ON SEMICONDUCTOR (ON)
US6821891057 - Common Stock
ON gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. While ON belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ON is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ON had positive earnings in the past year.
In the past year ON had a positive cash flow from operations.
ON had positive earnings in each of the past 5 years.
In the past 5 years ON always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 16.52%, ON belongs to the best of the industry, outperforming 87.74% of the companies in the same industry.
ON's Return On Equity of 28.06% is amongst the best of the industry. ON outperforms 86.79% of its industry peers.
ON has a better Return On Invested Capital (19.76%) than 90.57% of its industry peers.
ON had an Average Return On Invested Capital over the past 3 years of 19.02%. This is significantly above the industry average of 11.07%.
The last Return On Invested Capital (19.76%) for ON is above the 3 year average (19.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.52% | ||
| ROE | 28.06% | ||
| ROIC | 19.76% |
ROA(3y)14.3%
ROA(5y)9.62%
ROE(3y)26.94%
ROE(5y)18.77%
ROIC(3y)19.02%
ROIC(5y)14%
1.3 Margins
Looking at the Profit Margin, with a value of 26.46%, ON belongs to the top of the industry, outperforming 86.79% of the companies in the same industry.
ON's Profit Margin has improved in the last couple of years.
ON has a better Operating Margin (31.67%) than 90.57% of its industry peers.
In the last couple of years the Operating Margin of ON has grown nicely.
With a Gross Margin value of 47.06%, ON perfoms like the industry average, outperforming 56.60% of the companies in the same industry.
In the last couple of years the Gross Margin of ON has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.67% | ||
| PM (TTM) | 26.46% | ||
| GM | 47.06% |
OM growth 3Y58.85%
OM growth 5Y16.75%
PM growth 3Y81.07%
PM growth 5Y19.91%
GM growth 3Y12.96%
GM growth 5Y4.32%
2. Health
2.1 Basic Checks
ON has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ON has less shares outstanding than it did 1 year ago.
ON has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ON has been reduced compared to a year ago.
2.2 Solvency
ON has an Altman-Z score of 5.42. This indicates that ON is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ON (5.42) is better than 62.26% of its industry peers.
The Debt to FCF ratio of ON is 8.36, which is on the high side as it means it would take ON, 8.36 years of fcf income to pay off all of its debts.
ON has a Debt to FCF ratio of 8.36. This is comparable to the rest of the industry: ON outperforms 49.06% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that ON is not too dependend on debt financing.
The Debt to Equity ratio of ON (0.33) is worse than 63.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 8.36 | ||
| Altman-Z | 5.42 |
ROIC/WACC1.77
WACC11.18%
2.3 Liquidity
ON has a Current Ratio of 2.71. This indicates that ON is financially healthy and has no problem in meeting its short term obligations.
ON has a Current ratio (2.71) which is comparable to the rest of the industry.
A Quick Ratio of 1.74 indicates that ON should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.74, ON is not doing good in the industry: 63.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
ON shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.19%.
Measured over the past years, ON shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.36% on average per year.
The Revenue has decreased by -0.88% in the past year.
The Revenue has been growing slightly by 7.02% on average over the past years.
EPS 1Y (TTM)-3.19%
EPS 3Y83.14%
EPS 5Y21.36%
EPS growth Q2Q-5.3%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y16.24%
Revenue growth 5Y7.02%
Revenue growth Q2Q-4.06%
3.2 Future
The Earnings Per Share is expected to grow by 16.98% on average over the next years. This is quite good.
Based on estimates for the next years, ON will show a quite strong growth in Revenue. The Revenue will grow by 9.95% on average per year.
EPS Next Y-14.48%
EPS Next 2Y1.41%
EPS Next 3Y8.97%
EPS Next 5Y16.98%
Revenue Next Year-8.72%
Revenue Next 2Y0.51%
Revenue Next 3Y4.51%
Revenue Next 5Y9.95%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.95, ON is valued correctly.
Based on the Price/Earnings ratio, ON is valued cheaper than 92.45% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.25. ON is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.14, which indicates a correct valuation of ON.
Based on the Price/Forward Earnings ratio, ON is valued cheaper than 85.85% of the companies in the same industry.
ON's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.95 | ||
| Fwd PE | 15.14 |
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 91.51% 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 somewhat cheap valuation: ON is cheaper than 60.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.46 | ||
| EV/EBITDA | 9.01 |
4.3 Compensation for Growth
The excellent profitability rating of ON may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.61
EPS Next 2Y1.41%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
ON does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ON SEMICONDUCTOR
NASDAQ:ON (4/25/2024, 9:21:10 AM)
66.81
+1.28 (+1.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap28.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.95 | ||
| Fwd PE | 15.14 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.52% | ||
| ROE | 28.06% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 31.67% | ||
| PM (TTM) | 26.46% | ||
| GM | 47.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-3.19%
EPS 3Y83.14%
EPS 5Y
EPS growth Q2Q
EPS Next Y-14.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y16.24%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y