.43%

On Holding AG's 10.43% growth in Apparel is driven by increasing demand for sustainable and high-performance athletic wear, strategic partnerships with key retailers, and effective digital marketing strategies. Additionally, the company's focus on innovation, quality, and comfort has led to strong brand loyalty and repeat business.

Accessories

Expected Growth: 8.97%

On Holding AG's accessories segment growth of 8.97% is driven by increasing demand for premium and sustainable athletic gear, expansion into new markets, and strategic partnerships with influential athletes and celebrities. Additionally, the company's focus on innovative products, such as 3D-printed shoes, and its strong e-commerce platform have contributed to the segment's growth.

7. Detailed Products

Cloudflow

Cloudflow is a lightweight and breathable running shoe designed for everyday training and casual running.

Cloudstratus

Cloudstratus is a max cushioning shoe designed for long runs and recovery runs, providing superior comfort and support.

Cloud X

Cloud X is a high-intensity training shoe designed for speed and agility, featuring a responsive and springy ride.

Cloudace

Cloudace is a premium running shoe designed for high-performance running, featuring a responsive and comfortable ride.

Apparel

On's apparel line features high-quality, technical clothing designed for running and everyday wear.

8. On Holding AG's Porter Forces

Forces Ranking

Threat Of Substitutes

On Holding AG's products are moderately substitutable, as customers have some alternatives, but the company's strong brand and quality products reduce the threat.

Bargaining Power Of Customers

On Holding AG's customers have limited bargaining power due to the company's strong brand and limited availability of similar products.

Bargaining Power Of Suppliers

On Holding AG's suppliers have moderate bargaining power, as the company relies on a few key suppliers, but has some flexibility to switch to alternative suppliers.

Threat Of New Entrants

The threat of new entrants is high in the athletic footwear industry, as new companies can enter the market with innovative products and marketing strategies.

Intensity Of Rivalry

The athletic footwear industry is highly competitive, with many established brands competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	18.49%
Debt Cost	3.95%
Equity Weight	81.51%
Equity Cost	14.77%
WACC	12.77%
Leverage	22.68%

11. Quality Control: On Holding AG passed 7 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Lagardere

A-Score: 6.1/10

Value: 6.8

Growth: 6.9

Quality: 4.2

Yield: 6.2

Momentum: 3.0

Volatility: 9.3

1-Year Total Return ->

A-Score: 5.8/10

Value: 1.8

Growth: 5.7

Quality: 6.7

Yield: 4.4

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

SBM

A-Score: 5.2/10

Value: 3.0

Growth: 6.7

Quality: 6.2

Yield: 1.2

Momentum: 6.0

Volatility: 8.0

1-Year Total Return ->

Marks and Spencer

A-Score: 3.5/10

Value: 5.0

Growth: 4.1

Quality: 2.8

Yield: 0.6

Momentum: 2.5

Volatility: 6.0

1-Year Total Return ->

A-Score: 3.5/10

Value: 0.6

Growth: 9.9

Quality: 7.2

Yield: 0.0

Momentum: 2.0

Volatility: 1.3

1-Year Total Return ->

CCC

A-Score: 3.5/10

Value: 5.8

Growth: 6.6

Quality: 5.7

Yield: 0.0

Momentum: 1.5

Volatility: 1.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

23.58%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

12.77%

On Holding AG - CH1134540470

1. Company Snapshot

1.a. Company Description

On Holding AG develops and distributes sports products worldwide.It offers athletic footwear, apparel, and accessories.The company offers its products through independent retailers and distributors, online, and stores.On Holding AG was founded in 2010 and is headquartered in Zurich, Switzerland.

1.b. Last Insights on ONON

1.c. Company Highlights

Expensive

Higher Growth

More Volatile

Earnings Beats

Revenues Beats

Earnings Miss

Revenues Miss

Better Quality

Strong Momentum

Lower Yield

2. On Holding AG: Strong 2025 Results with Robust Growth Guidance

Operational Highlights

Growth Guidance and Outlook

Valuation Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.96%)

6. Segments

Shoes

Expected Growth: 9.95%

Apparel

Expected Growth: 10.43%

Accessories

Expected Growth: 8.97%

7. Detailed Products

Cloudflow

Cloudstratus

Cloud X

Cloudace

Apparel

8. On Holding AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: On Holding AG passed 7 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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

33.03$

Current Price

33.03$

Potential

-0.00%

Expected Cash-Flows

On Holding AG develops and distributes sports products worldwide.It offers athletic footwear, apparel, and accessories.The company offers its products through independent retailers and distributors, online, and stores.

On Holding AG was founded in 2010 and is headquartered in Zurich, Switzerland.

12.e Scoring ^Insights

12.f DCF ^BETA