ON SEMICONDUCTOR (ON) Fundamental Analysis & Valuation
NASDAQ:ON • US6821891057
56.56 USD
-0.31 (-0.55%)
Last: Mar 9, 2026, 11:52 AM
This ON fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 6 out of 10 to ON. ON was compared to 115 industry peers in the Semiconductors & Semiconductor Equipment industry. ON has an excellent financial health rating, but there are some minor concerns on its profitability. ON is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make ON a good candidate for value investing.
1. ON Profitability Analysis
1.1 Basic Checks
- ON had positive earnings in the past year.
- In the past year ON had a positive cash flow from operations.
- Each year in the past 5 years ON has been profitable.
- In the past 5 years ON always reported a positive cash flow from operatings.
1.2 Ratios
- ON has a Return On Assets (0.97%) which is comparable to the rest of the industry.
- ON has a Return On Equity (1.58%) which is comparable to the rest of the industry.
- ON's Return On Invested Capital of 6.01% is fine compared to the rest of the industry. ON outperforms 68.70% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ON is above the industry average of 10.48%.
- The last Return On Invested Capital (6.01%) for ON is well below the 3 year average (13.57%), which needs to be investigated, but indicates that ON had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.97% | ||
| ROE | 1.58% | ||
| ROIC | 6.01% |
ROA(3y)9.55%
ROA(5y)11%
ROE(3y)15.84%
ROE(5y)20.05%
ROIC(3y)13.57%
ROIC(5y)16.19%
1.3 Margins
- ON's Profit Margin of 2.02% is in line compared to the rest of the industry. ON outperforms 53.04% of its industry peers.
- ON's Profit Margin has declined in the last couple of years.
- The Operating Margin of ON (12.53%) is better than 69.57% of its industry peers.
- In the last couple of years the Operating Margin of ON has grown nicely.
- With a Gross Margin value of 33.09%, ON is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
- ON's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.53% | ||
| PM (TTM) | 2.02% | ||
| GM | 33.09% |
OM growth 3Y-27.74%
OM growth 5Y9.66%
PM growth 3Y-55.46%
PM growth 5Y-14.65%
GM growth 3Y-12.25%
GM growth 5Y0.27%
2. ON Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ON is still creating some value.
- Compared to 1 year ago, ON has less shares outstanding
- The number of shares outstanding for ON has been reduced compared to 5 years ago.
- Compared to 1 year ago, ON has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.86 indicates that ON is not in any danger for bankruptcy at the moment.
- ON has a Altman-Z score (4.86) which is in line with its industry peers.
- ON has a debt to FCF ratio of 2.12. This is a good value and a sign of high solvency as ON would need 2.12 years to pay back of all of its debts.
- ON has a better Debt to FCF ratio (2.12) than 66.96% of its industry peers.
- ON has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of ON (0.39) is worse than 67.83% of its industry peers.
- Although ON's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 | 0.39 | ||
| Debt/FCF | 2.12 | ||
| Altman-Z | 4.86 |
ROIC/WACC0.55
WACC10.97%
2.3 Liquidity
- ON has a Current Ratio of 4.52. This indicates that ON is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 4.52, ON is in the better half of the industry, outperforming 66.96% of the companies in the same industry.
- A Quick Ratio of 2.98 indicates that ON has no problem at all paying its short term obligations.
- With a decent Quick ratio value of 2.98, ON is doing good in the industry, outperforming 62.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.52 | ||
| Quick Ratio | 2.98 |
3. ON Growth Analysis
3.1 Past
- ON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.95%.
- ON shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.85% yearly.
- Looking at the last year, ON shows a very negative growth in Revenue. The Revenue has decreased by -15.35% in the last year.
- ON shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.67% yearly.
EPS 1Y (TTM)-40.95%
EPS 3Y-23.89%
EPS 5Y22.85%
EPS Q2Q%-32.63%
Revenue 1Y (TTM)-15.35%
Revenue growth 3Y-10.37%
Revenue growth 5Y2.67%
Sales Q2Q%-11.17%
3.2 Future
- ON is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.02% yearly.
- The Revenue is expected to grow by 13.03% on average over the next years. This is quite good.
EPS Next Y27.86%
EPS Next 2Y34.36%
EPS Next 3Y32.56%
EPS Next 5Y31.02%
Revenue Next Year4.79%
Revenue Next 2Y7.44%
Revenue Next 3Y7.81%
Revenue Next 5Y13.03%
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 accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. ON Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 24.07, which indicates a rather expensive current valuation of ON.
- Compared to the rest of the industry, the Price/Earnings ratio of ON indicates a rather cheap valuation: ON is cheaper than 86.96% of the companies listed in the same industry.
- ON's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.29.
- A Price/Forward Earnings ratio of 18.82 indicates a rather expensive valuation of ON.
- Based on the Price/Forward Earnings ratio, ON is valued cheaply inside the industry as 83.48% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of ON to the average of the S&P500 Index (24.60), we can say ON is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.07 | ||
| Fwd PE | 18.82 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ON is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, ON is valued cheaply inside the industry as 93.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.04 | ||
| EV/EBITDA | 15.96 |
4.3 Compensation for Growth
- ON's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of ON may justify a higher PE ratio.
