56.7 USD
+2.55 (+4.71%)
56.75 USD
+0.05 (+0.09%)
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 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.
In the past year ON had a positive cash flow from operations.
ON had positive earnings in each of the past 5 years.
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 comparable to the rest of the industry.
With a Return On Equity value of 4.04%, ON perfoms like the industry average, outperforming 56.64% of the companies in the same industry.
ON has a Return On Invested Capital of 6.79%. This is in the better half of the industry: ON outperforms 73.45% of its industry peers.
ON had an Average Return On Invested Capital over the past 3 years of 19.04%. This is significantly above the industry average of 10.75%.
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
With a Profit Margin value of 5.16%, ON perfoms like the industry average, outperforming 57.52% 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 15.06%, ON is doing good in the industry, outperforming 74.34% of the companies in the same industry.
In the last couple of years the Operating Margin of ON has grown nicely.
Looking at the Gross Margin, with a value of 35.75%, ON is doing worse than 62.83% of the companies in the same industry.
In the last couple of years the Gross Margin of ON has grown nicely.
| 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%
2. Health
2.1 Basic Checks
ON has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for ON has been reduced compared to 1 year ago.
ON has more shares outstanding than it did 5 years ago.
ON has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.61 indicates that ON is not in any danger for bankruptcy at the moment.
ON has a Altman-Z score of 4.61. This is comparable to the rest of the industry: ON outperforms 56.64% of 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 has a better Debt to FCF ratio (2.47) than 66.37% of its industry peers.
ON has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
ON's Debt to Equity ratio of 0.43 is on the low side compared to the rest of the industry. ON is outperformed by 67.26% of its industry peers.
Although ON does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.47 | ||
| Altman-Z | 4.61 |
ROIC/WACC0.65
WACC10.38%
2.3 Liquidity
ON has a Current Ratio of 5.23. This indicates that ON is financially healthy and has no problem in meeting 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.
A Quick Ratio of 3.54 indicates that ON has no problem at all paying its short term obligations.
ON has a better Quick ratio (3.54) than 68.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.23 | ||
| Quick Ratio | 3.54 |
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
The Revenue for ON has decreased by -16.13% 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)-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
ON is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.23% yearly.
ON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.30% yearly.
EPS Next Y-39.69%
EPS Next 2Y-13.2%
EPS Next 3Y2.07%
EPS Next 5Y11.23%
Revenue Next Year-15.68%
Revenue Next 2Y-5.76%
Revenue Next 3Y-0.83%
Revenue Next 5Y4.3%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
ON is valuated rather expensively with a Price/Earnings ratio of 21.32.
ON's Price/Earnings ratio is rather cheap when compared to the industry. ON is cheaper than 87.61% of the companies in the same industry.
ON's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
A Price/Forward Earnings ratio of 18.91 indicates a rather expensive valuation of ON.
Based on the Price/Forward Earnings ratio, ON is valued cheaply inside the industry as 84.07% of the companies are valued more expensively.
ON is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.32 | ||
| Fwd PE | 18.91 |
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.
Based on the Price/Free Cash Flow ratio, ON is valued cheaper than 92.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.68 | ||
| EV/EBITDA | 13.95 |
4.3 Compensation for Growth
ON has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.97
EPS Next 2Y-13.2%
EPS Next 3Y2.07%
5. Dividend
5.1 Amount
ON does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
56.7
+2.55 (+4.71%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners112.07%
Inst Owner Change-0.1%
Ins Owners0.31%
Ins Owner Change-0.68%
Market Cap22.81B
Revenue(TTM)6.19B
Net Income(TTM)319.10M
Analysts71.82
Price Target60.47 (6.65%)
Short Float %10.22%
Short Ratio4.34
Dividend
| Industry Rank | Sector 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)0.1%
Min EPS beat(2)-3.5%
Max EPS beat(2)3.69%
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)5
Avg EPS beat(8)0.14%
EPS beat(12)9
Avg EPS beat(12)1.33%
EPS beat(16)13
Avg EPS beat(16)3.29%
Revenue beat(2)0
Avg Revenue beat(2)-1.24%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)-0.65%
Revenue beat(4)1
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-4.89%
Max Revenue beat(4)0.12%
Revenue beat(8)1
Avg Revenue beat(8)-2.12%
Revenue beat(12)2
Avg Revenue beat(12)-1.74%
Revenue beat(16)5
Avg Revenue beat(16)-1.29%
PT rev (1m)0.92%
PT rev (3m)2.81%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-0.01%
EPS NY rev (1m)1.68%
EPS NY rev (3m)1.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0.73%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.32 | ||
| Fwd PE | 18.91 | ||
| P/S | 3.69 | ||
| P/FCF | 16.68 | ||
| P/OCF | 12.78 | ||
| P/B | 2.89 | ||
| P/tB | 3.82 | ||
| EV/EBITDA | 13.95 |
EPS(TTM)2.66
EY4.69%
EPS(NY)3
Fwd EY5.29%
FCF(TTM)3.4
FCFY6%
OCF(TTM)4.44
OCFY7.82%
SpS15.38
BVpS19.65
TBVpS14.85
PEG (NY)N/A
PEG (5Y)0.97
Graham Number34.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 4.04% | ||
| ROCE | 7.9% | ||
| ROIC | 6.79% | ||
| ROICexc | 8.97% | ||
| ROICexgc | 11.45% | ||
| OM | 15.06% | ||
| PM (TTM) | 5.16% | ||
| GM | 35.75% | ||
| FCFM | 22.11% |
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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.47 | ||
| Debt/EBITDA | 2.15 | ||
| Cap/Depr | 65.39% | ||
| Cap/Sales | 6.74% | ||
| Interest Coverage | 14.93 | ||
| Cash Conversion | 113.74% | ||
| Profit Quality | 428.71% | ||
| Current Ratio | 5.23 | ||
| Quick Ratio | 3.54 | ||
| Altman-Z | 4.61 |
F-Score5
WACC10.38%
ROIC/WACC0.65
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)-37.85%
EPS 3Y10.62%
EPS 5Y21.88%
EPS Q2Q%-36.36%
EPS Next Y-39.69%
EPS Next 2Y-13.2%
EPS Next 3Y2.07%
EPS Next 5Y11.23%
Revenue 1Y (TTM)-16.13%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-11.98%
Revenue Next Year-15.68%
Revenue Next 2Y-5.76%
Revenue Next 3Y-0.83%
Revenue Next 5Y4.3%
EBIT growth 1Y-55.33%
EBIT growth 3Y11.77%
EBIT growth 5Y24.63%
EBIT Next Year-17.56%
EBIT Next 3Y6.65%
EBIT Next 5Y13.95%
FCF growth 1Y130.61%
FCF growth 3Y-2.05%
FCF growth 5Y82.37%
OCF growth 1Y-14.9%
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 of ON SEMICONDUCTOR (ON) stock?
ChartMill assigns a valuation rating of 5 / 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 7 / 10.
What is the expected EPS growth for ON SEMICONDUCTOR (ON) stock?
The Earnings per Share (EPS) of ON SEMICONDUCTOR (ON) is expected to decline by -39.69% in the next year.