ON SEMICONDUCTOR (ON) Stock Fundamental Analysis
USA - NASDAQ:ON - US6821891057 - Common Stock
45.74 USD
-4.23 (-8.47%)
46.5 USD
+0.76 (+1.66%)
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. 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
ON had positive earnings in the past year.
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
ON has a better Return On Assets (3.55%) than 61.61% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 8.13%, ON is in the better half of 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 10.95%.
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
With a decent Profit Margin value of 7.28%, ON is doing good in the industry, outperforming 63.39% of the companies in the same industry.
In the last couple of years the Profit Margin of ON has grown nicely.
With a decent Operating Margin value of 17.54%, ON is doing good in the industry, outperforming 75.00% of the companies in the same industry.
ON's Operating Margin has improved in the last couple of years.
ON has a Gross Margin of 37.89%. This is in the lower half of the industry: ON underperforms 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
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.
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
An Altman-Z score of 4.43 indicates that ON is not in any danger for bankruptcy at the moment.
ON has a Altman-Z score (4.43) which is comparable to the rest of the 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.
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 66.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 4.43 |
ROIC/WACC0.73
WACC11.12%
2.3 Liquidity
A Current Ratio of 5.02 indicates that ON has no problem at all paying its short term obligations.
With a decent Current ratio value of 5.02, ON is doing good in the industry, outperforming 74.11% of the companies in the same industry.
A Quick Ratio of 3.37 indicates that ON has no problem at all paying 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
The earnings per share for ON have decreased strongly by -35.47% in the last year.
ON shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.88% yearly.
The Revenue for ON has decreased by -17.93% in the past year. This is quite bad
ON shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.12% yearly.
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.
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-40.63%
EPS Next 2Y-12.75%
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.
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
A Price/Earnings ratio of 15.15 indicates a correct valuation of ON.
ON's Price/Earnings ratio is rather cheap when compared to the industry. ON is cheaper than 91.96% of the companies in the same industry.
When comparing the Price/Earnings ratio of ON to the average of the S&P500 Index (27.02), we can say ON is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.10 indicates a correct valuation of ON.
ON's Price/Forward Earnings ratio is rather cheap when compared to the industry. ON is cheaper than 88.39% of the companies in the same industry.
ON is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 15.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ON is valued cheaper than 91.07% of the companies in the same industry.
91.07% of the companies in the same industry are more expensive than ON, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.51 | ||
| EV/EBITDA | 11.65 |
4.3 Compensation for Growth
ON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.69
EPS Next 2Y-12.75%
EPS Next 3Y2.45%
5. Dividend
5.1 Amount
ON does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
45.74
-4.23 (-8.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners111.02%
Inst Owner Change0%
Ins Owners0.33%
Ins Owner Change0.18%
Market Cap18.71B
Analysts71.82
Price Target58.81 (28.57%)
Short Float %8.8%
Short Ratio4
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)-0.24%
PT rev (3m)13.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.97%
EPS NY rev (1m)0.04%
EPS NY rev (3m)1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.76%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 15.1 | ||
| P/S | 2.92 | ||
| P/FCF | 14.51 | ||
| P/OCF | 10.21 | ||
| P/B | 2.36 | ||
| P/tB | 3.12 | ||
| EV/EBITDA | 11.65 |
EPS(TTM)3.02
EY6.6%
EPS(NY)3.03
Fwd EY6.62%
FCF(TTM)3.15
FCFY6.89%
OCF(TTM)4.48
OCFY9.79%
SpS15.65
BVpS19.42
TBVpS14.68
PEG (NY)N/A
PEG (5Y)0.69
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%
ROICexcg growth 3Y-8.83%
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 Turnover0.49
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 | 4.43 |
F-Score5
WACC11.12%
ROIC/WACC0.73
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-40.63%
EPS Next 2Y-12.75%
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%