ON SEMICONDUCTOR (ON) Stock Fundamental Analysis
USA - NASDAQ:ON - US6821891057 - Common Stock
52.68 USD
+1.97 (+3.88%)
52.8338 USD
+0.15 (+0.29%)
Overall ON gets a fundamental rating of 6 out of 10. We evaluated ON against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. ON gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
In the past year ON had a positive cash flow from operations.
ON had positive earnings in each of the past 5 years.
In the past 5 years ON always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.55%, ON is doing good in the industry, outperforming 61.61% of the companies in the same industry.
The Return On Equity of ON (5.87%) is better than 64.29% of its industry peers.
ON has a Return On Invested Capital of 8.13%. This is in the better half of the industry: ON outperforms 75.00% 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 11.03%.
The 3 year average ROIC (19.04%) for ON is well above the current ROIC(8.13%). The reason for the recent decline needs to be investigated.
| 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 has a Profit Margin of 7.28%. This is in the better half of the industry: ON outperforms 63.39% 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 17.54%, ON is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ON has grown nicely.
ON has a Gross Margin of 37.89%. This is in the lower half of the industry: ON underperforms 62.50% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ON is creating some value.
Compared to 1 year ago, ON has less shares outstanding
Compared to 5 years ago, ON has more shares outstanding
ON has a better debt/assets ratio than last year.
2.2 Solvency
ON has an Altman-Z score of 4.47. This indicates that ON is financially healthy and has little risk of bankruptcy at the moment.
ON has a Altman-Z score of 4.47. This is comparable to the rest of the industry: ON outperforms 52.68% of its industry peers.
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's Debt to FCF ratio of 2.62 is fine compared to the rest of the industry. ON outperforms 66.07% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that ON is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.42, ON is doing worse than 66.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 4.47 |
ROIC/WACC0.73
WACC11.2%
2.3 Liquidity
ON has a Current Ratio of 5.02. This indicates that ON is financially healthy and has no problem in meeting its short term obligations.
ON's Current ratio of 5.02 is fine compared to the rest of the industry. ON outperforms 73.21% of its industry peers.
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.
The Quick ratio of ON (3.37) is better than 65.18% of its industry peers.
| 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.
The Revenue for ON has decreased by -17.93% in the past year. This is quite bad
The Revenue has been growing slightly by 5.12% on average over the past years.
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
Based on estimates for the next years, ON will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.96% on average per year.
The Revenue is expected to grow by 4.23% on average over the next years.
EPS Next Y-40.64%
EPS Next 2Y-12.79%
EPS Next 3Y2.45%
EPS Next 5Y10.96%
Revenue Next Year-16.27%
Revenue Next 2Y-5.69%
Revenue Next 3Y-0.55%
Revenue Next 5Y4.23%
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
Based on the Price/Earnings ratio of 17.44, the valuation of ON can be described as rather expensive.
Based on the Price/Earnings ratio, ON is valued cheaply inside the industry as 91.96% of the companies are valued more expensively.
ON's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.08.
A Price/Forward Earnings ratio of 17.40 indicates a rather expensive valuation of ON.
ON's Price/Forward Earnings ratio is rather cheap when compared to the industry. ON is cheaper than 88.39% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ON to the average of the S&P500 Index (23.09), we can say ON is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.44 | ||
| Fwd PE | 17.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ON is valued cheaply inside the industry as 91.07% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ON is valued cheaper than 91.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.71 | ||
| EV/EBITDA | 11.82 |
4.3 Compensation for Growth
ON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.8
EPS Next 2Y-12.79%
EPS Next 3Y2.45%
5. Dividend
5.1 Amount
ON does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
52.68
+1.97 (+3.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners111.02%
Inst Owner Change0.12%
Ins Owners0.33%
Ins Owner Change0.18%
Market Cap21.54B
Revenue(TTM)6.40B
Net Income(TTM)465.80M
Analysts71.82
Price Target58.81 (11.64%)
Short Float %8.44%
Short Ratio4.31
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)0%
PT rev (3m)3.55%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)0.46%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.44 | ||
| Fwd PE | 17.4 | ||
| P/S | 3.37 | ||
| P/FCF | 16.71 | ||
| P/OCF | 11.76 | ||
| P/B | 2.71 | ||
| P/tB | 3.59 | ||
| EV/EBITDA | 11.82 |
EPS(TTM)3.02
EY5.73%
EPS(NY)3.03
Fwd EY5.75%
FCF(TTM)3.15
FCFY5.98%
OCF(TTM)4.48
OCFY8.5%
SpS15.65
BVpS19.42
TBVpS14.68
PEG (NY)N/A
PEG (5Y)0.8
Graham Number36.32
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%
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 Turnover0.49
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 | 4.47 |
F-Score5
WACC11.2%
ROIC/WACC0.73
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-40.64%
EPS Next 2Y-12.79%
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-16.27%
Revenue Next 2Y-5.69%
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-17.86%
EBIT Next 3Y6.9%
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%
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 for ON stock?
ChartMill assigns a valuation rating of 6 / 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 8 / 10.
How financially healthy is ON SEMICONDUCTOR?
The financial health rating of ON SEMICONDUCTOR (ON) is 7 / 10.