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On Holding - AI Stock Analysis
Analysis generated May 12, 2025
On Holding AG is a Swiss-based company that specializes in designing and manufacturing performance footwear and apparel. The company was founded in 2010 and has rapidly gained a significant market presence due to its innovative designs, superior technology, and marketing strategies. The brand is especially well-known for its patented CloudTec® technology, which provides a unique cushioning system enhancing running performance. On Holding has expanded its reach globally, appealing to both casual consumers and professional athletes.
Fundamental Analysis
Starting with revenue, On Holding reported a revenue of $607 million for the last quarter. This figure represents a 4.59% decrease compared to the previous quarter, which is concerning. However, compared to the same quarter last year, there has been an increase of 35.67%, indicating strong year-over-year growth.
Net income for the last quarter was $90 million, showing an impressive increase of 193.77% compared to the previous quarter. This rise indicates robust growth in profitability, further underlined by a staggering increase of 435.58% compared to the same quarter last year.
EBITDA for the last quarter was $119 million, reflecting an increase of 87.09% from the previous quarter and an astonishing 586.89% year-over-year growth. EBITDA is a key performance indicator, and such significant growth indicates the company's operating efficiency and profitability are improving.
The current Price to Earnings (P/E) ratio stands at 54.91, which is relatively high and could suggest that the stock may be overvalued, warranting a cautious outlook.
Technical Analysis
Today, On Holding’s stock price stands at $50.26, up 15.51% from a month ago, indicating a strong short-term bullish trend. Over the past year, the stock has surged by 63.77%, reflecting a strong long-term upward trend.
The current Simple Moving Average over the past 10 days (SMA10) is 49.17, which is slightly higher than the previous SMA10 of 49.03, pointing to a potential upward trend in price movement. However, the Relative Strength Index (RSI) is at 91, indicating an overbought condition that could signal a bearish outlook in the short term.
Alternative Data Analysis
As for job postings and employee sentiment data, On Holding currently has 203 open positions, a 157% increase over the past couple of months. This suggests that the company is in a growth phase, which is generally a healthy sign. The business outlook among employees is reported as neutral.
In terms of customer acquisition, On Holding's website received an estimated 480,000 visitors, down by 41% in the last couple of months, which is worrisome and might indicate a decline in customer interest. However, the company's Instagram page, with 2.7 million followers, has seen a 9% increase in the same period, indicating growing engagement. The Twitter page, with 96,000 followers, has shown no meaningful change.
AltIndex’s AI score, which predicts stock prices based on various analyses, gives On Holding a score of 79, which is considered a buy signal.
Conclusion and Recommendation
On Holding exhibits strong fundamentals with impressive year-over-year revenue and profit growth. The company’s EBITDA also shows significant improvement, underscoring its efficient operations. However, a high P/E ratio suggests that the stock might be overvalued, and technical indicators like a high RSI point to a potential short-term bearish outlook.
Despite concerns about declining web traffic, the substantial increase in job postings suggests an expansion phase, and growing social media engagement indicates strong brand interest. Taking into account the AltIndex AI score of 79, the overall outlook for On Holding remains positive. It is recommended to consider this stock as a potential buy, while keeping an eye on short-term market corrections and ongoing customer acquisition trends.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
