Onex (TSX:ONEX) - Share price, News & Analysis

Q: What is the Fair Price of ONEX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ONEX (CA$64.96) is trading below our estimate of [[fair value]] (CA$423.44)

ONEX fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	2/6
Financial Health	5/6
Dividends	0/6

ONEX Stock Overview

Onex Corporation is a private equity firm specializing in acquisitions and platform acquisitions.

Rewards

Trading at 84.7% below our estimate of its fair value

Risk Analysis

ONEX passed our risk checks.

Onex Competitors

IGM Financial

TSX:IGM

CA$8.5b

Partners Value Investments

TSXV:PVF.UN

CA$4.6b

Galaxy Digital Holdings

TSX:GLXY

CA$2.2b

CI Financial

TSX:CIX

CA$2.7b

Price History & Performance

Summary of all time highs, changes and price drops for Onex
Historical stock prices
Current Share Price	CA$64.96
52 Week High	CA$101.61
52 Week Low	CA$64.29
Beta	1.44
1 Month Change	-13.72%
3 Month Change	-22.81%
1 Year Change	-28.20%
3 Year Change	-17.76%
5 Year Change	-37.42%
Change since IPO	1,723.44%

Shareholder Returns

	ONEX	CA Capital Markets	CA Market
7D	-1.7%	3.4%	0.3%
1Y	-28.2%	-15.2%	-4.0%

Return vs Industry: ONEX underperformed the Canadian Capital Markets industry which returned -15.2% over the past year.

Return vs Market: ONEX underperformed the Canadian Market which returned -4% over the past year.

Price Volatility

Is ONEX's price volatile compared to industry and market?
ONEX volatility
ONEX Average Weekly Movement	4.0%
Capital Markets Industry Average Movement	6.9%
Market Average Movement	10.0%
10% most volatile stocks in CA Market	17.3%
10% least volatile stocks in CA Market	4.4%

Stable Share Price: ONEX is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ONEX's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1984	497	Gerry Schwartz	https://www.onex.com

Onex Corporation is a private equity firm specializing in acquisitions and platform acquisitions. The firm makes investments in buyouts, large- middle market, large-cap, mid-cap, and small-cap market and distressed companies. It also invests in recapitalization, growth capital, corporate carve-outs of subsidiaries and mission-critical supply divisions from multinational corporations, operational restructurings of undervalued businesses, and builds up.

Onex Fundamentals Summary

How do Onex's earnings and revenue compare to its market cap?
ONEX fundamental statistics
Market Cap	US$4.38b
Earnings (TTM)	US$1.15b
Revenue (TTM)	US$1.59b

3.8x

P/E Ratio

2.7x

P/S Ratio

Is ONEX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ONEX income statement (TTM)
Revenue	US$1.59b
Cost of Revenue	US$253.00m
Gross Profit	US$1.34b
Other Expenses	US$185.00m
Earnings	US$1.15b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 11, 2022

Earnings per share (EPS)	13.45
Gross Margin	84.11%
Net Profit Margin	72.49%
Debt/Equity Ratio	0%

How did ONEX perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

2%

Payout Ratio

Does ONEX pay a reliable dividends?

See ONEX dividend history and benchmarks

When do you need to buy ONEX by to receive an upcoming dividend?
Onex dividend dates
Ex Dividend Date	Jul 07 2022
Dividend Pay Date	Jul 31 2022
Days until Ex dividend	9 days
Days until Dividend pay date	33 days

Does ONEX pay a reliable dividends?

See ONEX dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is ONEX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ONEX?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ONEX. This is calculated by dividing ONEX's market cap by their current preferred multiple.
What is ONEX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$4.38b

ONEX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.6x
Enterprise Value/EBITDA	3.3x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does ONEX's PE Ratio compare to its peers?

ONEX PE Ratio vs Peers

The above table shows the PE ratio for ONEX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	27.8x
IGM IGM Financial	8.5x	1.0%	CA$8.5b
PVF.UN Partners Value Investments	100.6x	n/a	CA$4.6b
GLXY Galaxy Digital Holdings	3.3x	n/a	CA$2.2b
CIX CI Financial	6.5x	14.4%	CA$2.7b
ONEX Onex	3.8x	n/a	CA$5.6b

Forward PE

Price-To-Earnings vs Peers: ONEX is good value based on its Price-To-Earnings Ratio (3.8x) compared to the peer average (29.7x).

Price to Earnings Ratio vs Industry

How does ONEX's PE Ratio compare vs other companies in the CA Capital Markets Industry?

Price-To-Earnings vs Industry: ONEX is good value based on its Price-To-Earnings Ratio (3.8x) compared to the Canadian Capital Markets industry average (8.9x)

Price to Earnings Ratio vs Fair Ratio

What is ONEX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ONEX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	3.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ONEX's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of ONEX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ONEX (CA$64.96) is trading below our estimate of fair value (CA$423.44)

Significantly Below Fair Value: ONEX is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ONEX's PEG Ratio to determine if it is good value.

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Future Growth

How is Onex forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

1.5%

Forecasted Diversified Financials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Onex has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Discover growth companies

Examine whether Onex is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
Onex competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Onex performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

37.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ONEX has high quality earnings.

Growing Profit Margin: ONEX's current net profit margins (72.5%) are lower than last year (80.2%).

Past Earnings Growth Analysis

Earnings Trend: ONEX has become profitable over the past 5 years, growing earnings by 37.6% per year.

Accelerating Growth: ONEX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ONEX had negative earnings growth (-46.1%) over the past year, making it difficult to compare to the Capital Markets industry average (0.2%).

Return on Equity

High ROE: ONEX's Return on Equity (13.6%) is considered low.

Discover strong past performing companies

Financial Health

How is Onex's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ONEX's short term assets ($776.0M) exceed its short term liabilities ($406.0M).

Long Term Liabilities: ONEX's short term assets ($776.0M) do not cover its long term liabilities ($3.4B).

Debt to Equity History and Analysis

Debt Level: ONEX is debt free.

Reducing Debt: ONEX has no debt compared to 5 years ago when its debt to equity ratio was 1751.9%.

Debt Coverage: ONEX has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ONEX has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Onex current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.61%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: ONEX's dividend (0.61%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: ONEX's dividend (0.61%) is low compared to the top 25% of dividend payers in the Canadian market (5.33%).

Stability and Growth of Payments

Stable Dividend: ONEX is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: ONEX is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: ONEX is not paying a notable dividend for the Canadian market.

Cash Payout to Shareholders

Cash Flow Coverage: ONEX is not paying a notable dividend for the Canadian market.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.8yrs

Average management tenure

CEO

Gerry Schwartz (79 yo)

no data

Tenure

US$6,300,000

Compensation

Mr. Gerald Wilfred Schwartz, also known as Gerry, O.C., serves as the Chief Executive Officer at Onex Corporation, which he founded in 1984. He served as President at Onex Corporation until August 2020. He...

CEO Compensation Analysis

Compensation vs Market: Gerry's total compensation ($USD6.30M) is above average for companies of similar size in the Canadian market ($USD3.62M).

Compensation vs Earnings: Gerry's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: ONEX's management team is seasoned and experienced (5.8 years average tenure).

Board Members

Experienced Board: ONEX's board of directors are seasoned and experienced ( 14.8 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: ONEX insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31