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Is NASDAQ:ON suited for quality investing?

By Mill Chart

Last update: Sep 13, 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.

  • The 5-year revenue growth of ON SEMICONDUCTOR has been remarkable, with 8.48% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • ON SEMICONDUCTOR demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 39.78% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • The Debt/Free Cash Flow Ratio of ON SEMICONDUCTOR stands at 2.98, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • With a favorable Profit Quality (5-year) ratio of 108.0%, ON SEMICONDUCTOR showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • ON SEMICONDUCTOR has consistently achieved strong EBIT growth over the past 5 years, with a 31.07% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • ON SEMICONDUCTOR demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

A complete fundamental analysis of NASDAQ:ON

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Taking everything into account, ON scores 6 out of 10 in our fundamental rating. 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 has a correct valuation and a medium 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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