ON

ON SemiconductorNasdaqGS:ON Stock Report

Market Cap

US$21.0b

7D

4.3%

1Y

128.2%

Updated

18 Sep, 2021

Data

Company Financials +
ON fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance2/6
Financial Health4/6
Dividends0/6

ON Overview

ON Semiconductor Corporation, together with its subsidiaries, manufactures and sells semiconductor components for various electronic devices worldwide.

ON Semiconductor Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ON Semiconductor
Historical stock prices
Current Share PriceUS$48.89
52 Week HighUS$19.75
52 Week LowUS$49.71
Beta1.88
1 Month Change19.30%
3 Month Change36.64%
1 Year Change128.25%
3 Year Change155.30%
5 Year Change317.51%
Change since IPO122.86%

Recent News & Updates

Sep 01
Should You Investigate ON Semiconductor Corporation (NASDAQ:ON) At US$44.36?

Should You Investigate ON Semiconductor Corporation (NASDAQ:ON) At US$44.36?

Let's talk about the popular ON Semiconductor Corporation ( NASDAQ:ON ). The company's shares saw a significant share...

Aug 11
ON Semiconductor (NASDAQ:ON) Has A Pretty Healthy Balance Sheet

ON Semiconductor (NASDAQ:ON) Has A Pretty Healthy Balance Sheet

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Aug 09

ON Semiconductor Offering An Exciting Growth And Margin Leverage Story

ON Semiconductor reported better than expected second quarter earnings, helped by white-hot demand and internal margin improvement efforts. The recent Analyst Day outlined a credible long-term success story built around above-market growth (focusing on EVs, ADAS, and industrial power and imaging) and improved operating efficiency. ON's internal targets are credible and could still offer upside; in a still-pricey sector, ON offers appealing upside.

Shareholder Returns

ONUS SemiconductorUS Market
7D4.3%-0.04%-0.6%
1Y128.2%55.0%33.8%

Return vs Industry: ON exceeded the US Semiconductor industry which returned 55% over the past year.

Return vs Market: ON exceeded the US Market which returned 33.8% over the past year.

Price Volatility

Is ON's price volatile compared to industry and market?
ON volatility
ON Beta1.88
Industry Beta1.23
Market Beta1

Stable Share Price: ON is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ON's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199232,750Hassane El-Khouryhttps://www.onsemi.com

ON Semiconductor Corporation, together with its subsidiaries, manufactures and sells semiconductor components for various electronic devices worldwide. The company operates in three segments: Power Solutions Group (PSG), Advanced Solutions Group (ASG), and Intelligent Sensing Group (ISG). The PSG segment offers analog, discrete, module, and integrated semiconductor products for various applications, such as power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage regulation functions.

Valuation

Is ON Semiconductor undervalued compared to its fair value and its price relative to the market?

9.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ON ($48.89) is trading below our estimate of fair value ($54.06)

Significantly Below Fair Value: ON is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ON is poor value based on its PE Ratio (40.2x) compared to the US Semiconductor industry average (29.6x).

PE vs Market: ON is poor value based on its PE Ratio (40.2x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: ON is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: ON is overvalued based on its PB Ratio (5.6x) compared to the US Semiconductor industry average (4.4x).


Future Growth

How is ON Semiconductor forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

14.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ON's forecast earnings growth (14.8% per year) is above the savings rate (2%).

Earnings vs Market: ON's earnings (14.8% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: ON's earnings are forecast to grow, but not significantly.

Revenue vs Market: ON's revenue (5.7% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: ON's revenue (5.7% 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 (18.2%).


Past Performance

How has ON Semiconductor performed over the past 5 years?

-3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ON has high quality earnings.

Growing Profit Margin: ON became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ON's earnings have declined by 3.6% per year over the past 5 years.

Accelerating Growth: ON has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ON has become profitable in the last year, making it difficult to compare its past year earnings growth to the Semiconductor industry (70.6%).


Return on Equity

High ROE: ON's Return on Equity (13.8%) is considered low.


Financial Health

How is ON Semiconductor's financial position?


Financial Position Analysis

Short Term Liabilities: ON's short term assets ($3.2B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: ON's short term assets ($3.2B) do not cover its long term liabilities ($3.3B).


Debt to Equity History and Analysis

Debt Level: ON's debt to equity ratio (81.7%) is considered high.

Reducing Debt: ON's debt to equity ratio has reduced from 201.3% to 81.7% over the past 5 years.

Debt Coverage: ON's debt is well covered by operating cash flow (40.9%).

Interest Coverage: ON's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


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?

2.0yrs

Average management tenure


CEO

Hassane El-Khoury (41 yo)

0.75

Tenure

US$8,373,960

Compensation

Mr. Hassane S. El-Khoury has been Chief Executive Officer, President and Director at ON Semiconductor Corporation since December 07, 2020. He served as Chief Executive Officer, President and Director at Cy...


CEO Compensation Analysis

Compensation vs Market: Hassane's total compensation ($USD8.37M) is about average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Insufficient data to compare Hassane's compensation with company performance.


Leadership Team

Experienced Management: ON's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: ON's board of directors are not considered experienced ( 1.9 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 bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.8%.


Top Shareholders

Company Information

ON Semiconductor Corporation's 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$21.049b
  • Shares outstanding: 430.53m
  • Website: https://www.onsemi.com

Number of Employees


Location

  • ON Semiconductor Corporation
  • 5005 East McDowell Road
  • Phoenix
  • Arizona
  • 85008
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:11
End of Day Share Price2021/09/17 00:00
Earnings2021/07/02
Annual Earnings2020/12/31


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.