On Holding AG Class A Ordinary Shares (ONON)

FairStock Score: 42/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach On Holding as a business, not a ticker. It sells performance footwear, apparel, and accessories under the On brand, and in the second quarter of fiscal 2026 it reported revenue of $850.3 million and net income of $105.0 million, a 12.35% net margin. The supplied figures show revenue growth of 13.49% and profit growth of 356.72%, with return on equity of 23.95%, debt-to-equity of 0.29, and trailing twelve-month free cash flow of $429.1 million. That mix of profitability, modest leverage, and cash generation is attractive; FairStock's Altman Z-score of 6.55 also suggests financial safety. But Graham would insist on price. At the 2026-10-13 close of $35.49, FairStock calculates a P/E of 24.82, P/B of 5.12, FCF yield of 3.6%, EV/EBITDA of 19.02, and a Graham Number of $13.57. The margin of safety is negative 161.53%, meaning the quote is far above what earnings and book value would justify. Return on capital employed is only 9.58%, not a hallmark of a wide moat, and the Piotroski F-score is 5/9. The shares are volatile—beta 2.08 and a 52-week range of $26.36 to $51.08—and FairStock assigns no Lynch category because there are only 0 years of filed results and it needs 3. On's brand momentum is real, but footwear is competitive and fashion-sensitive. I would want a wider discount or more evidence of durable advantage before calling this a classic value opportunity.

In plain English: On Holding sells athletic shoes, clothes, and gear under the On brand. The business looks strong: it is profitable, has low debt, and produces cash. But at the recent close of $35.49, the stock looks expensive compared with its earnings and the value shown in its books.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer