ON Semiconductor logged a -2.2% change during today's evening session, and is now trading at a price of $83.76 per share.
ON Semiconductor returned gains of 33.5% last year, with its stock price reaching a high of $111.35 and a low of $59.61. Over the same period, the stock outperformed the S&P 500 index by 9.9%. More recently, the company's 50-day average price was $76.66. ON Semiconductor Corporation provides intelligent sensing and power solutions in the United States and internationally. Based in Scottsdale, AZ, the large-cap Technology company has 31,000 full time employees. ON Semiconductor has not offered a dividend during the last year.
Growing Revenues With Increasing Reinvestment in the Business:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $5,878 | $5,518 | $5,255 | $6,740 | $8,326 | $8,338 |
| Revenue Growth | n/a | -6.13% | -4.76% | 28.25% | 23.54% | 0.15% |
| Operating Margins | 14% | 8% | 7% | 19% | 28% | 36% |
| Net Margins | 11% | 4% | 4% | 15% | 23% | 27% |
| Net Income (MM) | $630 | $214 | $236 | $1,011 | $1,904 | $2,227 |
| Net Interest Expense (MM) | $128 | $148 | $168 | $130 | $95 | $86 |
| Depreciation & Amort. (MM) | $509 | $593 | $625 | $597 | $552 | $582 |
| Earnings Per Share | $1.44 | $0.51 | $0.56 | $2.27 | $4.25 | $4.96 |
| EPS Growth | n/a | -64.58% | 9.8% | 305.36% | 87.22% | 16.71% |
| Diluted Shares (MM) | 436 | 416 | 419 | 444 | 448 | 452 |
| Free Cash Flow (MM) | $759 | $160 | $501 | $1,337 | $1,628 | $570 |
| Capital Expenditures (MM) | $515 | $535 | $384 | $445 | $1,005 | $1,527 |
| Current Ratio | 2.16 | 1.66 | 1.9 | 2.45 | 2.78 | 2.44 |
| Total Debt (MM) | $2,643 | $3,612 | $3,491 | $3,087 | $3,208 | $3,459 |
| Net Debt / EBITDA | 1.16 | 2.65 | 2.48 | 0.92 | 0.1 | 0.22 |
ON Semiconductor has growing revenues and increasing reinvestment in the business and exceptional EPS growth. Additionally, the company's financial statements display low leverage and irregular cash flows. However, the firm has weak operating margins with a positive growth rate.
A Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:
ON Semiconductor has a trailing twelve month P/E ratio of 15.5, compared to an average of 35.0 for the Technology sector. Based on its EPS guidance of $4.79, the company has a forward P/E ratio of 16.0. According to the 18.7% compound average growth rate of ON Semiconductor's historical and projected earnings per share, the company's PEG ratio is 0.83. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 10.1%. On this basis, the company's PEG ratio is 1.53. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing ON Semiconductor in terms of its equity because its P/B ratio is 4.82 while the sector average is 7.92. The company's shares are currently trading 90.9% above their Graham number.
ON Semiconductor Has an Analyst Consensus of Some Upside Potential:
The 26 analysts following ON Semiconductor have set target prices ranging from $60.0 to $110.0 per share, for an average of $86.12 with a buy rating. As of April 2023, the company is trading -11.0% away from its average target price, indicating that there is an analyst consensus of some upside potential.
ON Semiconductor has an above average percentage of its shares sold short because 8.5% of the company's shares are sold short. Institutions own 100.9% of the company's shares, and the insider ownership rate stands at 0.26%, suggesting a small amount of insider investors. The largest shareholder is FMR, LLC, whose 13% stake in the company is worth $4,732,561,405.
