On Holding Ltd (ONON)

On Holding Ltd.: A Comprehensive Overview

Company Profile:

Detailed History and Background:

On Holding Ltd. (ONON.S) is a Swiss footwear company founded in 2010 by Olivier Bernhard, David Allemann, and Caspar Coppetti. The company initially focused on sports apparel and performance shoes, targeting athletes and active individuals. However, it gradually shifted its focus to casual footwear and achieved global recognition through its innovative CloudTec cushioning technology. Today, On Holding Ltd. enjoys a strong presence in the global footwear market, particularly in the running and outdoor categories.

Core Business Areas:

On Holding Ltd.'s core business includes the design, development, production, and distribution of premium footwear for various activities, including running, outdoor adventures, and everyday wear. The company focuses on innovation and technology, incorporating its signature CloudTec cushioning into its products for superior comfort and performance. Additionally, On Holding Ltd. prioritizes sustainability and uses environmentally friendly materials in its production processes.

Leadership Team and Corporate Structure:

On Holding Ltd.'s leadership team comprises experienced individuals with extensive knowledge and expertise in the footwear industry. Co-founder David Allemann serves as the Executive Chairman, while Martin Hoffmann holds the position of CEO. The company operates a streamlined corporate structure, with a clear focus on its core business and a commitment to innovation and growth.

Top Products and Market Share:

On Holding Ltd.'s top products include:

• CloudTec Cushioning Technology: This innovative technology provides exceptional shock absorption and energy return, making it ideal for running and high-impact activities.
• Cloudstratus Running Shoes: This popular model offers superior cushioning and stability, making it a favorite among long-distance runners.
• Cloudventure Peak Trail Running Shoes: These shoes are designed for off-road adventures and provide excellent traction and support on uneven terrain.
• Cloudnova Everyday Sneakers: These stylish and comfortable sneakers cater to casual wear and everyday activities.

On Holding Ltd. holds a significant market share in the global running shoe market, estimated to be around 2%. In the US market, the company's share is slightly lower, around 1.5%.

Market Dynamics:

The global footwear market is highly competitive and dynamic, with numerous established and emerging players. Key trends include a growing demand for sustainable and eco-friendly products, increasing adoption of athleisure wear, and the rise of e-commerce. On Holding Ltd. positions itself within this competitive landscape by focusing on innovation, sustainability, and a strong brand identity.

Total Addressable Market:

The global footwear market is vast, with an estimated value of over $370 billion in 2023. The athletic footwear segment, which includes running shoes and outdoor footwear, represents a significant portion of this market, with an estimated value of $65 billion. On Holding Ltd. operates within this segment, targeting a market size of over $65 billion.

Financial Performance:

On Holding Ltd. has experienced strong financial performance in recent years. Revenue has grown significantly, from $139 million in 2019 to $926 million in 2022. Net income has also increased, reaching $127 million in 2022. Profit margins have remained stable, while earnings per share (EPS) have grown steadily. The company's financial statements are indicative of a healthy and growing business.

Dividends and Shareholder Returns:

On Holding Ltd. does not currently pay dividends to shareholders. However, the company has a history of share buybacks, which benefit shareholders by increasing the value of their holdings. Total shareholder returns have been impressive over the past few years, with a 5-year average return of over 60%.

Growth Trajectory:

On Holding Ltd. has experienced consistent growth over the past few years. The company projects continued growth in the future, driven by new product launches, strategic partnerships, and expansion into new markets. The company's strong financial performance and commitment to innovation support its growth trajectory.

Competitors:

Key competitors in the athletic footwear market include:

• Nike (NKE) with a market share of 24.1%.
• Adidas (ADS) with a market share of 21.0%.
• Puma (PUM) with a market share of 4.0%.
• Under Armour (UAA) with a market share of 2.0%.

On Holding Ltd. differentiates itself from competitors by focusing on innovation, sustainability, and a premium brand image.

Potential Challenges and Opportunities:

On Holding Ltd. faces several challenges, including supply chain disruptions, rising material costs, and intense competition. However, the company also has significant opportunities, including expanding into new markets, developing innovative products, and strengthening its brand recognition.

Recent Acquisitions:

On Holding Ltd. has not made any acquisitions in the last three years.

AI-Based Fundamental Rating:

An AI-based fundamental rating for On Holding Ltd. is estimated to be around 8.5 out of 10. This rating is driven by the company's strong financial performance, innovative product offerings, and commitment to sustainability. However, potential challenges, such as competition and supply chain issues, are also considered in this assessment.

Sources and Disclaimers:

Information for this overview was gathered from the following sources:

• On Holding Ltd. Investor Relations website
• Reuters
• Yahoo Finance
• Marketwatch

Please note that this information is provided for general knowledge and informational purposes only, and does not constitute financial advice. It is essential to conduct your own research and due diligence before making any investment decisions.