55.23 USD
-1.15 (-2.04%)
55.27 USD
+0.04 (+0.07%)
We assign a fundamental rating of 6 out of 10 to ON. ON was compared to 112 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 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.
Each year in the past 5 years ON has been profitable.
In the past 5 years ON always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.45%, ON perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
ON has a Return On Equity (4.04%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 6.79%, ON is doing good in the industry, outperforming 73.21% of the companies in the same industry.
ON had an Average Return On Invested Capital over the past 3 years of 19.04%. This is significantly above the industry average of 10.82%.
The 3 year average ROIC (19.04%) for ON is well above the current ROIC(6.79%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 4.04% | ||
| ROIC | 6.79% |
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 Profit Margin (5.16%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of ON has grown nicely.
ON has a Operating Margin of 15.06%. This is in the better half of the industry: ON outperforms 75.00% of its industry peers.
ON's Operating Margin has improved in the last couple of years.
ON's Gross Margin of 35.75% is on the low side compared to the rest of the industry. ON is outperformed by 63.39% of its industry peers.
ON's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.06% | ||
| PM (TTM) | 5.16% | ||
| GM | 35.75% |
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.
Compared to 5 years ago, ON has more shares outstanding
ON has a better debt/assets ratio than last year.
2.2 Solvency
ON has an Altman-Z score of 4.72. This indicates that ON is financially healthy and has little risk of bankruptcy at the moment.
ON's Altman-Z score of 4.72 is in line compared to the rest of the industry. ON outperforms 56.25% of its industry peers.
The Debt to FCF ratio of ON is 2.47, which is a good value as it means it would take ON, 2.47 years of fcf income to pay off all of its debts.
ON's Debt to FCF ratio of 2.47 is fine compared to the rest of the industry. ON outperforms 66.96% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that ON is not too dependend on debt financing.
ON has a worse Debt to Equity ratio (0.43) than 67.86% 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 | 0.43 | ||
| Debt/FCF | 2.47 | ||
| Altman-Z | 4.72 |
ROIC/WACC0.68
WACC10.04%
2.3 Liquidity
ON has a Current Ratio of 5.23. This indicates that ON is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 5.23, ON is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 3.54 indicates that ON has no problem at all paying its short term obligations.
With a decent Quick ratio value of 3.54, ON is doing good in the industry, outperforming 67.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.23 | ||
| Quick Ratio | 3.54 |
3. Growth
3.1 Past
The earnings per share for ON have decreased strongly by -37.85% in the last year.
The Earnings Per Share has been growing by 21.88% on average over the past years. This is a very strong growth
Looking at the last year, ON shows a very negative growth in Revenue. The Revenue has decreased by -16.13% in the last year.
ON shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.12% yearly.
EPS 1Y (TTM)-37.85%
EPS 3Y10.62%
EPS 5Y21.88%
EPS Q2Q%-36.36%
Revenue 1Y (TTM)-16.13%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-11.98%
3.2 Future
ON is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.23% yearly.
The Revenue is expected to grow by 4.30% on average over the next years.
EPS Next Y-39.74%
EPS Next 2Y-13.21%
EPS Next 3Y1.92%
EPS Next 5Y11.23%
Revenue Next Year-15.68%
Revenue Next 2Y-5.76%
Revenue Next 3Y-0.83%
Revenue Next 5Y4.3%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.76, which indicates a rather expensive current valuation of ON.
Based on the Price/Earnings ratio, ON is valued cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.28. ON is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 18.42, the valuation of ON can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ON indicates a rather cheap valuation: ON is cheaper than 86.61% of the companies listed in the same industry.
