ON SEMICONDUCTOR (ON) Fundamental Analysis & Valuation

NASDAQ:ON • US6821891057

Current stock price

79.93 USD
+7.5 (+10.35%)
At close:
80 USD
+0.07 (+0.09%)
Pre-Market:

This ON fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. ON Profitability Analysis

1.1 Basic Checks

  • ON had positive earnings in the past year.
  • In the past year ON had a positive cash flow from operations.
  • In the past 5 years ON has always been profitable.
  • ON had a positive operating cash flow in each of the past 5 years.
ON Yearly Net Income VS EBIT VS OCF VS FCFON Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • ON has a Return On Assets of 0.97%. This is comparable to the rest of the industry: ON outperforms 53.04% of its industry peers.
  • Looking at the Return On Equity, with a value of 1.58%, ON is in line with its industry, outperforming 53.04% of the companies in the same industry.
  • ON has a Return On Invested Capital of 6.01%. This is in the better half of the industry: ON outperforms 66.96% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ON is above the industry average of 10.70%.
  • 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 RankSector 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%
ON Yearly ROA, ROE, ROICON Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 2.02%, ON is in line with its industry, outperforming 53.04% of the companies in the same industry.
  • ON's Profit Margin has declined in the last couple of years.
  • ON has a better Operating Margin (12.53%) than 70.43% of its industry peers.
  • In the last couple of years the Operating Margin of ON has grown nicely.
  • Looking at the Gross Margin, with a value of 33.09%, ON is doing worse than 63.48% of the companies in the same industry.
  • In the last couple of years the Gross Margin of ON has remained more or less at the same level.
Industry RankSector 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%
ON Yearly Profit, Operating, Gross MarginsON Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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7

2. ON Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ON is creating some value.
  • ON has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, ON has less shares outstanding
  • The debt/assets ratio for ON is higher compared to a year ago.
ON Yearly Shares OutstandingON Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
ON Yearly Total Debt VS Total AssetsON Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

2.2 Solvency

  • An Altman-Z score of 5.92 indicates that ON is not in any danger for bankruptcy at the moment.
  • With a Altman-Z score value of 5.92, ON perfoms like the industry average, outperforming 54.78% of the companies in the same 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.
  • ON has a Debt to FCF ratio of 2.12. This is in the better half of the industry: ON outperforms 66.09% of its industry peers.
  • ON has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
  • ON has a worse Debt to Equity ratio (0.39) than 66.96% of its industry peers.
  • Although ON's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.39
Debt/FCF 2.12
Altman-Z 5.92
ROIC/WACC0.53
WACC11.4%
ON Yearly LT Debt VS Equity VS FCFON Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 4.52 indicates that ON has no problem at all paying its short term obligations.
  • ON's Current ratio of 4.52 is fine compared to the rest of the industry. ON outperforms 66.09% of its industry peers.
  • 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 61.74% of its industry peers.
Industry RankSector Rank
Current Ratio 4.52
Quick Ratio 2.98
ON Yearly Current Assets VS Current LiabilitesON Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. ON Growth Analysis

3.1 Past

  • ON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.95%.
  • 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.
  • Looking at the last year, ON shows a very negative growth in Revenue. The Revenue has decreased by -15.35% in the last year.
  • 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

  • The Earnings Per Share is expected to grow by 29.35% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 9.71% on average over the next years. This is quite good.
EPS Next Y25.3%
EPS Next 2Y31.02%
EPS Next 3Y32.84%
EPS Next 5Y29.35%
Revenue Next Year4.61%
Revenue Next 2Y6.68%
Revenue Next 3Y7.76%
Revenue Next 5Y9.71%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ON Yearly Revenue VS EstimatesON Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
ON Yearly EPS VS EstimatesON Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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6

4. ON Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 34.01, ON can be considered very expensive at the moment.
  • ON's Price/Earnings ratio is rather cheap when compared to the industry. ON is cheaper than 83.48% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.53, ON is valued a bit more expensive.
  • ON is valuated quite expensively with a Price/Forward Earnings ratio of 27.15.
  • ON's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ON is cheaper than 76.52% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of ON to the average of the S&P500 Index (37.95), we can say ON is valued slightly cheaper.
Industry RankSector Rank
PE 34.01
Fwd PE 27.15
ON Price Earnings VS Forward Price EarningsON Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • ON's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ON is cheaper than 85.22% of the companies in the same industry.
  • 92.17% of the companies in the same industry are more expensive than ON, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 22.16
EV/EBITDA 21.92
ON Per share dataON EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • ON's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of ON may justify a higher PE ratio.
  • ON's earnings are expected to grow with 32.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.34
PEG (5Y)1.49
EPS Next 2Y31.02%
EPS Next 3Y32.84%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. ON Dividend Analysis

5.1 Amount

  • No dividends for ON!.
Industry RankSector Rank
Dividend Yield 0%

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ON Fundamentals: All Metrics, Ratios and Statistics

ON SEMICONDUCTOR

NASDAQ:ON (4/16/2026, 8:00:02 PM)

Premarket: 80 +0.07 (+0.09%)

79.93

+7.5 (+10.35%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-09
Earnings (Next)05-04
Inst Owners110.38%
Inst Owner Change0.03%
Ins Owners0.3%
Ins Owner Change0.3%
Market Cap31.44B
Revenue(TTM)6.00B
Net Income(TTM)121.00M
Analysts70.91
Price Target68.94 (-13.75%)
Short Float %7.8%
Short Ratio3.62
Dividend
Industry RankSector 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)-0.58%
PT rev (3m)14.01%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)-1.26%
EPS NY rev (1m)-1.9%
EPS NY rev (3m)-1.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.23%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.69%
Valuation
Industry RankSector Rank
PE 34.01
Fwd PE 27.15
P/S 5.24
P/FCF 22.16
P/OCF 17.87
P/B 4.1
P/tB 5.56
EV/EBITDA 21.92
EPS(TTM)2.35
EY2.94%
EPS(NY)2.94
Fwd EY3.68%
FCF(TTM)3.61
FCFY4.51%
OCF(TTM)4.47
OCFY5.6%
SpS15.24
BVpS19.51
TBVpS14.36
PEG (NY)1.34
PEG (5Y)1.49
Graham Number32.1172 (-59.82%)
Profitability
Industry RankSector 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 RankSector 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 5.92
F-Score4
WACC11.4%
ROIC/WACC0.53
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 Y25.3%
EPS Next 2Y31.02%
EPS Next 3Y32.84%
EPS Next 5Y29.35%
Revenue 1Y (TTM)-15.35%
Revenue growth 3Y-10.37%
Revenue growth 5Y2.67%
Sales Q2Q%-11.17%
Revenue Next Year4.61%
Revenue Next 2Y6.68%
Revenue Next 3Y7.76%
Revenue Next 5Y9.71%
EBIT growth 1Y-60.5%
EBIT growth 3Y-35.23%
EBIT growth 5Y12.59%
EBIT Next Year81.7%
EBIT Next 3Y37.78%
EBIT Next 5Y33.21%
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 Fundamental Analysis 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 6 / 10 to ON SEMICONDUCTOR (ON). This can be considered as Fairly Valued.


What is the profitability of ON stock?

ON SEMICONDUCTOR (ON) has a profitability rating of 6 / 10.


Can you provide the PE and PB ratios for ON stock?

The Price/Earnings (PE) ratio for ON SEMICONDUCTOR (ON) is 34.01 and the Price/Book (PB) ratio is 4.1.


What is the financial health of ON SEMICONDUCTOR (ON) stock?

The financial health rating of ON SEMICONDUCTOR (ON) is 7 / 10.