ON SEMICONDUCTOR (ON) Stock Fundamental Analysis
USA - NASDAQ:ON - US6821891057 - Common Stock
48.28 USD
-2.18 (-4.32%)
48 USD
-0.28 (-0.58%)
ON gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 112 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 not valued too expensively and it also shows a decent 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.
In the past 5 years ON has always been profitable.
ON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.55%, ON is doing good in the industry, outperforming 62.50% of the companies in the same industry.
ON has a Return On Equity of 5.87%. This is in the better half of the industry: ON outperforms 64.29% of its industry peers.
ON has a Return On Invested Capital of 8.13%. This is in the better half of the industry: ON outperforms 75.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ON is significantly above the industry average of 11.04%.
The last Return On Invested Capital (8.13%) for ON is well below the 3 year average (19.04%), which needs to be investigated, but indicates that ON had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 5.87% | ||
| ROIC | 8.13% |
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's Profit Margin of 7.28% is fine compared to the rest of the industry. ON outperforms 63.39% of its industry peers.
In the last couple of years the Profit Margin of ON has grown nicely.
ON has a Operating Margin of 17.54%. This is in the better half of the industry: ON outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of ON has grown nicely.
With a Gross Margin value of 37.89%, ON is not doing good in the industry: 62.50% 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 | 17.54% | ||
| PM (TTM) | 7.28% | ||
| GM | 37.89% |
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 just above the Cost of Capital (WACC), so ON is still creating some 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 4.45. 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 4.45, ON is in line with its industry, outperforming 52.68% of the companies in the same industry.
The Debt to FCF ratio of ON is 2.62, which is a good value as it means it would take ON, 2.62 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.62, ON is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
ON has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.42, ON is doing worse than 66.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 4.45 |
ROIC/WACC0.72
WACC11.3%
2.3 Liquidity
ON has a Current Ratio of 5.02. 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 5.02, ON is in the better half of the industry, outperforming 74.11% of the companies in the same industry.
ON has a Quick Ratio of 3.37. This indicates that ON is financially healthy and has no problem in meeting its short term obligations.
ON has a Quick ratio of 3.37. This is in the better half of the industry: ON outperforms 65.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.02 | ||
| Quick Ratio | 3.37 |
3. Growth
3.1 Past
ON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.85%.
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 -14.19% 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)-14.19%
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 10.96% on average per year.
ON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.23% yearly.
EPS Next Y-40.69%
EPS Next 2Y-12.89%
EPS Next 3Y2.21%
EPS Next 5Y10.96%
Revenue Next Year-16.3%
Revenue Next 2Y-5.74%
Revenue Next 3Y-0.59%
Revenue Next 5Y4.23%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.15, 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 89.29% of the companies listed in the same industry.
ON is valuated rather cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.99, ON is valued correctly.
89.29% of the companies in the same industry are more expensive than ON, based on the Price/Forward Earnings ratio.
ON's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.15 | ||
| Fwd PE | 15.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ON is valued cheaper than 90.18% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ON is valued cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.32 | ||
| EV/EBITDA | 11.76 |
4.3 Compensation for Growth
ON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.83
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 |
48.28
-2.18 (-4.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners111.02%
Inst Owner Change-0.1%
Ins Owners0.33%
Ins Owner Change0.18%
Market Cap19.75B
Revenue(TTM)7.08B
Net Income(TTM)465.80M
Analysts71.82
Price Target59.34 (22.91%)
Short Float %8.44%
Short Ratio4.31
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)1.02%
Min EPS beat(2)-3.5%
Max EPS beat(2)5.53%
EPS beat(4)1
Avg EPS beat(4)-1.07%
Min EPS beat(4)-5.32%
Max EPS beat(4)5.53%
EPS beat(8)5
Avg EPS beat(8)-0.19%
EPS beat(12)9
Avg EPS beat(12)1.66%
EPS beat(16)13
Avg EPS beat(16)3.98%
Revenue beat(2)1
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)0.12%
Revenue beat(4)1
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-4.89%
Max Revenue beat(4)0.12%
Revenue beat(8)1
Avg Revenue beat(8)-2.18%
Revenue beat(12)3
Avg Revenue beat(12)-1.62%
Revenue beat(16)5
Avg Revenue beat(16)-1.31%
PT rev (1m)0.9%
PT rev (3m)4.48%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)0.38%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.15 | ||
| Fwd PE | 15.99 | ||
| P/S | 3.09 | ||
| P/FCF | 15.32 | ||
| P/OCF | 10.78 | ||
| P/B | 2.49 | ||
| P/tB | 3.29 | ||
| EV/EBITDA | 11.76 |
EPS(TTM)2.66
EY5.51%
EPS(NY)3.02
Fwd EY6.26%
FCF(TTM)3.15
FCFY6.53%
OCF(TTM)4.48
OCFY9.28%
SpS15.65
BVpS19.42
TBVpS14.68
PEG (NY)N/A
PEG (5Y)0.83
Graham Number34.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 5.87% | ||
| ROCE | 9.46% | ||
| ROIC | 8.13% | ||
| ROICexc | 10.67% | ||
| ROICexgc | 13.59% | ||
| OM | 17.54% | ||
| PM (TTM) | 7.28% | ||
| GM | 37.89% | ||
| FCFM | 20.15% |
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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.62 | ||
| Debt/EBITDA | 1.9 | ||
| Cap/Depr | 83.14% | ||
| Cap/Sales | 8.48% | ||
| Interest Coverage | 18.49 | ||
| Cash Conversion | 103.21% | ||
| Profit Quality | 276.77% | ||
| Current Ratio | 5.02 | ||
| Quick Ratio | 3.37 | ||
| Altman-Z | 4.45 |
F-Score5
WACC11.3%
ROIC/WACC0.72
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 5Y10.96%
Revenue 1Y (TTM)-14.19%
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 5Y4.23%
EBIT growth 1Y-51.37%
EBIT growth 3Y11.77%
EBIT growth 5Y24.63%
EBIT Next Year-17.86%
EBIT Next 3Y6.9%
EBIT Next 5Y13.49%
FCF growth 1Y10.32%
FCF growth 3Y-2.05%
FCF growth 5Y82.37%
OCF growth 1Y-27.68%
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 6 / 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 8 / 10.
How financially healthy is ON SEMICONDUCTOR?
The financial health rating of ON SEMICONDUCTOR (ON) is 7 / 10.