ON SEMICONDUCTOR (ON) Stock Fundamental Analysis
USA - NASDAQ:ON - US6821891057 - Common Stock
45.56 USD
-0.46 (-1%)
46.81 USD
+1.25 (+2.74%)
ON gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 112 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 has a decent growth rate and is not valued too expensively.
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.
1.2 Ratios
ON has a Return On Assets of 2.45%. This is comparable to the rest of the industry: ON outperforms 57.14% of its industry peers.
ON has a Return On Equity (4.04%) which is in line with its industry peers.
ON has a better Return On Invested Capital (6.79%) than 72.32% of its industry peers.
ON had an Average Return On Invested Capital over the past 3 years of 19.04%. This is significantly above the industry average of 10.86%.
The 3 year average ROIC (19.04%) for ON is well above the current ROIC(6.79%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 4.04% | ||
| ROIC | 6.79% |
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
Looking at the Profit Margin, with a value of 5.16%, ON is in line with its industry, outperforming 58.04% of the companies in the same industry.
ON's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.06%, ON is in the better half of the industry, outperforming 74.11% of the companies in the same industry.
In the last couple of years the Operating Margin of ON has grown nicely.
ON has a worse Gross Margin (35.75%) than 63.39% of its industry peers.
ON's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.06% | ||
| PM (TTM) | 5.16% | ||
| GM | 35.75% |
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 well above the Cost of Capital (WACC), so ON is creating value.
The number of shares outstanding for ON has been reduced compared to 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.
2.2 Solvency
ON has an Altman-Z score of 4.26. This indicates that ON is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ON (4.26) is comparable to the rest of the industry.
The Debt to FCF ratio of ON is 2.47, which is a good value as it means it would take ON, 2.47 years of fcf income to pay off all of its debts.
ON has a better Debt to FCF ratio (2.47) than 66.07% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that ON is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.43, ON is doing worse than 66.07% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for ON, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.47 | ||
| Altman-Z | 4.26 |
ROIC/WACC0.67
WACC10.15%
2.3 Liquidity
ON has a Current Ratio of 5.23. This indicates that ON is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ON (5.23) is better than 75.89% of its industry peers.
A Quick Ratio of 3.54 indicates that ON has no problem at all paying its short term obligations.
ON has a Quick ratio of 3.54. This is in the better half of the industry: ON outperforms 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.23 | ||
| Quick Ratio | 3.54 |
3. Growth
3.1 Past
The earnings per share for ON have decreased strongly by -37.85% 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
The Revenue for ON has decreased by -16.13% in the past year. This is quite bad
ON shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.12% yearly.
EPS 1Y (TTM)-37.85%
EPS 3Y10.62%
EPS 5Y21.88%
EPS Q2Q%-36.36%
Revenue 1Y (TTM)-16.13%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-11.98%
3.2 Future
The Earnings Per Share is expected to grow by 10.96% on average over the next years. This is quite good.
ON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.23% yearly.
EPS Next Y-40.69%
EPS Next 2Y-12.89%
EPS Next 3Y2.21%
EPS Next 5Y10.96%
Revenue Next Year-16.3%
Revenue Next 2Y-5.74%
Revenue Next 3Y-0.59%
Revenue Next 5Y4.23%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
ON is valuated rather expensively with a Price/Earnings ratio of 17.13.
87.50% of the companies in the same industry are more expensive than ON, based on the Price/Earnings ratio.
ON's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.51.
A Price/Forward Earnings ratio of 15.09 indicates a correct valuation of ON.
ON's Price/Forward Earnings ratio is rather cheap when compared to the industry. ON is cheaper than 86.61% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.98. ON is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 15.09 |
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 85.71% of the companies listed in the same industry.
ON's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ON is cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.62 | ||
| EV/EBITDA | 12.06 |
4.3 Compensation for Growth
ON has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y-12.89%
EPS Next 3Y2.21%
5. Dividend
5.1 Amount
ON does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
45.56
-0.46 (-1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners111.02%
Inst Owner Change0.01%
Ins Owners0.33%
Ins Owner Change-0.71%
Market Cap18.63B
Revenue(TTM)6.19B
Net Income(TTM)319.10M
Analysts71.82
Price Target59.34 (30.25%)
Short Float %8.97%
Short Ratio4.2
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)0.1%
Min EPS beat(2)-3.5%
Max EPS beat(2)3.69%
EPS beat(4)2
Avg EPS beat(4)0.1%
Min EPS beat(4)-5.32%
Max EPS beat(4)5.53%
EPS beat(8)5
Avg EPS beat(8)0.2%
EPS beat(12)9
Avg EPS beat(12)1.37%
EPS beat(16)13
Avg EPS beat(16)3.32%
Revenue beat(2)0
Avg Revenue beat(2)-1.24%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)-0.65%
Revenue beat(4)1
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-4.89%
Max Revenue beat(4)0.12%
Revenue beat(8)1
Avg Revenue beat(8)-2.08%
Revenue beat(12)2
Avg Revenue beat(12)-1.71%
Revenue beat(16)5
Avg Revenue beat(16)-1.27%
PT rev (1m)0.9%
PT rev (3m)1.93%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)-3.25%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)0.38%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.13 | ||
| Fwd PE | 15.09 | ||
| P/S | 3.01 | ||
| P/FCF | 13.62 | ||
| P/OCF | 10.44 | ||
| P/B | 2.36 | ||
| P/tB | 3.12 | ||
| EV/EBITDA | 12.06 |
EPS(TTM)2.66
EY5.84%
EPS(NY)3.02
Fwd EY6.63%
FCF(TTM)3.34
FCFY7.34%
OCF(TTM)4.36
OCFY9.58%
SpS15.13
BVpS19.33
TBVpS14.61
PEG (NY)N/A
PEG (5Y)0.78
Graham Number34.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 4.04% | ||
| ROCE | 7.9% | ||
| ROIC | 6.79% | ||
| ROICexc | 8.97% | ||
| ROICexgc | 11.45% | ||
| OM | 15.06% | ||
| PM (TTM) | 5.16% | ||
| GM | 35.75% | ||
| FCFM | 22.11% |
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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.47 | ||
| Debt/EBITDA | 2.15 | ||
| Cap/Depr | 65.39% | ||
| Cap/Sales | 6.74% | ||
| Interest Coverage | 14.93 | ||
| Cash Conversion | 113.74% | ||
| Profit Quality | 428.71% | ||
| Current Ratio | 5.23 | ||
| Quick Ratio | 3.54 | ||
| Altman-Z | 4.26 |
F-Score5
WACC10.15%
ROIC/WACC0.67
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)-37.85%
EPS 3Y10.62%
EPS 5Y21.88%
EPS Q2Q%-36.36%
EPS Next Y-40.69%
EPS Next 2Y-12.89%
EPS Next 3Y2.21%
EPS Next 5Y10.96%
Revenue 1Y (TTM)-16.13%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-11.98%
Revenue Next Year-16.3%
Revenue Next 2Y-5.74%
Revenue Next 3Y-0.59%
Revenue Next 5Y4.23%
EBIT growth 1Y-55.33%
EBIT growth 3Y11.77%
EBIT growth 5Y24.63%
EBIT Next Year-17.86%
EBIT Next 3Y6.9%
EBIT Next 5Y13.49%
FCF growth 1Y130.61%
FCF growth 3Y-2.05%
FCF growth 5Y82.37%
OCF growth 1Y-14.9%
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 7 / 10.
How financially healthy is ON SEMICONDUCTOR?
The financial health rating of ON SEMICONDUCTOR (ON) is 7 / 10.