ON Semiconductor Corp
Exchange: NASDAQSector: TechnologyIndustry: Semiconductors
ON Semiconductor is driving energy efficient electronics innovations that help make the world greener, safer, inclusive and connected. The company has transformed into our customers’ supplier of choice for power, analog, sensor and connectivity solutions. The company’s superior products help engineers solve their most unique design challenges in automotive, industrial, cloud power, and Internet of Things (IoT) applications.
Did you know?
Free cash flow has been growing at 50.0% annually.
Current Price
$102.04
-0.96%GoodMoat Value
$79.13
22.5% overvaluedProfile
Valuation (TTM)
Market Cap$41.06B
P/E339.33
EV$24.56B
P/B5.35
Shares Out402.38M
P/Sales6.85
Revenue$6.00B
EV/EBITDA46.88
ON Semiconductor Corp (ON) Stock Analysis
GoodMoat Analysis
ON Semiconductor appears to be a high-quality business with a potentially durable moat, as indicated by its GoodMoat Target. However, its current valuation is extremely high based on traditional metrics, and recent financial performance shows significant weakness, creating a complex picture for a value investor.
Read full analysis
ON Semiconductor (ON) is a major player in the power and sensing semiconductor market, providing components critical for automotive, industrial, and computing applications. Applying the GoodMoat framework, the company likely scores well in Moat Identification (Section 1), particularly in areas like Technology Leadership, Niche Dominance in power semiconductors, and Strategic Partnerships with major automotive OEMs. Its GoodMoat Target of $79.13 suggests an analyst has identified a durable competitive advantage. However, moving to the Decision Framework (Section 6), the current financial data presents significant hurdles. The P/E of 209.8 is extreme, and key Quality Indicators like Revenue Growth YoY (-11.2%), Profit Margin (2.0%), and ROE (1.6%) are currently weak and far below the high-return thresholds outlined in the framework. This creates a conflict: the business may have a strong moat, but its current operational performance and valuation do not align with traditional value investing principles of buying high-quality companies at a discount. The stock would require a 'WITH CAUTION' assessment under Step 2 of the Decision Framework, as it passes the implied moat gate but faces severe overvaluation and red flags like margin compression and growth deceleration. A value investor would need to investigate whether the current weak metrics are a temporary cyclical downturn or a more permanent impairment, and whether the price offers any margin of safety relative to a normalized earnings power. Analysis based on data as of 2024-05-15.
Market Cap$41.06B
Current Price$102.04
P/E Ratio339.33
Forward P/E—
PEG Ratio-6.71
EPS$0.29
Book Value$19.07
P/B Ratio5.35
ON Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 50.0% FCF growth (CAGR)
Cash vs Debt
Net Debt: 857M
Revenue
5.5B
FY19
5.3B
FY20
6.7B
FY21
8.3B
FY22
8.3B
FY23
7.1B
FY24
6.0B
FY25
Net Income
212M
FY19
234M
FY20
1.0B
FY21
1.9B
FY22
2.2B
FY23
1.6B
FY24
121M
FY25
ON 52-Week Range
$38.41
$103.03
50-Day MA: $71.19200-Day MA: $58.38
Did you know?
Free cash flow has been growing at 50.0% annually.
ON Semiconductor Corp (ON) Financial Summary
ON Semiconductor Corp (ON) is a Technology company in the Semiconductors industry, listed on NASDAQ. The stock currently trades at $102.04 with a market capitalization of $41.06B.
Key valuation metrics include a P/E ratio of 339.33, price-to-book ratio of 5.35, and EPS of $0.29. The company reports a profit margin of 2.0% and return on equity of 1.6%.
ON Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $41.06B |
| P/E Ratio | 339.33 |
| EPS | $0.29 |
| P/B Ratio | 5.35 |
| P/S Ratio | 6.85 |
| EV/EBITDA | 46.88 |
| Profit Margin | 2.0% |
| Return on Equity | 1.6% |
| Debt/Equity | 0.39 |
ON Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $5.52B | $211.70M |
| FY20 | $5.25B | $234.20M |
| FY21 | $6.74B | $1.01B |
| FY22 | $8.33B | $1.90B |
| FY23 | $8.25B | $2.18B |
| FY24 | $7.08B | $1.57B |
| FY25 | $6.00B | $121.00M |
ON Semiconductor Corp (ON) Valuation
Based on GoodMoat's DCF model, ON Semiconductor Corp has a fair value estimate of $79.13. At the current price of $102.04, the stock appears 28.9% overvalued relative to our intrinsic value estimate.
ON Quality Indicators
ON Semiconductor Corp maintains a profit margin of 2.0% and an operating margin of 1.4%. Return on equity stands at 1.6%. The current ratio is 4.52. Debt-to-equity ratio is 0.39.
About ON Semiconductor Corp
ON Semiconductor is driving energy efficient electronics innovations that help make the world greener, safer, inclusive and connected. The company has transformed into our customers’ supplier of choice for power, analog, sensor and connectivity solutions. The company’s superior products help engineers solve their most unique design challenges in automotive, industrial, cloud power, and Internet of Things (IoT) applications.
ON Free Cash Flow
ON Semiconductor Corp generated $1.45B in trailing twelve-month free cash flow, representing an FCF yield of 3.53%. This moderate FCF yield indicates reasonable cash generation.
ON Shares Outstanding
ON Semiconductor Corp has 0.40 billion shares outstanding at a share price of $102.04, giving it a market capitalization of $41.06B.
ON Recent Insider Trades
Recent insider transactions at ON Semiconductor Corp include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Thad Trent (Exec VP & CFO) | SELL | 30,000 | $2.79M |
| Thad Trent (Exec VP & CFO) | SELL | 30,000 | $2.40M |
| KEETON SIMON (Group President, PSG) | SELL | 4,597 | $328938.79 |