ON SEMICONDUCTOR (ON) Fundamental Analysis & Valuation

NASDAQ:ON • US6821891057

Current stock price

58.55 USD
+0.86 (+1.49%)
At close:
57.6 USD
-0.95 (-1.62%)
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.
  • Each year in the past 5 years ON had a positive operating cash flow.
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

  • The Return On Assets of ON (0.97%) is comparable to the rest of the industry.
  • Looking at the Return On Equity, with a value of 1.58%, ON is in line with its industry, outperforming 52.17% of the companies in the same industry.
  • The Return On Invested Capital of ON (6.01%) is better than 67.83% of its industry peers.
  • ON had an Average Return On Invested Capital over the past 3 years of 13.57%. This is above the industry average of 10.52%.
  • 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

  • Looking at the Profit Margin, with a value of 2.02%, ON is in line with its industry, outperforming 53.04% of the companies in the same industry.
  • 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.
  • 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.
  • In the last couple of years the Gross Margin of ON has remained more or less at the same level.
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

  • ON has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, ON has less shares outstanding
  • Compared to 5 years ago, ON has less shares outstanding
  • 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 4.90. This indicates that ON is financially healthy and has little risk of bankruptcy at the moment.
  • ON's Altman-Z score of 4.90 is in line compared to the rest of the industry. ON outperforms 54.78% of its industry peers.
  • 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 66.96% of the companies in the same industry.
  • 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.
  • 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 4.9
ROIC/WACC0.54
WACC11.07%
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 Current ratio of 4.52. This is in the better half of the industry: ON outperforms 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

  • The earnings per share for ON have decreased strongly by -40.95% in the last year.
  • The Earnings Per Share has been growing by 22.85% on average over the past years. This is a very strong growth
  • The Revenue for ON has decreased by -15.35% in the past year. This is quite bad
  • 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.
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 10B
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

  • With a Price/Earnings ratio of 24.91, ON is valued on the expensive side.
  • 86.09% of the companies in the same industry are more expensive than ON, based on the Price/Earnings ratio.
  • ON's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.70.
  • A Price/Forward Earnings ratio of 19.49 indicates a rather expensive valuation of ON.
  • ON's Price/Forward Earnings ratio is rather cheap when compared to the industry. ON is cheaper than 84.35% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.84. ON is around the same levels.
Industry RankSector Rank
PE 24.91
Fwd PE 19.49
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

  • 84.35% of the companies in the same industry are more expensive than ON, based on the Enterprise Value to EBITDA ratio.
  • 93.91% of the companies in the same industry are more expensive than ON, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 16.61
EV/EBITDA 16.19
ON Per share dataON EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

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.
  • 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)0.89
PEG (5Y)1.09
EPS Next 2Y34.36%
EPS Next 3Y32.56%

More info and screens

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%

More info and screens

Find the best dividend stocksShow peers with best dividend

ON Fundamentals: All Metrics, Ratios and Statistics

ON SEMICONDUCTOR

NASDAQ:ON (3/13/2026, 8:00:02 PM)

After market: 57.6 -0.95 (-1.62%)

58.55

+0.86 (+1.49%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-09
Earnings (Next)05-04
Inst Owners112.18%
Inst Owner Change-2.86%
Ins Owners0.3%
Ins Owner Change0.37%
Market Cap23.56B
Revenue(TTM)6.00B
Net Income(TTM)121.00M
Analysts71.82
Price Target69.34 (18.43%)
Short Float %8.63%
Short Ratio3.68
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)15.65%
EPS NQ rev (1m)0.82%
EPS NQ rev (3m)0.87%
EPS NY rev (1m)0%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-0.52%
Valuation
Industry RankSector Rank
PE 24.91
Fwd PE 19.49
P/S 3.93
P/FCF 16.61
P/OCF 13.39
P/B 3.07
P/tB 4.17
EV/EBITDA 16.19
EPS(TTM)2.35
EY4.01%
EPS(NY)3
Fwd EY5.13%
FCF(TTM)3.53
FCFY6.02%
OCF(TTM)4.37
OCFY7.47%
SpS14.9
BVpS19.07
TBVpS14.04
PEG (NY)0.89
PEG (5Y)1.09
Graham Number31.75
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 4.9
F-Score4
WACC11.07%
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 Y27.86%
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 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 27.86% in the next year.