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ON HOLDING AG Achieves High Ratings Despite Some Failures

According to a recent report, ON HOLDING AG has earned a high rating of 68% based on strong fundamentals and performance. However, it faces challenges as it fails in several key areas like sales growth and debt equity ratios which could influence its stock price.

Date: 
AI Rating:   6

ON HOLDING AG (ONON) has garnered a rating of 68% based on the Small-Cap Growth Investor model, signaling solid fundamentals and performance. While the overall score is relatively positive, the presence of several failures in specific areas raises concerns for investors.

Earnings Per Share (EPS): The report does not provide specific EPS figures, which could help gauge the company’s profitability and growth rate. This limits detailed insights into EPS trends.

Revenue Growth: The report indicates that the stock passed the test comparing sales and EPS growth to the same period last year, suggesting positive momentum in revenue growth. This could attract investors looking for upward trends in earnings and sales performance.

Net Income: There is no direct mention of net income which is pivotal as it influences profitability assessments.

Profit Margins: ONON passes the profit margin and profit margin consistency tests, indicating that the company is managing its costs effectively and maintaining a strong profit margin over time, which is a positive signal for potential investors.

Free Cash Flow (FCF): The report does not mention free cash flow metrics, which are crucial for assessing the company’s financial flexibility and capacity for investment.

Return on Equity (ROE): ROE is also not addressed in the report. A solid ROE is generally favorable, indicating how well the company is utilizing shareholders' equity to generate profit.

Among the weaknesses, ONON fails in several critical metrics:

  • Relative Strength: FAIL
  • Sales: FAIL
  • Daily Dollar Volume: FAIL
  • Long-Term Debt/Equity Ratio: FAIL
  • Income Tax Percentage: FAIL

These failures could potentially lead to stock price volatility as investors gauge the implications of the company’s ability to generate consistent sales growth and manage its debt effectively. Despite these shortcomings, the high initial rating suggests that there are still attractive aspects of ONON for growth-focused investors.

Stocks:  ONON