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ON SEMICONDUCTOR (ON) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:ON - US6821891057 - Common Stock

61.5 USD
+1.22 (+2.02%)
Last: 1/16/2026, 12:54:59 PM
Fundamental Rating

6

Taking everything into account, ON scores 6 out of 10 in our fundamental rating. ON was compared to 113 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 correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

7

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.
  • 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 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • ON has a Return On Assets of 2.45%. This is comparable to the rest of the industry: ON outperforms 55.75% of its industry peers.
  • The Return On Equity of ON (4.04%) 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 73.45% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for ON is significantly above the industry average of 10.75%.
  • 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 RankSector 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%
ON Yearly ROA, ROE, ROICON Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 5.16%, ON is in line with its industry, outperforming 57.52% of the companies in the same industry.
  • ON's Profit Margin has improved in the last couple of years.
  • ON's Operating Margin of 15.06% is fine compared to the rest of the industry. ON outperforms 74.34% of its industry peers.
  • In the last couple of years the Operating Margin of ON has grown nicely.
  • ON has a Gross Margin of 35.75%. This is in the lower half of the industry: ON underperforms 62.83% of its industry peers.
  • ON's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
ON Yearly Profit, Operating, Gross MarginsON Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

7

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.
  • The number of shares outstanding for ON has been increased compared to 5 years ago.
  • The debt/assets ratio for ON has been reduced compared to a year ago.
ON Yearly Shares OutstandingON Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 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.
  • With a Altman-Z score value of 4.90, ON perfoms like the industry average, outperforming 56.64% of the companies in the same industry.
  • ON has a debt to FCF ratio of 2.47. This is a good value and a sign of high solvency as ON would need 2.47 years to pay back of all of its debts.
  • ON has a Debt to FCF ratio of 2.47. This is in the better half of the industry: ON outperforms 66.37% 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 67.26% 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 RankSector Rank
Debt/Equity 0.43
Debt/FCF 2.47
Altman-Z 4.9
ROIC/WACC0.66
WACC10.33%
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 2B 4B 6B 8B

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.
  • With a decent Current ratio value of 5.23, ON is doing good in the industry, outperforming 74.34% of the companies in the same industry.
  • ON has a Quick Ratio of 3.54. This indicates that ON is financially healthy and has no problem in meeting its short term obligations.
  • ON has a Quick ratio of 3.54. This is in the better half of the industry: ON outperforms 68.14% of its industry peers.
Industry RankSector Rank
Current Ratio 5.23
Quick Ratio 3.54
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 2B 4B 6B

4

3. Growth

3.1 Past

  • ON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.85%.
  • ON shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.88% yearly.
  • Looking at the last year, ON shows a very negative growth in Revenue. The Revenue has decreased by -16.13% in the last year.
  • Measured over the past years, ON shows a small growth in Revenue. The Revenue has been growing by 5.12% on average per year.
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

  • Based on estimates for the next years, ON will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.23% on average per year.
  • ON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.96% yearly.
EPS Next Y-39.69%
EPS Next 2Y-13.2%
EPS Next 3Y2.07%
EPS Next 5Y11.23%
Revenue Next Year-15.68%
Revenue Next 2Y-5.76%
Revenue Next 3Y-0.83%
Revenue Next 5Y3.96%

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.
  • 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.
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

5

4. Valuation

4.1 Price/Earnings Ratio

  • ON is valuated rather expensively with a Price/Earnings ratio of 23.12.
  • ON's Price/Earnings ratio is rather cheap when compared to the industry. ON is cheaper than 90.27% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.54, ON is valued at the same level.
  • Based on the Price/Forward Earnings ratio of 20.51, the valuation of ON can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, ON is valued cheaper than 87.61% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.31, ON is valued at the same level.
Industry RankSector Rank
PE 23.12
Fwd PE 20.51
ON Price Earnings VS Forward Price EarningsON Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • ON's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ON is cheaper than 84.07% of the companies in the same industry.
  • 92.04% 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 18.09
EV/EBITDA 15.52
ON Per share dataON EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • ON has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.06
EPS Next 2Y-13.2%
EPS Next 3Y2.07%

0

5. Dividend

5.1 Amount

  • ON does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

ON SEMICONDUCTOR

NASDAQ:ON (1/16/2026, 12:54:59 PM)

61.5

+1.22 (+2.02%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)11-03
Earnings (Next)02-09
Inst Owners112.18%
Inst Owner Change0.19%
Ins Owners0.3%
Ins Owner Change-0.68%
Market Cap24.75B
Revenue(TTM)6.19B
Net Income(TTM)319.10M
Analysts71.82
Price Target60.47 (-1.67%)
Short Float %10.22%
Short Ratio4.34
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)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)0.14%
EPS beat(12)9
Avg EPS beat(12)1.33%
EPS beat(16)13
Avg EPS beat(16)3.29%
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)-2.12%
Revenue beat(12)2
Avg Revenue beat(12)-1.74%
Revenue beat(16)5
Avg Revenue beat(16)-1.29%
PT rev (1m)0.85%
PT rev (3m)2.81%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)-0.01%
EPS NY rev (1m)0.08%
EPS NY rev (3m)1.57%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.7%
Valuation
Industry RankSector Rank
PE 23.12
Fwd PE 20.51
P/S 4
P/FCF 18.09
P/OCF 13.86
P/B 3.13
P/tB 4.14
EV/EBITDA 15.52
EPS(TTM)2.66
EY4.33%
EPS(NY)3
Fwd EY4.88%
FCF(TTM)3.4
FCFY5.53%
OCF(TTM)4.44
OCFY7.21%
SpS15.38
BVpS19.65
TBVpS14.85
PEG (NY)N/A
PEG (5Y)1.06
Graham Number34.29
Profitability
Industry RankSector 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 RankSector 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 4.9
F-Score5
WACC10.33%
ROIC/WACC0.66
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-39.69%
EPS Next 2Y-13.2%
EPS Next 3Y2.07%
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 5Y3.96%
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 of ON SEMICONDUCTOR (ON) stock?

ChartMill assigns a valuation rating of 5 / 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.


What is the expected EPS growth for ON SEMICONDUCTOR (ON) stock?

The Earnings per Share (EPS) of ON SEMICONDUCTOR (ON) is expected to decline by -39.69% in the next year.