Shares of On Holdings AG (ONON, Financial) surged by 13.4% in August following strong earnings and optimistic guidance.
On Holdings released its second-quarter earnings on August 13, reporting a 27.8% increase in revenue to 567.7 million Swiss Francs (CHF), surpassing expectations. However, adjusted earnings per share came in at 0.14 CHF, slightly missing forecasts. Despite this, management maintained its annual growth guidance of 30%.
The company's positive outlook is supported by several initiatives launched in Q2, including the introduction of its new Lightspray technology in July, a long-term partnership with actress Zendaya in June, and new store openings in Paris and Hong Kong.
Lightspray technology uses a single-step robotic manufacturing process to create the upper part of the shoe from recycled plastic, making the shoes ultra-thin and light while reducing the carbon footprint by 75% for the shoe-top manufacturing.
Helen Obiri won the Boston Marathon in April wearing a prototype of the Lightspray shoe, indicating strong future demand for this new technology.
On Holdings AG (ONON, Financial) reported strong financial health, with a revenue growth of 27.8% and a maintained annual growth guidance of 30%. The company's innovative Lightspray technology and recent strategic partnerships have bolstered its market position.
Despite the stock's high trading valuations, On Holdings AG (ONON, Financial) remains a stock to watch. The current price is $44.76, reflecting a 0.72% increase. The company has a market cap of $14,328.94 million and a P/E ratio of 86.24. The GF Value for ONON indicates that the stock is modestly overvalued with a value of $38.71. For further details, check the GF Value page.
ONON's financial strengths include a Piotroski F-Score of 7, indicating a very healthy situation, and an Altman Z-score of 11.29, reflecting strong financial stability. Additionally, the Beneish M-Score of -3.14 suggests that the company is unlikely to be a manipulator.
While the stock is close to a 3-year high and has a PS Ratio (=8.49) nearing its 1-year peak, its innovative approach and solid financial metrics make it a promising candidate in the footwear industry. Investors should keep an eye on ONON as it continues to leverage its new technologies and strategic partnerships for future growth.
