56.7 USD
+2.55 (+4.71%)
56.88 USD
+0.18 (+0.32%)
We assign a fundamental rating of 6 out of 10 to ON. ON was compared to 113 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ON was profitable.
ON had a positive operating cash flow in the past year.
In the past 5 years ON has always been profitable.
In the past 5 years ON always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.45%, ON perfoms like the industry average, outperforming 55.75% of the companies in the same industry.
ON has a Return On Equity of 4.04%. This is comparable to the rest of the industry: ON outperforms 56.64% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.79%, ON is in the better half of the industry, outperforming 73.45% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ON is significantly above the industry average of 10.75%.
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 of 5.16%. This is comparable to the rest of the industry: ON outperforms 57.52% of its industry peers.
ON's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.06%, ON is in the better half of the industry, outperforming 74.34% of the companies in the same industry.
In the last couple of years the Operating Margin of ON has grown nicely.
Looking at the Gross Margin, with a value of 35.75%, ON is doing worse than 62.83% 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 | 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), 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.
2.2 Solvency
ON has an Altman-Z score of 4.61. This indicates that ON is financially healthy and has little risk of bankruptcy at the moment.
ON has a Altman-Z score (4.61) which is in line with its industry peers.
The Debt to FCF ratio of ON is 2.47, which is a good value as it means it would take ON, 2.47 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.47, ON is in the better half of the industry, outperforming 66.37% of the companies in the same industry.
ON has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.43, ON is doing worse than 67.26% of the companies in the same industry.
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 | 4.61 |
ROIC/WACC0.65
WACC10.38%
2.3 Liquidity
ON has a Current Ratio of 5.23. This indicates that ON is financially healthy and has no problem in meeting its short term obligations.
ON has a Current ratio of 5.23. This is in the better half of the industry: ON outperforms 74.34% 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 68.14% 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.
The Revenue for ON has decreased by -16.13% 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)-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, ON will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.23% on average per year.
The Revenue is expected to grow by 4.30% on average over the next years.
EPS Next Y-39.69%
EPS Next 2Y-13.2%
EPS Next 3Y2.07%
EPS Next 5Y11.23%
Revenue Next Year-15.68%
Revenue Next 2Y-5.76%
Revenue Next 3Y-0.83%
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 21.32, ON is valued on the expensive side.
Based on the Price/Earnings ratio, ON is valued cheaply inside the industry as 87.61% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ON to the average of the S&P500 Index (26.60), we can say ON is valued inline with the index average.
The Price/Forward Earnings ratio is 18.91, which indicates a rather expensive current valuation of ON.
Based on the Price/Forward Earnings ratio, ON is valued cheaper than 84.07% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, ON is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.32 | ||
| Fwd PE | 18.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ON is valued cheaply inside the industry as 83.19% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ON is valued cheaper than 92.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.68 | ||
| EV/EBITDA | 13.95 |
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)0.97
EPS Next 2Y-13.2%
EPS Next 3Y2.07%
5. Dividend
5.1 Amount
ON does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
56.7
+2.55 (+4.71%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners112.07%
Inst Owner Change-0.1%
Ins Owners0.31%
Ins Owner Change-0.68%
Market Cap22.81B
Revenue(TTM)6.19B
Net Income(TTM)319.10M
Analysts71.82
Price Target60.47 (6.65%)
Short Float %10.22%
Short Ratio4.34
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)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)0.14%
EPS beat(12)9
Avg EPS beat(12)1.33%
EPS beat(16)13
Avg EPS beat(16)3.29%
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)-2.12%
Revenue beat(12)2
Avg Revenue beat(12)-1.74%
Revenue beat(16)5
Avg Revenue beat(16)-1.29%
PT rev (1m)0.92%
PT rev (3m)2.81%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-0.01%
EPS NY rev (1m)1.68%
EPS NY rev (3m)1.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0.73%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.32 | ||
| Fwd PE | 18.91 | ||
| P/S | 3.69 | ||
| P/FCF | 16.68 | ||
| P/OCF | 12.78 | ||
| P/B | 2.89 | ||
| P/tB | 3.82 | ||
| EV/EBITDA | 13.95 |
EPS(TTM)2.66
EY4.69%
EPS(NY)3
Fwd EY5.29%
FCF(TTM)3.4
FCFY6%
OCF(TTM)4.44
OCFY7.82%
SpS15.38
BVpS19.65
TBVpS14.85
PEG (NY)N/A
PEG (5Y)0.97
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 | 4.61 |
F-Score5
WACC10.38%
ROIC/WACC0.65
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-39.69%
EPS Next 2Y-13.2%
EPS Next 3Y2.07%
EPS Next 5Y11.23%
Revenue 1Y (TTM)-16.13%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-11.98%
Revenue Next Year-15.68%
Revenue Next 2Y-5.76%
Revenue Next 3Y-0.83%
Revenue Next 5Y4.3%
EBIT growth 1Y-55.33%
EBIT growth 3Y11.77%
EBIT growth 5Y24.63%
EBIT Next Year-17.56%
EBIT Next 3Y6.65%
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 of ON SEMICONDUCTOR (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.
What is the expected EPS growth for ON SEMICONDUCTOR (ON) stock?
The Earnings per Share (EPS) of ON SEMICONDUCTOR (ON) is expected to decline by -39.69% in the next year.