NasdaqGS:ON

Stock Analysis Report

Executive Summary

ON Semiconductor Corporation manufactures and sells semiconductor components for various electronic devices worldwide.

Snowflake

Fundamentals

Very undervalued with moderate growth potential.


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


Market Performance


7 Day Return

8.3%

NasdaqGS:ON

2.0%

US Semiconductor

1.3%

US Market


1 Year Return

1.3%

NasdaqGS:ON

11.1%

US Semiconductor

2.0%

US Market

ON underperformed the Semiconductor industry which returned 10.9% over the past year.

ON matched the United States of America Market (1.7%) over the past year.


Share holder returns

ONIndustryMarket
7 Day8.3%2.0%1.3%
30 Day14.7%8.4%3.9%
90 Day7.0%16.8%3.4%
1 Year1.3%1.3%13.2%11.1%4.2%2.0%
3 Year77.9%77.9%84.0%73.2%47.2%37.6%
5 Year105.7%105.7%123.1%100.5%60.5%42.9%

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

Valuation

Is ON Semiconductor undervalued based on future cash flows and its price relative to the stock market?

45%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

ON Semiconductor's share price is below the future cash flow value, and at a moderate discount (> 20%).

ON Semiconductor's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

ON Semiconductor is good value based on earnings compared to the US Semiconductor industry average.

ON Semiconductor is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

ON Semiconductor is good value based on expected growth next year.


Price Based on Value of Assets

ON Semiconductor is good value based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

How is ON Semiconductor expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

26.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

ON Semiconductor's revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).

ON Semiconductor's earnings are expected to grow significantly at over 20% yearly.

ON Semiconductor's revenue growth is positive but not above the United States of America market average.

ON Semiconductor's earnings growth is expected to exceed the United States of America market average.

ON Semiconductor's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

ON Semiconductor is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has ON Semiconductor performed over the past 5 years?

36.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

ON Semiconductor has delivered over 20% year on year earnings growth in the past 5 years.

ON Semiconductor's 1-year earnings growth is negative, it can't be compared to the 5-year average.

ON Semiconductor's 1-year earnings growth is negative, it can't be compared to the US Semiconductor industry average.


Return on Equity

ON Semiconductor has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

ON Semiconductor used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

ON Semiconductor has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is ON Semiconductor's financial position?


Financial Position Analysis

ON Semiconductor is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

ON Semiconductor's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

ON Semiconductor's level of debt (110.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (55.5% vs 110.9% today).

Debt is well covered by operating cash flow (31.2%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.8x debt.


Next Steps

Dividend

What is ON Semiconductor's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate ON Semiconductor's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate ON Semiconductor's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as ON Semiconductor has not reported any payouts.

Unable to verify if ON Semiconductor's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as ON Semiconductor has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of ON Semiconductor's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of ON Semiconductor's salary, the management and board of directors tenure and is there insider trading?

7.8yrs

Average management tenure


CEO

Keith Jackson (64yo)

16.8yrs

Tenure

US$11,893,401

Compensation

Mr. Keith D. Jackson has been President of Fairchild Semiconductor International Inc. since December 19, 2016. Mr. Jackson has been President of California Micro Devices Corporation since January 2010. He  ...


CEO Compensation Analysis

Keith's remuneration is higher than average for companies of similar size in United States of America.

Keith's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.8yrs

Average Tenure

61yo

Average Age

The average tenure for the ON Semiconductor management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

8.0yrs

Average Tenure

63yo

Average Age

The tenure for the ON Semiconductor board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$59,43014 Jun 19
Vincent Hopkin
EntityIndividual
Shares3,000
Max PriceUS$19.81
SellUS$70,74405 Jun 19
Gilles Delfassy
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,731
Max PriceUS$18.96
SellUS$70,69607 May 19
Bernard Colpitts
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer and Vice President of Finance & Treasury
Shares3,069
Max PriceUS$23.04
SellUS$342,66906 May 19
George Cave
EntityIndividual
Role
Chief Legal Officer
Chief Compliance & Ethics Officer
Shares15,000
Max PriceUS$22.84
SellUS$34,20018 Dec 18
Gilles Delfassy
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$17.10
SellUS$15,97711 Dec 18
Bernard Colpitts
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer and Vice President of Finance & Treasury
Shares920
Max PriceUS$17.37
SellUS$72,04221 Nov 18
Daryl Ostrander
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$18.01

Ownership Breakdown


Management Team

  • Keith Jackson (64yo)

    CEO, President & Director

    • Tenure: 16.8yrs
    • Compensation: US$11.89m
  • William Schromm (61yo)

    COO & Executive VP

    • Tenure: 5.1yrs
    • Compensation: US$4.44m
  • Sonny Cave (61yo)

    Chief Compliance & Ethics Officer

    • Tenure: 20.1yrs
    • Compensation: US$1.70m
  • Jim Kearns

    Vice President of Marketing & Business Development

    • Tenure: 16.3yrs
  • Hans Stork (65yo)

    CTO & Senior VP

    • Tenure: 8.6yrs
  • Paul Rolls (56yo)

    Executive Vice President of Sales & Marketing

    • Tenure: 6.2yrs
    • Compensation: US$3.12m
  • Bernie Colpitts (44yo)

    Chief Accounting Officer and Vice President of Finance & Treasury

    • Tenure: 2.6yrs
  • Bernard Gutmann (59yo)

    CFO, Executive VP & Treasurer

    • Tenure: 7yrs
    • Compensation: US$3.96m
  • Parag Agarwal

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Tobin Cookman

    Senior Vice President of Human Resources

    • Tenure: 0yrs

Board Members

  • Manny Hernandez (63yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$312.52k
  • Keith Jackson (64yo)

    CEO, President & Director

    • Tenure: 16.8yrs
    • Compensation: US$11.89m
  • Curt Crawford (71yo)

    Independent Director

    • Tenure: 20yrs
    • Compensation: US$285.02k
  • Atsushi Abe (65yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$312.52k
  • Gilles Delfassy (63yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: US$310.02k
  • Alan Campbell (61yo)

    Chair of the Board

    • Tenure: 2.3yrs
    • Compensation: US$405.02k
  • Teresa Ressel (56yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$315.02k
  • Paul Mascarenas (58yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$300.02k
  • Daryl Ostrander (70yo)

    Independent Director

    • Tenure: 10.6yrs
    • Compensation: US$297.52k
  • Christine Yan (53yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$153.98k

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: 1999
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$8.259b
  • Shares outstanding: 410.48m
  • Website: https://www.onsemi.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ONNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2000
XS4DB (Deutsche Boerse AG)YesCommon StockDEEURApr 2000
0KC4LSE (London Stock Exchange)YesCommon StockGBUSDApr 2000
ON *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 2000

Biography

ON Semiconductor Corporation manufactures and sells semiconductor components for various electronic devices worldwide. The company operates in three segments: Power Solutions Group, Analog Solutions Group, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 23:43
End of Day Share Price2019/09/13 00:00
Earnings2019/06/28
Annual Earnings2018/12/31


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.