ON SEMICONDUCTOR (ON) Stock Fundamental Analysis
NASDAQ:ON • US6821891057
69.68 USD
-0.35 (-0.5%)
At close: Feb 25, 2026
69.71 USD
+0.03 (+0.04%)
After Hours: 2/25/2026, 5:20:02 PM
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
- 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.
- With a decent Return On Invested Capital value of 6.01%, ON is doing good in the industry, outperforming 68.42% 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 10.62%.
- 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 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
- The Profit Margin of ON (2.02%) is comparable to the rest of the industry.
- ON's Profit Margin has declined in the last couple of years.
- ON has a better Operating Margin (12.53%) than 69.30% of its industry peers.
- In the last couple of years the Operating Margin of ON has grown nicely.
- With a Gross Margin value of 33.09%, ON is not doing good in the industry: 65.79% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of ON has remained more or less at the same level.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ON is still creating some value.
- ON has less shares outstanding than it did 1 year ago.
- ON has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ON has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.52 indicates that ON is not in any danger for bankruptcy at the moment.
- ON's Altman-Z score of 5.52 is fine compared to the rest of the industry. ON outperforms 60.53% of its industry peers.
- The Debt to FCF ratio of ON is 2.12, which is a good value as it means it would take ON, 2.12 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of ON (2.12) is better than 65.79% of its industry peers.
- A Debt/Equity ratio of 0.39 indicates that ON is not too dependend on debt financing.
- ON has a Debt to Equity ratio of 0.39. This is in the lower half of the industry: ON underperforms 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 | 5.52 |
ROIC/WACC0.58
WACC10.39%
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.
- The Current ratio of ON (4.52) is better than 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.
- ON has a Quick ratio of 2.98. This is in the better half of the industry: ON outperforms 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.52 | ||
| Quick Ratio | 2.98 |
3. Growth
3.1 Past
- The earnings per share for ON have decreased strongly by -40.95% in the last year.
- 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
- 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
- Based on estimates for the next years, ON will show a very strong growth in Earnings Per Share. The EPS will grow by 31.02% on average per year.
- ON is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.03% yearly.
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
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 29.65, the valuation of ON can be described as expensive.
- ON's Price/Earnings ratio is rather cheap when compared to the industry. ON is cheaper than 84.21% of the companies in the same industry.
- ON is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.98, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 23.19, which indicates a rather expensive current valuation of ON.
- Based on the Price/Forward Earnings ratio, ON is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 28.01. ON is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.65 | ||
| Fwd PE | 23.19 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ON indicates a rather cheap valuation: ON is cheaper than 80.70% of the companies listed in the same industry.
- ON's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ON is cheaper than 92.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.76 | ||
| EV/EBITDA | 19.65 |
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.
- A more expensive valuation may be justified as ON's earnings are expected to grow with 32.56% in the coming years.
PEG (NY)1.06
PEG (5Y)1.3
EPS Next 2Y34.36%
EPS Next 3Y32.56%
5. Dividend
5.1 Amount
- No dividends for ON!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
69.68
-0.35 (-0.5%)
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 Cap28.04B
Revenue(TTM)6.00B
Net Income(TTM)121.00M
Analysts71.82
Price Target64.85 (-6.93%)
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 | 29.65 | ||
| Fwd PE | 23.19 | ||
| P/S | 4.68 | ||
| P/FCF | 19.76 | ||
| P/OCF | 15.93 | ||
| P/B | 3.65 | ||
| P/tB | 4.96 | ||
| EV/EBITDA | 19.65 |
EPS(TTM)2.35
EY3.37%
EPS(NY)3
Fwd EY4.31%
FCF(TTM)3.53
FCFY5.06%
OCF(TTM)4.37
OCFY6.28%
SpS14.9
BVpS19.07
TBVpS14.04
PEG (NY)1.06
PEG (5Y)1.3
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 | 5.52 |
F-Score4
WACC10.39%
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.