Should you buy On Holding stock? (March 2024)

Published first at https://www.3minutebreakdowns.com On Holding stock analysis. Ticker: $ONON Shoe company On Holding just reported earnings and the stock dropped by about 9% taking the market cap to 9.75 billion dollars. With almost 600 million in cash the enterprise value is just under 9.2 billion. Revenue in ON’s fourth quarter came in below expectations at 447 million Swiss francs representing growth of 22%. And net income swung to a loss of 16 million. However, fourth quarter results were significantly impacted by strength in the Swiss Franc. Account for currency movements and sales actually increased 31% and net income likely would have been positive. Zooming out to full year results and converting to US dollars, provides some perspective. 2023. revenue grew over 50% on a constant currency basis to 2 billion US dollars. Net income increased to 91 million with 316 million of adjusted ebitda and 211 million of free cash flow. So the stock is currently valued at 4.5 times revenue, 108 times earnings and 29 times ebitda. On’s mission is to become the most premium sportswear brand in the world and it appears to be making progress. #investing #stockstobuy #stockmarket #3mb