61.13 USD
-0.85 (-1.37%)
61 USD
-0.13 (-0.21%)
Taking everything into account, ON scores 6 out of 10 in our fundamental rating. ON was compared to 113 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 is not valued too expensively and it also shows a decent growth rate.
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
- ON has a Return On Assets (2.45%) which is comparable to the rest of the industry.
- 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 73.45% 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 10.75%.
- The last Return On Invested Capital (6.79%) 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 | 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 57.52% of the companies in the same industry.
- In the last couple of years the Profit Margin of ON has grown nicely.
- The Operating Margin of ON (15.06%) is better than 74.34% of its industry peers.
- In the last couple of years the Operating Margin of ON has grown nicely.
- The Gross Margin of ON (35.75%) is worse than 61.95% of its industry peers.
- In the last couple of years the Gross Margin of ON has grown nicely.
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ON is creating value.
- Compared to 1 year ago, ON has less shares outstanding
- The number of shares outstanding for ON has been increased compared to 5 years ago.
- The debt/assets ratio for ON has been reduced compared to a year ago.
2.2 Solvency
- ON has an Altman-Z score of 4.94. 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 4.94, ON is in line with its industry, outperforming 56.64% of the companies in the same industry.
- ON has a debt to FCF ratio of 2.47. This is a good value and a sign of high solvency as ON would need 2.47 years to pay back of all of its debts.
- ON has a Debt to FCF ratio of 2.47. This is in the better half of the industry: ON outperforms 66.37% of its industry peers.
- ON has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.43, ON is doing worse than 67.26% of the companies in the same industry.
- 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 | 0.43 | ||
| Debt/FCF | 2.47 | ||
| Altman-Z | 4.94 |
ROIC/WACC0.65
WACC10.49%
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.
- With a decent Current ratio value of 5.23, ON is doing good in the industry, outperforming 74.34% of the companies in the same industry.
- A Quick Ratio of 3.54 indicates that ON has no problem at all paying its short term obligations.
- ON's Quick ratio of 3.54 is fine compared to the rest of the industry. ON outperforms 68.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.23 | ||
| Quick Ratio | 3.54 |
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
- 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
- ON is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.23% yearly.
- The Revenue is expected to grow by 3.96% on average over the next years.
EPS Next Y-39.69%
EPS Next 2Y-13.17%
EPS Next 3Y2.09%
EPS Next 5Y11.23%
Revenue Next Year-15.68%
Revenue Next 2Y-5.74%
Revenue Next 3Y-0.81%
Revenue Next 5Y3.96%
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 22.98, which indicates a rather expensive current valuation of ON.
- Compared to the rest of the industry, the Price/Earnings ratio of ON indicates a rather cheap valuation: ON is cheaper than 87.61% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of ON to the average of the S&P500 Index (27.25), we can say ON is valued inline with the index average.
- ON is valuated rather expensively with a Price/Forward Earnings ratio of 20.37.
- Based on the Price/Forward Earnings ratio, ON is valued cheaper than 85.84% of the companies in the same industry.
- ON is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 20.37 |
4.2 Price Multiples
- ON's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ON is cheaper than 83.19% of the companies in the same industry.
- ON's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ON is cheaper than 92.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.98 | ||
| EV/EBITDA | 15.74 |
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)1.05
EPS Next 2Y-13.17%
EPS Next 3Y2.09%
5. Dividend
5.1 Amount
- No dividends for ON!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 5 / 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.
What is the expected EPS growth for ON SEMICONDUCTOR (ON) stock?
The Earnings per Share (EPS) of ON SEMICONDUCTOR (ON) is expected to decline by -39.69% in the next year.