Why NYSE:ONON Is a Promising High-Growth Stock in the Midst of Consolidation.

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.

Looking at the Growth

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 53.26%, which is quite impressive.
• The Revenue has grown by 26.12% in the past year. This is a very strong growth!
• Measured over the past years, ONON shows a very strong growth in Revenue. The Revenue has been growing by 61.52% on average per year.
• The Earnings Per Share is expected to grow by 35.16% on average over the next years. This is a very strong growth
• 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.

Understanding NYSE:ONON's Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:ONON, the assigned 7 for health provides valuable insights:

• An Altman-Z score of 12.96 indicates that ONON is not in any danger for bankruptcy at the moment.
• ONON's Altman-Z score of 12.96 is amongst the best of the industry. ONON outperforms 96.00% of its industry peers.
• The Debt to FCF ratio of ONON is 0.95, which is an excellent value as it means it would take ONON, only 0.95 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.95, ONON is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
• ONON has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
• ONON's Debt to Equity ratio of 0.23 is fine compared to the rest 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 has a better Current ratio (2.98) than 78.00% 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 better Quick ratio (2.18) than 90.00% of its industry peers.

Looking at the Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:ONON has earned a 5 out of 10:

• The Return On Assets of ONON (7.54%) is better than 78.00% of its industry peers.
• ONON has a better Return On Equity (12.53%) than 72.00% of its industry peers.
• ONON has a better Return On Invested Capital (8.85%) than 64.00% of its industry peers.
• ONON's Profit Margin of 7.70% is fine compared to the rest of the industry. ONON outperforms 80.00% 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.
• Looking at the Gross Margin, with a value of 59.97%, ONON belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
• In the last couple of years the Gross Margin of ONON has grown nicely.

How does the Setup look for NYSE:ONON

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:ONON currently has a 7 as setup rating:

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 very little resistance above the current price. There is a support zone below the current price at 48.74, 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.

Check the latest full fundamental report of ONON for a complete fundamental analysis.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.