Sonova Holding AG (SOON) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is Sonova Holding AG ?

Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CHF 1,493.1 MM
INTEREST COVERAGE RATIO(Q) Lowest at 1,236.28
INTEREST(Q) Highest at CHF 32.8 MM

With ROE of 21.92%, it has a Very Expensive valuation with a 4.90 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -33.80%, its profits have fallen by -7.5%
At the current price, the company has a high dividend yield of 206.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -33.80% returns in the last 1 year, the stock has also underperformed Switzerland SMI in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sonova Holding AG for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sonova Holding AG

-33.8%

-0.92

25.38%

Switzerland SMI

1.42%

-0.08

16.69%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.49%

EBIT Growth (5y)

10.45%

EBIT to Interest (avg)

17.82

Debt to EBITDA (avg)

0.78

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

0.89

Tax Ratio

16.24%

Dividend Payout Ratio

48.52%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

21.77%

ROE (avg)

24.87%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.90

EV to EBIT

18.95

EV to EBITDA

14.17

EV to Capital Employed

3.92

EV to Sales

3.61

PEG Ratio

Dividend Yield

206.08%

ROCE (Latest)

20.70%

ROE (Latest)

21.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 1.83% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 7.08 times

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CHF 1,493.1 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 1,236.28

INTEREST(Q)

Highest at CHF 32.8 MM

OPERATING PROFIT(Q)

Lowest at CHF 405.5 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 22.34 %

PRE-TAX PROFIT(Q)

Lowest at CHF 260.9 MM

NET PROFIT(Q)

Lowest at CHF 211.95 MM

EPS(Q)

Lowest at CHF 3.16

Here's what is working for Sonova Holding AG

Debtors Turnover Ratio

Highest at 7.08 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 1.83% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Sonova Holding AG

Operating Cash Flow

Lowest at CHF 1,493.1 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CHF MM)

Interest Coverage Ratio

Lowest at 1,236.28

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CHF 32.8 MM

in the last five periods and Increased by 35.54% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CHF MM)

Operating Profit

Lowest at CHF 405.5 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CHF MM)

Operating Profit Margin

Lowest at 22.34 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CHF 260.9 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CHF MM)

Net Profit

Lowest at CHF 211.95 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CHF MM)

EPS

Lowest at CHF 3.16

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CHF)