Summary

• On Holding is rated a buy, with fundamentals strong despite recent stock declines driven by FX losses and CEO transition.
• ONON delivered record revenue (CHF 3B), gross margin (62.8%), and adjusted EBITDA (CHF 567M), with robust DTC and Asia-Pacific growth.
• Valuation is attractive at 13x EV/forward EBITDA and 3x forward sales, with scenario analysis supporting a fair value in the high $40s.
• Key catalysts include Q1'26 earnings under new co-CEOs, Asia-Pacific expansion, and scaling of LightSpray manufacturing technology.

Why The Recent Selloff Deserves a Closer Look

On Holding (ONON) fell roughly 27% in the last year, even with the business delivering strong growth. The Swiss athletic footwear company was founded in

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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