ON SEMICONDUCTOR (ON) Fundamental Analysis & Valuation

NASDAQ:ON • US6821891057

Current stock price

58.35 USD
-2.52 (-4.14%)
At close:
58.38 USD
+0.03 (+0.05%)
After Hours:

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

  • In the past year ON was profitable.
  • ON had a positive operating cash flow in the past year.
  • ON had positive earnings in each of the past 5 years.
  • 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 (0.97%) which is comparable to the rest of the industry.
  • ON has a Return On Equity (1.58%) which is in line with its industry peers.
  • Looking at the Return On Invested Capital, with a value of 6.01%, ON is in the better half of the industry, outperforming 66.96% of the companies in the same industry.
  • ON had an Average Return On Invested Capital over the past 3 years of 13.57%. This 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

  • 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.
  • ON's Operating Margin of 12.53% is fine compared to the rest of the industry. ON outperforms 70.43% of its industry peers.
  • In the last couple of years the Operating Margin of ON has grown nicely.
  • ON's Gross Margin of 33.09% is on the low side compared to the rest of the industry. ON is outperformed by 65.22% of its industry peers.
  • ON's Gross Margin has been stable in the last couple of years.
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

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ON is still 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.
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

  • ON has an Altman-Z score of 5.00. This indicates that ON is financially healthy and has little risk of bankruptcy at the moment.
  • ON has a Altman-Z score (5.00) 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.
  • With a Debt to Equity ratio value of 0.39, ON is not doing good in the industry: 66.96% of the companies in the same industry are doing better.
  • 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
ROIC/WACC0.54
WACC11.18%
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

  • ON has a Current Ratio of 4.52. This indicates that ON is financially healthy and has no problem in meeting its short term obligations.
  • ON has a better Current ratio (4.52) than 66.96% 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 62.61% 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.
  • The Revenue for ON has decreased by -15.35% 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 2.67% yearly.
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

  • Based on estimates for the next years, ON will show a very strong growth in Earnings Per Share. The EPS will grow by 29.35% on average per year.
  • Based on estimates for the next years, ON will show a quite strong growth in Revenue. The Revenue will grow by 9.71% on average per year.
EPS Next Y27.73%
EPS Next 2Y32.97%
EPS Next 3Y32.84%
EPS Next 5Y29.35%
Revenue Next Year4.59%
Revenue Next 2Y6.67%
Revenue Next 3Y7.77%
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.
  • 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.
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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7

4. ON Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 24.83, 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 86.09% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 24.88, ON is valued at the same level.
  • A Price/Forward Earnings ratio of 19.44 indicates a rather expensive valuation of ON.
  • Based on the Price/Forward Earnings ratio, ON is valued cheaply inside the industry as 81.74% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of ON to the average of the S&P500 Index (22.19), we can say ON is valued inline with the index average.
Industry RankSector Rank
PE 24.83
Fwd PE 19.44
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

  • 83.48% of the companies in the same industry are more expensive than ON, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ON indicates a rather cheap valuation: ON is cheaper than 93.04% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 16.21
EV/EBITDA 16.73
ON Per share dataON EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of ON may justify a higher PE ratio.
  • A more expensive valuation may be justified as ON's earnings are expected to grow with 32.84% in the coming years.
PEG (NY)0.9
PEG (5Y)1.09
EPS Next 2Y32.97%
EPS Next 3Y32.84%

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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 (3/27/2026, 8:00:01 PM)

After market: 58.38 +0.03 (+0.05%)

58.35

-2.52 (-4.14%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-09
Earnings (Next)05-04
Inst Owners110.42%
Inst Owner Change-2.86%
Ins Owners0.33%
Ins Owner Change0.3%
Market Cap22.99B
Revenue(TTM)6.00B
Net Income(TTM)121.00M
Analysts71.36
Price Target69.34 (18.83%)
Short Float %8.15%
Short Ratio3.53
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)6.92%
PT rev (3m)14.67%
EPS NQ rev (1m)-1.76%
EPS NQ rev (3m)-1.37%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)-0.78%
Revenue NQ rev (3m)-1.16%
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)-0.71%
Valuation
Industry RankSector Rank
PE 24.83
Fwd PE 19.44
P/S 3.83
P/FCF 16.21
P/OCF 13.06
P/B 3
P/tB 4.07
EV/EBITDA 16.73
EPS(TTM)2.35
EY4.03%
EPS(NY)3
Fwd EY5.14%
FCF(TTM)3.6
FCFY6.17%
OCF(TTM)4.47
OCFY7.65%
SpS15.22
BVpS19.47
TBVpS14.34
PEG (NY)0.9
PEG (5Y)1.09
Graham Number32.09
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
F-Score4
WACC11.18%
ROIC/WACC0.54
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 Y27.73%
EPS Next 2Y32.97%
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 Year4.59%
Revenue Next 2Y6.67%
Revenue Next 3Y7.77%
Revenue Next 5Y9.71%
EBIT growth 1Y-60.5%
EBIT growth 3Y-35.23%
EBIT growth 5Y12.59%
EBIT Next Year78.34%
EBIT Next 3Y37.25%
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 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 27.73% in the next year.