ON SEMICONDUCTOR (ON) Fundamental Analysis & Valuation

NASDAQ:ON • US6821891057

Current stock price

103.03 USD
+2.22 (+2.2%)
At close:
103.283 USD
+0.25 (+0.25%)
After Hours:

This ON fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. ON Profitability Analysis

1.1 Basic Checks

  • In the past year ON was profitable.
  • ON had a positive operating cash flow in the past year.
  • In the past 5 years ON has always been profitable.
  • ON had a positive operating cash flow in each of the past 5 years.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • ON has a Return On Assets (0.97%) which is comparable to the rest of the industry.
  • ON has a Return On Equity of 1.58%. This is comparable to the rest of the industry: ON outperforms 52.17% of its industry peers.
  • ON's Return On Invested Capital of 6.01% is fine compared to the rest of the industry. ON outperforms 66.96% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ON is above the industry average of 10.73%.
  • The 3 year average ROIC (13.57%) for ON is well above the current ROIC(6.01%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 0.97%
ROE 1.58%
ROIC 6.01%
ROA(3y)9.55%
ROA(5y)11%
ROE(3y)15.84%
ROE(5y)20.05%
ROIC(3y)13.57%
ROIC(5y)16.19%
ON Yearly ROA, ROE, ROICON Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • The Profit Margin of ON (2.02%) is comparable to the rest of the industry.
  • ON's Profit Margin has declined in the last couple of years.
  • ON has a better Operating Margin (12.53%) than 70.43% of its industry peers.
  • In the last couple of years the Operating Margin of ON has grown nicely.
  • ON's Gross Margin of 33.09% is on the low side compared to the rest of the industry. ON is outperformed by 62.61% of its industry peers.
  • In the last couple of years the Gross Margin of ON has remained more or less at the same level.
Industry RankSector Rank
OM 12.53%
PM (TTM) 2.02%
GM 33.09%
OM growth 3Y-27.74%
OM growth 5Y9.66%
PM growth 3Y-55.46%
PM growth 5Y-14.65%
GM growth 3Y-12.25%
GM growth 5Y0.27%
ON Yearly Profit, Operating, Gross MarginsON Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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7

2. ON Health Analysis

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 reduced compared to 5 years ago.
  • The debt/assets ratio for ON is higher compared to a year ago.
ON Yearly Shares OutstandingON Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
ON Yearly Total Debt VS Total AssetsON Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

2.2 Solvency

  • An Altman-Z score of 7.05 indicates that ON is not in any danger for bankruptcy at the moment.
  • The Altman-Z score of ON (7.05) is comparable to the rest of the industry.
  • The Debt to FCF ratio of ON is 2.12, which is a good value as it means it would take ON, 2.12 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of ON (2.12) is better than 66.09% of its industry peers.
  • A Debt/Equity ratio of 0.39 indicates that ON is not too dependend on debt financing.
  • ON's Debt to Equity ratio of 0.39 is on the low side compared to the rest of the industry. ON is outperformed by 67.83% of its industry peers.
  • Although ON's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 2.12
Altman-Z 7.05
ROIC/WACC0.47
WACC12.66%
ON Yearly LT Debt VS Equity VS FCFON Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.3 Liquidity

  • ON has a Current Ratio of 4.52. This indicates that ON is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of ON (4.52) is better than 66.09% of its industry peers.
  • A Quick Ratio of 2.98 indicates that ON has no problem at all paying its short term obligations.
  • ON's Quick ratio of 2.98 is fine compared to the rest of the industry. ON outperforms 60.87% of its industry peers.
Industry RankSector Rank
Current Ratio 4.52
Quick Ratio 2.98
ON Yearly Current Assets VS Current LiabilitesON Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. ON Growth Analysis

