NasdaqGS:ON

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Moderate growth potential and overvalued.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.7%

ON

1.0%

US Semiconductor

0.08%

US Market


1 Year Return

10.5%

ON

36.5%

US Semiconductor

12.8%

US Market

Return vs Industry: ON underperformed the US Semiconductor industry which returned 36.5% over the past year.

Return vs Market: ON underperformed the US Market which returned 12.8% over the past year.


Shareholder returns

ONIndustryMarket
7 Day-2.7%1.0%0.08%
30 Day2.4%-2.0%-1.8%
90 Day6.1%7.7%7.2%
1 Year10.5%10.5%39.0%36.5%15.3%12.8%
3 Year21.2%21.2%81.3%71.9%39.2%29.9%
5 Year138.8%138.8%243.8%210.0%88.3%67.1%

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 compared to its fair value and its price relative to the market?

2.72x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ON ($21.42) is trading above our estimate of fair value ($16.81)

Significantly Below Fair Value: ON is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ON is unprofitable, so we can't compare its PE Ratio to the US Semiconductor industry average.

PE vs Market: ON is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ON's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ON is good value based on its PB Ratio (2.7x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

How is ON Semiconductor forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

99.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ON is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: ON is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ON's is expected to become profitable in the next 3 years.

Revenue vs Market: ON's revenue (7.7% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: ON's revenue (7.7% 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 (14.4%).


Next Steps

Past Performance

How has ON Semiconductor performed over the past 5 years?

12.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ON is currently unprofitable.

Growing Profit Margin: ON is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ON is unprofitable, but has reduced losses over the past 5 years at a rate of 12.4% per year.

Accelerating Growth: Unable to compare ON's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ON is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (7.5%).


Return on Equity

High ROE: ON has a negative Return on Equity (-0.54%), as it is currently unprofitable.


Next Steps

Financial Health

How is ON Semiconductor's financial position?


Financial Position Analysis

Short Term Liabilities: ON's short term assets ($4.1B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: ON's short term assets ($4.1B) do not cover its long term liabilities ($4.5B).


Debt to Equity History and Analysis

Debt Level: ON's debt to equity ratio (145.4%) is considered high.

Reducing Debt: ON's debt to equity ratio has increased from 85.2% to 145.4% over the past 5 years.

Debt Coverage: ON's debt is not well covered by operating cash flow (13.8%).

Interest Coverage: ON is unprofitable, therefore interest payments are not well covered by earnings.


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?

8.8yrs

Average management tenure


CEO

Keith Jackson (65 yo)

17.83yrs

Tenure

US$8,894,933

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

Compensation vs Market: Keith's total compensation ($USD8.89M) is about average for companies of similar size in the US market ($USD7.39M).

Compensation vs Earnings: Keith's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Keith Jackson
CEO, President & Director17.83yrsUS$8.89m0.76%
$ 66.8m
Bernard Gutmann
CFO, Executive VP & Treasurer8yrsUS$3.05m0.16%
$ 14.0m
William Schromm
COO & Executive VP6.08yrsUS$3.79m0.17%
$ 14.8m
Paul Rolls
Executive Vice President of Sales & Marketing7.17yrsUS$2.39m0.074%
$ 6.5m
Simon Keeton
Executive VP & GM of Power Solutions Groupno dataUS$2.28m0.032%
$ 2.8m
Bernard Colpitts
Chief Accounting Officer0.33yrno data0.0049%
$ 433.0k
Johannes M. Stork
CTO & Senior VP9.58yrsno datano data
Parag Agarwal
Vice President of Investor Relations & Corporate Developmentno datano datano data
George Cave
EVP, General Counsel16.08yrsUS$1.70m0.065%
$ 5.8m
Jim Kearns
Vice President of Marketing & Business Development17.25yrsno datano data
Tobin Cookman
Senior Vice President of Human Resourcesno datano datano data
Wolfgang Stammel
Head of German Office Ops and Sales Director & Automotive Market Segment Director for Europeno datano datano data

8.8yrs

Average Tenure

61yo

Average Age

Experienced Management: ON's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Keith Jackson
CEO, President & Director17.83yrsUS$8.89m0.76%
$ 66.8m
Emmanuel Hernandez
Independent Director17.83yrsUS$297.51k0.028%
$ 2.4m
Atsushi Abe
Independent Director9.58yrsUS$305.01k0.040%
$ 3.5m
Gilles Delfassy
Independent Director5.08yrsUS$306.26k0.012%
$ 1.0m
Alan Campbell
Independent Chair of the Board3.33yrsUS$401.26k0.020%
$ 1.7m
Paul Mascarenas
Independent Director5.83yrsUS$300.01k0.019%
$ 1.6m
Christine Yan
Independent Director1.92yrsUS$292.51k0.0075%
$ 655.6k

5.8yrs

Average Tenure

64yo

Average Age

Experienced Board: ON's board of directors are considered experienced (5.8 years average tenure).


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$8.800b
  • Shares outstanding: 410.82m
  • 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, 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/21 06:17
End of Day Share Price2020/09/18 00:00
Earnings2020/07/03
Annual Earnings2019/12/31


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.