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ON SEMICONDUCTOR (ON) Stock Fundamental Analysis

NASDAQ:ON - Nasdaq - US6821891057 - Common Stock - Currency: USD

51.02  -1.96 (-3.7%)

After market: 51 -0.02 (-0.04%)

Fundamental Rating

6

ON gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. ON has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ON is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year ON was profitable.
ON had a positive operating cash flow in the past year.
ON had positive earnings in each of the past 5 years.
ON had a positive operating cash flow in each of the past 5 years.
ON Yearly Net Income VS EBIT VS OCF VS FCFON Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

1.2 Ratios

ON has a better Return On Assets (4.78%) than 64.55% of its industry peers.
With a decent Return On Equity value of 7.89%, ON is doing good in the industry, outperforming 65.45% of the companies in the same industry.
ON's Return On Invested Capital of 9.62% is fine compared to the rest of the industry. ON outperforms 79.09% of its industry peers.
ON had an Average Return On Invested Capital over the past 3 years of 19.04%. This is significantly above the industry average of 10.57%.
The 3 year average ROIC (19.04%) for ON is well above the current ROIC(9.62%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 4.78%
ROE 7.89%
ROIC 9.62%
ROA(3y)14.52%
ROA(5y)11.35%
ROE(3y)25.56%
ROE(5y)21.06%
ROIC(3y)19.04%
ROIC(5y)15.34%
ON Yearly ROA, ROE, ROICON Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

The Profit Margin of ON (9.51%) is better than 63.64% of its industry peers.
In the last couple of years the Profit Margin of ON has grown nicely.
The Operating Margin of ON (20.11%) is better than 78.18% of its industry peers.
In the last couple of years the Operating Margin of ON has grown nicely.
ON has a worse Gross Margin (39.85%) than 61.82% of its industry peers.
ON's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 20.11%
PM (TTM) 9.51%
GM 39.85%
OM growth 3Y9.94%
OM growth 5Y18.56%
PM growth 3Y14.02%
PM growth 5Y42.07%
GM growth 3Y4.08%
GM growth 5Y4.89%
ON Yearly Profit, Operating, Gross MarginsON Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ON is creating value.
Compared to 1 year ago, ON has less shares outstanding
ON has more shares outstanding than it did 5 years ago.
ON has a better debt/assets ratio than last year.
ON Yearly Shares OutstandingON Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
ON Yearly Total Debt VS Total AssetsON Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

2.2 Solvency

ON has an Altman-Z score of 4.64. This indicates that ON is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.64, ON is in line with its industry, outperforming 60.00% of the companies in the same industry.
ON has a debt to FCF ratio of 2.40. This is a good value and a sign of high solvency as ON would need 2.40 years to pay back of all of its debts.
ON has a Debt to FCF ratio of 2.40. This is in the better half of the industry: ON outperforms 65.45% of its industry peers.
ON has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
ON's Debt to Equity ratio of 0.42 is on the low side compared to the rest of the industry. ON is outperformed by 68.18% of its industry peers.
Even though the debt/equity ratio score it not favorable for ON, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.42
Debt/FCF 2.4
Altman-Z 4.64
ROIC/WACC1.01
WACC9.53%
ON Yearly LT Debt VS Equity VS FCFON Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.3 Liquidity

A Current Ratio of 4.95 indicates that ON has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.95, ON is doing good in the industry, outperforming 72.73% of the companies in the same industry.
ON has a Quick Ratio of 3.32. This indicates that ON is financially healthy and has no problem in meeting its short term obligations.
ON has a Quick ratio of 3.32. This is in the better half of the industry: ON outperforms 63.64% of its industry peers.
Industry RankSector Rank
Current Ratio 4.95
Quick Ratio 3.32
ON Yearly Current Assets VS Current LiabilitesON Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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3

3. Growth

3.1 Past

The earnings per share for ON have decreased strongly by -31.68% in the last year.
Measured over the past years, ON shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.88% on average per year.
The Revenue for ON has decreased by -18.28% in the past year. This is quite bad
Measured over the past years, ON shows a small growth in Revenue. The Revenue has been growing by 5.12% on average per year.
EPS 1Y (TTM)-31.68%
EPS 3Y10.62%
EPS 5Y21.88%
EPS Q2Q%-49.07%
Revenue 1Y (TTM)-18.28%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-22.39%

3.2 Future

The Earnings Per Share is expected to grow by 9.60% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.88% on average over the next years.
EPS Next Y-41.49%
EPS Next 2Y-10.69%
EPS Next 3Y5.79%
EPS Next 5Y9.6%
Revenue Next Year-16.95%
Revenue Next 2Y-4.69%
Revenue Next 3Y0.65%
Revenue Next 5Y2.88%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
ON Yearly Revenue VS EstimatesON Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B
ON Yearly EPS VS EstimatesON Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6

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6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 14.79, ON is valued correctly.
Based on the Price/Earnings ratio, ON is valued cheaply inside the industry as 85.45% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.31, ON is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.07, which indicates a correct valuation of ON.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ON indicates a somewhat cheap valuation: ON is cheaper than 73.64% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, ON is valued a bit cheaper.
Industry RankSector Rank
PE 14.79
Fwd PE 16.07
ON Price Earnings VS Forward Price EarningsON Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ON indicates a rather cheap valuation: ON is cheaper than 84.55% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ON indicates a rather cheap valuation: ON is cheaper than 89.09% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 15.2
EV/EBITDA 11.14
ON Per share dataON EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

