ON SEMICONDUCTOR (ON) Stock Fundamental Analysis
USA - NASDAQ:ON - US6821891057 - Common Stock
50.08 USD
-0.77 (-1.51%)
50.445 USD
+0.37 (+0.73%)
We assign a fundamental rating of 6 out of 10 to ON. ON was compared to 112 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ON was profitable.
In the past year ON had a positive cash flow from operations.
ON had positive earnings in each of the past 5 years.
In the past 5 years ON always reported a positive cash flow from operatings.
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 better Return On Equity (5.87%) than 64.29% of its industry peers.
With a decent Return On Invested Capital value of 8.13%, ON is doing good in the industry, outperforming 75.00% of the companies in the same industry.
ON had an Average Return On Invested Capital over the past 3 years of 19.04%. This is significantly above the industry average of 11.03%.
The 3 year average ROIC (19.04%) for ON is well above the current ROIC(8.13%). The reason for the recent decline needs to be investigated.
| 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 has a Profit Margin of 7.28%. This is in the better half 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 better Operating Margin (17.54%) than 75.00% of its industry peers.
In the last couple of years the Operating Margin of ON has grown nicely.
ON's Gross Margin of 37.89% is on the low side compared to the rest of the industry. ON is outperformed by 62.50% of its industry peers.
In the last couple of years the Gross Margin of ON has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ON is creating some value.
The number of shares outstanding for ON has been reduced compared to 1 year ago.
Compared to 5 years ago, ON has more shares outstanding
The debt/assets ratio for ON has been reduced compared to a year ago.
2.2 Solvency
ON has an Altman-Z score of 4.44. This indicates that ON is financially healthy and has little risk of bankruptcy at the moment.
ON has a Altman-Z score of 4.44. This is comparable to the rest of the industry: ON outperforms 52.68% of its industry peers.
ON has a debt to FCF ratio of 2.62. This is a good value and a sign of high solvency as ON would need 2.62 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.62, ON is doing good in the industry, outperforming 65.18% of the companies in the same industry.
A Debt/Equity ratio of 0.42 indicates that ON is not too dependend on debt financing.
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 | 4.44 |
ROIC/WACC0.72
WACC11.29%
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.
ON's Current ratio of 5.02 is fine compared to the rest of the industry. ON outperforms 74.11% of its industry peers.
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's Quick ratio of 3.37 is fine compared to the rest 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 -35.47%.
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.
Looking at the last year, ON shows a very negative growth in Revenue. The Revenue has decreased by -17.93% in the last year.
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)-35.47%
EPS 3Y10.62%
EPS 5Y21.88%
EPS Q2Q%-44.79%
Revenue 1Y (TTM)-17.93%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-15.36%
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.
Based on estimates for the next years, ON will show a small growth in Revenue. The Revenue will grow by 4.23% on average per year.
EPS Next Y-40.64%
EPS Next 2Y-12.79%
EPS Next 3Y2.45%
EPS Next 5Y10.96%
Revenue Next Year-16.27%
Revenue Next 2Y-5.69%
Revenue Next 3Y-0.55%
Revenue Next 5Y4.23%
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
A Price/Earnings ratio of 16.58 indicates a correct valuation of ON.
Based on the Price/Earnings ratio, ON is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.10. ON is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.54, 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 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.58 | ||
| Fwd PE | 16.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ON is valued cheaply inside the industry as 90.18% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ON indicates a rather cheap valuation: ON is cheaper than 92.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.89 | ||
| EV/EBITDA | 11.68 |
4.3 Compensation for Growth
ON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.76
EPS Next 2Y-12.79%
EPS Next 3Y2.45%
5. Dividend
5.1 Amount
ON does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
50.08
-0.77 (-1.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners111.02%
Inst Owner Change0.12%
Ins Owners0.33%
Ins Owner Change0.18%
Market Cap20.48B
Revenue(TTM)6.40B
Net Income(TTM)465.80M
Analysts71.82
Price Target59.34 (18.49%)
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 | 16.58 | ||
| Fwd PE | 16.54 | ||
| P/S | 3.2 | ||
| P/FCF | 15.89 | ||
| P/OCF | 11.18 | ||
| P/B | 2.58 | ||
| P/tB | 3.41 | ||
| EV/EBITDA | 11.68 |
EPS(TTM)3.02
EY6.03%
EPS(NY)3.03
Fwd EY6.04%
FCF(TTM)3.15
FCFY6.29%
OCF(TTM)4.48
OCFY8.95%
SpS15.65
BVpS19.42
TBVpS14.68
PEG (NY)N/A
PEG (5Y)0.76
Graham Number36.32
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 | 4.44 |
F-Score5
WACC11.29%
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)-35.47%
EPS 3Y10.62%
EPS 5Y21.88%
EPS Q2Q%-44.79%
EPS Next Y-40.64%
EPS Next 2Y-12.79%
EPS Next 3Y2.45%
EPS Next 5Y10.96%
Revenue 1Y (TTM)-17.93%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-15.36%
Revenue Next Year-16.27%
Revenue Next 2Y-5.69%
Revenue Next 3Y-0.55%
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.