- ON's earnings are expected to grow with 32.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.86
PEG (5Y)1.05
EPS Next 2Y34.36%
EPS Next 3Y32.56%
5. ON Dividend Analysis
5.1 Amount
- No dividends for ON!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ON Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:ON (3/9/2026, 11:52:09 AM)
56.56
-0.31 (-0.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-09 2026-02-09/amc
Earnings (Next)05-04 2026-05-04/bmo
Inst Owners112.18%
Inst Owner Change-2.86%
Ins Owners0.3%
Ins Owner Change0.37%
Market Cap22.76B
Revenue(TTM)6.00B
Net Income(TTM)121.00M
Analysts71.82
Price Target69.34 (22.6%)
Short Float %8.63%
Short Ratio3.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1.74%
Min EPS beat(2)-0.21%
Max EPS beat(2)3.69%
EPS beat(4)2
Avg EPS beat(4)1.38%
Min EPS beat(4)-3.5%
Max EPS beat(4)5.53%
EPS beat(8)4
Avg EPS beat(8)0.1%
EPS beat(12)8
Avg EPS beat(12)1.22%
EPS beat(16)12
Avg EPS beat(16)2.47%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-3.28%
Max Revenue beat(2)-0.65%
Revenue beat(4)1
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-3.28%
Max Revenue beat(4)0.12%
Revenue beat(8)1
Avg Revenue beat(8)-2.22%
Revenue beat(12)2
Avg Revenue beat(12)-1.87%
Revenue beat(16)4
Avg Revenue beat(16)-1.5%
PT rev (1m)6.92%
PT rev (3m)15.65%
EPS NQ rev (1m)0.82%
EPS NQ rev (3m)0.87%
EPS NY rev (1m)0%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.07 | ||
| Fwd PE | 18.82 | ||
| P/S | 3.8 | ||
| P/FCF | 16.04 | ||
| P/OCF | 12.93 | ||
| P/B | 2.97 | ||
| P/tB | 4.03 | ||
| EV/EBITDA | 15.96 |
EPS(TTM)2.35
EY4.15%
EPS(NY)3
Fwd EY5.31%
FCF(TTM)3.53
FCFY6.23%
OCF(TTM)4.37
OCFY7.73%
SpS14.9
BVpS19.07
TBVpS14.04
PEG (NY)0.86
PEG (5Y)1.05
Graham Number31.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.97% | ||
| ROE | 1.58% | ||
| ROCE | 6.68% | ||
| ROIC | 6.01% | ||
| ROICexc | 7.77% | ||
| ROICexgc | 10.13% | ||
| OM | 12.53% | ||
| PM (TTM) | 2.02% | ||
| GM | 33.09% | ||
| FCFM | 23.66% |
ROA(3y)9.55%
ROA(5y)11%
ROE(3y)15.84%
ROE(5y)20.05%
ROIC(3y)13.57%
ROIC(5y)16.19%
ROICexc(3y)17.59%
ROICexc(5y)21.3%
ROICexgc(3y)22.32%
ROICexgc(5y)28.91%
ROCE(3y)15.1%
ROCE(5y)18%
ROICexgc growth 3Y-40.91%
ROICexgc growth 5Y0.52%
ROICexc growth 3Y-39.74%
ROICexc growth 5Y4.24%
OM growth 3Y-27.74%
OM growth 5Y9.66%
PM growth 3Y-55.46%
PM growth 5Y-14.65%
GM growth 3Y-12.25%
GM growth 5Y0.27%
F-Score4
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.12 | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 49.74% | ||
| Cap/Sales | 5.69% | ||
| Interest Coverage | 12.88 | ||
| Cash Conversion | 122.46% | ||
| Profit Quality | 1172.4% | ||
| Current Ratio | 4.52 | ||
| Quick Ratio | 2.98 | ||
| Altman-Z | 4.86 |
F-Score4
WACC10.97%
ROIC/WACC0.55
Cap/Depr(3y)138.73%
Cap/Depr(5y)137.28%
Cap/Sales(3y)11.53%
Cap/Sales(5y)10.86%
Profit Quality(3y)422.63%
Profit Quality(5y)295.92%
High Growth Momentum
Growth
EPS 1Y (TTM)-40.95%
EPS 3Y-23.89%
EPS 5Y22.85%
EPS Q2Q%-32.63%
EPS Next Y27.86%
EPS Next 2Y34.36%
EPS Next 3Y32.56%
EPS Next 5Y31.02%
Revenue 1Y (TTM)-15.35%
Revenue growth 3Y-10.37%
Revenue growth 5Y2.67%
Sales Q2Q%-11.17%
Revenue Next Year4.79%
Revenue Next 2Y7.44%
Revenue Next 3Y7.81%
Revenue Next 5Y13.03%
EBIT growth 1Y-60.5%
EBIT growth 3Y-35.23%
EBIT growth 5Y12.59%
EBIT Next Year78.34%
EBIT Next 3Y37.25%
EBIT Next 5Y34.14%
FCF growth 1Y17.01%
FCF growth 3Y-3.87%
FCF growth 5Y28.77%
OCF growth 1Y-7.69%
OCF growth 3Y-12.57%
OCF growth 5Y14.76%
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 of ON SEMICONDUCTOR (ON) stock?
ChartMill assigns a valuation rating of 7 / 10 to ON SEMICONDUCTOR (ON). This can be considered as Undervalued.
Can you provide the profitability details for ON SEMICONDUCTOR?
ON SEMICONDUCTOR (ON) has a profitability rating of 6 / 10.
What is the expected EPS growth for ON SEMICONDUCTOR (ON) stock?
The Earnings per Share (EPS) of ON SEMICONDUCTOR (ON) is expected to grow by 27.86% in the next year.