3.1 Past

  • The earnings per share for ON have decreased strongly by -40.95% in the last year.
  • ON shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.85% yearly.
  • The Revenue for ON has decreased by -15.35% in the past year. This is quite bad
  • Measured over the past years, ON shows a small growth in Revenue. The Revenue has been growing by 2.67% on average per year.
EPS 1Y (TTM)-40.95%
EPS 3Y-23.89%
EPS 5Y22.85%
EPS Q2Q%-32.63%
Revenue 1Y (TTM)-15.35%
Revenue growth 3Y-10.37%
Revenue growth 5Y2.67%
Sales Q2Q%-11.17%

3.2 Future

  • ON is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.35% yearly.
  • ON is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.33% yearly.
EPS Next Y25.3%
EPS Next 2Y31.02%
EPS Next 3Y32.84%
EPS Next 5Y29.35%
Revenue Next Year4.67%
Revenue Next 2Y6.77%
Revenue Next 3Y7.76%
Revenue Next 5Y9.33%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ON Yearly Revenue VS EstimatesON Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
ON Yearly EPS VS EstimatesON Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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Find the best growth stocksShow best growing peers

5

4. ON Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 43.84, ON can be considered very expensive at the moment.
  • ON's Price/Earnings ratio is a bit cheaper when compared to the industry. ON is cheaper than 79.13% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.64, ON is valued quite expensively.
  • The Price/Forward Earnings ratio is 34.99, which means the current valuation is very expensive for ON.
  • Based on the Price/Forward Earnings ratio, ON is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of ON to the average of the S&P500 Index (21.36), we can say ON is valued expensively.
Industry RankSector Rank
PE 43.84
Fwd PE 34.99
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

  • 80.00% of the companies in the same industry are more expensive than ON, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ON indicates a rather cheap valuation: ON is cheaper than 92.17% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 28.57
EV/EBITDA 28.24
ON Per share dataON EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • ON's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of ON may justify a higher PE ratio.
  • ON's earnings are expected to grow with 32.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.73
PEG (5Y)1.92
EPS Next 2Y31.02%
EPS Next 3Y32.84%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ON Dividend Analysis

5.1 Amount

  • ON does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

ON Fundamentals: All Metrics, Ratios and Statistics

ON SEMICONDUCTOR

NASDAQ:ON (5/1/2026, 8:00:02 PM)

After market: 103.283 +0.25 (+0.25%)

