ON SEMICONDUCTOR (ON) Stock Fundamental Analysis
USA - NASDAQ:ON - US6821891057 - Common Stock
48.54 USD
+0.71 (+1.48%)
48.65 USD
+0.11 (+0.23%)
Taking everything into account, ON scores 6 out of 10 in our fundamental rating. ON was compared to 112 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 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.
In the past 5 years ON always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.55%, ON is doing good in the industry, outperforming 61.61% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.87%, ON is in the better half of the industry, outperforming 63.39% of the companies in the same industry.
ON's Return On Invested Capital of 8.13% is fine compared to the rest of the industry. ON outperforms 75.89% 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 11.11%.
The last Return On Invested Capital (8.13%) for ON is well below the 3 year average (19.04%), which needs to be investigated, but indicates that ON had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 5.87% | ||
| ROIC | 8.13% |
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
ON has a Profit Margin of 7.28%. This is in the better half of the industry: ON outperforms 63.39% of its industry peers.
ON's Profit Margin has improved in the last couple of years.
ON has a Operating Margin of 17.54%. This is in the better half of the industry: ON outperforms 75.00% of its industry peers.
ON's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 37.89%, ON is doing worse than 62.50% of the companies in the same industry.
ON's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.54% | ||
| PM (TTM) | 7.28% | ||
| GM | 37.89% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ON is creating value.
The number of shares outstanding for ON has been reduced compared to 1 year ago.
ON has more shares outstanding than it did 5 years ago.
ON has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.33 indicates that ON is not in any danger for bankruptcy at the moment.
ON's Altman-Z score of 4.33 is in line compared to the rest of the industry. ON outperforms 56.25% of its industry peers.
The Debt to FCF ratio of ON is 2.62, which is a good value as it means it would take ON, 2.62 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.62, ON is doing good in the industry, outperforming 64.29% of the companies in the same industry.
A Debt/Equity ratio of 0.42 indicates that ON is not too dependend on debt financing.
ON has a worse Debt to Equity ratio (0.42) than 66.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 4.33 |
ROIC/WACC0.79
WACC10.23%
2.3 Liquidity
ON has a Current Ratio of 5.02. This indicates that ON is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ON (5.02) is better than 73.21% of its industry peers.
ON has a Quick Ratio of 3.37. This indicates that ON is financially healthy and has no problem in meeting its short term obligations.
ON's Quick ratio of 3.37 is fine compared to the rest of the industry. ON outperforms 65.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.02 | ||
| Quick Ratio | 3.37 |
3. Growth
3.1 Past
ON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.85%.
The Earnings Per Share has been growing by 21.88% on average over the past years. This is a very strong growth
ON shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.19%.
Measured over the past years, ON shows a small growth in Revenue. The Revenue has been growing by 5.12% on average per year.
EPS 1Y (TTM)-37.85%
EPS 3Y10.62%
EPS 5Y21.88%
EPS Q2Q%-36.36%
Revenue 1Y (TTM)-14.19%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-11.98%
3.2 Future
Based on estimates for the next years, ON will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.96% on average per year.
The Revenue is expected to grow by 4.23% on average over the next years.
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
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.25 indicates a rather expensive valuation of ON.
Based on the Price/Earnings ratio, ON is valued cheaper than 89.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of ON to the average of the S&P500 Index (26.28), we can say ON is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.07, ON is valued correctly.
Based on the Price/Forward Earnings ratio, ON is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
ON's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 33.61.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.25 | ||
| Fwd PE | 16.07 |
4.2 Price Multiples
87.50% of the companies in the same industry are more expensive than ON, based on the Enterprise Value to EBITDA ratio.
ON's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ON is cheaper than 91.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.4 | ||
| EV/EBITDA | 11.16 |
4.3 Compensation for Growth
ON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.83
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 |
48.54
+0.71 (+1.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners111.02%
Inst Owner Change0.12%
Ins Owners0.33%
Ins Owner Change0.18%
Market Cap19.85B
Revenue(TTM)7.08B
Net Income(TTM)465.80M
Analysts71.82
Price Target59.34 (22.25%)
Short Float %8.44%
Short Ratio4.31
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)1.02%
Min EPS beat(2)-3.5%
Max EPS beat(2)5.53%
EPS beat(4)1
Avg EPS beat(4)-1.07%
Min EPS beat(4)-5.32%
Max EPS beat(4)5.53%
EPS beat(8)5
Avg EPS beat(8)-0.19%
EPS beat(12)9
Avg EPS beat(12)1.66%
EPS beat(16)13
Avg EPS beat(16)3.98%
Revenue beat(2)1
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)0.12%
Revenue beat(4)1
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-4.89%
Max Revenue beat(4)0.12%
Revenue beat(8)1
Avg Revenue beat(8)-2.18%
Revenue beat(12)3
Avg Revenue beat(12)-1.62%
Revenue beat(16)5
Avg Revenue beat(16)-1.31%
PT rev (1m)0.9%
PT rev (3m)1.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.25 | ||
| Fwd PE | 16.07 | ||
| P/S | 3.1 | ||
| P/FCF | 15.4 | ||
| P/OCF | 10.84 | ||
| P/B | 2.5 | ||
| P/tB | 3.31 | ||
| EV/EBITDA | 11.16 |
EPS(TTM)2.66
EY5.48%
EPS(NY)3.02
Fwd EY6.22%
FCF(TTM)3.15
FCFY6.49%
OCF(TTM)4.48
OCFY9.23%
SpS15.65
BVpS19.42
TBVpS14.68
PEG (NY)N/A
PEG (5Y)0.83
Graham Number34.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 5.87% | ||
| ROCE | 9.46% | ||
| ROIC | 8.13% | ||
| ROICexc | 10.67% | ||
| ROICexgc | 13.59% | ||
| OM | 17.54% | ||
| PM (TTM) | 7.28% | ||
| GM | 37.89% | ||
| FCFM | 20.15% |
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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.62 | ||
| Debt/EBITDA | 1.9 | ||
| Cap/Depr | 83.14% | ||
| Cap/Sales | 8.48% | ||
| Interest Coverage | 18.49 | ||
| Cash Conversion | 103.21% | ||
| Profit Quality | 276.77% | ||
| Current Ratio | 5.02 | ||
| Quick Ratio | 3.37 | ||
| Altman-Z | 4.33 |
F-Score5
WACC10.23%
ROIC/WACC0.79
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)-14.19%
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-51.37%
EBIT growth 3Y11.77%
EBIT growth 5Y24.63%
EBIT Next Year-17.86%
EBIT Next 3Y6.9%
EBIT Next 5Y13.49%
FCF growth 1Y10.32%
FCF growth 3Y-2.05%
FCF growth 5Y82.37%
OCF growth 1Y-27.68%
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 8 / 10.
How financially healthy is ON SEMICONDUCTOR?
The financial health rating of ON SEMICONDUCTOR (ON) is 7 / 10.