ONON gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 45 industry peers in the Textiles, Apparel & Luxury Goods industry. ONON has an excellent financial health rating, but there are some minor concerns on its profitability. ONON is valued quite expensively, but it does show have an excellent growth rating. This makes ONON very considerable for growth investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year ONON was profitable.
ONON had a positive operating cash flow in the past year.
In multiple years ONON reported negative net income over the last 5 years.
In multiple years ONON reported negative operating cash flow during the last 5 years.

1.2 Ratios

With a decent Return On Assets value of 5.34%, ONON is doing good in the industry, outperforming 73.33% of the companies in the same industry.
ONON has a better Return On Equity (9.73%) than 62.22% of its industry peers.
The Return On Invested Capital of ONON (13.78%) is better than 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ONON is in line with the industry average of 11.59%.
The last Return On Invested Capital (13.78%) for ONON is above the 3 year average (9.76%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	5.34%
ROE	9.73%
ROIC	13.78%

ROA(3y)6.46%

ROA(5y)-0.32%

ROE(3y)10.26%

ROE(5y)-0.11%

ROIC(3y)9.76%

ROIC(5y)N/A

1.3 Margins

With a decent Profit Margin value of 5.00%, ONON is doing good in the industry, outperforming 75.56% of the companies in the same industry.
ONON has a better Operating Margin (10.87%) than 80.00% of its industry peers.
ONON's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 61.00%, ONON is doing good in the industry, outperforming 80.00% of the companies in the same industry.
ONON's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	10.87%
PM (TTM)	5%
GM	61%

OM growth 3YN/A

OM growth 5Y33.78%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.7%

GM growth 5Y2.51%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ONON is creating value.
Compared to 1 year ago, ONON has more shares outstanding
Compared to 5 years ago, ONON has more shares outstanding
The debt/assets ratio for ONON is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 8.60 indicates that ONON is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.60, ONON belongs to the best of the industry, outperforming 95.56% of the companies in the same industry.
ONON has a debt to FCF ratio of 1.43. This is a very positive value and a sign of high solvency as it would only need 1.43 years to pay back of all of its debts.
ONON has a Debt to FCF ratio of 1.43. This is amongst the best in the industry. ONON outperforms 86.67% of its industry peers.
ONON has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.31, ONON is doing good in the industry, outperforming 64.44% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.31
Debt/FCF	1.43
Altman-Z	8.6

ROIC/WACC2.78

WACC4.95%

2.3 Liquidity

ONON has a Current Ratio of 2.53. This indicates that ONON is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ONON (2.53) is better than 73.33% of its industry peers.
ONON has a Quick Ratio of 2.00. This is a normal value and indicates that ONON is financially healthy and should not expect problems in meeting its short term obligations.
ONON's Quick ratio of 2.00 is amongst the best of the industry. ONON outperforms 88.89% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.53
Quick Ratio	2

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

ONON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 68.42%, which is quite impressive.
Looking at the last year, ONON shows a very strong growth in Revenue. The Revenue has grown by 33.26%.
Measured over the past years, ONON shows a very strong growth in Revenue. The Revenue has been growing by 54.06% on average per year.

EPS 1Y (TTM)68.42%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%193.75%

Revenue 1Y (TTM)33.26%

Revenue growth 3Y47.35%

Revenue growth 5Y54.06%

Sales Q2Q%24.94%

3.2 Future

ONON is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.04% yearly.
ONON is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 22.68% yearly.

EPS Next Y-20.74%

EPS Next 2Y16.36%

EPS Next 3Y20.42%

EPS Next 5Y25.04%

Revenue Next Year29.41%

Revenue Next 2Y25.96%

Revenue Next 3Y24.49%

Revenue Next 5Y22.68%

3.3 Evolution

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

ONON is valuated quite expensively with a Price/Earnings ratio of 37.67.
The rest of the industry has a similar Price/Earnings ratio as ONON.
The average S&P500 Price/Earnings ratio is at 27.21. ONON is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 27.09, the valuation of ONON can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ONON indicates a slightly more expensive valuation: ONON is more expensive than 62.22% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ONON is valued at the same level.

		Industry Rank	Sector Rank
PE	37.67
Fwd PE	27.09

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ONON is valued a bit more expensive than 75.56% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ONON is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	34.48
EV/EBITDA	27.98

4.3 Compensation for Growth

ONON has a very decent profitability rating, which may justify a higher PE ratio.
ONON's earnings are expected to grow with 20.42% in the coming years. This may justify a more expensive valuation.