Exploring the Growth Potential of NYSE:ONON as It Nears a Breakout.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if ON HOLDING AG-CLASS A (NYSE:ONON) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted ON HOLDING AG-CLASS A showing up in our growth with base formation screen, so it may be worth spending some more time on it.

A Closer Look at Growth for NYSE:ONON

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:ONON scores a 8 out of 10:

• 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.
• ONON shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.50%.
• The Revenue has been growing by 61.52% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, ONON will show a very strong growth in Earnings Per Share. The EPS will grow by 35.16% on average per year.
• Based on estimates for the next years, ONON will show a very strong growth in Revenue. The Revenue will grow by 22.68% on average per year.

Exploring NYSE:ONON's Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ONON has achieved a 7 out of 10:

• ONON has an Altman-Z score of 12.15. This indicates that ONON is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 12.15, ONON belongs to the top of the industry, outperforming 98.00% of the companies in the same industry.
• 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.
• A Debt/Equity ratio of 0.23 indicates that ONON is not too dependend on debt financing.
• 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.
• The Current ratio of ONON (2.98) is better than 80.00% 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.
• With an excellent Quick ratio value of 2.18, ONON belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.

Understanding NYSE:ONON's 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 78.00% of its industry peers.
• The Return On Equity of ONON (12.53%) is better than 72.00% 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 64.00% of the companies in the same industry.
• ONON's Gross Margin of 59.97% is amongst the best of the industry. ONON outperforms 82.00% of its industry peers.
• ONON's Gross Margin has improved in the last couple of years.

Why is NYSE:ONON a setup?

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. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 49.66, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

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

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

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.