On August 11, 2026, On Holding AG (NYSE: ONON) saw its shares drop 16% in pre-market trading to $36.70 following the release of its second-quarter financial results. This sharp decline reflects investor concerns about the company’s recent performance and outlook.
- GF Value™ indicates ONON is trading at $38.78, which is 38.6% below its intrinsic value estimate of $63.16, signaling significant undervaluation.
- ONON’s GF Score™ stands at a robust 86 out of 100, highlighting strong overall fundamentals.
- Insider activity shows net buying over the past three months, with insiders purchasing $6.6 million worth of shares versus $0.1 million sold, suggesting confidence from company insiders despite the recent stock weakness.
What's Behind the News?
On Holding’s 16% pre-market share price decline on August 11, 2026, followed the release of its Q2 financial results, which evidently fell short of investor expectations. The earnings report raised concerns about the company’s growth trajectory and financial health, prompting a negative market reaction. Such volatility is not uncommon for consumer cyclical stocks like ONON, where earnings results can heavily influence sentiment given the competitive apparel and footwear landscape.
Founded in Switzerland in 2010, On Holding AG operates in the Consumer Cyclical sector within the Manufacturing - Apparel & Accessories industry. The company is best known for its athletic shoes featuring the patented CloudTec sole technology, which accounted for over 90% of sales in 2025. With a market capitalization of $12.93 billion, ONON generates the majority of its revenue in North America (58%), followed by Europe, the Middle East, and Africa (25%), and Asia-Pacific (17%). Its products are distributed through a mix of wholesale (58%) and company-owned retail channels (42%), spanning more than 80 countries worldwide.
Is ONON Overvalued or Undervalued?
Despite the recent selloff, ONON’s valuation metrics suggest the stock remains significantly undervalued. GuruFocus’ proprietary GF Value™ places ONON’s intrinsic worth at $63.16 per share, compared to its current price of $38.78, implying a margin of safety of approximately 38.6%. This sizable discount offers a buffer for investors wary of short-term earnings volatility, suggesting the market may be overly pessimistic about the company’s longer-term prospects.
Looking at valuation multiples, ONON’s trailing twelve-month price-to-earnings (P/E) ratio stands at 40.31x, which is substantially lower than its five-year median P/E of 97.17x. This compression in the P/E multiple indicates that the stock is trading at a much more reasonable level relative to its historical earnings valuation, reinforcing the GF Value™ conclusion. For investors interested in valuation metrics grounded in historical context and future growth expectations, the GF Value™ methodology offers a comprehensive perspective. More details on GF Value™ can be found here.
What Does ONON's GF Score™ Tell Us?
The GF Score™ aggregates multiple facets of a company’s financial health, profitability, growth, valuation, and momentum into a single composite rating. ONON’s score of 86/100 reflects a strong overall profile, particularly in growth and financial strength, while valuation remains a relative weakness due to the stock’s recent price movements.
| Metric | Rating |
|---|---|
| GF Score™ | 86 |
| Financial Strength | 8/10 |
| Profitability | 7/10 |
| Growth | 10/10 |
| Valuation | 4/10 |
| Momentum | 5/10 |
ONON’s strongest sub-rank is growth, scoring a perfect 10, reflecting its impressive revenue growth rate of 41.4% over three years and solid earnings growth. Financial strength is also notable at 8/10, supported by a strong Altman Z-Score of 7.25 and a high Piotroski F-Score of 8, indicating a healthy balance sheet and low risk of financial distress. The valuation rank of 4/10 highlights that while the stock is undervalued per GF Value™, it still trades at a premium relative to some historical benchmarks. Momentum is moderate at 5/10, consistent with recent price volatility. For a deeper dive into ONON’s fundamentals, visit the ONON stock page.
What Are Gurus and Insiders Doing with ONON?
One of the most compelling signals for ONON comes from its ownership by top investment gurus and insiders. GuruFocus tracks 7 premium gurus holding ONON, with 5 increasing their positions and 3 trimming theirs in recent quarters. This net positive guru buying activity is a valuable differentiator, as many other platforms like Simply Wall St and Morningstar do not provide such granular 13F data. Insider transactions further reinforce confidence: over the past three months, insiders have purchased $6.6 million worth of shares while selling only $0.1 million, indicating strong insider conviction despite the recent stock price weakness.
What This Means for Investors
The combination of a significant GF Value™ margin of safety, a high GF Score™, and positive insider and guru ownership trends suggests that On Holding AG’s recent share price decline may present a buying opportunity rather than a signal of fundamental deterioration. Although the Q2 earnings report triggered a sharp market reaction, the stock’s valuation remains attractive relative to its intrinsic worth and historical multiples. Investors who prioritize data-driven valuation and ownership signals may find ONON’s current price compelling, especially given its strong growth profile and financial health. For those seeking to explore this opportunity further, additional insights are available on the ONON stock page and through the GuruFocus Stock Screener.
Frequently Asked Questions
What is ONON's GF Score™?
ONON’s GF Score™ is 86 out of 100, indicating strong overall financial health, profitability, and growth, with particular strength in growth and financial stability.
Is ONON overvalued or undervalued?
Based on GF Value™, ONON is significantly undervalued, trading at $38.78 versus an intrinsic value estimate of $63.16, representing a 38.6% discount.
What is ONON's P/E ratio compared to historical?
ONON’s trailing twelve-month P/E ratio is 40.31x, which is well below its five-year median P/E of 97.17x, suggesting the stock is trading at a more reasonable valuation relative to its historical earnings multiples.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
