Operating Margin

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Price: 219.5 CHF 0.73% Market Closed

Market Cap: 13.1B CHF

19.3%

Declining

by 0.3%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

19.3%

Operating Income

CHf741.9m

Revenue

CHf3.8B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

19.3%

Operating Income

CHf741.9m

Revenue

CHf3.8B

Peer Comparison

Country	Company	Market Cap	Operating Margin
CH	Sonova Holding AG SIX:SOON	13.1B CHF	Loading...
US	Abbott Laboratories NYSE:ABT	210.8B USD	Loading...
US	Intuitive Surgical Inc NASDAQ:ISRG	186.6B USD	Loading...
US	Stryker Corp NYSE:SYK	138B USD	Loading...
US	Boston Scientific Corp NYSE:BSX	136.3B USD	Loading...
IE	Medtronic PLC NYSE:MDT	128B USD	Loading...
US	Becton Dickinson and Co NYSE:BDX	58.7B USD	Loading...
DE	Siemens Healthineers AG XETRA:SHL	48.8B EUR	Loading...
US	IDEXX Laboratories Inc NASDAQ:IDXX	55.7B USD	Loading...
US	Edwards Lifesciences Corp NYSE:EW	49.3B USD	Loading...
US	Resmed Inc NYSE:RMD	37.6B USD	Loading...

Market Distribution

Min	-62 472.2%
30th Percentile	3.5%
Median	10.3%
70th Percentile	16.5%
Max	91.2%

Other Profitability Ratios

Sonova Holding AG
Glance View

Economic Moat

None

Market Cap

13.1B CHF

Industry

Health Care

In the world of audiological solutions, Sonova Holding AG stands out as a beacon of innovation and influence. Based in Switzerland, this company has carved a niche for itself as a global leader in hearing care solutions. Sonova’s operations span the entire spectrum of the hearing care market, from manufacturing hearing instruments to cochlear implants and advanced wireless communication systems. Their unique value proposition lies in the integration of cutting-edge technology with a deep understanding of consumer needs, which allows them to offer tailored solutions that enhance the lives of the hearing impaired. Through a network of brands, including Phonak and Unitron, Sonova ensures a broad reach and caters to diverse customer segments across different geographies. The strength of Sonova's offerings is underscored by continuous investment in research and development, which helps maintain a competitive edge in innovation-driven product lines. The business model of Sonova integrates design, technology, and service with a steady output of hearing solutions that meet high-quality standards. The company generates revenue primarily from the sales of hearing devices, which include both traditional hearing aids and more technologically advanced options like cochlear implants. Additionally, Sonova benefits from sales of audiological care services, leveraging a global network of audiologists and service points to provide personalized care and support. This combination of product and service sales creates a resilient revenue stream that is further bolstered by the company's strategic acquisitions and partnerships, which expand both its technological resources and its market presence. Through this combination of an expansive product portfolio and a robust service network, Sonova not only secures financial success but also contributes meaningfully to the broader community by addressing one of the most fundamental human needs—communication.

View SOON Analysis

SOON Intrinsic Value

Undervaluation 23%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Sonova Holding AG
SIX:SOON

Peer Comparison

Market Distribution

Other Profitability Ratios

Sonova Holding AG
Glance View

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Sonova Holding AG SIX:SOON