On Holding Ltd (ONON)ONON

On Holding Ltd. (ONON) Stock Overview

Company Profile:

Detailed history and background:

On Holding Ltd. is a Swiss company that designs, develops, and sells high-performance footwear and apparel. Founded in 2010, the company began with the goal of improving the running experience through innovative technology. Their patented Cloudflow technology, which features hollow pods on the sole that compress and expand with each step, quickly gained traction among runners and propelled the company's growth.

Core business areas:

• Performance Running: On's core business is its performance running shoes, which cater to all levels of runners, from casual joggers to elite athletes.
• Outdoor: On also offers a range of outdoor shoes for hiking, trail running, and other activities.
• Apparel: The company's apparel line includes sportswear, lifestyle clothing, and accessories.

Leadership team and corporate structure:

• Co-Founder and Executive Co-Chairman: David Allemann
• Co-Founder and Executive Co-Chairman: Caspar Coppetti
• CEO: Martin Hoffmann
• CFO: Patrick Deucher
• On operates with a two-tier board structure, with an Executive Board and a Board of Directors.

Top Products and Market Share:

• Top products: On's most popular products include the Cloudflow, Cloudswift, and Cloudstratus running shoes, as well as the Cloudrock waterproof hiking boot.
• Market share: On holds a significant market share in the premium running shoe segment, particularly in Europe. In the US, the company's market share is smaller but growing rapidly.
• Product performance and market reception: On's products have received positive reviews from runners and media outlets, with praise for their comfort, performance, and innovative technologies. The company has also won numerous design awards.

Total Addressable Market:

The global athletic footwear market is estimated to be worth over $100 billion, with the performance running shoe segment representing a significant portion of that market. On's target market includes both casual and serious runners, which creates a large addressable market for the company.

Financial Performance:

• Revenue: On's revenue has grown significantly over the past few years, reaching CHF 1.06 billion in FY2022.
• Net income: The company has also been profitable, with a net income of CHF 96.6 million in FY2022.
• Profit margins: On's profit margins are healthy, with a gross margin of 65.9% and an operating margin of 12.6% in FY2022.
• Earnings per share (EPS): On's EPS has also grown steadily, reaching CHF 2.89 in FY2022.
• Cash flow statements and balance sheet health: On has a strong balance sheet with a healthy cash position. The company's cash flow from operations has also been positive in recent years.

Dividends and Shareholder Returns:

• Dividend history: On does not currently pay a dividend.
• Shareholder returns: On's stock has performed well in recent years, with a total return of over 100% in the past year.

Growth Trajectory:

• Historical growth: On has experienced strong historical growth, with revenue increasing at a compound annual growth rate (CAGR) of over 50% in the past five years.
• Future growth projections: Analysts expect On's growth to continue in the coming years, with revenue projected to reach CHF 2.5 billion by FY2025.
• Recent product launches and strategic initiatives: On has been actively launching new products and expanding into new markets, which is expected to drive future growth.

Market Dynamics:

• The athletic footwear industry is highly competitive, with major players like Nike, Adidas, and Puma.
• However, On has carved out a niche in the premium running shoe segment, where it has a strong brand and loyal customer base.
• The industry is also facing challenges such as rising production costs and supply chain disruptions.

Competitors:

• Nike (NKE)
• Adidas (ADDYY)
• Puma (PUMSY)
• Brooks (BRS)
• Hoka One One (HOKA)

Potential Challenges and Opportunities:

• Challenges: On faces challenges such as competition from established players, rising production costs, and supply chain disruptions.
• Opportunities: On has opportunities to expand into new markets, launch new products, and grow its e-commerce business.

AI-Based Fundamental Rating:

On Holding Ltd. receives an AI-based fundamental rating of 8 out of 10. This rating is based on the company's strong financial performance, healthy balance sheet, and growth potential. However, it is important to note that this rating is just one factor to consider when making investment decisions.

Sources and Disclaimers:

• On Holding Ltd. website: https://www.on-running.com/
• SEC filings: https://www.sec.gov/edgar/search/
• Yahoo Finance: https://finance.yahoo.com/quote/ONON/

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.

Note:

This overview is based on publicly available information as of August 8, 2023. Investors should always conduct their own due diligence before making an investment decision.