Home / Business and Economy / On Holding Stock: Undervalued Gem or Bubble?
On Holding Stock: Undervalued Gem or Bubble?
29 Nov, 2025
Summary
- On Holding's stock shows a significant year-to-date decline.
- The company's DTC channel sales grew 54% year-over-year.
- Analysts value On Holding at $61.29, suggesting it's undervalued.
On Holding's stock performance presents a complex picture for investors. While the company has seen a recent surge in its 1-month share price return, its year-to-date performance remains in negative territory, with a decline of over 20%. This volatility has prompted a closer look at its future prospects and current valuation.
The company's strategic shift towards Direct-to-Consumer (DTC) and e-commerce channels is a significant growth catalyst. DTC sales have reached new highs, accounting for 41.1% of sales in the second quarter and experiencing a substantial 54% year-over-year increase. This expansion into higher-margin channels not only gives On Holding greater control over its brand and customer data but also enhances its gross and EBITDA margins.
Despite these positive operational shifts, On Holding faces potential risks. Pressure on margins could arise if premium pricing proves unsustainable, and competitive challenges may emerge if the company expands into new market segments like team sports. Nevertheless, analysts currently view the stock as undervalued, with a fair value estimate of $61.29, suggesting a potential upside despite short-term stock fluctuations.
