ON SEMICONDUCTOR (ON) Stock Fundamental Analysis
NASDAQ:ON • US6821891057
63.42 USD
-3.06 (-4.6%)
At close: Mar 3, 2026
63.35 USD
-0.07 (-0.11%)
After Hours: 3/3/2026, 8:00:02 PM
Taking everything into account, ON scores 6 out of 10 in our fundamental rating. ON was compared to 115 industry peers in the Semiconductors & Semiconductor Equipment industry. While ON has a great health rating, its profitability is only average at the moment. ON scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make ON a good candidate for value investing.
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.
- In the past 5 years ON always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.97%, ON is in line with its industry, outperforming 53.04% of the companies in the same industry.
- ON has a Return On Equity (1.58%) which is comparable to the rest of the industry.
- ON has a Return On Invested Capital of 6.01%. This is in the better half of the industry: ON outperforms 68.70% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ON is above the industry average of 10.52%.
- The last Return On Invested Capital (6.01%) for ON is well below the 3 year average (13.57%), which needs to be investigated, but indicates that ON had better years and this may not be a problem.
| Industry Rank | Sector 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%
1.3 Margins
- ON has a Profit Margin of 2.02%. This is comparable to the rest of the industry: ON outperforms 53.04% of its industry peers.
- In the last couple of years the Profit Margin of ON has declined.
- Looking at the Operating Margin, with a value of 12.53%, ON is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
- In the last couple of years the Operating Margin of ON has grown nicely.
- With a Gross Margin value of 33.09%, ON is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of ON has remained more or less at the same level.
| Industry Rank | Sector 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%
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.
- The number of shares outstanding for ON has been reduced compared to 1 year ago.
- The number of shares outstanding for ON has been reduced compared to 5 years ago.
- ON has a worse debt/assets ratio than last year.
2.2 Solvency
- ON has an Altman-Z score of 5.34. This indicates that ON is financially healthy and has little risk of bankruptcy at the moment.
- ON has a Altman-Z score (5.34) which is comparable to the rest of the industry.
- ON has a debt to FCF ratio of 2.12. This is a good value and a sign of high solvency as ON would need 2.12 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.12, ON is in the better half of the industry, outperforming 66.09% of the companies in the same industry.
- A Debt/Equity ratio of 0.39 indicates that ON is not too dependend on debt financing.
- ON has a Debt to Equity ratio of 0.39. This is in the lower half of the industry: ON underperforms 67.83% of its industry peers.
- Although ON does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.12 | ||
| Altman-Z | 5.34 |
ROIC/WACC0.56
WACC10.74%
2.3 Liquidity
- A Current Ratio of 4.52 indicates that ON has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 4.52, ON is in the better half of the industry, outperforming 66.96% of the companies in the same industry.
- A Quick Ratio of 2.98 indicates that ON has no problem at all paying its short term obligations.
- ON has a better Quick ratio (2.98) than 62.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.52 | ||
| Quick Ratio | 2.98 |
3. Growth
3.1 Past
- The earnings per share for ON have decreased strongly by -40.95% in the last year.
- Measured over the past years, ON shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.85% on average per year.
- ON shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.35%.
- 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 31.02% yearly.
- ON is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.03% yearly.
EPS Next Y27.86%
EPS Next 2Y34.36%
EPS Next 3Y32.56%
EPS Next 5Y31.02%
Revenue Next Year4.79%
Revenue Next 2Y7.44%
Revenue Next 3Y7.81%
Revenue Next 5Y13.03%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 26.99, which means the current valuation is very expensive for ON.
- 86.96% 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 similar valuation than the S&P500 average which is at 26.83.
- With a Price/Forward Earnings ratio of 21.11, ON is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, ON is valued cheaper than 82.61% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.95. ON is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.99 | ||
| Fwd PE | 21.11 |
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 80.87% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, ON is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.99 | ||
| EV/EBITDA | 18.65 |
4.3 Compensation for Growth
- ON's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- ON has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as ON's earnings are expected to grow with 32.56% in the coming years.
PEG (NY)0.97
PEG (5Y)1.18
EPS Next 2Y34.36%
EPS Next 3Y32.56%
5. Dividend
5.1 Amount
- No dividends for ON!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
63.42
-3.06 (-4.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-09 2026-02-09/amc
Earnings (Next)05-04 2026-05-04/bmo
Inst Owners112.18%
Inst Owner Change-2.83%
Ins Owners0.3%
Ins Owner Change0.37%
Market Cap25.52B
Revenue(TTM)6.00B
Net Income(TTM)121.00M
Analysts71.82
Price Target69.34 (9.33%)
Short Float %8.63%
Short Ratio3.68
Dividend
| Industry Rank | Sector 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)11.97%
PT rev (3m)15.73%
EPS NQ rev (1m)0.82%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)0.13%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)-0.55%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.99 | ||
| Fwd PE | 21.11 | ||
| P/S | 4.26 | ||
| P/FCF | 17.99 | ||
| P/OCF | 14.5 | ||
| P/B | 3.33 | ||
| P/tB | 4.52 | ||
| EV/EBITDA | 18.65 |
EPS(TTM)2.35
EY3.71%
EPS(NY)3
Fwd EY4.74%
FCF(TTM)3.53
FCFY5.56%
OCF(TTM)4.37
OCFY6.9%
SpS14.9
BVpS19.07
TBVpS14.04
PEG (NY)0.97
PEG (5Y)1.18
Graham Number31.75
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 5.34 |
F-Score4
WACC10.74%
ROIC/WACC0.56
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 Y27.86%
EPS Next 2Y34.36%
EPS Next 3Y32.56%
EPS Next 5Y31.02%
Revenue 1Y (TTM)-15.35%
Revenue growth 3Y-10.37%
Revenue growth 5Y2.67%
Sales Q2Q%-11.17%
Revenue Next Year4.79%
Revenue Next 2Y7.44%
Revenue Next 3Y7.81%
Revenue Next 5Y13.03%
EBIT growth 1Y-60.5%
EBIT growth 3Y-35.23%
EBIT growth 5Y12.59%
EBIT Next Year78.34%
EBIT Next 3Y37.25%
EBIT Next 5Y34.14%
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 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 7 / 10 to ON SEMICONDUCTOR (ON). This can be considered as Undervalued.
Can you provide the profitability details for ON SEMICONDUCTOR?
ON SEMICONDUCTOR (ON) has a profitability rating of 6 / 10.
What is the expected EPS growth for ON SEMICONDUCTOR (ON) stock?
The Earnings per Share (EPS) of ON SEMICONDUCTOR (ON) is expected to grow by 27.86% in the next year.