ON Semiconductor Corporation
ON Semiconductor Corporation Fundamental Analysis
ON Semiconductor Corporation (ON) shows weak financial fundamentals with a PE ratio of 227.89, profit margin of 2.02%, and ROE of 1.53%. The company generates $6.0B in annual revenue with weak year-over-year growth of -14.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 20.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ON's fundamental strength across five key dimensions:
Efficiency Score
WeakON struggles to generate sufficient returns from assets.
Valuation Score
ModerateON shows balanced valuation metrics.
Growth Score
WeakON faces weak or negative growth trends.
Financial Health Score
ExcellentON maintains a strong and stable balance sheet.
Profitability Score
ModerateON maintains healthy but balanced margins.
Key Financial Metrics
Is ON Expensive or Cheap?
P/E Ratio
ON trades at 227.89 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ON's PEG of -4.04 indicates potential undervaluation.
Price to Book
The market values ON Semiconductor Corporation at 3.59 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 29.68 times EBITDA. This signals the market has high growth expectations.
How Well Does ON Make Money?
Net Profit Margin
For every $100 in sales, ON Semiconductor Corporation keeps $2.02 as profit after all expenses.
Operating Margin
Core operations generate 2.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.53 in profit for every $100 of shareholder equity.
ROA
ON Semiconductor Corporation generates $0.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ON Semiconductor Corporation generates strong operating cash flow of $1.77B, reflecting robust business health.
Free Cash Flow
ON Semiconductor Corporation generates strong free cash flow of $1.70B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.22 in free cash annually.
FCF Yield
ON converts 6.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
227.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.59
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.52
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How ON Stacks Against Its Sector Peers
| Metric | ON Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 227.89 | 34.79 | Worse (Expensive) |
| ROE | 1.53% | 1185.00% | Weak |
| Net Margin | 2.02% | -131296.00% (disorted) | Weak |
| Debt/Equity | 0.45 | 0.43 | Neutral |
| Current Ratio | 4.52 | 4.90 | Strong Liquidity |
| ROA | 0.97% | -325472.00% (disorted) | Weak |
ON outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ON Semiconductor Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.40%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
614.26%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
163.83%
Industry Style: Growth, Innovation, High Beta
High Growth