103.03

+2.22 (+2.2%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Industry Strength93.17
Industry Growth91.93
Earnings (Last)02-09
Earnings (Next)05-04
Inst Owners110.38%
Inst Owner Change-0.01%
Ins Owners0.3%
Ins Owner Change-0.81%
Market Cap40.52B
Revenue(TTM)6.00B
Net Income(TTM)121.00M
Analysts70.91
Price Target73.08 (-29.07%)
Short Float %7.67%
Short Ratio3.6
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)1.74%
Min EPS beat(2)-0.21%
Max EPS beat(2)3.69%
EPS beat(4)2
Avg EPS beat(4)1.38%
Min EPS beat(4)-3.5%
Max EPS beat(4)5.53%
EPS beat(8)4
Avg EPS beat(8)0.1%
EPS beat(12)8
Avg EPS beat(12)1.22%
EPS beat(16)12
Avg EPS beat(16)2.47%
Revenue beat(2)0
Avg Revenue beat(2)-1.96%
Min Revenue beat(2)-3.28%
Max Revenue beat(2)-0.65%
Revenue beat(4)1
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-3.28%
Max Revenue beat(4)0.12%
Revenue beat(8)1
Avg Revenue beat(8)-2.22%
Revenue beat(12)2
Avg Revenue beat(12)-1.87%
Revenue beat(16)4
Avg Revenue beat(16)-1.5%
PT rev (1m)6.52%
PT rev (3m)18.01%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-1.26%
EPS NY rev (1m)-1.9%
EPS NY rev (3m)-1.87%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-1.16%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.66%
Valuation
Industry RankSector Rank
PE 43.84
Fwd PE 34.99
P/S 6.76
P/FCF 28.57
P/OCF 23.03
P/B 5.28
P/tB 7.17
EV/EBITDA 28.24
EPS(TTM)2.35
EY2.28%
EPS(NY)2.94
Fwd EY2.86%
FCF(TTM)3.61
FCFY3.5%
OCF(TTM)4.47
OCFY4.34%
SpS15.24
BVpS19.51
TBVpS14.36
PEG (NY)1.73
PEG (5Y)1.92
Graham Number32.1172 (-68.83%)
Profitability
Industry RankSector Rank
ROA 0.97%
ROE 1.58%
ROCE 6.68%
ROIC 6.01%
ROICexc 7.77%
ROICexgc 10.13%
OM 12.53%
PM (TTM) 2.02%
GM 33.09%
FCFM 23.66%
ROA(3y)9.55%
ROA(5y)11%
ROE(3y)15.84%
ROE(5y)20.05%
ROIC(3y)13.57%
ROIC(5y)16.19%
ROICexc(3y)17.59%
ROICexc(5y)21.3%
ROICexgc(3y)22.32%
ROICexgc(5y)28.91%
ROCE(3y)15.1%
ROCE(5y)18%
ROICexgc growth 3Y-40.91%
ROICexgc growth 5Y0.52%
ROICexc growth 3Y-39.74%
ROICexc growth 5Y4.24%
OM growth 3Y-27.74%
OM growth 5Y9.66%
PM growth 3Y-55.46%
PM growth 5Y-14.65%
GM growth 3Y-12.25%
GM growth 5Y0.27%
F-Score4
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 2.12
Debt/EBITDA 2.09
Cap/Depr 49.74%
Cap/Sales 5.69%
Interest Coverage 12.88
Cash Conversion 122.46%
Profit Quality 1172.4%
Current Ratio 4.52
Quick Ratio 2.98
Altman-Z 7.05
F-Score4
WACC12.66%
ROIC/WACC0.47
Cap/Depr(3y)138.73%
Cap/Depr(5y)137.28%
Cap/Sales(3y)11.53%
Cap/Sales(5y)10.86%
Profit Quality(3y)422.63%
Profit Quality(5y)295.92%
High Growth Momentum
Growth
EPS 1Y (TTM)-40.95%
EPS 3Y-23.89%
EPS 5Y22.85%
EPS Q2Q%-32.63%
EPS Next Y25.3%
EPS Next 2Y31.02%
EPS Next 3Y32.84%
EPS Next 5Y29.35%
Revenue 1Y (TTM)-15.35%
Revenue growth 3Y-10.37%
Revenue growth 5Y2.67%
Sales Q2Q%-11.17%
Revenue Next Year4.67%
Revenue Next 2Y6.77%
Revenue Next 3Y7.76%
Revenue Next 5Y9.33%
EBIT growth 1Y-60.5%
EBIT growth 3Y-35.23%
EBIT growth 5Y12.59%
EBIT Next Year81.7%
EBIT Next 3Y37.78%
EBIT Next 5Y30.85%
FCF growth 1Y17.01%
FCF growth 3Y-3.87%
FCF growth 5Y28.77%
OCF growth 1Y-7.69%
OCF growth 3Y-12.57%
OCF growth 5Y14.76%

ON SEMICONDUCTOR / ON Fundamental Analysis 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 of ON SEMICONDUCTOR (ON) stock?

ChartMill assigns a valuation rating of 5 / 10 to ON SEMICONDUCTOR (ON). This can be considered as Fairly Valued.


What is the profitability of ON stock?

ON SEMICONDUCTOR (ON) has a profitability rating of 6 / 10.


Can you provide the PE and PB ratios for ON stock?

The Price/Earnings (PE) ratio for ON SEMICONDUCTOR (ON) is 43.84 and the Price/Book (PB) ratio is 5.28.


What is the financial health of ON SEMICONDUCTOR (ON) stock?

The financial health rating of ON SEMICONDUCTOR (ON) is 7 / 10.