ON SEMICONDUCTOR (ON) Fundamental Analysis & Valuation
NASDAQ:ON • US6821891057
57.94 USD
-2.91 (-4.78%)
Last: Mar 6, 2026, 11:37 AM
This ON fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
ON gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 115 industry peers in the Semiconductors & Semiconductor Equipment industry. ON is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. ON scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make ON suitable for value investing!
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.
- In the past 5 years ON has always been profitable.
- ON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of 0.97%, ON perfoms like the industry average, outperforming 53.04% of the companies in the same industry.
- With a Return On Equity value of 1.58%, ON perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
- The Return On Invested Capital of ON (6.01%) is better than 68.70% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ON is above the industry average of 10.50%.
- 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
- ON has a Profit Margin (2.02%) which is in line with 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 69.57% of its industry peers.
- ON's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 33.09%, ON is doing worse than 65.22% of the companies in the same industry.
- 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. 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.
- ON has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ON has less shares outstanding
- ON has a worse debt/assets ratio than last year.
2.2 Solvency
- ON has an Altman-Z score of 5.06. This indicates that ON is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.06, ON is in line with its industry, outperforming 57.39% of the companies in the same 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.
- ON's Debt to FCF ratio of 2.12 is fine compared to the rest of the industry. ON outperforms 66.09% of its industry peers.
- ON has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
- 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 67.83% of its industry peers.
- Even though the debt/equity ratio score it not favorable for ON, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.12 | ||
| Altman-Z | 5.06 |
ROIC/WACC0.56
WACC10.77%
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 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.
- ON's Quick ratio of 2.98 is fine compared to the rest of the industry. ON outperforms 62.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.52 | ||
| Quick Ratio | 2.98 |
3. ON Growth Analysis
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.
- Looking at the last year, ON shows a very negative growth in Revenue. The Revenue has decreased by -15.35% in the last year.
- Measured over the past years, ON shows a small growth in Revenue. The Revenue has been growing by 2.67% on average per year.
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.
- The Revenue is expected to grow by 13.03% on average over the next years. This is quite good.
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. ON Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 24.66, ON is valued on the expensive side.
- ON's Price/Earnings ratio is rather cheap when compared to the industry. ON is cheaper than 86.96% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.69, ON is valued at the same level.
- The Price/Forward Earnings ratio is 19.28, which indicates a rather expensive current valuation of ON.
- Based on the Price/Forward Earnings ratio, ON is valued cheaply inside the industry as 83.48% of the companies are valued more expensively.
- ON is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.66 | ||
| Fwd PE | 19.28 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ON is valued cheaper than 81.74% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ON is valued cheaply inside the industry as 93.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.43 | ||
| EV/EBITDA | 17.08 |
4.3 Compensation for Growth
- ON's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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)0.89
PEG (5Y)1.08
EPS Next 2Y34.36%
EPS Next 3Y32.56%
5. ON Dividend Analysis
5.1 Amount
- No dividends for ON!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ON Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:ON (3/6/2026, 11:37:09 AM)
57.94
-2.91 (-4.78%)
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-2.83%
Ins Owners0.3%
Ins Owner Change0.37%
Market Cap23.31B
Revenue(TTM)6.00B
Net Income(TTM)121.00M
Analysts71.82
Price Target69.34 (19.68%)
Short Float %8.63%
Short Ratio3.68
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)11.97%
PT rev (3m)15.73%
EPS NQ rev (1m)0.82%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)0.13%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)-0.55%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.66 | ||
| Fwd PE | 19.28 | ||
| P/S | 3.89 | ||
| P/FCF | 16.43 | ||
| P/OCF | 13.25 | ||
| P/B | 3.04 | ||
| P/tB | 4.13 | ||
| EV/EBITDA | 17.08 |
EPS(TTM)2.35
EY4.06%
EPS(NY)3
Fwd EY5.19%
FCF(TTM)3.53
FCFY6.08%
OCF(TTM)4.37
OCFY7.55%
SpS14.9
BVpS19.07
TBVpS14.04
PEG (NY)0.89
PEG (5Y)1.08
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 | 5.06 |
F-Score4
WACC10.77%
ROIC/WACC0.56
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 Year78.34%
EBIT Next 3Y37.25%
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 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 27.86% in the next year.