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ON SEMICONDUCTOR (ON) Stock Fundamental Analysis

NASDAQ:ON - Nasdaq - US6821891057 - Common Stock - Currency: USD

44.31  +0.05 (+0.11%)

Fundamental Rating

6

Overall ON gets a fundamental rating of 6 out of 10. We evaluated ON against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making ON a very profitable company, without any liquidiy or solvency issues. ON scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes ON very considerable for value investing!


Dividend Valuation Growth Profitability Health

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8

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.
In the past 5 years ON has always been profitable.
In the past 5 years ON always reported a positive cash flow from operatings.
ON Yearly Net Income VS EBIT VS OCF VS FCFON Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

1.2 Ratios

The Return On Assets of ON (4.78%) is better than 64.55% of its industry peers.
ON has a Return On Equity of 7.89%. This is in the better half of the industry: ON outperforms 64.55% of its industry peers.
With a decent Return On Invested Capital value of 9.62%, ON is doing good in the industry, outperforming 80.00% 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 11.17%.
The 3 year average ROIC (19.04%) for ON is well above the current ROIC(9.62%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 4.78%
ROE 7.89%
ROIC 9.62%
ROA(3y)14.52%
ROA(5y)11.35%
ROE(3y)25.56%
ROE(5y)21.06%
ROIC(3y)19.04%
ROIC(5y)15.34%
ON Yearly ROA, ROE, ROICON Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

ON has a better Profit Margin (9.51%) than 64.55% of its industry peers.
ON's Profit Margin has improved in the last couple of years.
ON's Operating Margin of 20.11% is fine compared to the rest of the industry. ON outperforms 78.18% of its industry peers.
ON's Operating Margin has improved in the last couple of years.
The Gross Margin of ON (39.85%) is worse than 60.00% of its industry peers.
In the last couple of years the Gross Margin of ON has grown nicely.
Industry RankSector Rank
OM 20.11%
PM (TTM) 9.51%
GM 39.85%
OM growth 3Y9.94%
OM growth 5Y18.56%
PM growth 3Y14.02%
PM growth 5Y42.07%
GM growth 3Y4.08%
GM growth 5Y4.89%
ON Yearly Profit, Operating, Gross MarginsON Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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7

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.
Compared to 1 year ago, ON has an improved debt to assets ratio.
ON Yearly Shares OutstandingON Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
ON Yearly Total Debt VS Total AssetsON Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

2.2 Solvency

ON has an Altman-Z score of 4.25. This indicates that ON is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ON (4.25) is comparable to the rest of the industry.
The Debt to FCF ratio of ON is 2.40, which is a good value as it means it would take ON, 2.40 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.40, ON is doing good in the industry, outperforming 66.36% of the companies in the same industry.
A Debt/Equity ratio of 0.42 indicates that ON is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.42, ON is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for ON, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.42
Debt/FCF 2.4
Altman-Z 4.25
ROIC/WACC0.89
WACC10.87%
ON Yearly LT Debt VS Equity VS FCFON Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.3 Liquidity

A Current Ratio of 4.95 indicates that ON has no problem at all paying its short term obligations.
ON's Current ratio of 4.95 is fine compared to the rest of the industry. ON outperforms 70.91% of its industry peers.
A Quick Ratio of 3.32 indicates that ON has no problem at all paying its short term obligations.
ON's Quick ratio of 3.32 is fine compared to the rest of the industry. ON outperforms 63.64% of its industry peers.
Industry RankSector Rank
Current Ratio 4.95
Quick Ratio 3.32
ON Yearly Current Assets VS Current LiabilitesON Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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4

3. Growth

3.1 Past

ON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.68%.
The Earnings Per Share has been growing by 21.88% on average over the past years. This is a very strong growth
Looking at the last year, ON shows a very negative growth in Revenue. The Revenue has decreased by -18.28% in the last year.
The Revenue has been growing slightly by 5.12% on average over the past years.
EPS 1Y (TTM)-31.68%
EPS 3Y10.62%
EPS 5Y21.88%
EPS Q2Q%-49.07%
Revenue 1Y (TTM)-18.28%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-22.39%

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 10.02% on average per year.
The Revenue is expected to grow by 3.46% on average over the next years.
EPS Next Y-41.49%
EPS Next 2Y-10.69%
EPS Next 3Y5.79%
EPS Next 5Y10.02%
Revenue Next Year-16.95%
Revenue Next 2Y-4.69%
Revenue Next 3Y0.63%
Revenue Next 5Y3.46%

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 decreasing.
ON Yearly Revenue VS EstimatesON Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B
ON Yearly EPS VS EstimatesON Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6

