ON Semiconductor
Market Cap
US$15.6b
Last Updated
2021/01/21 23:33 UTC
Data Sources
Company Financials +
Executive Summary
ON Semiconductor Corporation, together with its subsidiaries, manufactures and sells semiconductor components for various electronic devices worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Moderate growth potential with poor track record.
Similar Companies
Share Price & News
How has ON Semiconductor's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ON is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ON's weekly volatility has decreased from 11% to 4% over the past year.
Market Performance
7 Day Return
-0.2%
ON
2.1%
US Semiconductor
1.5%
US Market
1 Year Return
48.6%
ON
54.0%
US Semiconductor
22.8%
US Market
Return vs Industry: ON underperformed the US Semiconductor industry which returned 54% over the past year.
Return vs Market: ON exceeded the US Market which returned 22.8% over the past year.
Shareholder returns
| ON | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.2% | 2.1% | 1.5% |
| 30 Day | 18.8% | 10.8% | 5.0% |
| 90 Day | 44.6% | 23.8% | 15.2% |
| 1 Year | 48.6%48.6% | 56.6%54.0% | 25.6%22.8% |
| 3 Year | 58.9%58.9% | 111.6%100.6% | 47.3%37.5% |
| 5 Year | 366.6%366.6% | 376.7%330.4% | 133.4%107.3% |
Long-Term Price Volatility Vs. Market
How volatile is ON Semiconductor's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Are ON Semiconductor's (NASDAQ:ON) Statutory Earnings A Good Reflection Of Its Earnings Potential?3 weeks ago | Simply Wall St
Are Investors Undervaluing ON Semiconductor Corporation (NASDAQ:ON) By 30%?1 month ago | Simply Wall St
Should ON Semiconductor Corporation (NASDAQ:ON) Focus On Improving This Fundamental Metric?Valuation
Is ON Semiconductor undervalued compared to its fair value and its price relative to the market?
77.02x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ON ($37.84) is trading above our estimate of fair value ($32.65)
Significantly Below Fair Value: ON is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ON is poor value based on its PE Ratio (77x) compared to the US Semiconductor industry average (46.9x).
PE vs Market: ON is poor value based on its PE Ratio (77x) compared to the US market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: ON is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: ON's PB Ratio (4.5x) is in line with the US Semiconductor industry average.
Next Steps
Future Growth
How is ON Semiconductor forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
47.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ON's forecast earnings growth (47% per year) is above the savings rate (2%).
Earnings vs Market: ON's earnings (47% per year) are forecast to grow faster than the US market (21.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ON's revenue (8.5% per year) is forecast to grow slower than the US market (10.5% per year).
High Growth Revenue: ON's revenue (8.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ON's Return on Equity is forecast to be low in 3 years time (16.7%).
Next Steps
Past Performance
How has ON Semiconductor performed over the past 5 years?
6.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ON has a large one-off loss of $114.2M impacting its October 2 2020 financial results.
Growing Profit Margin: ON's current net profit margins (3.9%) are lower than last year (5.6%).
Past Earnings Growth Analysis
Earnings Trend: ON's earnings have grown by 6.4% per year over the past 5 years.
Accelerating Growth: ON's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ON had negative earnings growth (-35.7%) over the past year, making it difficult to compare to the Semiconductor industry average (20.8%).
Return on Equity
High ROE: ON's Return on Equity (5.9%) is considered low.
Next Steps
Financial Health
How is ON Semiconductor's financial position?
Financial Position Analysis
Short Term Liabilities: ON's short term assets ($3.8B) exceed its short term liabilities ($1.8B).
Long Term Liabilities: ON's short term assets ($3.8B) do not cover its long term liabilities ($4.0B).
Debt to Equity History and Analysis
Debt Level: ON's debt to equity ratio (123%) is considered high.
Reducing Debt: ON's debt to equity ratio has increased from 89% to 123% over the past 5 years.
Debt Coverage: ON's debt is not well covered by operating cash flow (13.6%).
Interest Coverage: ON's interest payments on its debt are not well covered by EBIT (2.6x coverage).
Balance Sheet
Next Steps
Dividend
What is ON Semiconductor current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ON's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ON's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ON's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ON's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ON's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.5yrs
Average management tenure
CEO
Hassane El-Khoury (40 yo)
0.083
Tenure
Mr. Hassane El-Khoury has been Chief Executive Officer, President and Director at ON Semiconductor Corporation since December 07, 2020. He served as a Chief Executive Officer, President and Director at Cyp...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CFO, Executive VP & Treasurer | 8.33yrs | US$3.05m | 0.14% $ 21.0m | |
| COO & Executive VP | 6.42yrs | US$3.79m | 0.12% $ 18.5m | |
| Executive Vice President of Sales & Marketing | 7.5yrs | US$2.39m | 0.051% $ 8.0m | |
| 0.083yr | US$8.89m | 0.61% $ 95.3m | ||
| Executive VP & GM of Power Solutions Group | no data | US$2.28m | 0.030% $ 4.6m | |
| President | 0.083yr | no data | no data | |
| Chief Accounting Officer | 0.67yr | no data | 0.0049% $ 765.6k | |
| CTO & Senior VP | 9.92yrs | no data | no data | |
| Vice President of Investor Relations & Corporate Development | no data | no data | no data | |
| EVP, General Counsel | 21.42yrs | US$1.70m | 0.062% $ 9.6m | |
| Vice President of Marketing & Business Development | 17.58yrs | no data | no data | |
| Senior Vice President of Human Resources | no data | no data | no data |
7.5yrs
Average Tenure
60yo
Average Age
Experienced Management: ON's management team is seasoned and experienced (7.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.083yr | no data | no data | |
| Independent Director | 9.92yrs | US$305.01k | 0.040% $ 6.2m | |
| Independent Director | 5.42yrs | US$306.26k | 0.012% $ 1.8m | |
| Independent Director | 0.25yr | no data | 0.00096% $ 149.4k | |
| Director | 0.083yr | no data | 0.00069% $ 107.4k | |
| Director | 0.083yr | no data | 0.00069% $ 107.4k | |
| Independent Chair of the Board | 3.67yrs | US$401.26k | 0.020% $ 3.0m | |
| Independent Director | 6.17yrs | US$300.01k | 0.019% $ 2.9m | |
| Independent Director | 0.25yr | no data | 0.0011% $ 166.5k | |
| Independent Director | 2.25yrs | US$292.51k | 0.0074% $ 1.2m |
1.3yrs
Average Tenure
59yo
Average Age
Experienced Board: ON's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ON insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
ON Semiconductor Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: ON Semiconductor Corporation
- Ticker: ON
- Exchange: NasdaqGS
- Founded: 1992
- Industry: Semiconductors
- Sector: Semiconductors
- Market Cap: US$15.561b
- Shares outstanding: 411.22m
- Website: https://www.onsemi.com
Number of Employees
Location
- ON Semiconductor Corporation
- 5005 East McDowell Road
- Phoenix
- Arizona
- 85008
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ON | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Apr 2000 |
| XS4 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 2000 |
| XS4 | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Apr 2000 |
| 0KC4 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Apr 2000 |
| ON * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Apr 2000 |
Biography
ON Semiconductor Corporation, together with its subsidiaries, manufactures and sells semiconductor components for various electronic devices worldwide. The company operates in three segments: Power Solutio...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 23:33 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/10/02 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.