Sonova Holding AG

SONVY

Medical - Devices · Healthcare

Price

$50.71

-0.41 (-0.81%)

Market Cap

$15.06B

Exchange

Other OTC

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Share count falling — buybacks

−3.5% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 313.6M (2022) → 302.7M (2026)

Sonova is a Swiss company that makes hearing aids and cochlear implants — devices that help people who have trouble hearing. Its main brands include Phonak, Unitron, and Advanced Bionics, and it sells to audiologists, hearing care clinics, and hospitals around the world. Sonova is one of the two largest hearing aid companies on the planet, competing closely with Denmark's Demant and William Demant.

The company makes money by selling hearing devices and related accessories directly through its own network of hearing care retail stores, as well as through independent audiologists and healthcare providers. Sonova operates globally, with strong presence in Europe, North America, and Asia, and generates roughly $4 billion in annual revenue. Its moat comes from strong brand recognition, proprietary wireless audio technology, and a growing retail distribution network — but the key risk is that hearing aid adoption rates remain low globally, and reimbursement policy changes in major markets like the U.S. could pressure pricing and demand.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-10.8% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+7.2% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$218M/ year

↓ Declining (-7% vs prior year)

6.0% of revenue

Below sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

83.5%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$783M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Sonova Holding AG's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

75.5%

Premium pricing power — 75.5% gross margin

Operating Margin

21.7%

Excellent — 21.7% operating margin

ROCE

9.6%

Below par — 9.6% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+3.6%

Slow sales growth (3.6% YoY)

EPS YoY

+6.5%

Modest earnings growth (6.5% YoY)

Single-digit earnings growth — steady but not exciting.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

144%

Turns 144% of profit into real cash

FCF Margin

21.8%

Converts sales into free cash efficiently (21.8%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

0.56

Conservative — low debt load (0.56)

Interest Cover

19.22x

Comfortably covers interest (19.2x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

12.3x

Attractive valuation — P/E 12.3

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

-6.7

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield

2.29%

Moderate income — 2.29% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth

+54.7%

Dividend growing fast (54.7% YoY)

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