SWX:SOON

Stock Analysis Report

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Executive Summary

Sonova Holding AG designs, develops, manufactures, and distributes hearing systems for adults and children with hearing impairment.


Snowflake Analysis

Solid track record with reasonable growth potential.


Similar Companies

Share Price & News

How has Sonova Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SOON's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.3%

SOON

-0.08%

CH Medical Equipment

2.3%

CH Market


1 Year Return

-5.1%

SOON

-0.06%

CH Medical Equipment

3.2%

CH Market

Return vs Industry: SOON underperformed the Swiss Medical Equipment industry which returned 0.4% over the past year.

Return vs Market: SOON underperformed the Swiss Market which returned 3.6% over the past year.


Shareholder returns

SOONIndustryMarket
7 Day-0.3%-0.08%2.3%
30 Day12.8%15.3%4.9%
90 Day-8.8%0.4%2.7%
1 Year-3.9%-5.1%0.4%-0.06%6.6%3.2%
3 Year32.9%27.5%29.9%25.7%21.1%8.7%
5 Year67.5%55.4%108.1%95.1%32.6%10.5%

Price Volatility Vs. Market

How volatile is Sonova Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sonova Holding undervalued compared to its fair value and its price relative to the market?

6.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SOON (CHF209.8) is trading below our estimate of fair value (CHF223.18)

Significantly Below Fair Value: SOON is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SOON is good value based on its PE Ratio (27.6x) compared to the Medical Equipment industry average (41.7x).

PE vs Market: SOON is poor value based on its PE Ratio (27.6x) compared to the Swiss market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: SOON is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: SOON is overvalued based on its PB Ratio (6.5x) compared to the CH Medical Equipment industry average (5.6x).


Next Steps

Future Growth

How is Sonova Holding forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOON's forecast earnings growth (9.1% per year) is above the savings rate (-0.2%).

Earnings vs Market: SOON's earnings (9.1% per year) are forecast to grow faster than the Swiss market (8.5% per year).

High Growth Earnings: SOON's earnings are forecast to grow, but not significantly.

Revenue vs Market: SOON's revenue (5.5% per year) is forecast to grow faster than the Swiss market (2.3% per year).

High Growth Revenue: SOON's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOON's Return on Equity is forecast to be high in 3 years time (24.5%)


Next Steps

Past Performance

How has Sonova Holding performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOON has high quality earnings.

Growing Profit Margin: SOON's current net profit margins (16.6%) are higher than last year (16.5%).


Past Earnings Growth Analysis

Earnings Trend: SOON's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: SOON's earnings growth over the past year (6.2%) is below its 5-year average (10.8% per year).

Earnings vs Industry: SOON earnings growth over the past year (6.2%) exceeded the Medical Equipment industry -13.5%.


Return on Equity

High ROE: SOON's Return on Equity (24.1%) is considered high.


Next Steps

Financial Health

How is Sonova Holding's financial position?


Financial Position Analysis

Short Term Liabilities: SOON's short term assets (CHF1.2B) exceed its short term liabilities (CHF1.1B).

Long Term Liabilities: SOON's short term assets (CHF1.2B) do not cover its long term liabilities (CHF1.4B).


Debt to Equity History and Analysis

Debt Level: SOON's debt to equity ratio (38.9%) is considered satisfactory.

Reducing Debt: SOON's debt to equity ratio has increased from 0.01% to 38.9% over the past 5 years.

Debt Coverage: SOON's debt is well covered by operating cash flow (106.9%).

Interest Coverage: SOON's interest payments on its debt are well covered by EBIT (157.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Sonova Holding's current dividend yield, its reliability and sustainability?

1.61%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SOON's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SOON's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SOON's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SOON's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SOON is not paying a notable dividend for the Swiss market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SOON's dividend in 3 years as they are not forecast to pay a notable one for the Swiss market.


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Arnd Kaldowski (52yo)

2.17yrs

Tenure

CHF3,681,308

Compensation

Mr. Arnd Kaldowski has been the Chief Executive Officer at Sonova Holding AG since April 1, 2018 and its Chief Operating Officer since October 1, 2017 and its Member of Management Board since October 1, 20 ...


