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ON SEMICONDUCTOR (ON) Stock Fundamental Analysis

NASDAQ:ON - Nasdaq - US6821891057 - Common Stock

55.61  +0.98 (+1.79%)

After market: 55.61 0 (0%)

Fundamental Rating

6

ON gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 109 industry peers in the Semiconductors & Semiconductor Equipment industry. ON scores excellent on profitability, but there are some minor concerns on its financial health. ON is valued quite cheap, while showing a decent growth score. This is a good combination! This makes ON very considerable for value investing!


Dividend Valuation Growth Profitability Health

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9

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.
ON Yearly Net Income VS EBIT VS OCF VS FCFON Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

1.2 Ratios

ON's Return On Assets of 12.61% is fine compared to the rest of the industry. ON outperforms 78.70% of its industry peers.
With an excellent Return On Equity value of 20.45%, ON belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
The Return On Invested Capital of ON (14.75%) is better than 85.19% 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 11.96%.
The 3 year average ROIC (19.02%) for ON is well above the current ROIC(14.75%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 12.61%
ROE 20.45%
ROIC 14.75%
ROA(3y)14.3%
ROA(5y)9.62%
ROE(3y)26.94%
ROE(5y)18.77%
ROIC(3y)19.02%
ROIC(5y)14%
ON Yearly ROA, ROE, ROICON Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

1.3 Margins

With an excellent Profit Margin value of 23.80%, ON belongs to the best of the industry, outperforming 84.26% of the companies in the same industry.
In the last couple of years the Profit Margin of ON has grown nicely.
Looking at the Operating Margin, with a value of 28.27%, ON belongs to the top of the industry, outperforming 87.96% 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 45.80%. This is comparable to the rest of the industry: ON outperforms 50.93% of its industry peers.
ON's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 28.27%
PM (TTM) 23.8%
GM 45.8%
OM growth 3Y58.85%
OM growth 5Y16.75%
PM growth 3Y81.07%
PM growth 5Y19.91%
GM growth 3Y12.96%
GM growth 5Y4.32%
ON Yearly Profit, Operating, Gross MarginsON Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40

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6

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.
ON has less shares outstanding than it did 1 year ago.
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.
ON Yearly Shares OutstandingON Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M
ON Yearly Total Debt VS Total AssetsON Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

ON has an Altman-Z score of 4.80. This indicates that ON is financially healthy and has little risk of bankruptcy at the moment.
ON's Altman-Z score of 4.80 is in line compared to the rest of the industry. ON outperforms 57.41% of its industry peers.
ON has a debt to FCF ratio of 3.37. This is a good value and a sign of high solvency as ON would need 3.37 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.37, 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 0.30. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ON (0.30) is worse than 62.04% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 3.37
Altman-Z 4.8
ROIC/WACC1.04
WACC14.2%
ON Yearly LT Debt VS Equity VS FCFON Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.3 Liquidity

A Current Ratio of 3.07 indicates that ON has no problem at all paying its short term obligations.
With a Current ratio value of 3.07, ON perfoms like the industry average, outperforming 53.70% of the companies in the same industry.
A Quick Ratio of 2.02 indicates that ON has no problem at all paying its short term obligations.
ON has a Quick ratio of 2.02. This is comparable to the rest of the industry: ON outperforms 50.93% of its industry peers.
Industry RankSector Rank
Current Ratio 3.07
Quick Ratio 2.02
ON Yearly Current Assets VS Current LiabilitesON Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

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4

3. Growth

3.1 Past

The earnings per share for ON have decreased strongly by -18.16% in the last year.
ON shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.36% yearly.
ON shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.52%.
Measured over the past years, ON shows a small growth in Revenue. The Revenue has been growing by 7.02% on average per year.
EPS 1Y (TTM)-18.16%
EPS 3Y83.14%
EPS 5Y21.36%
EPS Q2Q%-28.78%
Revenue 1Y (TTM)-11.52%
Revenue growth 3Y16.24%
Revenue growth 5Y7.02%
Sales Q2Q%-19.21%

3.2 Future

The Earnings Per Share is expected to grow by 12.49% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.07% on average over the next years.
EPS Next Y-20.16%
EPS Next 2Y-7.38%
EPS Next 3Y3.18%
EPS Next 5Y12.49%
Revenue Next Year-13.56%
Revenue Next 2Y-5.15%
Revenue Next 3Y0.54%
Revenue Next 5Y6.07%

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.
ON Yearly Revenue VS EstimatesON Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B 8B 10B
ON Yearly EPS VS EstimatesON Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8

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7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 12.99, which indicates a correct valuation of ON.
Based on the Price/Earnings ratio, ON is valued cheaper than 93.52% of the companies in the same industry.
When comparing the Price/Earnings ratio of ON to the average of the S&P500 Index (28.29), we can say ON is valued rather cheaply.
ON is valuated correctly with a Price/Forward Earnings ratio of 12.56.
Based on the Price/Forward Earnings ratio, ON is valued cheaper than 92.59% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, ON is valued a bit cheaper.
Industry RankSector Rank
PE 12.99
Fwd PE 12.56
ON Price Earnings VS Forward Price EarningsON Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ON is valued cheaper than 91.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ON is valued cheaper than 83.33% of the companies in the same industry.
Industry RankSector Rank
P/FCF 23.72
EV/EBITDA 8.65
ON Per share dataON EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

