Sonova SOON.SW
What does Sonova do?
Sonova is a Swiss provider of hearing solutions for children and adults. The group develops, manufactures and distributes hearing aids and related products, primarily under the brands Phonak, Unitron and Hansaton. It also offers wireless headsets, hearables and headphones under the Sennheiser brand, as well as cochlear implants. The business is divided into the segments Hearing Instruments, Cochlear Implants and Lifestyle-Aligned.
Revenue is generated on the one hand through the sale of devices to independent hearing care professionals, chains and retail partners, and on the other through its own specialist stores offering audiological services, for example under AudioNova, Connect Hearing or Boots Hearingcare. Sonova is thus active along the value chain from technology to end-customer consultation. In competitive terms, the company is one of the few globally active hearing aid manufacturers, in a market with high demands on research, approval and distribution networks. Competitive advantages stem from brand strength, product innovation and customer proximity through its own branches.
Score profile
Rank vs. Medical Devices (48 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Sonova ranks among the best in the group Medical Devices (8.3/10). On growth, the company ranks below average in the group Medical Devices (3.2/10). On valuation (higher = cheaper), the stock ranks below average in the group Medical Devices (3.5/10). On financial strength, Sonova ranks below average in the group Medical Devices (3.8/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 22.6x | 19.8x | better than 44 % |
| Trailing P/E | 31.1x | 26.1x | better than 39 % |
| PEG ratio | 1.7x | 1.6x | better than 48 % |
| EV/EBITDA | 21.4x | 17.2x | better than 35 % |
| Price/sales | 4.6x | 3.0x | better than 14 % |
| Price/book | 6.4x | 2.6x | better than 15 % |
| Revenue growth | 0.0% | 6.9% | better than 19 % |
| Earnings growth | 0.0% | 0.0% | better than 45 % |
| Gross margin | 73.7% | 60.6% | better than 86 % |
| Operating margin | 19.6% | 10.7% | better than 82 % |
| Net margin | 11.9% | 5.5% | better than 70 % |
| Return on equity | 20.5% | 6.6% | better than 92 % |
| Debt/equity | 64.9% | 54.9% | better than 41 % |
| Current ratio | 1.8x | 2.9x | better than 24 % |
| Free cash flow yield | 2.1% | 2.1% | better than 48 % |
| Dividend yield | 1.7% | 1.6% | – |
| Payout ratio | 48.8% | 35.7% | – |
| Beta | 1.05 | 1.06 | – |
Valuation: what is Sonova worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Sonova a model range of 118.47 CHF to 245.88 CHF per share.
19 analysts, average rating “Hold”, average price target 259.47 CHF (−7.5%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Demand rises with population aging and the increasing prevalence of hearing loss.
- New product generations with improved sound processing and connectivity support sales and price levels in the hearing aid business.
- Own specialist stores and partner networks secure access to end customers and enable recurring service and follow-on revenue.
Risks
- A few large competitors and aggressive product cycles can put pressure on prices and market share.
- Changes in reimbursement systems and cost coverage by health funds or insurers directly affect demand.
- Consolidation in distribution strengthens large retail customers, and currency fluctuations weigh on a group that reports in Swiss francs.
What to look for with Sonova
Organic revenue growth by segment is informative because it excludes currency and acquisition effects and shows actual demand for devices and services.