57.15 USD
+5.67 (+11.01%)
57.14 USD
-0.01 (-0.02%)
Overall ON gets a fundamental rating of 6 out of 10. We evaluated ON against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. ON scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ON has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years ON had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.45%, ON is in line with its industry, outperforming 58.93% of the companies in the same industry.
With a Return On Equity value of 4.04%, ON perfoms like the industry average, outperforming 59.82% of the companies in the same industry.
The Return On Invested Capital of ON (6.79%) is better than 73.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ON is significantly above the industry average of 10.77%.
The 3 year average ROIC (19.04%) for ON 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
ON has a Profit Margin (5.16%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ON has grown nicely.
With a decent Operating Margin value of 15.06%, ON is doing good in the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ON has grown nicely.
With a Gross Margin value of 35.75%, ON is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
ON's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ON is creating value.
ON has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ON has more shares outstanding
Compared to 1 year ago, ON has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.49 indicates that ON is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.49, ON is in line with its industry, outperforming 57.14% of the companies in the same industry.
ON has a debt to FCF ratio of 2.47. This is a good value and a sign of high solvency as ON would need 2.47 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.47, ON is doing good in the industry, outperforming 66.07% of the companies in the same industry.
A Debt/Equity ratio of 0.43 indicates that ON is not too dependend on debt financing.
The Debt to Equity ratio of ON (0.43) is worse than 65.18% of its industry peers.
Although ON does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.47 | ||
| Altman-Z | 4.49 |
ROIC/WACC0.68
WACC9.95%
2.3 Liquidity
A Current Ratio of 5.23 indicates that ON has no problem at all paying its short term obligations.
ON has a better Current ratio (5.23) than 75.00% of its industry peers.
A Quick Ratio of 3.54 indicates that ON has no problem at all paying its short term obligations.
ON's Quick ratio of 3.54 is fine compared to the rest of the industry. ON outperforms 67.86% 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 ON have decreased strongly by -37.85% 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.
ON shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.13%.
ON shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.12% yearly.
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
The Earnings Per Share is expected to grow by 11.23% on average over the next years. This is quite good.
Based on estimates for the next years, ON will show a small growth in Revenue. The Revenue will grow by 4.30% on average per year.
EPS Next Y-40.69%
EPS Next 2Y-12.89%
EPS Next 3Y2.21%
EPS Next 5Y11.23%
Revenue Next Year-16.3%
Revenue Next 2Y-5.74%
Revenue Next 3Y-0.59%
Revenue Next 5Y4.3%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.48, ON is valued on the expensive side.
Based on the Price/Earnings ratio, ON is valued cheaper than 88.39% of the companies in the same industry.
ON's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.37.
Based on the Price/Forward Earnings ratio of 18.92, the valuation of ON can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ON is valued cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.20. ON is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.48 | ||
| Fwd PE | 18.92 |
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 83.93% of the companies listed in the same industry.
92.86% of the companies in the same industry are more expensive than ON, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.81 | ||
| EV/EBITDA | 13.27 |
4.3 Compensation for Growth
ON has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y-12.89%
EPS Next 3Y2.21%
5. Dividend
5.1 Amount
No dividends for ON!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
57.15
+5.67 (+11.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners111.02%
Inst Owner Change-0.12%
Ins Owners0.33%
Ins Owner Change-0.24%
Market Cap23.00B
Revenue(TTM)6.19B
Net Income(TTM)319.10M
Analysts71.82
Price Target59.91 (4.83%)
Short Float %9.77%
Short Ratio4.44
Dividend
| Industry Rank | Sector 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)0.1%
Min EPS beat(2)-3.5%
Max EPS beat(2)3.69%
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)5
Avg EPS beat(8)0.2%
EPS beat(12)9
Avg EPS beat(12)1.37%
EPS beat(16)13
Avg EPS beat(16)3.32%
Revenue beat(2)0
Avg Revenue beat(2)-1.24%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)-0.65%
Revenue beat(4)1
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-4.89%
Max Revenue beat(4)0.12%
Revenue beat(8)1
Avg Revenue beat(8)-2.08%
Revenue beat(12)2
Avg Revenue beat(12)-1.71%
Revenue beat(16)5
Avg Revenue beat(16)-1.27%
PT rev (1m)1.87%
PT rev (3m)1.63%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.07%
Revenue NQ rev (1m)0.64%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.48 | ||
| Fwd PE | 18.92 | ||
| P/S | 3.72 | ||
| P/FCF | 16.81 | ||
| P/OCF | 12.88 | ||
| P/B | 2.91 | ||
| P/tB | 3.85 | ||
| EV/EBITDA | 13.27 |
EPS(TTM)2.66
EY4.65%
EPS(NY)3.02
Fwd EY5.28%
FCF(TTM)3.4
FCFY5.95%
OCF(TTM)4.44
OCFY7.76%
SpS15.38
BVpS19.65
TBVpS14.85
PEG (NY)N/A
PEG (5Y)0.98
Graham Number34.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 4.04% | ||
| ROCE | 7.9% | ||
| ROIC | 6.79% | ||
| ROICexc | 8.97% | ||
| ROICexgc | 11.45% | ||
| OM | 15.06% | ||
| PM (TTM) | 5.16% | ||
| GM | 35.75% | ||
| FCFM | 22.11% |
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)25.66%
ROICexc(5y)20.08%
ROICexgc(3y)33.75%
ROICexgc(5y)27.59%
ROCE(3y)22.16%
ROCE(5y)17.85%
ROICexgc growth 3Y-8.83%
ROICexgc 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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.47 | ||
| Debt/EBITDA | 2.15 | ||
| Cap/Depr | 65.39% | ||
| Cap/Sales | 6.74% | ||
| Interest Coverage | 14.93 | ||
| Cash Conversion | 113.74% | ||
| Profit Quality | 428.71% | ||
| Current Ratio | 5.23 | ||
| Quick Ratio | 3.54 | ||
| Altman-Z | 4.49 |
F-Score5
WACC9.95%
ROIC/WACC0.68
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)-37.85%
EPS 3Y10.62%
EPS 5Y21.88%
EPS Q2Q%-36.36%
EPS Next Y-40.69%
EPS Next 2Y-12.89%
EPS Next 3Y2.21%
EPS Next 5Y11.23%
Revenue 1Y (TTM)-16.13%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-11.98%
Revenue Next Year-16.3%
Revenue Next 2Y-5.74%
Revenue Next 3Y-0.59%
Revenue Next 5Y4.3%
EBIT growth 1Y-55.33%
EBIT growth 3Y11.77%
EBIT growth 5Y24.63%
EBIT Next Year-17.86%
EBIT Next 3Y6.9%
EBIT Next 5Y13.95%
FCF growth 1Y130.61%
FCF growth 3Y-2.05%
FCF growth 5Y82.37%
OCF growth 1Y-14.9%
OCF growth 3Y2.27%
OCF growth 5Y22.37%
ON SEMICONDUCTOR / ON FAQ
What is the ChartMill fundamental rating of ON SEMICONDUCTOR (ON) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ON.
What is the valuation status for ON stock?
ChartMill assigns a valuation rating of 5 / 10 to ON SEMICONDUCTOR (ON). This can be considered as Fairly Valued.
Can you provide the profitability details for ON SEMICONDUCTOR?
ON SEMICONDUCTOR (ON) has a profitability rating of 7 / 10.
How financially healthy is ON SEMICONDUCTOR?
The financial health rating of ON SEMICONDUCTOR (ON) is 7 / 10.