Why Peter Lynch may take an interest in ON SEMICONDUCTOR (NASDAQ:ON)

Peter Lynch’s approach focused on identifying undervalued growth stocks with simple, scalable businesses. We examine whether ON SEMICONDUCTOR (NASDAQ:ON) fits the characteristics of a Lynch-approved investment.

Applying Peter Lynch’s stock selection rules to ON SEMICONDUCTOR (NASDAQ:ON)

• With a favorable Return on Equity (ROE) of 17.88%, ON demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
• ON's Debt/Equity ratio of 0.38 suggests a healthy balance between debt financing and shareholder equity.
• ON has achieved 21.88 growth in EPS over the past 5 years, reflecting a sustained improvement in earnings performance.
• ON boasts a PEG ratio of 0.47, indicating a reasonable valuation relative to its earnings growth.
• ON’s Current Ratio of 5.06 highlights its ability to sustain day-to-day operations without liquidity concerns.

A complete fundamental analysis of ON

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

ON gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 108 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making ON a very profitable company, without any liquidiy or solvency issues. ON may be a bit undervalued, certainly considering the very reasonable score on growth This makes ON very considerable for value investing!

For an up to date full fundamental analysis you can check the fundamental report of ON

Every day, new Affordable Growth stocks can be found on ChartMill in our Peter Lynch screener.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.