ON SEMICONDUCTOR (ON) Stock Fundamental Analysis
NASDAQ:ON - Nasdaq - US6821891057 - Common Stock - Currency: USD
Overall ON gets a fundamental rating of 7 out of 10. We evaluated ON against 108 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. This makes ON very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year ON was profitable.
ON had a positive operating cash flow in the past year.
ON had positive earnings in each of the past 5 years.
ON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.16%, ON is in the better half of the industry, outperforming 79.63% of the companies in the same industry.
ON has a better Return On Equity (17.88%) than 80.56% of its industry peers.
With an excellent Return On Invested Capital value of 12.81%, ON belongs to the best of the industry, outperforming 84.26% 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 11.67%.
The last Return On Invested Capital (12.81%) 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 | 11.16% | ||
| ROE | 17.88% | ||
| ROIC | 12.81% |
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 better Profit Margin (22.21%) than 83.33% of its industry peers.
ON's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 26.85%, ON belongs to the top of the industry, outperforming 87.04% of the companies in the same industry.
In the last couple of years the Operating Margin of ON has grown nicely.
With a Gross Margin value of 45.41%, ON perfoms like the industry average, outperforming 48.15% 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 | 26.85% | ||
| PM (TTM) | 22.21% | ||
| GM | 45.41% |
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.
Compared to 1 year ago, ON has less shares outstanding
The number of shares outstanding for ON has been increased compared to 5 years ago.
Compared to 1 year ago, ON has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.88 indicates that ON is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.88, ON is in the better half of the industry, outperforming 60.19% of the companies in the same industry.
ON has a debt to FCF ratio of 2.78. This is a good value and a sign of high solvency as ON would need 2.78 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.78, ON is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
ON has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.38, ON is not doing good in the industry: 65.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 4.88 |
ROIC/WACC1.12
WACC11.39%
2.3 Liquidity
A Current Ratio of 5.06 indicates that ON has no problem at all paying its short term obligations.
The Current ratio of ON (5.06) is better than 76.85% of its industry peers.
ON has a Quick Ratio of 3.38. This indicates that ON is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.38, ON is in the better half of the industry, outperforming 68.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.06 | ||
| Quick Ratio | 3.38 |
3. Growth
3.1 Past
The earnings per share for ON have decreased strongly by -22.87% in the last year.
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 -14.19% in the last year.
The Revenue has been growing slightly by 5.12% on average over the past years.
EPS 1Y (TTM)-22.87%
EPS 3Y10.62%
EPS 5Y21.88%
EPS Q2Q%-24%
Revenue 1Y (TTM)-14.19%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-14.65%
3.2 Future
ON is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.62% yearly.
Based on estimates for the next years, ON will show a quite strong growth in Revenue. The Revenue will grow by 11.66% on average per year.
EPS Next Y-30.95%
EPS Next 2Y0.4%
EPS Next 3Y11.66%
EPS Next 5Y23.62%
Revenue Next Year-16.2%
Revenue Next 2Y-1.82%
Revenue Next 3Y2.85%
Revenue Next 5Y11.66%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.58, the valuation of ON can be described as correct.
