On Holding AG (ONON)

Price$27.99Cached quoteAs of 2026-09-05 07:22 UTC

AI: Undervalued

Price checkThe shares look undervalued if On can sustain its current growth and profitability.

On trades at about twenty times earnings from the latest four reported quarters, while sales are still growing above 20% when currency movements are removed. After accounting for its large cash position, the valuation is roughly ten times management's expected 2026 adjusted operating cash-profit measure. That is not a deep-value price, but it looks attractive for a company combining rapid growth, expanding margins and a debt-light balance sheet. The main assumption is that growth stays strong rather than fading quickly.

Big pictureGrowth remains strong and profits are improving, though the important Americas market has slowed.

On's revenue rose from CHF 425 million in 2020 to CHF 3.01 billion in 2025, while operating income reached CHF 377 million. First-half 2026 sales grew 24% when currency changes are removed, and net income jumped to CHF 208 million from CHF 16 million. Second-quarter direct sales grew 34% on the same basis, but Americas growth slowed to 13%. That regional slowdown matters because the Americas generate more than half of sales and could signal a more mature growth phase.

Business strengthA large cash balance protects the downside, although employee shares create modest dilution.

On held CHF 1.21 billion of cash at June 30 and had no significant traditional borrowing, giving it substantial flexibility. First-half operating cash flow reached CHF 255 million, while purchases of property and intangible assets totaled only about CHF 47 million. The weaker point is capital allocation: On pays no dividend and conducts almost no buybacks. Share-based compensation was CHF 31 million in the first half, and the Class A share count has gradually risen, creating modest ongoing dilution.

What could change the storyContinued premium growth could unlock upside, while weaker wholesale demand could erase the discount.

The bull case requires On to preserve full-price selling while expanding direct sales, Asia-Pacific and apparel. Management expects low-twenties constant-currency growth for 2026, at least a 65% gross margin and a 19.5% to 20% adjusted operating cash-profit margin. The bear case is visible in second-quarter wholesale growth slowing to 12.7% and Americas growth reaching only 13%. If those trends deteriorate further, today's valuation would become less compelling because investors are still paying for meaningful future expansion.

AI: News

Second-quarter growth scareA sales miss and slower Americas growth triggered a historic selloff despite stronger profit margins.

On reported second-quarter results on August 11, with sales of CHF 850.3 million, below the roughly CHF 878 million analyst expectation. Americas growth slowed to 13% when currency effects were removed, although direct sales grew 34% and gross margin reached 65.4%. The shares closed down about 20% that day. The timing strongly links the reaction to concerns about slowing growth, though broader market factors may also have contributed.

First-quarter margin upgradeStrong first-quarter profits lifted guidance, but slower American growth kept investors cautious.

On reported first-quarter results on May 12, with sales reaching CHF 831.9 million and growing 26.4% after removing currency effects. Net income rose 82%, while the company raised its gross-margin target and increased its adjusted operating profitability outlook to 19.5% to 20%. Shares nevertheless fell about 4% as investors focused on Americas growth slowing to roughly 17%. The reaction showed that expectations for On's expansion remained demanding despite improving profitability.

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Revenue

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2020

2021

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2024

2025

Net income

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Free cash flow

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Total cash / debt

CashTotal debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	CHF3.01B	CHF2.32B	CHF1.79B	CHF1.22B	CHF724.6M	CHF425.3M	CHF267.1M
Gross profit	CHF1.89B	CHF1.41B	CHF1.07B	CHF684.9M	CHF430.3M	CHF231.1M	CHF143.1M
Gross margin	62.83%	60.63%	59.55%	56.04%	59.38%	54.34%	53.58%
Research & development	CHF10.6M	CHF9.6M	CHF8.9M	CHF8.2M	CHF5.3M	CHF1.9M	—
Operating expenses	CHF1.52B	CHF1.19B	CHF887.0M	CHF599.8M	CHF571.4M	CHF248.2M	CHF137.4M
Operating income	CHF377.0M	CHF211.6M	CHF180.2M	CHF85.1M	−CHF141.1M	−CHF17.1M	CHF5.7M
Operating margin	12.51%	9.13%	10.06%	6.96%	−19.47%	−4.02%	2.13%
EBITDA	CHF504.4M	CHF316.2M	CHF245.1M	CHF131.5M	−CHF109.7M	−CHF5.0M	CHF11.0M
EBITDA margin	16.74%	13.64%	13.68%	10.76%	−15.14%	−1.18%	4.13%
Net income	CHF203.7M	CHF242.3M	CHF79.6M	CHF57.7M	−CHF170.2M	−CHF27.5M	−CHF1.5M
Net profit margin	6.76%	10.45%	4.44%	4.72%	−23.49%	−6.47%	−0.55%
Basic EPSper basic share	CHF 0.62	CHF 0.75	CHF 0.25	CHF 0.18	—	—	—
Diluted EPSper diluted share	CHF 0.61	CHF 0.74	CHF 0.25	CHF 0.18	—	—	—

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Owners

Reported shareholders

Ownership data is not available for this listing yet.

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys6$6.59M disclosed value

Sells (SEC code S)7$935.3K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 8, 2026Form 4	Maguire Scott AndrewCOO	SellClass A shares	1.5K	$36.08	$55.3K	5.0K
May 14, 2026Form 4	Coppetti Caspar FelixExecutive Officer & Co-CEO	BuyClass A Shares	50.9K	$36.75	$1.87M	2.38M
May 14, 2026Form 4	Coppetti Caspar FelixExecutive Officer & Co-CEO	BuyClass A Shares	9.1K	$35.97	$329.0K	2.33M
May 14, 2026Form 4	Bernhard OlivierExecutive Officer	BuyClass A Shares	50.9K	$36.75	$1.87M	5.16M
May 14, 2026Form 4	Bernhard OlivierExecutive Officer	BuyClass A Shares	9.1K	$35.97	$328.9K	5.11M