ON SEMICONDUCTOR (1ON.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ON - US6821891057 - Common Stock
51.93 EUR
-0.94 (-1.78%)
Taking everything into account, 1ON scores 5 out of 10 in our fundamental rating. 1ON was compared to 69 industry peers in the Semiconductors & Semiconductor Equipment industry. 1ON has an excellent financial health rating, but there are some minor concerns on its profitability. 1ON has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year 1ON was profitable.
- In the past year 1ON had a positive cash flow from operations.
- Each year in the past 5 years 1ON has been profitable.
- 1ON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 2.45%, 1ON is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
- With a Return On Equity value of 4.04%, 1ON is not doing good in the industry: 72.46% of the companies in the same industry are doing better.
- With a Return On Invested Capital value of 6.79%, 1ON perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 1ON is above the industry average of 14.31%.
- The 3 year average ROIC (19.04%) for 1ON is well above the current ROIC(6.79%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 4.04% | ||
| ROIC | 6.79% |
ROA(3y)14.52%
ROA(5y)11.35%
ROE(3y)25.56%
ROE(5y)21.06%
ROIC(3y)19.04%
ROIC(5y)15.34%
1.3 Margins
- 1ON has a worse Profit Margin (5.16%) than 73.91% of its industry peers.
- 1ON's Profit Margin has improved in the last couple of years.
- 1ON has a Operating Margin (15.06%) which is in line with its industry peers.
- 1ON's Operating Margin has improved in the last couple of years.
- 1ON has a worse Gross Margin (35.75%) than 78.26% of its industry peers.
- In the last couple of years the Gross Margin of 1ON has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.06% | ||
| PM (TTM) | 5.16% | ||
| GM | 35.75% |
OM growth 3Y9.94%
OM growth 5Y18.56%
PM growth 3Y14.02%
PM growth 5Y42.07%
GM growth 3Y4.08%
GM growth 5Y4.89%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1ON is creating value.
- 1ON has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, 1ON has more shares outstanding
- 1ON has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.99 indicates that 1ON is not in any danger for bankruptcy at the moment.
- 1ON has a Altman-Z score (4.99) which is comparable to the rest of the industry.
- The Debt to FCF ratio of 1ON is 2.47, which is a good value as it means it would take 1ON, 2.47 years of fcf income to pay off all of its debts.
- 1ON has a Debt to FCF ratio of 2.47. This is comparable to the rest of the industry: 1ON outperforms 50.72% of its industry peers.
- A Debt/Equity ratio of 0.43 indicates that 1ON is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.43, 1ON is doing worse than 73.91% of the companies in the same industry.
- Even though the debt/equity ratio score it not favorable for 1ON, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.47 | ||
| Altman-Z | 4.99 |
ROIC/WACC0.65
WACC10.46%
2.3 Liquidity
- 1ON has a Current Ratio of 5.23. This indicates that 1ON is financially healthy and has no problem in meeting its short term obligations.
- With an excellent Current ratio value of 5.23, 1ON belongs to the best of the industry, outperforming 89.86% of the companies in the same industry.
- 1ON has a Quick Ratio of 3.54. This indicates that 1ON is financially healthy and has no problem in meeting its short term obligations.
- 1ON has a better Quick ratio (3.54) than 88.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.23 | ||
| Quick Ratio | 3.54 |
3. Growth
3.1 Past
- The earnings per share for 1ON have decreased strongly by -37.85% in the last year.
- Measured over the past years, 1ON shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.88% on average per year.
- 1ON shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.13%.
- The Revenue has been growing slightly by 5.12% on average over the past years.
EPS 1Y (TTM)-37.85%
EPS 3Y10.62%
EPS 5Y21.88%
EPS Q2Q%-36.36%
Revenue 1Y (TTM)-16.13%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-11.98%
3.2 Future
- Based on estimates for the next years, 1ON will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.23% on average per year.
- Based on estimates for the next years, 1ON will show a small growth in Revenue. The Revenue will grow by 3.96% on average per year.
EPS Next Y-39.69%
EPS Next 2Y-13.17%
EPS Next 3Y2.09%
EPS Next 5Y11.23%
Revenue Next Year-15.68%
Revenue Next 2Y-5.76%
Revenue Next 3Y-0.83%
Revenue Next 5Y3.96%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 23.39, which indicates a rather expensive current valuation of 1ON.
- Based on the Price/Earnings ratio, 1ON is valued cheaper than 85.51% of the companies in the same industry.
- 1ON is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- 1ON is valuated rather expensively with a Price/Forward Earnings ratio of 20.72.
- 78.26% of the companies in the same industry are more expensive than 1ON, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of 1ON to the average of the S&P500 Index (25.72), we can say 1ON is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.39 | ||
| Fwd PE | 20.72 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1ON is valued a bit cheaper than 69.57% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ON indicates a rather cheap valuation: 1ON is cheaper than 94.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.29 | ||
| EV/EBITDA | 16.01 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.07
EPS Next 2Y-13.17%
EPS Next 3Y2.09%
5. Dividend
5.1 Amount
- No dividends for 1ON!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ON SEMICONDUCTOR / 1ON.MI FAQ
What is the fundamental rating for 1ON stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1ON.MI.
What is the valuation status for 1ON stock?
ChartMill assigns a valuation rating of 4 / 10 to ON SEMICONDUCTOR (1ON.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for ON SEMICONDUCTOR?
ON SEMICONDUCTOR (1ON.MI) has a profitability rating of 5 / 10.
How financially healthy is ON SEMICONDUCTOR?
The financial health rating of ON SEMICONDUCTOR (1ON.MI) is 7 / 10.
What is the earnings growth outlook for ON SEMICONDUCTOR?
The Earnings per Share (EPS) of ON SEMICONDUCTOR (1ON.MI) is expected to decline by -39.69% in the next year.