ON SEMICONDUCTOR (ON) Stock Fundamental Analysis
NASDAQ:ON • US6821891057
68.16 USD
-1.52 (-2.18%)
At close: Feb 26, 2026
67.15 USD
-1.01 (-1.48%)
Pre-Market: 2/27/2026, 8:21:53 AM
Taking everything into account, ON scores 6 out of 10 in our fundamental rating. ON was compared to 114 industry peers in the Semiconductors & Semiconductor Equipment industry. ON has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
- In the past year ON had a positive cash flow from operations.
- In the past 5 years ON has always been profitable.
- In the past 5 years ON always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of ON (0.97%) is comparable to the rest of the industry.
- ON has a Return On Equity (1.58%) which is in line with its industry peers.
- The Return On Invested Capital of ON (6.01%) is better than 68.42% of its industry peers.
- ON had an Average Return On Invested Capital over the past 3 years of 13.57%. This is above the industry average of 10.64%.
- The 3 year average ROIC (13.57%) for ON is well above the current ROIC(6.01%). The reason for the recent decline needs to be investigated.
| 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
- With a Profit Margin value of 2.02%, ON perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
- 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 69.30% of the companies in the same industry.
- 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 65.79% of the companies in the same industry.
- ON's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ON 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.
- Compared to 1 year ago, ON has a worse debt to assets ratio.
2.2 Solvency
- ON has an Altman-Z score of 5.42. This indicates that ON is financially healthy and has little risk of bankruptcy at the moment.
- ON has a Altman-Z score of 5.42. This is comparable to the rest of the industry: ON outperforms 58.77% of its industry peers.
- 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's Debt to FCF ratio of 2.12 is fine compared to the rest of the industry. ON outperforms 65.79% of its industry peers.
- A Debt/Equity ratio of 0.39 indicates that ON is not too dependend on debt financing.
- ON's Debt to Equity ratio of 0.39 is on the low side compared to the rest of the industry. ON is outperformed by 66.67% 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 | 5.42 |
ROIC/WACC0.58
WACC10.42%
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 68.42% of its industry peers.
- ON has a Quick Ratio of 2.98. This indicates that ON is financially healthy and has no problem in meeting its short term obligations.
- The Quick ratio of ON (2.98) is better than 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.52 | ||
| Quick Ratio | 2.98 |
3. Growth
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.
- ON shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -15.35%.
- The Revenue has been growing slightly by 2.67% on average over the past years.
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.
- Based on estimates for the next years, ON will show a quite strong growth in Revenue. The Revenue will grow by 13.03% on average per year.
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
- A Price/Earnings ratio of 29.00 indicates a quite expensive valuation of ON.
- Based on the Price/Earnings ratio, ON is valued cheaper than 85.09% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.11. ON is around the same levels.
- ON is valuated rather expensively with a Price/Forward Earnings ratio of 22.68.
- ON's Price/Forward Earnings ratio is rather cheap when compared to the industry. ON is cheaper than 82.46% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of ON to the average of the S&P500 Index (28.13), we can say ON is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29 | ||
| Fwd PE | 22.68 |
4.2 Price Multiples
- ON's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ON is cheaper than 78.95% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ON indicates a rather cheap valuation: ON is cheaper than 92.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.33 | ||
| EV/EBITDA | 19.12 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ON has a very decent profitability rating, which may justify a higher PE ratio.
- ON's earnings are expected to grow with 32.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.04
PEG (5Y)1.27
EPS Next 2Y34.36%
EPS Next 3Y32.56%
5. Dividend
5.1 Amount
- No dividends for ON!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
68.16
-1.52 (-2.18%)
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-3.05%
Ins Owners0.3%
Ins Owner Change-0.81%
Market Cap27.43B
Revenue(TTM)6.00B
Net Income(TTM)121.00M
Analysts71.82
Price Target64.85 (-4.86%)
Short Float %8.54%
Short Ratio3.51
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)4.72%
PT rev (3m)9.29%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-0.85%
EPS NY rev (1m)0.13%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)-1.16%
Revenue NY rev (1m)-0.55%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29 | ||
| Fwd PE | 22.68 | ||
| P/S | 4.57 | ||
| P/FCF | 19.33 | ||
| P/OCF | 15.58 | ||
| P/B | 3.57 | ||
| P/tB | 4.85 | ||
| EV/EBITDA | 19.12 |
EPS(TTM)2.35
EY3.45%
EPS(NY)3
Fwd EY4.41%
FCF(TTM)3.53
FCFY5.17%
OCF(TTM)4.37
OCFY6.42%
SpS14.9
BVpS19.07
TBVpS14.04
PEG (NY)1.04
PEG (5Y)1.27
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 | 5.42 |
F-Score4
WACC10.42%
ROIC/WACC0.58
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 Year78.43%
EBIT Next 3Y36.86%
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 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 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.