Download PDF

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.

Show Full description

1.b. Last Insights on ONON

On Holding AG's recent performance was driven by its strong Q3 earnings, which surpassed estimates with $0.5 per share, compared to $0.34 per share expected. The company's sales doubled in the Asia-Pacific region, contributing to the beat. On Holding also raised its annual sales forecast for the third time in a row, citing structural margin improvements and strong direct-to-consumer (DTC) traction. Analysts expect a 40.1% upside potential, driven by upward trends in earnings estimate revisions. Institutional investors, such as Baltimore Washington Financial Advisors Inc., have also increased their stakes in the company.

1.c. Company Highlights

2. On Holding's Q3 Earnings: A Strong Performance

On Holding reported a robust Q3 2025, with net sales reaching CHF 794.4 million, a 24.9% year-over-year increase on a reported basis and 34.5% at constant exchange rates. The gross profit margin was 65.7%, and the adjusted EBITDA margin was 22.6%, with nearly 50% year-over-year adjusted EBITDA growth. Earnings per share (EPS) came in at CHF 0.54, beating estimates of CHF 0.34. The strong financial performance was driven by the company's direct-to-consumer (DTC) channel, which delivered exceptional growth, with net sales of CHF 314.7 million, up 27.6% year-over-year on a reported basis and 37.5% at constant currency.

Publication Date: Nov -13

📋 Highlights
  • Net Sales Growth:: Achieved CHF 794.4 million, reflecting 24.9% YoY growth on a reported basis and 34.5% at constant exchange rates.
  • DTC Channel Performance:: DTC sales surged to CHF 314.7 million, up 27.6% YoY, outpacing overall sales growth.
  • APAC Regional Explosion:: Asia Pacific sales hit CHF 144.9 million, a staggering 94.2% YoY increase on a reported basis.
  • EBITDA Margin Expansion:: Adjusted EBITDA margin reached 22.6% with nearly 50% YoY growth, signaling strong profitability.
  • 2025 Guidance Raised:: Net sales projected to reach CHF 2.3 billion, with adjusted EBITDA margin targeting above 18%, up from prior expectations.

Regional Performance

Regional performance showed significant growth, with the Americas reaching CHF 436.2 million, up 10.3% year-over-year on a reported basis and 21% at constant currency. Europe, Middle East, and Africa delivered CHF 213.3 million, up 28.6% year-over-year on a reported basis and 33% at constant currency. Asia Pacific continued its phenomenal growth, with net sales of CHF 144.9 million, up 94.2% year-over-year on a reported basis and 109.2% at constant currency. The company's growth across regions is a testament to its successful premium strategy and relentless focus on innovation.

Guidance and Outlook

The company raised its outlook for the year, with net sales expected to reach CHF 2.3 billion and an adjusted EBITDA margin of around 20%. The gross profit margin was boosted by a one-time adjustment of approximately 200 basis points related to lower-than-anticipated freight and other costs, as well as a positive margin effect from the timing lag between U.S. price increases and additional U.S. tariffs. On Holding's guidance implies ongoing double-digit growth in the U.S., but significantly higher growth in Asia and EMEA.

Valuation

On Holding's current valuation metrics indicate a premium, with a P/E Ratio of 154.53 and an EV/EBITDA of 38.34. The company's P/S Ratio is 3.96, and its ROE is 9.86%. The market appears to have priced in significant growth expectations, and the company's ability to deliver on its guidance will be crucial in justifying its current valuation. Analysts estimate next year's revenue growth at 23.8%, which will be an important driver in determining the company's future valuation.

3. NewsRoom

Card image cap

ONON's Rapid DTC Expansion Tests Whether It Can Outgrow Wholesale

Dec -02

Source: zacks.com

Card image cap

5 Amazing Growth Stocks to Buy Before 2026

Nov -30

Source: fool.com

Card image cap

The Zacks Analyst Blog Crocs, On Holding, Ralph Lauren, Kontoor and Boot Barn

Nov -28

Source: zacks.com

Card image cap

Can On Holding (ONON) Run Higher on Rising Earnings Estimates?

Nov -27

Source: zacks.com

Card image cap

On Holding: Strong Momentum, Rising Visibility, And Attractive Risk-Reward

Nov -27

Source: seekingalpha.com

Card image cap

Baltimore Washington Financial Advisors Inc. Purchases 31,274 Shares of On Holding AG $ONON

Nov -27

Source: defenseworld.net

Card image cap

Buy 5 Apparel & Shoes Stocks to Kick Off Your Black Friday Shopping

Nov -26

Source: zacks.com

Card image cap

On Holding: This Growth Star Is Now Trading On The Clearance Rack

Nov -25

Source: seekingalpha.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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Lagardere

A-Score: 6.0/10

Value: 7.2

Growth: 6.9

Quality: 4.2

Yield: 5.6

Momentum: 3.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
SBM

A-Score: 5.7/10

Value: 4.7

Growth: 6.7

Quality: 6.2

Yield: 1.2

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
NEXT

A-Score: 5.6/10

Value: 1.8

Growth: 5.7

Quality: 6.7

Yield: 4.4

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
Marks and Spencer

A-Score: 4.3/10

Value: 5.8

Growth: 4.1

Quality: 4.9

Yield: 0.6

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
CCC

A-Score: 3.9/10

Value: 5.0

Growth: 6.6

Quality: 5.5

Yield: 0.0

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

View Full Report
Stock-Card
On

A-Score: 3.5/10

Value: 0.7

Growth: 9.9

Quality: 6.3

Yield: 0.0

Momentum: 2.5

Volatility: 1.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

46.51$

Current Price

46.51$

Potential

-0.00%

Expected Cash-Flows