Is NYSE:ONON on the Verge of a Major Breakout as a Strong Growth Stock?

In this article we will dive into ON HOLDING AG-CLASS A (NYSE:ONON) as a possible candidate for growth investing. Investors should always do their own research, but we noticed ON HOLDING AG-CLASS A showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Analyzing Growth Metrics

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:

• The Earnings Per Share has grown by an impressive 53.26% over the past year.
• Looking at the last year, ONON shows a very strong growth in Revenue. The Revenue has grown by 26.12%.
• 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 37.03% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 24.84% on average over the next years. This is a very strong growth

Deciphering NYSE:ONON's Health Rating

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 8 reflects its health status:

• ONON has an Altman-Z score of 15.05. This indicates that ONON is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 15.05, ONON belongs to the best of the industry, outperforming 97.96% of the companies in the same industry.
• The Debt to FCF ratio of ONON is 0.92, which is an excellent value as it means it would take ONON, only 0.92 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.92, ONON belongs to the top of the industry, outperforming 83.67% of the companies in the same industry.
• ONON has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
• ONON has a better Debt to Equity ratio (0.22) than 61.22% of its industry peers.
• A Current Ratio of 2.91 indicates that ONON has no problem at all paying its short term obligations.
• With a decent Current ratio value of 2.91, ONON is doing good in the industry, outperforming 73.47% of the companies in the same industry.
• ONON has a Quick Ratio of 2.25. This indicates that ONON is financially healthy and has no problem in meeting its short term obligations.
• ONON has a better Quick ratio (2.25) than 89.80% of its industry peers.

Assessing Profitability for NYSE:ONON

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:ONON was assigned a score of 5 for profitability:

• With a decent Return On Assets value of 5.99%, ONON is doing good in the industry, outperforming 71.43% of the companies in the same industry.
• The Return On Equity of ONON (9.96%) is better than 63.27% of its industry peers.
• ONON's Return On Invested Capital of 9.39% is fine compared to the rest of the industry. ONON outperforms 69.39% of its industry peers.
• ONON has a Profit Margin of 5.84%. This is in the better half of the industry: ONON outperforms 69.39% of its industry peers.
• ONON has a better Operating Margin (9.22%) than 67.35% of its industry peers.
• ONON's Gross Margin of 60.18% is amongst the best of the industry. ONON outperforms 81.63% of its industry peers.
• In the last couple of years the Gross Margin of ONON has grown nicely.

How does the Setup look for NYSE:ONON

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:ONON is 8:

ONON has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. 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 55.65, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for ONON in the last couple of days, which is a good sign.

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

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

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

Keep in mind

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.