Onex (TSE:ONEX) Announces Quarterly Earnings Results

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

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 Stock Down 2.1%

ONEX stock opened at C$115.51 on Friday. The business has a 50 day moving average price of C$108.92 and a 200 day moving average price of C$107.80. The stock has a market cap of C$8.80 billion, a price-to-earnings ratio of 13.95, a PEG 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.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on ONEX shares. Royal Bank Of Canada upped their target price on shares of Onex from C$130.00 to C$135.00 and gave the stock a “sector perform” rating in a research note on Friday. Canadian Imperial Bank of Commerce set a C$135.00 price target on shares of Onex and gave the stock a “neutral” rating in a report on Monday, April 27th. Finally, TD reduced their price objective on shares of Onex from C$165.00 to C$163.00 and set a “buy” rating on the stock in a report on Friday. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of C$153.60.

About Onex

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.