ON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.61
EPS Next 2Y-7.38%
EPS Next 3Y3.18%

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0

5. Dividend

5.1 Amount

ON does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ON SEMICONDUCTOR

NASDAQ:ON (1/21/2025, 8:18:37 PM)

After market: 55.61 0 (0%)

55.61

+0.98 (+1.79%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)10-28 2024-10-28/bmo
Earnings (Next)02-10 2025-02-10/amc
Inst Owners101.51%
Inst Owner Change-0.06%
Ins Owners0.29%
Ins Owner Change-1.09%
Market Cap23.68B
Analysts73.81
Price Target87.44 (57.24%)
Short Float %6.77%
Short Ratio4.21
Dividend
Industry RankSector 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)0.1%
Min EPS beat(2)-0.99%
Max EPS beat(2)1.19%
EPS beat(4)3
Avg EPS beat(4)0.3%
Min EPS beat(4)-0.99%
Max EPS beat(4)1.19%
EPS beat(8)7
Avg EPS beat(8)2%
EPS beat(12)11
Avg EPS beat(12)4.39%
EPS beat(16)15
Avg EPS beat(16)7.27%
Revenue beat(2)0
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-2.33%
Revenue beat(4)0
Avg Revenue beat(4)-2.35%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)-2.18%
Revenue beat(8)1
Avg Revenue beat(8)-1.66%
Revenue beat(12)4
Avg Revenue beat(12)-1.09%
Revenue beat(16)5
Avg Revenue beat(16)-0.8%
PT rev (1m)-0.19%
PT rev (3m)-0.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.83%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.26%
Valuation
Industry RankSector Rank
PE 12.99
Fwd PE 12.56
P/S 3.21
P/FCF 23.72
P/OCF 12.22
P/B 2.76
P/tB 3.52
EV/EBITDA 8.65
EPS(TTM)4.28
EY7.7%
EPS(NY)4.43
Fwd EY7.96%
FCF(TTM)2.34
FCFY4.22%
OCF(TTM)4.55
OCFY8.18%
SpS17.33
BVpS20.16
TBVpS15.79
PEG (NY)N/A
PEG (5Y)0.61
Profitability
Industry RankSector Rank
ROA 12.61%
ROE 20.45%
ROCE 17.68%
ROIC 14.75%
ROICexc 19.27%
ROICexgc 24.28%
OM 28.27%
PM (TTM) 23.8%
GM 45.8%
FCFM 13.53%
ROA(3y)14.3%
ROA(5y)9.62%
ROE(3y)26.94%
ROE(5y)18.77%
ROIC(3y)19.02%
ROIC(5y)14%
ROICexc(3y)25.1%
ROICexc(5y)18.08%
ROICexgc(3y)34.89%
ROICexgc(5y)25.81%
ROCE(3y)22.81%
ROCE(5y)16.79%
ROICexcg growth 3Y52.78%
ROICexcg growth 5Y10.13%
ROICexc growth 3Y63.28%
ROICexc growth 5Y12.46%
OM growth 3Y58.85%
OM growth 5Y16.75%
PM growth 3Y81.07%
PM growth 5Y19.91%
GM growth 3Y12.96%
GM growth 5Y4.32%
F-Score6
Asset Turnover0.53
Health
Industry RankSector Rank
Debt/Equity 0.3
Debt/FCF 3.37
Debt/EBITDA 0.94
Cap/Depr 147.6%
Cap/Sales 12.74%
Interest Coverage 33.91
Cash Conversion 71.19%
Profit Quality 56.86%
Current Ratio 3.07
Quick Ratio 2.02
Altman-Z 4.8
F-Score6
WACC14.2%
ROIC/WACC1.04
Cap/Depr(3y)176.24%
Cap/Depr(5y)142.61%
Cap/Sales(3y)12.94%
Cap/Sales(5y)11.91%
Profit Quality(3y)76.71%
Profit Quality(5y)85.92%
High Growth Momentum
Growth
EPS 1Y (TTM)-18.16%
EPS 3Y83.14%
EPS 5Y21.36%
EPS Q2Q%-28.78%
EPS Next Y-20.16%
EPS Next 2Y-7.38%
EPS Next 3Y3.18%
EPS Next 5Y12.49%
Revenue 1Y (TTM)-11.52%
Revenue growth 3Y16.24%
Revenue growth 5Y7.02%
Sales Q2Q%-19.21%
Revenue Next Year-13.56%
Revenue Next 2Y-5.15%
Revenue Next 3Y0.54%
Revenue Next 5Y6.07%
EBIT growth 1Y-22.37%
EBIT growth 3Y84.64%
EBIT growth 5Y24.95%
EBIT Next Year-0.15%
EBIT Next 3Y6.13%
EBIT Next 5Y12.61%
FCF growth 1Y-38.23%
FCF growth 3Y0.1%
FCF growth 5Y-12.04%
OCF growth 1Y-23.35%
OCF growth 3Y30.77%
OCF growth 5Y9.19%