On shares fell by -3.2% during the day's afternoon session, and are now trading at a price of $54.84. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.
On's Valuation Is in Line With Its Sector Averages:
On Holding AG engages in the development and distribution of sports products worldwide. The company belongs to the Consumer Discretionary sector, which has an average price to earnings (P/E) ratio of 22.6 and an average price to book (P/B) ratio of 3.19. In contrast, On has a trailing 12 month P/E ratio of 127.5 and a P/B ratio of 14.01.
On has moved 100.8% over the last year compared to 24.7% for the S&P 500 — a difference of 76.0%. On has a 52 week high of $60.12 and a 52 week low of $26.03.
Wider Gross Margins Than the Industry Average of 49.0%:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $267 | $425 | $725 | $1,222 | $1,792 | $568 |
| Gross Margins | 54% | 54% | 59% | 56% | 60% | 60% |
| Net Margins | -1% | -6% | -23% | 5% | 4% | 5% |
| Net Income (M) | -$1 | -$28 | -$170 | $58 | $80 | $31 |
| Free Cash Flow (M) | -$5 | -$15 | $17 | -$102 | $229 | $184 |
| Current Ratio | nan | 3.27 | 4.71 | 4.33 | 3.77 | 2.98 |
On has an excellent current ratio of 2.98, wider gross margins than its peer group, and positive cash flows.
