NasdaqGS:ON

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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 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

ONIndustryMarket
7 Day-0.2%2.1%1.5%
30 Day18.8%10.8%5.0%
90 Day44.6%23.8%15.2%
1 Year48.6%48.6%56.6%54.0%25.6%22.8%
3 Year58.9%58.9%111.6%100.6%47.3%37.5%
5 Year366.6%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

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

NamePositionTenureCompensationOwnership
Bernard Gutmann
CFO, Executive VP & Treasurer8.33yrsUS$3.05m0.14%
$ 21.0m
William Schromm
COO & Executive VP6.42yrsUS$3.79m0.12%
$ 18.5m
Paul Rolls
Executive Vice President of Sales & Marketing7.5yrsUS$2.39m0.051%
$ 8.0m
Keith Jackson
0.083yrUS$8.89m0.61%
$ 95.3m
Simon Keeton
Executive VP & GM of Power Solutions Groupno dataUS$2.28m0.030%
$ 4.6m
Hassane El-Khoury
President0.083yrno datano data
Bernard Colpitts
Chief Accounting Officer0.67yrno data0.0049%
$ 765.6k
Johannes M. Stork
CTO & Senior VP9.92yrsno datano data
Parag Agarwal
Vice President of Investor Relations & Corporate Developmentno datano datano data
George Cave
EVP, General Counsel21.42yrsUS$1.70m0.062%
$ 9.6m
Jim Kearns
Vice President of Marketing & Business Development17.58yrsno datano data
Tobin Cookman
Senior Vice President of Human Resourcesno datano datano 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

NamePositionTenureCompensationOwnership
Hassane El-Khoury
President0.083yrno datano data
Atsushi Abe
Independent Director9.92yrsUS$305.01k0.040%
$ 6.2m
Gilles Delfassy
Independent Director5.42yrsUS$306.26k0.012%
$ 1.8m
Susan Carter
Independent Director0.25yrno data0.00096%
$ 149.4k
Bruce Kiddoo
Director0.083yrno data0.00069%
$ 107.4k
Gregory Waters
Director0.083yrno data0.00069%
$ 107.4k
Alan Campbell
Independent Chair of the Board3.67yrsUS$401.26k0.020%
$ 3.0m
Paul Mascarenas
Independent Director6.17yrsUS$300.01k0.019%
$ 2.9m
Thomas Deitrich
Independent Director0.25yrno data0.0011%
$ 166.5k
Christine Yan
Independent Director2.25yrsUS$292.51k0.0074%
$ 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ONNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2000
XS4DB (Deutsche Boerse AG)YesCommon StockDEEURApr 2000
XS4XTRA (XETRA Trading Platform)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 Analysis2021/01/21 23:33
End of Day Share Price2021/01/21 00:00
Earnings2020/10/02
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.