ON SEMICONDUCTOR (ON)
US6821891057 - Common Stock
Taking everything into account, ON scores 6 out of 10 in our fundamental rating. ON was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. ON has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ON has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ON had positive earnings in the past year.
ON had a positive operating cash flow in the past year.
ON had positive earnings in each of the past 5 years.
Each year in the past 5 years ON had a positive operating cash flow.
1.2 Ratios
ON's Return On Assets of 12.61% is fine compared to the rest of the industry. ON outperforms 79.63% of its industry peers.
ON has a better Return On Equity (20.45%) than 85.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.75%, ON belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ON is significantly above the industry average of 11.24%.
The last Return On Invested Capital (14.75%) for ON is well below the 3 year average (19.02%), which needs to be investigated, but indicates that ON had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.61% | ||
| ROE | 20.45% | ||
| ROIC | 14.75% |
ROA(3y)14.3%
ROA(5y)9.62%
ROE(3y)26.94%
ROE(5y)18.77%
ROIC(3y)19.02%
ROIC(5y)14%
1.3 Margins
Looking at the Profit Margin, with a value of 23.80%, ON belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Profit Margin of ON has grown nicely.
ON has a better Operating Margin (28.27%) than 87.96% of its industry peers.
In the last couple of years the Operating Margin of ON has grown nicely.
The Gross Margin of ON (45.80%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ON has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.27% | ||
| PM (TTM) | 23.8% | ||
| GM | 45.8% |
OM growth 3Y58.85%
OM growth 5Y16.75%
PM growth 3Y81.07%
PM growth 5Y19.91%
GM growth 3Y12.96%
GM growth 5Y4.32%
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.
ON has less shares outstanding than it did 1 year ago.
ON has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ON has an improved debt to assets ratio.
2.2 Solvency
ON has an Altman-Z score of 5.32. This indicates that ON is financially healthy and has little risk of bankruptcy at the moment.
ON has a better Altman-Z score (5.32) than 62.04% of its industry peers.
ON has a debt to FCF ratio of 3.37. This is a good value and a sign of high solvency as ON would need 3.37 years to pay back of all of its debts.
ON's Debt to FCF ratio of 3.37 is fine compared to the rest of the industry. ON outperforms 66.67% of its industry peers.
ON has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ON (0.30) is worse than 62.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.37 | ||
| Altman-Z | 5.32 |
ROIC/WACC1.01
WACC14.66%
2.3 Liquidity
A Current Ratio of 3.07 indicates that ON has no problem at all paying its short term obligations.
ON has a Current ratio (3.07) which is in line with its industry peers.
A Quick Ratio of 2.02 indicates that ON has no problem at all paying its short term obligations.
With a Quick ratio value of 2.02, ON perfoms like the industry average, outperforming 50.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.07 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
ON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.16%.
Measured over the past years, ON shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.36% on average per year.
Looking at the last year, ON shows a very negative growth in Revenue. The Revenue has decreased by -11.52% in the last year.
Measured over the past years, ON shows a small growth in Revenue. The Revenue has been growing by 7.02% on average per year.
EPS 1Y (TTM)-18.16%
EPS 3Y83.14%
EPS 5Y21.36%
EPS Q2Q%-28.78%
Revenue 1Y (TTM)-11.52%
Revenue growth 3Y16.24%
Revenue growth 5Y7.02%
Sales Q2Q%-19.21%
3.2 Future
Based on estimates for the next years, ON will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.49% on average per year.
Based on estimates for the next years, ON will show a small growth in Revenue. The Revenue will grow by 6.07% on average per year.
EPS Next Y-20.16%
EPS Next 2Y-7.38%
EPS Next 3Y3.18%
EPS Next 5Y12.49%
Revenue Next Year-13.56%
Revenue Next 2Y-5.15%
Revenue Next 3Y0.54%
Revenue Next 5Y6.07%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
ON is valuated correctly with a Price/Earnings ratio of 15.30.
Compared to the rest of the industry, the Price/Earnings ratio of ON indicates a rather cheap valuation: ON is cheaper than 87.96% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. ON is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.80, ON is valued correctly.
ON's Price/Forward Earnings ratio is rather cheap when compared to the industry. ON is cheaper than 86.11% of the companies in the same industry.
ON is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.3 | ||
| Fwd PE | 14.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ON is valued cheaply inside the industry as 89.81% of the companies are valued more expensively.
