On Holdings Analysis

1. Stock Trends Over the Last 5 Years

IPO and Initial Trading:
On Holdings conducted its IPO on the New York Stock Exchange (NYSE) in September 2021, listing at an offering price of approximately $25. On its first trading day, it began trading around $27 amid high investor interest, with initial price momentum driven by expectations for brand recognition and innovative technology.
Initial Volatility:
Shortly after listing, there was short-term selling pressure and a market correction, but expectations for global consumer trends and the expansion of the sportswear market led to a relatively quick recovery.

2022 – External Shocks and Recovery:
In 2022, short-term adjustments and increased volatility occurred due to external factors such as global supply chain issues, inflation, and geopolitical instability. However, On Holdings' innovative product lineup and global expansion strategy helped the stock gradually rise in the second half of the year.
2023 – Strengthening Momentum:
In 2023, positive factors such as brand expansion, new product launches, and global marketing campaigns helped drive strong upward momentum, pushing the stock price into the $40 range.
2024 and Beyond – Stabilization and Adjustment:
In early 2024, improved performance in key overseas markets and news of market expansion boosted the stock price. However, short-term technical corrections and supply-demand concerns have led to sideways movement within the $35–$38 range.

Annual Revenue Growth:
Since going public, On Holdings has achieved significant revenue growth through the expansion of its global distribution network and product lineup. It grew from approximately $500 million in 2021 to $700 million in 2022 and over $1 billion in 2023, maintaining an average annual growth rate of over 20%.
Product Innovation and Marketing Investment:
Patented technologies such as "Cloud Cushioning," premium sportswear lines, and aggressive digital marketing strategies have played a crucial role in revenue growth, enhancing customer satisfaction and brand loyalty.

Operating Profit and Net Profit Transition:
Initially, operating margins were low due to large-scale marketing and R&D investments. However, since 2023, improvements in production efficiency and cost reductions have gradually led to a turnaround in profitability.
Cost Management Strategy:
On Holdings is addressing rising raw material costs and external shocks through supply chain diversification and in-house technology development, which is expected to contribute positively to financial stability in the future.

Debt Ratio and Capital Structure Improvement:
Although the company's debt ratio was initially high due to investment costs, it has secured a stable financial structure in recent years through capital expansion and improved profitability.
Strategic Investment:
Global investors and institutional investors continue to show interest, and the company is securing long-term growth by expanding capital and increasing R&D investments.

PER (Price-to-Earnings Ratio):
Based on recent earnings, On Holdings’ PER stands at 40–45x, reflecting high growth expectations.
PBR (Price-to-Book Ratio):
The PBR is around 4–5x, suggesting that investors are pricing in a premium compared to industry peers due to improvements in capital structure and future growth potential.
EV/EBITDA and P/S Ratios:
The EV/EBITDA ratio is around 25x, and the price-to-sales (P/S) ratio is about 3x, indicating market expectations for rapid revenue growth and future profit improvement.

Growth Stock Justification:
Despite initial concerns about overvaluation, the long-term growth story and continuous performance improvement suggest that the current valuation reflects anticipated future growth.
Balancing Risks and Expectations:
In the short term, stock corrections may occur due to market volatility. However, in the medium to long term, valuation readjustments are likely due to improving performance and expanding global market share.

Nike, Adidas:
These major competitors possess strong brand power, extensive global distribution networks, and superior marketing capabilities, making them dominant players compared to On Holdings in terms of market share and brand recognition.
Under Armour:
With a similar positioning in innovation and performance-oriented branding, Under Armour competes directly with On Holdings.

Technological and Design Innovation:
Swiss-engineered technology, proprietary "Cloud Cushioning" systems, and patented innovations provide a competitive advantage, with a focus on targeting the premium market.
Niche Market Focus:
On Holdings is building a unique brand identity in segmented sports and lifestyle markets that major brands do not fully cover, securing a loyal customer base through personalized product development.
Global Localization Strategy:
The company has established local subsidiaries and production bases in key regions such as North America, Europe, and Asia, implementing region-specific marketing strategies for faster market responsiveness compared to competitors.

Global Healthcare & Fitness Trends:
Post-pandemic, interest in health and wellness has surged, driving demand for high-performance sportswear and running shoes.
Digital Transformation and Wearable Integration:
Smart-device-integrated sports products and digital fitness platforms are rapidly growing, aligning with On Holdings’ technological innovations and offering positive growth momentum.

Expansion in Emerging Markets:
The rising middle class and increasing consumption in emerging markets such as Asia and Latin America are expected to sustain demand for premium sportswear.
Eco-Friendly and Sustainability Trends:
With stronger environmental regulations and growing consumer interest in sustainability, companies investing in eco-friendly materials and production processes are being favored, and On Holdings is actively investing in related R&D.