ON SEMICONDUCTOR (ON) Stock Fundamental Analysis
USA - NASDAQ:ON - US6821891057 - Common Stock
51.83 USD
+2.03 (+4.08%)
52.19 USD
+0.36 (+0.69%)
ON gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ON had positive earnings in the past year.
In the past year ON had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 3.55%, ON is in the better half of the industry, outperforming 61.61% of the companies in the same industry.
The Return On Equity of ON (5.87%) is better than 64.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.13%, ON is in the better half of the industry, outperforming 75.89% 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 10.87%.
The last Return On Invested Capital (8.13%) for ON is well below the 3 year average (19.04%), which needs to be investigated, but indicates that ON had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 5.87% | ||
| ROIC | 8.13% |
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 of 7.28%. This is in the better half of the industry: ON outperforms 63.39% of its industry peers.
ON's Profit Margin has improved in the last couple of years.
ON's Operating Margin of 17.54% is fine compared to the rest of the industry. ON outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of ON has grown nicely.
The Gross Margin of ON (37.89%) is worse than 61.61% of its industry peers.
In the last couple of years the Gross Margin of ON has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.54% | ||
| PM (TTM) | 7.28% | ||
| GM | 37.89% |
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 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 more shares outstanding
Compared to 1 year ago, ON has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.42 indicates that ON is not in any danger for bankruptcy at the moment.
ON has a Altman-Z score (4.42) which is comparable to the rest of the industry.
ON has a debt to FCF ratio of 2.62. This is a good value and a sign of high solvency as ON would need 2.62 years to pay back of all of its debts.
ON has a Debt to FCF ratio of 2.62. This is in the better half of the industry: ON outperforms 65.18% of its industry peers.
ON has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ON (0.42) is worse than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.62 | ||
| Altman-Z | 4.42 |
ROIC/WACC0.75
WACC10.88%
2.3 Liquidity
ON has a Current Ratio of 5.02. This indicates that ON is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 5.02, ON is doing good in the industry, outperforming 74.11% of the companies in the same industry.
A Quick Ratio of 3.37 indicates that ON has no problem at all paying its short term obligations.
ON's Quick ratio of 3.37 is fine compared to the rest of the industry. ON outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.02 | ||
| Quick Ratio | 3.37 |
3. Growth
3.1 Past
ON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.47%.
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 -17.93% in the last year.
The Revenue has been growing slightly by 5.12% on average over the past years.
EPS 1Y (TTM)-35.47%
EPS 3Y10.62%
EPS 5Y21.88%
EPS Q2Q%-44.79%
Revenue 1Y (TTM)-17.93%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-15.36%
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 10.96% on average per year.
ON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.23% yearly.
EPS Next Y-40.65%
EPS Next 2Y-12.61%
EPS Next 3Y2.45%
EPS Next 5Y10.96%
Revenue Next Year-16.26%
Revenue Next 2Y-5.67%
Revenue Next 3Y-0.55%
Revenue Next 5Y4.23%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.16, ON is valued on the expensive side.
Based on the Price/Earnings ratio, ON is valued cheaply inside the industry as 90.18% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ON to the average of the S&P500 Index (27.41), we can say ON is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.05, which indicates a rather expensive current valuation of ON.
Based on the Price/Forward Earnings ratio, ON is valued cheaper than 86.61% of the companies in the same industry.
ON is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.16 | ||
| Fwd PE | 17.05 |
4.2 Price Multiples
ON's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ON is cheaper than 88.39% of the companies in the same industry.
ON's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ON is cheaper than 89.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.44 | ||
| EV/EBITDA | 11.61 |
4.3 Compensation for Growth
The excellent profitability rating of ON may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y-12.61%
EPS Next 3Y2.45%
5. Dividend
5.1 Amount
ON does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
51.83
+2.03 (+4.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners106.28%
Inst Owner Change3.62%
Ins Owners0.32%
Ins Owner Change0.18%
Market Cap21.20B
Analysts71.82
Price Target58.81 (13.47%)
Short Float %9.06%
Short Ratio4.24
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)1.02%
Min EPS beat(2)-3.5%
Max EPS beat(2)5.53%
EPS beat(4)1
Avg EPS beat(4)-1.07%
Min EPS beat(4)-5.32%
Max EPS beat(4)5.53%
EPS beat(8)5
Avg EPS beat(8)-0.19%
EPS beat(12)9
Avg EPS beat(12)1.66%
EPS beat(16)13
Avg EPS beat(16)3.98%
Revenue beat(2)1
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)0.12%
Revenue beat(4)1
Avg Revenue beat(4)-2.23%
Min Revenue beat(4)-4.89%
Max Revenue beat(4)0.12%
Revenue beat(8)1
Avg Revenue beat(8)-2.18%
Revenue beat(12)3
Avg Revenue beat(12)-1.62%
Revenue beat(16)5
Avg Revenue beat(16)-1.31%
PT rev (1m)1.02%
PT rev (3m)21.67%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-13.14%
EPS NY rev (1m)0.11%
EPS NY rev (3m)1.44%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.16 | ||
| Fwd PE | 17.05 | ||
| P/S | 3.31 | ||
| P/FCF | 16.44 | ||
| P/OCF | 11.57 | ||
| P/B | 2.67 | ||
| P/tB | 3.53 | ||
| EV/EBITDA | 11.61 |
EPS(TTM)3.02
EY5.83%
EPS(NY)3.04
Fwd EY5.86%
FCF(TTM)3.15
FCFY6.08%
OCF(TTM)4.48
OCFY8.64%
SpS15.65
BVpS19.42
TBVpS14.68
PEG (NY)N/A
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.55% | ||
| ROE | 5.87% | ||
| ROCE | 9.46% | ||
| ROIC | 8.13% | ||
| ROICexc | 10.67% | ||
| ROICexgc | 13.59% | ||
| OM | 17.54% | ||
| PM (TTM) | 7.28% | ||
| GM | 37.89% | ||
| FCFM | 20.15% |
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%
ROICexcg growth 3Y-8.83%
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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.62 | ||
| Debt/EBITDA | 1.9 | ||
| Cap/Depr | 83.14% | ||
| Cap/Sales | 8.48% | ||
| Interest Coverage | 18.49 | ||
| Cash Conversion | 103.21% | ||
| Profit Quality | 276.77% | ||
| Current Ratio | 5.02 | ||
| Quick Ratio | 3.37 | ||
| Altman-Z | 4.42 |
F-Score5
WACC10.88%
ROIC/WACC0.75
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)-35.47%
EPS 3Y10.62%
EPS 5Y21.88%
EPS Q2Q%-44.79%
EPS Next Y-40.65%
EPS Next 2Y-12.61%
EPS Next 3Y2.45%
EPS Next 5Y10.96%
Revenue 1Y (TTM)-17.93%
Revenue growth 3Y1.67%
Revenue growth 5Y5.12%
Sales Q2Q%-15.36%
Revenue Next Year-16.26%
Revenue Next 2Y-5.67%
Revenue Next 3Y-0.55%
Revenue Next 5Y4.23%
EBIT growth 1Y-51.37%
EBIT growth 3Y11.77%
EBIT growth 5Y24.63%
EBIT Next Year-16.45%
EBIT Next 3Y8.53%
EBIT Next 5Y13.49%
FCF growth 1Y10.32%
FCF growth 3Y-2.05%
FCF growth 5Y82.37%
OCF growth 1Y-27.68%
OCF growth 3Y2.27%
OCF growth 5Y22.37%