The excellent profitability rating of ON may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.68
EPS Next 2Y-10.69%
EPS Next 3Y5.79%

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0

5. Dividend

5.1 Amount

No dividends for ON!.
Industry RankSector Rank
Dividend Yield N/A

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ON SEMICONDUCTOR

NASDAQ:ON (6/13/2025, 8:00:02 PM)

After market: 51 -0.02 (-0.04%)

51.02

-1.96 (-3.7%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)05-05 2025-05-05/bmo
Earnings (Next)07-28 2025-07-28/bmo
Inst Owners104.17%
Inst Owner Change-0.86%
Ins Owners0.32%
Ins Owner Change3.63%
Market Cap21.32B
Analysts74.15
Price Target48.34 (-5.25%)
Short Float %8.39%
Short Ratio3.27
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.11%
Min EPS beat(2)-5.32%
Max EPS beat(2)5.53%
EPS beat(4)2
Avg EPS beat(4)0.1%
Min EPS beat(4)-5.32%
Max EPS beat(4)5.53%
EPS beat(8)6
Avg EPS beat(8)1.1%
EPS beat(12)10
Avg EPS beat(12)2.25%
EPS beat(16)14
Avg EPS beat(16)5.76%
Revenue beat(2)1
Avg Revenue beat(2)-2.38%
Min Revenue beat(2)-4.89%
Max Revenue beat(2)0.12%
Revenue beat(4)1
Avg Revenue beat(4)-2.42%
Min Revenue beat(4)-4.89%
Max Revenue beat(4)0.12%
Revenue beat(8)2
Avg Revenue beat(8)-1.89%
Revenue beat(12)4
Avg Revenue beat(12)-1.42%
Revenue beat(16)5
Avg Revenue beat(16)-1.21%
PT rev (1m)-1.77%
PT rev (3m)-21.88%
EPS NQ rev (1m)-0.69%
EPS NQ rev (3m)0.74%
EPS NY rev (1m)-8.83%
EPS NY rev (3m)-10.43%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)2.05%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-0.9%
Valuation
Industry RankSector Rank
PE 14.79
Fwd PE 16.07
P/S 3.2
P/FCF 15.2
P/OCF 10.61
P/B 2.66
P/tB 3.51
EV/EBITDA 11.14
EPS(TTM)3.45
EY6.76%
EPS(NY)3.17
Fwd EY6.22%
FCF(TTM)3.36
FCFY6.58%
OCF(TTM)4.81
OCFY9.43%
SpS15.95
BVpS19.22
TBVpS14.55
PEG (NY)N/A
PEG (5Y)0.68
Profitability
Industry RankSector Rank
ROA 4.78%
ROE 7.89%
ROCE 11.19%
ROIC 9.62%
ROICexc 12.85%
ROICexgc 16.43%
OM 20.11%
PM (TTM) 9.51%
GM 39.85%
FCFM 21.04%
ROA(3y)14.52%
ROA(5y)11.35%
ROE(3y)25.56%
ROE(5y)21.06%
ROIC(3y)19.04%
ROIC(5y)15.34%
ROICexc(3y)25.65%
ROICexc(5y)20.08%
ROICexgc(3y)33.75%
ROICexgc(5y)27.59%
ROCE(3y)22.16%
ROCE(5y)17.85%
ROICexcg growth 3Y-8.84%
ROICexcg growth 5Y5.63%
ROICexc growth 3Y-1.27%
ROICexc growth 5Y11.96%
OM growth 3Y9.94%
OM growth 5Y18.56%
PM growth 3Y14.02%
PM growth 5Y42.07%
GM growth 3Y4.08%
GM growth 5Y4.89%
F-Score5
Asset Turnover0.5
Health
Industry RankSector Rank
Debt/Equity 0.42
Debt/FCF 2.4
Debt/EBITDA 1.69
Cap/Depr 92.61%
Cap/Sales 9.12%
Interest Coverage 21.76
Cash Conversion 100.66%
Profit Quality 221.29%
Current Ratio 4.95
Quick Ratio 3.32
Altman-Z 4.64
F-Score5
WACC9.53%
ROIC/WACC1.01
Cap/Depr(3y)184.74%
Cap/Depr(5y)142.8%
Cap/Sales(3y)13.78%
Cap/Sales(5y)11.57%
Profit Quality(3y)59.82%
Profit Quality(5y)95.66%
High Growth Momentum
Growth
EPS 1Y (TTM)-31.68%
EPS 3Y10.62%
EPS 5Y21.88%
EPS Q2Q%-49.07%
EPS Next Y-41.49%
EPS Next 2Y-10.69%
EPS Next 3Y5.79%
EPS Next 5Y9.6%
Revenue 1Y (TTM)-18.28%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-22.39%
Revenue Next Year-16.95%
Revenue Next 2Y-4.69%
Revenue Next 3Y0.65%
Revenue Next 5Y2.88%
EBIT growth 1Y-46.88%
EBIT growth 3Y11.77%
EBIT growth 5Y24.63%
EBIT Next Year-12.76%
EBIT Next 3Y9.27%
EBIT Next 5Y12.19%
FCF growth 1Y2.88%
FCF growth 3Y-2.05%
FCF growth 5Y82.37%
OCF growth 1Y-21.59%
OCF growth 3Y2.27%
OCF growth 5Y22.37%