90.74% of the companies in the same industry are more expensive than ON, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ON to the average of the S&P500 Index (29.63), we can say ON is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 19.67, the valuation of ON can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ON is valued cheaply inside the industry as 80.56% 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 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.58 | ||
| Fwd PE | 19.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ON indicates a rather cheap valuation: ON is cheaper than 90.74% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ON is valued cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.79 | ||
| EV/EBITDA | 9.26 |
4.3 Compensation for Growth
ON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.62
EPS Next 2Y0.4%
EPS Next 3Y11.66%
5. Dividend
5.1 Amount
No dividends for ON!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
54.05
-1.69 (-3.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.51%
Inst Owner Change-2.06%
Ins Owners0.29%
Ins Owner Change1.38%
Market Cap22.78B
Analysts73.33
Price Target61.87 (14.47%)
Short Float %6.42%
Short Ratio3.24
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)0
Avg EPS beat(2)-3.15%
Min EPS beat(2)-5.32%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)-1.17%
Min EPS beat(4)-5.32%
Max EPS beat(4)1.19%
EPS beat(8)6
Avg EPS beat(8)1.19%
EPS beat(12)10
Avg EPS beat(12)2.87%
EPS beat(16)14
Avg EPS beat(16)5.51%
Revenue beat(2)0
Avg Revenue beat(2)-3.61%
Min Revenue beat(2)-4.89%
Max Revenue beat(2)-2.33%
Revenue beat(4)0
Avg Revenue beat(4)-3.03%
Min Revenue beat(4)-4.89%
Max Revenue beat(4)-2.32%
Revenue beat(8)1
Avg Revenue beat(8)-2.05%
Revenue beat(12)3
Avg Revenue beat(12)-1.51%
Revenue beat(16)4
Avg Revenue beat(16)-1.32%
PT rev (1m)-8.91%
PT rev (3m)-8.61%
EPS NQ rev (1m)-45.37%
EPS NQ rev (3m)-51.01%
EPS NY rev (1m)-37.91%
EPS NY rev (3m)-38.56%
Revenue NQ rev (1m)-18.93%
Revenue NQ rev (3m)-23.62%
Revenue NY rev (1m)-3.16%
Revenue NY rev (3m)-3.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.58 | ||
| Fwd PE | 19.67 | ||
| P/S | 3.22 | ||
| P/FCF | 18.79 | ||
| P/OCF | 11.95 | ||
| P/B | 2.59 | ||
| P/tB | 3.28 | ||
| EV/EBITDA | 9.26 |
EPS(TTM)3.98
EY7.36%
EPS(NY)2.75
Fwd EY5.08%
FCF(TTM)2.88
FCFY5.32%
OCF(TTM)4.52
OCFY8.37%
SpS16.81
BVpS20.87
TBVpS16.49
PEG (NY)N/A
PEG (5Y)0.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 17.88% | ||
| ROCE | 14.91% | ||
| ROIC | 12.81% | ||
| ROICexc | 16.74% | ||
| ROICexgc | 20.64% | ||
| OM | 26.85% | ||
| PM (TTM) | 22.21% | ||
| GM | 45.41% | ||
| FCFM | 17.12% |
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)25.65%
ROICexc(5y)20.08%
ROICexgc(3y)33.75%
ROICexgc(5y)27.59%
ROCE(3y)22.16%
ROCE(5y)17.85%
ROICexcg growth 3Y-8.84%
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 Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 1.32 | ||
| Cap/Depr | 107.95% | ||
| Cap/Sales | 9.8% | ||
| Interest Coverage | 30.33 | ||
| Cash Conversion | 74.92% | ||
| Profit Quality | 77.09% | ||
| Current Ratio | 5.06 | ||
| Quick Ratio | 3.38 | ||
| Altman-Z | 4.88 |
F-Score5
WACC11.39%
ROIC/WACC1.12
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)-22.87%
EPS 3Y10.62%
EPS 5Y21.88%
EPS Q2Q%-24%
EPS Next Y-30.95%
EPS Next 2Y0.4%
EPS Next 3Y11.66%
EPS Next 5Y23.62%
Revenue 1Y (TTM)-14.19%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-14.65%
Revenue Next Year-16.2%
Revenue Next 2Y-1.82%
Revenue Next 3Y2.85%
Revenue Next 5Y11.66%
EBIT growth 1Y-27.24%
EBIT growth 3Y11.77%
EBIT growth 5Y24.63%
EBIT Next Year32.61%
EBIT Next 3Y19.98%
EBIT Next 5Y24.36%
FCF growth 1Y201.67%
FCF growth 3Y-2.05%
FCF growth 5Y82.37%
OCF growth 1Y-3.6%
OCF growth 3Y2.27%
OCF growth 5Y22.37%