ON SEMICONDUCTOR (ON) Stock Fundamental Analysis
NASDAQ:ON - Nasdaq - US6821891057 - Common Stock - Currency: USD
Taking everything into account, ON scores 6 out of 10 in our fundamental rating. ON was compared to 109 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making ON a very profitable company, without any liquidiy or solvency issues. ON scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, ON could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year ON was profitable.
ON had a positive operating cash flow in the past year.
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 better Return On Assets (11.16%) than 80.73% of its industry peers.
Looking at the Return On Equity, with a value of 17.88%, ON belongs to the top of the industry, outperforming 82.57% of the companies in the same industry.
The Return On Invested Capital of ON (12.81%) is better than 84.40% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ON is significantly above the industry average of 11.14%.
The 3 year average ROIC (19.04%) for ON is well above the current ROIC(12.81%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 17.88% | ||
| ROIC | 12.81% |
ROA(3y)14.52%
ROA(5y)11.35%
ROE(3y)25.56%
ROE(5y)21.06%
ROIC(3y)19.04%
ROIC(5y)15.34%
1.3 Margins
ON has a better Profit Margin (22.21%) than 84.40% of its industry peers.
In the last couple of years the Profit Margin of ON has grown nicely.
With an excellent Operating Margin value of 26.85%, ON belongs to the best of the industry, outperforming 87.16% of the companies in the same industry.
In the last couple of years the Operating Margin of ON has grown nicely.
ON has a Gross Margin (45.41%) which is comparable to the rest of the industry.
ON's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.85% | ||
| PM (TTM) | 22.21% | ||
| GM | 45.41% |
OM growth 3Y9.94%
OM growth 5Y18.56%
PM growth 3Y14.02%
PM growth 5Y42.07%
GM growth 3Y4.08%
GM growth 5Y4.89%
2. Health
2.1 Basic Checks
ON has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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 3.87. This indicates that ON is financially healthy and has little risk of bankruptcy at the moment.
ON's Altman-Z score of 3.87 is in line compared to the rest of the industry. ON outperforms 59.63% of its industry peers.
The Debt to FCF ratio of ON is 2.78, which is a good value as it means it would take ON, 2.78 years of fcf income to pay off all of its debts.
ON's Debt to FCF ratio of 2.78 is fine compared to the rest of the industry. ON outperforms 66.97% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that ON is not too dependend on debt financing.
ON has a Debt to Equity ratio of 0.38. This is in the lower half of the industry: ON underperforms 65.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.78 | ||
| Altman-Z | 3.87 |
ROIC/WACC1.24
WACC10.32%
2.3 Liquidity
ON has a Current Ratio of 5.06. This indicates that ON is financially healthy and has no problem in meeting its short term obligations.
ON has a Current ratio of 5.06. This is in the better half of the industry: ON outperforms 77.06% of its industry peers.
ON has a Quick Ratio of 3.38. This indicates that ON is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 3.38, ON is doing good in the industry, outperforming 67.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.06 | ||
| Quick Ratio | 3.38 |
3. Growth
3.1 Past
The earnings per share for ON have decreased strongly by -22.87% 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 21.88% on average per year.
ON shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.19%.
ON shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.12% yearly.
EPS 1Y (TTM)-22.87%
EPS 3Y10.62%
EPS 5Y21.88%
EPS Q2Q%-24%
Revenue 1Y (TTM)-14.19%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-14.65%
3.2 Future
The Earnings Per Share is expected to grow by 10.02% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.46% on average over the next years.
EPS Next Y-35.83%
EPS Next 2Y-2.94%
EPS Next 3Y9.75%
EPS Next 5Y10.02%
Revenue Next Year-15.59%
Revenue Next 2Y-1.86%
Revenue Next 3Y2.56%
Revenue Next 5Y3.46%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.70, the valuation of ON can be described as very reasonable.
