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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ON has a correct valuation and a medium 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.
ON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ON has a Return On Assets of 12.61%. This is amongst the best in the industry. ON outperforms 81.48% of its industry peers.
ON has a better Return On Equity (20.45%) than 85.19% of its industry peers.
With an excellent Return On Invested Capital value of 14.75%, ON belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ON is significantly above the industry average of 10.74%.
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
ON's Profit Margin of 23.80% is amongst the best of the industry. ON outperforms 84.26% 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 28.27%, ON belongs to the top of the industry, outperforming 87.04% 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.
In the last couple of years the Gross Margin of ON has grown nicely.
| 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
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
ON has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ON has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.58 indicates that ON is not in any danger for bankruptcy at the moment.
ON has a better Altman-Z score (5.58) than 63.89% 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.
The Debt to FCF ratio of ON (3.37) is better than 62.04% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that ON is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.30, ON is not doing good in the industry: 62.04% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 5.58 |
ROIC/WACC1.13
WACC13.07%
2.3 Liquidity
ON has a Current Ratio of 3.07. This indicates that ON is financially healthy and has no problem in meeting its short term obligations.
ON has a Current ratio (3.07) which is comparable to the rest of the industry.
A Quick Ratio of 2.02 indicates that ON has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.02, ON is in line with its industry, outperforming 47.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.07 | ||
| Quick Ratio | 2.02 |
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%.
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
ON is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.06% yearly.
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-20.23%
EPS Next 2Y-6.92%
EPS Next 3Y3.32%
EPS Next 5Y10.06%
Revenue Next Year-13.6%
Revenue Next 2Y-4.98%
Revenue Next 3Y0.59%
Revenue Next 5Y5.08%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.59, ON is valued correctly.
ON's Price/Earnings ratio is rather cheap when compared to the industry. ON is cheaper than 87.04% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 30.16. ON is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.88, ON is valued correctly.
Based on the Price/Forward Earnings ratio, ON is valued cheaply inside the industry as 81.48% of the companies are valued more expensively.
ON is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.59 | ||
| Fwd PE | 15.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ON is valued cheaply inside the industry as 87.96% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ON is valued a bit cheaper than the industry average as 76.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.28 | ||
| EV/EBITDA | 11.21 |
4.3 Compensation for Growth
ON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y-6.92%
EPS Next 3Y3.32%
5. Dividend
5.1 Amount
No dividends for ON!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ON SEMICONDUCTOR
NASDAQ:ON (11/1/2024, 8:20:39 PM)
Premarket: 70.99 0 (0%)70.99
+0.5 (+0.71%)
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 Cap30.23B
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
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.59 | ||
| Fwd PE | 15.88 | ||
| 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)0.78
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-20.23%
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
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