ON SEMICONDUCTOR (ON)
US6821891057 - Common Stock
Overall ON gets a fundamental rating of 6 out of 10. We evaluated ON against 108 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ON had positive earnings in the past year.
ON had a positive operating cash flow in the past year.
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
The Return On Assets of ON (12.61%) is better than 79.63% of its industry peers.
ON has a better Return On Equity (20.45%) than 86.11% of its industry peers.
ON has a better Return On Invested Capital (14.75%) than 86.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ON is significantly above the industry average of 11.05%.
The last Return On Invested Capital (14.75%) for ON is well below the 3 year average (19.02%), which needs to be investigated, but indicates that ON had better years and this may not be a problem.
| Industry Rank | Sector 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%
1.3 Margins
With an excellent Profit Margin value of 23.80%, ON belongs to the best of the industry, outperforming 82.41% of the companies in the same industry.
ON's Profit Margin has improved in the last couple of years.
ON's Operating Margin of 28.27% is amongst the best of the industry. ON outperforms 87.96% of its industry peers.
In the last couple of years the Operating Margin of ON has grown nicely.
ON has a Gross Margin (45.80%) which is in line with its industry peers.
ON's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
ON has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ON has less shares outstanding than it did 1 year ago.
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 5.40. This indicates that ON is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.40, ON is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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.
The Debt to FCF ratio of ON (3.37) is better than 63.89% of its industry peers.
ON has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
ON has a worse Debt to Equity ratio (0.30) than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 5.4 |
ROIC/WACC1.03
WACC14.26%
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 (2.02) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.07 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
ON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.16%.
ON shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.36% yearly.
Looking at the last year, ON shows a very negative growth in Revenue. The Revenue has decreased by -11.52% in the last year.
ON shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.02% yearly.
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 10.06% on average over the next years. This is quite good.
Based on estimates for the next years, ON will show a small growth in Revenue. The Revenue will grow by 5.08% on average per year.
EPS Next Y-20.11%
EPS Next 2Y-6.9%
EPS Next 3Y3.5%
EPS Next 5Y10.06%
Revenue Next Year-13.55%
Revenue Next 2Y-5%
Revenue Next 3Y0.56%
Revenue Next 5Y5.08%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.73, which indicates a correct valuation of ON.
Based on the Price/Earnings ratio, ON is valued cheaply inside the industry as 85.19% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.65, ON is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.05, which indicates a correct valuation of ON.
Based on the Price/Forward Earnings ratio, ON is valued cheaper than 81.48% of the companies in the same industry.
ON is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.73 | ||
| Fwd PE | 15.05 |
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 87.04% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ON is valued a bit cheaper than 75.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.71 | ||
| EV/EBITDA | 10.64 |
4.3 Compensation for Growth
The excellent profitability rating of ON may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.74
EPS Next 2Y-6.9%
EPS Next 3Y3.5%
5. Dividend
5.1 Amount
No dividends for ON!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ON SEMICONDUCTOR
NASDAQ:ON (11/20/2024, 8:00:02 PM)
Premarket: 67 -0.31 (-0.46%)67.31
+0.66 (+0.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap28.66B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.73 | ||
| Fwd PE | 15.05 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.61% | ||
| ROE | 20.45% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.27% | ||
| PM (TTM) | 23.8% | ||
| GM | 45.8% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.07 | ||
| Quick Ratio | 2.02 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-18.16%
EPS 3Y83.14%
EPS 5Y
EPS Q2Q%
EPS Next Y-20.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.52%
Revenue growth 3Y16.24%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
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