Onex (TSE:ONEX) Posts Quarterly Earnings Results

Onex (TSE:ONEX) released its quarterly earnings results on Thursday. The company reported C$2.43 EPS for the quarter, FiscalAI reports. Onex had a return on equity of 6.52% and a net margin of 96.42%.The business had revenue of C$287.00 million for the quarter.

Here are the key takeaways from Onex’s conference call:

• Share repurchases are expected to resume immediately after Onex reduced its NAV loan to $220 million and maintained ample liquidity, with management citing a significant discount to intrinsic value.
• Convex continued to deliver strong operating results, including 8% year-over-year gross premium growth, an 85% quarterly combined ratio, 20.3% return on average tangible equity, and 38% growth in trailing 12-month adjusted net income.
• Onex reported progress in private equity realizations and fundraising, with Onex Partners V reaching 1.0x DPI and approximately $1.4 billion of distributions over the past 12 months; management remains optimistic about a first close for Onex Partners VI in the fourth quarter.
• Credit fee-generating AUM grew 13% over the last 12 months, while structured credit generated a record $19 million of quarterly fee-related earnings and OSCO II brought total new capital committed to the strategy above $500 million.
• Quarterly private equity performance was flat overall, reflecting mark reductions on several portfolio companies, while credit investing capital declined amid market volatility and unrealized losses in European CLOs and opportunistic credit strategies.

Onex Price Performance

ONEX traded down C$1.77 during trading hours on Friday, reaching C$116.24. The company’s stock had a trading volume of 35,015 shares, compared to its average volume of 112,648. The stock has a market cap of C$8.87 billion, a PE ratio of 14.04, a P/E/G ratio of 1.47 and a beta of 0.71. Onex has a fifty-two week low of C$95.15 and a fifty-two week high of C$131.38. The business’s 50-day moving average is C$108.79 and its 200-day moving average is C$107.75.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on ONEX shares. Canadian Imperial Bank of Commerce set a C$135.00 price objective on Onex and gave the company a “neutral” rating in a research note on Monday, April 27th. Royal Bank Of Canada dropped their price target on Onex from C$136.00 to C$130.00 and set a “sector perform” rating on the stock in a research note on Tuesday, May 19th. Two investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of C$150.00.

Onex Company Profile

Onex Corporation is a private equity investor and asset management firm. The company operates in two main segments: investing, which includes private equity, private credit, and direct investments; and asset and wealth management, which manages pension plans, sovereign wealth funds, insurance companies, and family offices. Investing revenue primarily comes from net gains on corporate investments and CLOs (collateralized loan investments). Asset and wealth management revenue comes primarily from management and performance fees.