Semiconductors & Related Devices
ON Semiconductor Corporation provides intelligent sensing and power solutions in the United States and internationally. The company operates through three segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. Its intelligent power technologies enable the electrification of the automotive industry that allows for lighter and longer-range electric vehicles, empowers fast-charging systems, and propels sustainable energy for the solar strings, industrial power, and storage systems. The company offers analog, discrete, module, and integrated semiconductor products that perform multiple application functions, includes power switching and conversion, signal conditioning, circuit protection, signal amplification, and voltage regulation functions. The company also designs and develops analog, mixed-signal, advanced logic, application specific standard product and ASICs, radio frequency, and integrated power solutions for end-users in end-markets, as well as provides foundry and design services for government customers. In addition, it develops complementary metal oxide semiconductor image sensors, image signal processors, and single photon detectors, include silicon photomultipliers and single photon avalanche diode arrays, as well as actuator drivers for autofocus and image stabilization for a broad base of end-users in various end-markets. ON Semiconductor Corporation was incorporated in 1992 and is headquartered in Scottsdale, Arizona.
Discounted Cash Flow Valuation of On Semiconductor Corp
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
The average Net Margin over the past 5 years is +11.9%.
The trend of Net Margin over the past 5 years is +1.56%.
The average ROA over the past 5 years is +10.71%.
The trend of ROA over the past 5 years is +1.68%.
The average ROE over the past 5 years is +19.02%.
The trend of ROE over the past 5 years is +0.45%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
The Debt/FCF trailing twelve month is 7.73.
The trend of Debt/FCF over the past 5 years is -1.09.
Graham’s Stability measure stands at 0.39.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
The Revenue CAGR over the past 5 years is +8.48%.
The trend of Revenue growth rate over the past 5 years is +0.19%.
The Earnings CAGR over the past 5 years is +18.6%.
The trend of Earnings growth rate over the past 5 years is +14.18%.
The Equity CAGR over the past 5 years is +17.25%.
The trend of Equity growth rate over the past 5 years is +2.12%.
The FCF CAGR over the past 5 years is +18.17%.
The trend of FCF growth rate over the past 5 years is +8.55%.