ON SEMICONDUCTOR (ON) Stock Fundamental Analysis
USA - NASDAQ:ON - US6821891057 - Common Stock
49.59 USD
+0.03 (+0.06%)
Taking everything into account, ON scores 6 out of 10 in our fundamental rating. 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ON was profitable.
ON had a positive operating cash flow in the past year.
Each year in the past 5 years ON has been profitable.
Each year in the past 5 years ON had a positive operating cash flow.
1.2 Ratios
ON's Return On Assets of 3.55% is fine compared to the rest of the industry. ON outperforms 61.61% of its industry peers.
ON's Return On Equity of 5.87% is fine compared to the rest 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 75.89% 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 10.87%.
The last Return On Invested Capital (8.13%) for ON is well below the 3 year average (19.04%), which needs to be investigated, but indicates that ON had better years and this may not be a problem.
| 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's Profit Margin of 7.28% is fine compared to the rest of the industry. ON outperforms 63.39% of its industry peers.
ON's Profit Margin has improved in the last couple of years.
The Operating Margin of ON (17.54%) is better than 75.00% of its industry peers.
ON's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 37.89%, ON is doing worse than 61.61% of the companies in the same industry.
ON's Gross Margin has improved in the last couple of years.
| 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
ON has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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
An Altman-Z score of 4.41 indicates that ON is not in any danger for bankruptcy at the moment.
ON has a Altman-Z score (4.41) 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.
ON has a better Debt to FCF ratio (2.62) than 65.18% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that ON is not too dependend on debt financing.
ON has a Debt to Equity ratio of 0.42. This is in the lower half of the industry: ON underperforms 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 4.41 |
ROIC/WACC0.75
WACC10.85%
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.
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.
With a decent Quick ratio value of 3.37, ON is doing good in the industry, outperforming 64.29% of the companies in the same industry.
| 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.
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.
ON shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.93%.
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
ON is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.96% yearly.
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-40.65%
EPS Next 2Y-12.61%
EPS Next 3Y2.45%
EPS Next 5Y10.96%
Revenue Next Year-16.26%
Revenue Next 2Y-5.67%
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
The Price/Earnings ratio is 16.42, which indicates a correct valuation of ON.
Based on the Price/Earnings ratio, ON is valued cheaply inside the industry as 90.18% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.20, ON is valued a bit cheaper.
The Price/Forward Earnings ratio is 16.32, which indicates a correct valuation of ON.
ON's Price/Forward Earnings ratio is rather cheap when compared to the industry. ON is cheaper than 86.61% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, ON is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.42 | ||
| Fwd PE | 16.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ON is valued cheaper than 87.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ON is valued cheaper than 89.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.73 | ||
| EV/EBITDA | 11.56 |
4.3 Compensation for Growth
ON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.75
EPS Next 2Y-12.61%
EPS Next 3Y2.45%
5. Dividend
5.1 Amount
No dividends for ON!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:ON (9/17/2025, 9:45:03 AM)
49.59
+0.03 (+0.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners106.28%
Inst Owner Change3.62%
Ins Owners0.32%
Ins Owner Change0.18%
Market Cap20.28B
Analysts71.82
Price Target58.81 (18.59%)
Short Float %9.06%
Short Ratio4.24
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)1.02%
PT rev (3m)21.67%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-13.14%
EPS NY rev (1m)0.11%
EPS NY rev (3m)1.44%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.42 | ||
| Fwd PE | 16.32 | ||
| P/S | 3.17 | ||
| P/FCF | 15.73 | ||
| P/OCF | 11.07 | ||
| P/B | 2.55 | ||
| P/tB | 3.38 | ||
| EV/EBITDA | 11.56 |
EPS(TTM)3.02
EY6.09%
EPS(NY)3.04
Fwd EY6.13%
FCF(TTM)3.15
FCFY6.36%
OCF(TTM)4.48
OCFY9.03%
SpS15.65
BVpS19.42
TBVpS14.68
PEG (NY)N/A
PEG (5Y)0.75
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 | 4.41 |
F-Score5
WACC10.85%
ROIC/WACC0.75
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-40.65%
EPS Next 2Y-12.61%
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-16.26%
Revenue Next 2Y-5.67%
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-16.45%
EBIT Next 3Y8.53%
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%