CEO Compensation Analysis

Compensation vs Market: Arnd's total compensation ($USD3.82M) is below average for companies of similar size in the Swiss market ($USD6.61M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Arnd Kaldowski
CEO, COO & Member of Management Board2.17yrsCHF3.68mno data
Hartwig Grevener
CFO & Member of Management Board7.83yrsno datano data
Andi Vonlanthen
Group VP of Research & Development and Member of Management Board8.17yrsno datano data
Claude Diversi
Group VP of Hearing Instruments Wholesale & Member of Management Board8.08yrsno datano data
Martin Grieder
Group VP of Hearing Instruments Marketing & Member of Management Board5.83yrsno datano data
Christophe Fond
Group VP of Audiological Care & Member of Management Board3.42yrsno datano data
Claudio Bartesaghi
Group VP of Corporate HRM & Communications and Member of Management Board2.67yrsno datano data
Victoria Carr-Brendel
Member of Management Board1.17yrsno datano data
Ludger Althoff
Group VP of Operations & Member of Management Board1.17yrsno datano data
Thomas Bernhardsgrütter
Director of Investor Relationsno datano datano data

3.4yrs

Average Tenure

54yo

Average Age

Experienced Management: SOON's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Spoerry
Independent Chairman9.25yrsCHF904.04k0.086% CHF11.2m
Michael Jacobi
Independent Non-Executive Director17.42yrsCHF310.05k0.013% CHF1.7m
Beat Hess
Independent Vice Chairman8yrsCHF313.75k0.018% CHF2.4m
Stacy Seng
Independent Non-Executive Director6.42yrsCHF300.79k0.013% CHF1.6m
Jinlong Wang
Independent Non-Executive Director7yrsCHF281.52k0.015% CHF2.0m
W. T. van der Vis
Non-Executive Independent Director11yrsCHF317.35k0.013% CHF1.6m
Lukas Braunschweiler
Director2yrsCHF641.36k0.039% CHF5.1m
Lynn Bleil
Independent Non-Executive Director4yrsCHF300.79k0.0074% CHF969.2k

7.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: SOON's board of directors are considered experienced (7.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Sonova Holding AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sonova Holding AG
  • Ticker: SOON
  • Exchange: SWX
  • Founded: 1947
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: CHF13.097b
  • Shares outstanding: 62.43m
  • Website: https://www.sonova.com

Number of Employees


Location

  • Sonova Holding AG
  • Laubisrutistrasse 28
  • Stäfa
  • Zurich
  • 8712
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PHBNDB (Deutsche Boerse AG)YesRegistered SharesDEEURDec 1994
SOONSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFDec 1994
SONV.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDDec 1994
0QPYLSE (London Stock Exchange)YesRegistered SharesGBCHFDec 1994
SONV.YOTCPK (Pink Sheets LLC)UNSP ADR EACH REPR 0.2 ORDUSUSDDec 2008
PHBADB (Deutsche Boerse AG)UNSP ADR EACH REPR 0.2 ORDDEEURDec 2008
SOONESWX (SIX Swiss Exchange)CHF0.05(2ND LINE)CHCHFDec 2014
SOONESWX (SIX Swiss Exchange)CHF0.05 (2ND BUYBACK LINE)CHCHFOct 2018

Biography

Sonova Holding AG designs, develops, manufactures, and distributes hearing systems for adults and children with hearing impairment. It offers hearing instruments, cochlear implants, wireless communication products, and rechargeable hearing aids, as well as professional audiological care services. The company provides hearing instruments under the Phonak, Unitron, and Hansaton brand names; cochlear implants under the Advanced Bionics brand; and professional hearing care services under the AudioNova, Audium, AuditionSanté, Boots Hearingcare, Connect Hearing, Fiebing, Geers, Hansaton, Lapperre, Lindacher, Schoonenberg, Triton, and Vitakustik brands. Sonova Holding operates through sales channels, including independent healthcare professionals, government agencies, clinics, and retail network, as well as through Sonova-owned wholesale companies and independent distributors. It operates in the Americas, Europe, the Middle East, Africa, and the Asia/Pacific. The company was formerly known as Phonak Holding AG and changed its name to Sonova Holding AG in August 2007. Sonova Holding AG was founded in 1947 and is headquartered in Stäfa, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 21:05
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.