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7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 12.84, ON is valued correctly.
Based on the Price/Earnings ratio, ON is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
ON's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.60.
ON is valuated correctly with a Price/Forward Earnings ratio of 13.96.
85.45% of the companies in the same industry are more expensive than ON, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, ON is valued a bit cheaper.
Industry RankSector Rank
PE 12.84
Fwd PE 13.96
ON Price Earnings VS Forward Price EarningsON Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ON is valued cheaper than 86.36% of the companies in the same industry.
92.73% of the companies in the same industry are more expensive than ON, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 13.34
EV/EBITDA 9.41
ON Per share dataON EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

The excellent profitability rating of ON may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.59
EPS Next 2Y-10.69%
EPS Next 3Y5.79%

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0

5. Dividend

5.1 Amount

ON does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ON SEMICONDUCTOR

NASDAQ:ON (5/21/2025, 10:31:10 AM)

44.31

+0.05 (+0.11%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)05-05 2025-05-05/bmo
Earnings (Next)07-28 2025-07-28/bmo
Inst Owners104.17%
Inst Owner Change-0.87%
Ins Owners0.32%
Ins Owner Change3.61%
Market Cap18.70B
Analysts74.5
Price Target49.21 (11.06%)
Short Float %6.46%
Short Ratio2.52
Dividend
Industry RankSector 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)0.11%
Min EPS beat(2)-5.32%
Max EPS beat(2)5.53%
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)6
Avg EPS beat(8)1.1%
EPS beat(12)10
Avg EPS beat(12)2.25%
EPS beat(16)14
Avg EPS beat(16)5.76%
Revenue beat(2)1
Avg Revenue beat(2)-2.38%
Min Revenue beat(2)-4.89%
Max Revenue beat(2)0.12%
Revenue beat(4)1
Avg Revenue beat(4)-2.42%
Min Revenue beat(4)-4.89%
Max Revenue beat(4)0.12%
Revenue beat(8)2
Avg Revenue beat(8)-1.89%
Revenue beat(12)4
Avg Revenue beat(12)-1.42%
Revenue beat(16)5
Avg Revenue beat(16)-1.21%
PT rev (1m)-20.01%
PT rev (3m)-38.22%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)-1.36%
EPS NY rev (1m)-8.83%
EPS NY rev (3m)-15.26%
Revenue NQ rev (1m)1.98%
Revenue NQ rev (3m)1.49%
Revenue NY rev (1m)-1.62%
Revenue NY rev (3m)-17.66%
Valuation
Industry RankSector Rank
PE 12.84
Fwd PE 13.96
P/S 2.81
P/FCF 13.34
P/OCF 9.3
P/B 2.33
P/tB 3.08
EV/EBITDA 9.41
EPS(TTM)3.45
EY7.79%
EPS(NY)3.17
Fwd EY7.16%
FCF(TTM)3.32
FCFY7.5%
OCF(TTM)4.76
OCFY10.75%
SpS15.79
BVpS19.03
TBVpS14.4
PEG (NY)N/A
PEG (5Y)0.59
Profitability
Industry RankSector Rank
ROA 4.78%
ROE 7.89%
ROCE 11.19%
ROIC 9.62%
ROICexc 12.85%
ROICexgc 16.43%
OM 20.11%
PM (TTM) 9.51%
GM 39.85%
FCFM 21.04%
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)25.65%
ROICexc(5y)20.08%
ROICexgc(3y)33.75%
ROICexgc(5y)27.59%
ROCE(3y)22.16%
ROCE(5y)17.85%
ROICexcg growth 3Y-8.84%
ROICexcg 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 Turnover0.5
Health
Industry RankSector Rank
Debt/Equity 0.42
Debt/FCF 2.4
Debt/EBITDA 1.69
Cap/Depr 92.61%
Cap/Sales 9.12%
Interest Coverage 21.76
Cash Conversion 100.66%
Profit Quality 221.29%
Current Ratio 4.95
Quick Ratio 3.32
Altman-Z 4.25
F-Score5
WACC10.87%
ROIC/WACC0.89
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)-31.68%
EPS 3Y10.62%
EPS 5Y21.88%
EPS Q2Q%-49.07%
EPS Next Y-41.49%
EPS Next 2Y-10.69%
EPS Next 3Y5.79%
EPS Next 5Y10.02%
Revenue 1Y (TTM)-18.28%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-22.39%
Revenue Next Year-16.95%
Revenue Next 2Y-4.69%
Revenue Next 3Y0.63%
Revenue Next 5Y3.46%
EBIT growth 1Y-46.88%
EBIT growth 3Y11.77%
EBIT growth 5Y24.63%
EBIT Next Year4.8%
EBIT Next 3Y13.05%
EBIT Next 5Y13.36%
FCF growth 1Y2.88%
FCF growth 3Y-2.05%
FCF growth 5Y82.37%
OCF growth 1Y-21.59%
OCF growth 3Y2.27%
OCF growth 5Y22.37%