Based on the Price/Earnings ratio, ON is valued cheaply inside the industry as 93.58% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ON to the average of the S&P500 Index (28.29), we can say ON is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.56, the valuation of ON can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ON indicates a rather cheap valuation: ON is cheaper than 81.65% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, ON is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 13.56 |
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 91.74% of the companies listed 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 90.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.06 | ||
| EV/EBITDA | 5.78 |
4.3 Compensation for Growth
The excellent profitability rating of ON may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y-2.94%
EPS Next 3Y9.75%
5. Dividend
5.1 Amount
No dividends for ON!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
34.64
+0.39 (+1.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners104.17%
Inst Owner Change-0.17%
Ins Owners0.32%
Ins Owner Change3.2%
Market Cap14.62B
Analysts74.15
Price Target61.52 (77.6%)
Short Float %7.47%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)0
Avg EPS beat(2)-3.15%
Min EPS beat(2)-5.32%
Max EPS beat(2)-0.99%
EPS beat(4)2
Avg EPS beat(4)-1.17%
Min EPS beat(4)-5.32%
Max EPS beat(4)1.19%
EPS beat(8)6
Avg EPS beat(8)1.19%
EPS beat(12)10
Avg EPS beat(12)2.87%
EPS beat(16)14
Avg EPS beat(16)5.51%
Revenue beat(2)0
Avg Revenue beat(2)-3.61%
Min Revenue beat(2)-4.89%
Max Revenue beat(2)-2.33%
Revenue beat(4)0
Avg Revenue beat(4)-3.03%
Min Revenue beat(4)-4.89%
Max Revenue beat(4)-2.32%
Revenue beat(8)1
Avg Revenue beat(8)-2.05%
Revenue beat(12)3
Avg Revenue beat(12)-1.51%
Revenue beat(16)4
Avg Revenue beat(16)-1.32%
PT rev (1m)0.38%
PT rev (3m)-29.65%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-46.5%
EPS NY rev (1m)-1.76%
EPS NY rev (3m)-42.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-19.37%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-18.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 13.56 | ||
| P/S | 2.06 | ||
| P/FCF | 12.06 | ||
| P/OCF | 7.67 | ||
| P/B | 1.66 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 5.78 |
EPS(TTM)3.98
EY11.49%
EPS(NY)2.55
Fwd EY7.37%
FCF(TTM)2.87
FCFY8.29%
OCF(TTM)4.52
OCFY13.04%
SpS16.78
BVpS20.84
TBVpS16.47
PEG (NY)N/A
PEG (5Y)0.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 17.88% | ||
| ROCE | 14.91% | ||
| ROIC | 12.81% | ||
| ROICexc | 16.74% | ||
| ROICexgc | 20.64% | ||
| OM | 26.85% | ||
| PM (TTM) | 22.21% | ||
| GM | 45.41% | ||
| FCFM | 17.12% |
ROA(3y)14.52%
ROA(5y)11.35%
ROE(3y)25.56%
ROE(5y)21.06%
ROIC(3y)19.04%
ROIC(5y)15.34%
ROICexc(3y)25.65%
ROICexc(5y)20.08%
ROICexgc(3y)33.75%
ROICexgc(5y)27.59%
ROCE(3y)22.16%
ROCE(5y)17.85%
ROICexcg growth 3Y-8.84%
ROICexcg growth 5Y5.63%
ROICexc growth 3Y-1.27%
ROICexc growth 5Y11.96%
OM growth 3Y9.94%
OM growth 5Y18.56%
PM growth 3Y14.02%
PM growth 5Y42.07%
GM growth 3Y4.08%
GM growth 5Y4.89%
F-Score5
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.78 | ||
| Debt/EBITDA | 1.32 | ||
| Cap/Depr | 107.95% | ||
| Cap/Sales | 9.8% | ||
| Interest Coverage | 30.33 | ||
| Cash Conversion | 74.92% | ||
| Profit Quality | 77.09% | ||
| Current Ratio | 5.06 | ||
| Quick Ratio | 3.38 | ||
| Altman-Z | 3.87 |
F-Score5
WACC10.32%
ROIC/WACC1.24
Cap/Depr(3y)184.74%
Cap/Depr(5y)142.8%
Cap/Sales(3y)13.78%
Cap/Sales(5y)11.57%
Profit Quality(3y)59.82%
Profit Quality(5y)95.66%
High Growth Momentum
Growth
EPS 1Y (TTM)-22.87%
EPS 3Y10.62%
EPS 5Y21.88%
EPS Q2Q%-24%
EPS Next Y-35.83%
EPS Next 2Y-2.94%
EPS Next 3Y9.75%
EPS Next 5Y10.02%
Revenue 1Y (TTM)-14.19%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-14.65%
Revenue Next Year-15.59%
Revenue Next 2Y-1.86%
Revenue Next 3Y2.56%
Revenue Next 5Y3.46%
EBIT growth 1Y-27.24%
EBIT growth 3Y11.77%
EBIT growth 5Y24.63%
EBIT Next Year4.8%
EBIT Next 3Y13.05%
EBIT Next 5Y13.36%
FCF growth 1Y201.67%
FCF growth 3Y-2.05%
FCF growth 5Y82.37%
OCF growth 1Y-3.6%
OCF growth 3Y2.27%
OCF growth 5Y22.37%