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On Holding - AI Stock Analysis
Analysis generated October 27, 2024
On Holding AG is a Swiss-based athletic shoe and sports clothing company known for its innovative approach to athletic footwear. The company was founded in 2010 and has quickly risen to become a significant player in the sports apparel and footwear industry. On Holding’s focus on technological innovation, comfort, and performance has resonated well with consumers, driving the brand's growth globally. They sponsor a variety of athletes and sports teams, which has also elevated the brand's profile and appeal.
Fundamental Analysis
On Holding's revenue for the last quarter was $568M, which is an increase of 8.27% compared to the previous quarter and a significant increase of 27.77% compared to the same quarter last year. This indicates healthy growth both quarter-over-quarter and year-over-year. However, the net income for the last quarter was $31M, a decrease of 66.30% compared to the previous quarter. This is concerning as it indicates that despite higher revenues, the company's profits have significantly declined. Compared to the same quarter last year, the net income has increased by a dramatic 833.33%, pointing to an exceptional year-over-year growth rate.
EBITDA for the last quarter was reported at $0, representing a 100.00% decrease compared to the previous quarter and the same quarter last year. This is a cause for concern, as EBITDA is a key measure of operational performance and cash flow. Additionally, the current P/E ratio of 88.13 is quite high, potentially indicating that the stock may be overvalued. Investors should be cautious, as a high P/E ratio can sometimes be interpreted as a bearish outlook.
Technical Analysis
The current stock price is $50.65, a decrease of 0.94% compared to a month ago, which could be concerning in the short term. However, compared to a year ago, there is an increase of 106.65%, indicating a positive long-term trend.
The trend is bullish. The current SMA10 is $48.89, which is higher than the previous SMA10 of $48.64, pointing to a potential upward trend. The RSI is 69.9, indicating a neutral condition and suggesting that the stock is neither overbought nor oversold.
Alternative Data Analysis
On Holding has 96 open job positions, which is up by 25% in the last couple of months. This suggests that the company is expanding and potentially growing its operations, which is a healthy sign. However, the business outlook among employees is neutral.
Customer acquisition seems stable with 760,000 estimated visitors on their webpage, showing no meaningful increase or decrease in recent months.
The company’s Instagram page boasts 2.2M followers, with an increase of 171,669% in recent months, indicating a surge in interest. Their Twitter account has 96,000 followers with no significant change recently. The increased social media engagement could lead to higher brand visibility and customer loyalty.
AltIndex's AI score for On Holding is 53, which is a hold signal, reflecting a balanced mix of bullish and bearish indicators across fundamental, technical, and alternative data metrics.
Conclusion and Recommendation
On Holding offers an interesting case for investment. The company shows strong revenue growth with a 27.77% year-over-year increase and has increased its social media presence, indicating rising consumer interest. However, significant concerns exist around profitability and operational performance, as reflected by a 66.30% decrease in net income quarter-over-quarter and a 100.00% decrease in EBITDA. The high P/E ratio of 88.13 suggests the stock might be overvalued.
Technically, the stock shows a positive long-term trend with a 106.65% year-over-year increase in stock price, and a bullish short-term moving average trend. The RSI is neutral, providing no strong signals of a buy or sell.
Alternative data points to a potential for growth and expansion given the increase in job postings and massive social media following. However, employee sentiment remains neutral, and there is no significant movement in web traffic.
Considering all the data points, my recommendation would be a "Hold." While there is potential for future growth, the concerns around profitability and operational performance suggest a cautious approach. Investors should watch for any developments in the company's profitability and operational efficiency before making further investment decisions.
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.