ON's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ON is cheaper than 79.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.94 | ||
| EV/EBITDA | 10.35 |
4.3 Compensation for Growth
The excellent profitability rating of ON may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.72
EPS Next 2Y-7.38%
EPS Next 3Y3.18%
5. Dividend
5.1 Amount
No dividends for ON!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ON SEMICONDUCTOR
NASDAQ:ON (12/20/2024, 8:00:02 PM)
After market: 65.89 +0.39 (+0.6%)65.5
+0.7 (+1.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.51%
Inst Owner Change3.99%
Ins Owners0.29%
Ins Owner Change-1.09%
Market Cap27.89B
Analysts73.81
Price Target87.61 (33.76%)
Short Float %6.02%
Short Ratio3.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)0.1%
Min EPS beat(2)-0.99%
Max EPS beat(2)1.19%
EPS beat(4)3
Avg EPS beat(4)0.3%
Min EPS beat(4)-0.99%
Max EPS beat(4)1.19%
EPS beat(8)7
Avg EPS beat(8)2%
EPS beat(12)11
Avg EPS beat(12)4.39%
EPS beat(16)15
Avg EPS beat(16)7.27%
Revenue beat(2)0
Avg Revenue beat(2)-2.45%
Min Revenue beat(2)-2.57%
Max Revenue beat(2)-2.33%
Revenue beat(4)0
Avg Revenue beat(4)-2.35%
Min Revenue beat(4)-2.57%
Max Revenue beat(4)-2.18%
Revenue beat(8)1
Avg Revenue beat(8)-1.66%
Revenue beat(12)4
Avg Revenue beat(12)-1.09%
Revenue beat(16)5
Avg Revenue beat(16)-0.8%
PT rev (1m)0.52%
PT rev (3m)-0.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.83%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-4.02%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.3 | ||
| Fwd PE | 14.8 | ||
| P/S | 3.78 | ||
| P/FCF | 27.94 | ||
| P/OCF | 14.39 | ||
| P/B | 3.25 | ||
| P/tB | 4.15 | ||
| EV/EBITDA | 10.35 |
EPS(TTM)4.28
EY6.53%
EPS(NY)4.43
Fwd EY6.76%
FCF(TTM)2.34
FCFY3.58%
OCF(TTM)4.55
OCFY6.95%
SpS17.33
BVpS20.16
TBVpS15.79
PEG (NY)N/A
PEG (5Y)0.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.61% | ||
| ROE | 20.45% | ||
| ROCE | 17.68% | ||
| ROIC | 14.75% | ||
| ROICexc | 19.27% | ||
| ROICexgc | 24.28% | ||
| OM | 28.27% | ||
| PM (TTM) | 23.8% | ||
| GM | 45.8% | ||
| FCFM | 13.53% |
ROA(3y)14.3%
ROA(5y)9.62%
ROE(3y)26.94%
ROE(5y)18.77%
ROIC(3y)19.02%
ROIC(5y)14%
ROICexc(3y)25.1%
ROICexc(5y)18.08%
ROICexgc(3y)34.89%
ROICexgc(5y)25.81%
ROCE(3y)22.81%
ROCE(5y)16.79%
ROICexcg growth 3Y52.78%
ROICexcg growth 5Y10.13%
ROICexc growth 3Y63.28%
ROICexc growth 5Y12.46%
OM growth 3Y58.85%
OM growth 5Y16.75%
PM growth 3Y81.07%
PM growth 5Y19.91%
GM growth 3Y12.96%
GM growth 5Y4.32%
F-Score6
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.37 | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 147.6% | ||
| Cap/Sales | 12.74% | ||
| Interest Coverage | 33.91 | ||
| Cash Conversion | 71.19% | ||
| Profit Quality | 56.86% | ||
| Current Ratio | 3.07 | ||
| Quick Ratio | 2.02 | ||
| Altman-Z | 5.32 |
F-Score6
WACC14.66%
ROIC/WACC1.01
Cap/Depr(3y)176.24%
Cap/Depr(5y)142.61%
Cap/Sales(3y)12.94%
Cap/Sales(5y)11.91%
Profit Quality(3y)76.71%
Profit Quality(5y)85.92%
High Growth Momentum
Growth
EPS 1Y (TTM)-18.16%
EPS 3Y83.14%
EPS 5Y21.36%
EPS Q2Q%-28.78%
EPS Next Y-20.16%
EPS Next 2Y-7.38%
EPS Next 3Y3.18%
EPS Next 5Y12.49%
Revenue 1Y (TTM)-11.52%
Revenue growth 3Y16.24%
Revenue growth 5Y7.02%
Sales Q2Q%-19.21%
Revenue Next Year-13.56%
Revenue Next 2Y-5.15%
Revenue Next 3Y0.54%
Revenue Next 5Y6.07%
EBIT growth 1Y-22.37%
EBIT growth 3Y84.64%
EBIT growth 5Y24.95%
EBIT Next Year-1.18%
EBIT Next 3Y7.18%
EBIT Next 5Y12.61%
FCF growth 1Y-38.23%
FCF growth 3Y0.1%
FCF growth 5Y-12.04%
OCF growth 1Y-23.35%
OCF growth 3Y30.77%
OCF growth 5Y9.19%