Analysts Expect On Holding AG (NYSE:ONON) To Breakeven Soon
We feel now is a pretty good time to analyse On Holding AG's (NYSE:ONON) business as it appears the company may be on the cusp of a considerable accomplishment. On Holding AG develops and distributes sports products worldwide. With the latest financial year loss of CHF170m and a trailing-twelve-month loss of CHF145m, the US$6.5b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is On Holding's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for On Holding
On Holding is bordering on breakeven, according to the 11 American Luxury analysts. They expect the company to post a final loss in 2021, before turning a profit of CHF24m in 2022. Therefore, the company is expected to breakeven roughly a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 69% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of On Holding's upcoming projects, however, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that On Holding has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
There are key fundamentals of On Holding which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at On Holding, take a look at On Holding's company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:
Valuation: What is On Holding worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether On Holding is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on On Holding’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