ON is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.76 | ||
| Fwd PE | 18.42 |
4.2 Price Multiples
83.04% of the companies in the same industry are more expensive than ON, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ON is valued cheaper than 91.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.25 | ||
| EV/EBITDA | 14.52 |
4.3 Compensation for Growth
The decent profitability rating of ON may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.95
EPS Next 2Y-13.21%
EPS Next 3Y1.92%
5. Dividend
5.1 Amount
No dividends for ON!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
55.23
-1.15 (-2.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners112.07%
Inst Owner Change-0.11%
Ins Owners0.31%
Ins Owner Change-0.49%
Market Cap22.22B
Revenue(TTM)6.19B
Net Income(TTM)319.10M
Analysts71.82
Price Target59.96 (8.56%)
Short Float %9.77%
Short Ratio4.44
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)1
Avg EPS beat(2)0.1%
Min EPS beat(2)-3.5%
Max EPS beat(2)3.69%
EPS beat(4)2
Avg EPS beat(4)0.1%
Min EPS beat(4)-5.32%
Max EPS beat(4)5.53%
EPS beat(8)5
Avg EPS beat(8)0.2%
EPS beat(12)9
Avg EPS beat(12)1.37%
EPS beat(16)13
Avg EPS beat(16)3.32%
Revenue beat(2)0
Avg Revenue beat(2)-1.24%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)-0.65%
Revenue beat(4)1
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-4.89%
Max Revenue beat(4)0.12%
Revenue beat(8)1
Avg Revenue beat(8)-2.08%
Revenue beat(12)2
Avg Revenue beat(12)-1.71%
Revenue beat(16)5
Avg Revenue beat(16)-1.27%
PT rev (1m)1.04%
PT rev (3m)1.7%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-0.06%
EPS NY rev (1m)1.6%
EPS NY rev (3m)1.53%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0.73%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.76 | ||
| Fwd PE | 18.42 | ||
| P/S | 3.59 | ||
| P/FCF | 16.25 | ||
| P/OCF | 12.45 | ||
| P/B | 2.81 | ||
| P/tB | 3.72 | ||
| EV/EBITDA | 14.52 |
EPS(TTM)2.66
EY4.82%
EPS(NY)3
Fwd EY5.43%
FCF(TTM)3.4
FCFY6.16%
OCF(TTM)4.44
OCFY8.03%
SpS15.38
BVpS19.65
TBVpS14.85
PEG (NY)N/A
PEG (5Y)0.95
Graham Number34.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 4.04% | ||
| ROCE | 7.9% | ||
| ROIC | 6.79% | ||
| ROICexc | 8.97% | ||
| ROICexgc | 11.45% | ||
| OM | 15.06% | ||
| PM (TTM) | 5.16% | ||
| GM | 35.75% | ||
| FCFM | 22.11% |
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)25.66%
ROICexc(5y)20.08%
ROICexgc(3y)33.75%
ROICexgc(5y)27.59%
ROCE(3y)22.16%
ROCE(5y)17.85%
ROICexgc growth 3Y-8.83%
ROICexgc 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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.47 | ||
| Debt/EBITDA | 2.15 | ||
| Cap/Depr | 65.39% | ||
| Cap/Sales | 6.74% | ||
| Interest Coverage | 14.93 | ||
| Cash Conversion | 113.74% | ||
| Profit Quality | 428.71% | ||
| Current Ratio | 5.23 | ||
| Quick Ratio | 3.54 | ||
| Altman-Z | 4.72 |
F-Score5
WACC10.04%
ROIC/WACC0.68
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)-37.85%
EPS 3Y10.62%
EPS 5Y21.88%
EPS Q2Q%-36.36%
EPS Next Y-39.74%
EPS Next 2Y-13.21%
EPS Next 3Y1.92%
EPS Next 5Y11.23%
Revenue 1Y (TTM)-16.13%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-11.98%
Revenue Next Year-15.68%
Revenue Next 2Y-5.76%
Revenue Next 3Y-0.83%
Revenue Next 5Y4.3%
EBIT growth 1Y-55.33%
EBIT growth 3Y11.77%
EBIT growth 5Y24.63%
EBIT Next Year-17.56%
EBIT Next 3Y6.65%
EBIT Next 5Y13.95%
FCF growth 1Y130.61%
FCF growth 3Y-2.05%
FCF growth 5Y82.37%
OCF growth 1Y-14.9%
OCF growth 3Y2.27%
OCF growth 5Y22.37%
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 for 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 7 / 10.
How financially healthy is ON SEMICONDUCTOR?
The financial health rating of ON SEMICONDUCTOR (ON) is 7 / 10.