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Why the quality investor may take a look at ON SEMICONDUCTOR (NASDAQ:ON).

By Mill Chart

Last update: Aug 23, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if ON SEMICONDUCTOR (NASDAQ:ON) is suited for quality investing. Investors should of couse do their own research, but we spotted ON SEMICONDUCTOR showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

  • Over the past 5 years, ON SEMICONDUCTOR has experienced impressive revenue growth, with 8.48% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • With a robust ROIC excluding cash and goodwill at 39.78%, ON SEMICONDUCTOR showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • With a favorable Debt/Free Cash Flow Ratio of 2.98, ON SEMICONDUCTOR showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • ON SEMICONDUCTOR demonstrates consistent Profit Quality over the past 5 years, with a strong 108.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • ON SEMICONDUCTOR has demonstrated consistent growth in EBIT over the past 5 years, with a strong 31.07%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • ON SEMICONDUCTOR has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental analysis of NASDAQ:ON

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to ON. ON was compared to 105 industry peers in the Semiconductors & Semiconductor Equipment industry. ON scores excellent on profitability, but there are some minor concerns on its financial health. ON is not valued too expensively and it also shows a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of ON

More quality stocks can be found in our Caviar Cruise screen.


This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.



NASDAQ:ON (12/8/2023, 7:08:19 PM)

After market: 76.13 -0.01 (-0.01%)


+0.3 (+0.4%)

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