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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 reported Q4 earnings of $0.31 per share, beating estimates of $0.26 per share. However, the company's revenue outlook for 2026 was weak, causing shares to slide. Analysts see a 28.4% upside in the stock, with a mean price target that suggests a significant increase. On Holding announced fourth-quarter and full-year results, and filed its annual report on Form 20-F for 2025. Some analysts recommend a buy, while others have a hold rating, no sell recommendation was found.

1.c. Company Highlights

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

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On Holding: Don't Sweat The Soft Initial 2026 Outlook, Buy As Product Scope Expands

Mar -04

Source: seekingalpha.com

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Why Did On Holding Stock Tank Today?

Mar -03

Source: fool.com

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On Holding Shares Slide Despite Q4 Beat, Weak 2026 Revenue Outlook Rattles Traders

Mar -03

Source: benzinga.com

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On Holding AG (ONON) Q4 2025 Earnings Call Transcript

Mar -03

Source: seekingalpha.com

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Crude Oil Prices Close to 2-Year High

Mar -03

Source:

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Wall Street Analysts See a 28.36% Upside in On Holding (ONON): Can the Stock Really Move This High?

Mar -03

Source: zacks.com

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Tuesday's Earnings Movers: MDB 7-Month Lows, ONON Stumbles & AZO Lower

Mar -03

Source: youtube.com

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Surging Oil, Stagflation Fears Cripple Stock Futures

Mar -03

Source: schaeffersresearch.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: 6.1/10

Value: 6.8

Growth: 6.9

Quality: 4.2

Yield: 6.2

Momentum: 3.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
NEXT

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 ->

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Stock-Card
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 ->

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Stock-Card
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 ->

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Stock-Card
On

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 ->

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Stock-Card
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 ->

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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

43.23$

Current Price

43.23$

Potential

-0.00%

Expected Cash-Flows