ON SEMICONDUCTOR (ON) Fundamental Analysis & Valuation

NASDAQ:ON • US6821891057

Current stock price

55.66 USD
-2.69 (-4.61%)
At close:
55.66 USD
0 (0%)
After Hours:

This ON fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. ON Profitability Analysis

1.1 Basic Checks

  • In the past year ON was profitable.
  • ON had a positive operating cash flow in the past year.
  • ON had positive earnings in each of the past 5 years.
  • ON had a positive operating cash flow in each of the past 5 years.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • ON's Return On Assets of 0.97% is in line compared to the rest of the industry. ON outperforms 53.04% of its industry peers.
  • ON has a Return On Equity (1.58%) which is in line with its industry peers.
  • ON has a Return On Invested Capital of 6.01%. This is in the better half of the industry: ON outperforms 66.96% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ON is above the industry average of 10.70%.
  • 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 RankSector 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%
ON Yearly ROA, ROE, ROICON Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • ON has a Profit Margin (2.02%) which is comparable to the rest of the industry.
  • ON's Profit Margin has declined in the last couple of years.
  • ON has a better Operating Margin (12.53%) than 70.43% of its industry peers.
  • In the last couple of years the Operating Margin of ON has grown nicely.
  • Looking at the Gross Margin, with a value of 33.09%, ON is doing worse than 65.22% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ON has remained more or less at the same level.
Industry RankSector 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%
ON Yearly Profit, Operating, Gross MarginsON Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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7

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.
  • The number of shares outstanding for ON has been reduced compared to 1 year ago.
  • ON has less shares outstanding than it did 5 years ago.
  • ON has a worse debt/assets ratio than last year.
ON Yearly Shares OutstandingON Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
ON Yearly Total Debt VS Total AssetsON Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

2.2 Solvency

  • ON has an Altman-Z score of 4.88. This indicates that ON is financially healthy and has little risk of bankruptcy at the moment.
  • ON has a Altman-Z score (4.88) which is in line with its industry peers.
  • The Debt to FCF ratio of ON is 2.12, which is a good value as it means it would take ON, 2.12 years of fcf income to pay off all of its debts.
  • ON has a better Debt to FCF ratio (2.12) than 66.09% of its industry peers.
  • A Debt/Equity ratio of 0.39 indicates that ON is not too dependend on debt financing.
  • ON's Debt to Equity ratio of 0.39 is on the low side compared to the rest of the industry. ON is outperformed by 66.09% 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 RankSector Rank
Debt/Equity 0.39
Debt/FCF 2.12
Altman-Z 4.88
ROIC/WACC0.54
WACC11.2%
ON Yearly LT Debt VS Equity VS FCFON Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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.
  • ON's Current ratio of 4.52 is fine compared to the rest of the industry. ON outperforms 66.96% of its industry peers.
  • A Quick Ratio of 2.98 indicates that ON has no problem at all paying its short term obligations.
  • ON has a better Quick ratio (2.98) than 62.61% of its industry peers.
Industry RankSector Rank
Current Ratio 4.52
Quick Ratio 2.98
ON Yearly Current Assets VS Current LiabilitesON Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

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%.
  • Measured over the past years, ON shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.85% on average per year.
  • The Revenue for ON has decreased by -15.35% in the past year. This is quite bad
  • The Revenue has been growing slightly by 2.67% on average over the past years.
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

  • Based on estimates for the next years, ON will show a very strong growth in Earnings Per Share. The EPS will grow by 29.35% on average per year.
  • Based on estimates for the next years, ON will show a quite strong growth in Revenue. The Revenue will grow by 9.71% on average per year.
EPS Next Y27.73%
EPS Next 2Y32.97%
EPS Next 3Y32.84%
EPS Next 5Y29.35%
Revenue Next Year4.59%
Revenue Next 2Y6.67%
Revenue Next 3Y7.77%
Revenue Next 5Y9.71%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 accelerating.
ON Yearly Revenue VS EstimatesON Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
ON Yearly EPS VS EstimatesON Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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Find the best growth stocksShow best growing peers

7

4. ON Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 23.69, which indicates a rather expensive current valuation of ON.
  • Based on the Price/Earnings ratio, ON is valued cheaply inside the industry as 86.96% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 24.89, ON is valued at the same level.
  • ON is valuated rather expensively with a Price/Forward Earnings ratio of 18.54.
  • Based on the Price/Forward Earnings ratio, ON is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of ON to the average of the S&P500 Index (22.19), we can say ON is valued inline with the index average.
Industry RankSector Rank
PE 23.69
Fwd PE 18.54
ON Price Earnings VS Forward Price EarningsON Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ON is valued cheaper than 84.35% of the companies in the same industry.
  • ON's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ON is cheaper than 93.91% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.46
EV/EBITDA 16.04
ON Per share dataON EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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 32.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.85
PEG (5Y)1.04
EPS Next 2Y32.97%
EPS Next 3Y32.84%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ON Dividend Analysis

5.1 Amount

  • No dividends for ON!.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

ON Fundamentals: All Metrics, Ratios and Statistics

ON SEMICONDUCTOR

NASDAQ:ON (3/30/2026, 5:27:06 PM)

After market: 55.66 0 (0%)

55.66

-2.69 (-4.61%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-09
Earnings (Next)05-04
Inst Owners110.42%
Inst Owner Change-2.86%
Ins Owners0.33%
Ins Owner Change0.3%
Market Cap21.93B
Revenue(TTM)6.00B
Net Income(TTM)121.00M
Analysts71.36
Price Target68.61 (23.27%)
Short Float %8.15%
Short Ratio3.53
Dividend
Industry RankSector 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)14.67%
EPS NQ rev (1m)-1.76%
EPS NQ rev (3m)-1.37%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)-0.78%
Revenue NQ rev (3m)-1.16%
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)-0.71%
Valuation
Industry RankSector Rank
PE 23.69
Fwd PE 18.54
P/S 3.66
P/FCF 15.46
P/OCF 12.46
P/B 2.86
P/tB 3.88
EV/EBITDA 16.04
EPS(TTM)2.35
EY4.22%
EPS(NY)3
Fwd EY5.39%
FCF(TTM)3.6
FCFY6.47%
OCF(TTM)4.47
OCFY8.02%
SpS15.22
BVpS19.47
TBVpS14.34
PEG (NY)0.85
PEG (5Y)1.04
Graham Number32.09
Profitability
Industry RankSector 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 RankSector 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 4.88
F-Score4
WACC11.2%
ROIC/WACC0.54
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 Y27.73%
EPS Next 2Y32.97%
EPS Next 3Y32.84%
EPS Next 5Y29.35%
Revenue 1Y (TTM)-15.35%
Revenue growth 3Y-10.37%
Revenue growth 5Y2.67%
Sales Q2Q%-11.17%
Revenue Next Year4.59%
Revenue Next 2Y6.67%
Revenue Next 3Y7.77%
Revenue Next 5Y9.71%
EBIT growth 1Y-60.5%
EBIT growth 3Y-35.23%
EBIT growth 5Y12.59%
EBIT Next Year78.34%
EBIT Next 3Y37.25%
EBIT Next 5Y33.21%
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 Fundamental Analysis 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 27.73% in the next year.