NYSE:ONON qualifies as a high growth stock and is consolidating.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether ON HOLDING AG-CLASS A (NYSE:ONON) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but ON HOLDING AG-CLASS A has surfaced on our radar for growth with base formation, warranting further examination.

Evaluating Growth: NYSE:ONON

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:ONON was assigned a score of 8 for growth:

• ONON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 261.72%, which is quite impressive.
• The Revenue has grown by 28.50% in the past year. This is a very strong growth!
• ONON shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 61.52% yearly.
• The Earnings Per Share is expected to grow by 35.16% on average over the next years. This is a very strong growth
• ONON is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.68% yearly.

How do we evaluate the Health for NYSE:ONON?

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:ONON, the assigned 7 reflects its health status:

• An Altman-Z score of 10.82 indicates that ONON is not in any danger for bankruptcy at the moment.
• ONON has a better Altman-Z score (10.82) than 94.00% of its industry peers.
• ONON has a debt to FCF ratio of 0.95. This is a very positive value and a sign of high solvency as it would only need 0.95 years to pay back of all of its debts.
• ONON has a Debt to FCF ratio of 0.95. This is in the better half of the industry: ONON outperforms 80.00% of its industry peers.
• ONON has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
• ONON has a Debt to Equity ratio of 0.23. This is in the better half of the industry: ONON outperforms 64.00% of its industry peers.
• ONON has a Current Ratio of 2.98. This indicates that ONON is financially healthy and has no problem in meeting its short term obligations.
• ONON's Current ratio of 2.98 is fine compared to the rest of the industry. ONON outperforms 76.00% of its industry peers.
• ONON has a Quick Ratio of 2.18. This indicates that ONON is financially healthy and has no problem in meeting its short term obligations.
• ONON has a Quick ratio of 2.18. This is amongst the best in the industry. ONON outperforms 82.00% of its industry peers.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:ONON scores a 5 out of 10:

• ONON has a better Return On Assets (7.54%) than 76.00% of its industry peers.
• ONON has a better Return On Equity (12.53%) than 68.00% of its industry peers.
• The Return On Invested Capital of ONON (8.85%) is better than 62.00% of its industry peers.
• ONON has a Profit Margin of 7.70%. This is in the better half of the industry: ONON outperforms 76.00% of its industry peers.
• Looking at the Operating Margin, with a value of 9.20%, ONON is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
• The Gross Margin of ONON (59.97%) is better than 82.00% of its industry peers.
• ONON's Gross Margin has improved in the last couple of years.

How does the Setup look for NYSE:ONON

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:ONON exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

ONON has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 42.55. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 40.31, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of ONON

Our latest full technical report of ONON contains the most current technical analsysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.