ON gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 113 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.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
Each year in the past 5 years ON had a positive operating cash flow.

1.2 Ratios

ON has a Return On Assets (2.45%) which is in line with its industry peers.
ON has a Return On Equity (4.04%) which is in line with its industry peers.
ON has a better Return On Invested Capital (6.79%) than 72.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ON is significantly above the industry average of 10.85%.
The 3 year average ROIC (19.04%) for ON is well above the current ROIC(6.79%). The reason for the recent decline needs to be investigated.

		Industry Rank	Sector Rank
ROA	2.45%
ROE	4.04%
ROIC	6.79%

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 (5.16%) which is comparable to the rest of the industry.
ON's Profit Margin has improved in the last couple of years.
ON's Operating Margin of 15.06% is fine compared to the rest of the industry. ON outperforms 74.34% of its industry peers.
ON's Operating Margin has improved in the last couple of years.
ON has a Gross Margin of 35.75%. This is in the lower half of the industry: ON underperforms 61.95% of its industry peers.
ON's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	15.06%
PM (TTM)	5.16%
GM	35.75%

OM growth 3Y9.94%

OM growth 5Y18.56%

PM growth 3Y14.02%

PM growth 5Y42.07%

GM growth 3Y4.08%

GM growth 5Y4.89%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ON is creating value.
Compared to 1 year ago, ON has less shares outstanding
Compared to 5 years ago, ON has more shares outstanding
Compared to 1 year ago, ON has an improved debt to assets ratio.

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 2.47, which is a good value as it means it would take ON, 2.47 years of fcf income to pay off all of its debts.
ON's Debt to FCF ratio of 2.47 is fine compared to the rest of the industry. ON outperforms 66.37% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that ON is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.43, ON is not doing good in the industry: 68.14% 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 Rank	Sector Rank
Debt/Equity	0.43
Debt/FCF	2.47
Altman-Z	4.88

ROIC/WACC0.65

WACC10.51%

2.3 Liquidity

A Current Ratio of 5.23 indicates that ON has no problem at all paying its short term obligations.
With a decent Current ratio value of 5.23, ON is doing good in the industry, outperforming 74.34% of the companies in the same industry.
ON has a Quick Ratio of 3.54. This indicates that ON is financially healthy and has no problem in meeting its short term obligations.
ON's Quick ratio of 3.54 is fine compared to the rest of the industry. ON outperforms 68.14% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	5.23
Quick Ratio	3.54

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

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%.
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 -16.13% 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)-37.85%

EPS 3Y10.62%

EPS 5Y21.88%

EPS Q2Q%-36.36%

Revenue 1Y (TTM)-16.13%

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 11.23% on average per year.
ON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.96% yearly.

EPS Next Y-39.69%

EPS Next 2Y-13.17%

EPS Next 3Y2.09%

EPS Next 5Y11.23%

Revenue Next Year-15.68%

Revenue Next 2Y-5.74%

Revenue Next 3Y-0.81%

Revenue Next 5Y3.96%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

ON is valuated rather expensively with a Price/Earnings ratio of 22.52.
Based on the Price/Earnings ratio, ON is valued cheaper than 88.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.32. ON is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 19.96, ON is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ON indicates a rather cheap valuation: ON is cheaper than 85.84% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, ON is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	22.52
Fwd PE	19.96

4.2 Price Multiples

83.19% of the companies in the same industry are more expensive than ON, based on the Enterprise Value to EBITDA ratio.
92.04% of the companies in the same industry are more expensive than ON, based on the Price/Free Cash Flow ratio.