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On Semiconductor Corp

ON

Semiconductors & Related Devices

Mkt Cap

$28.7B

PE

13.14

Debt

$4.174B

Cash

$2.485B

EV

$30.39B

FCF

$401.9M

Market Cap

$28.7B

P/E Ratio

13.14

Debt

$4.174B

Cash

$2.485B

EV

$30.39B

FCF

$401.9M
Charts data: {"Earnings":[{"time":"2014-12-30","value":189700000},{"time":"2015-12-30","value":206200000},{"time":"2016-12-30","value":182100000},{"time":"2017-12-30","value":810700000},{"time":"2018-12-30","value":627400000},{"time":"2019-12-30","value":211700000},{"time":"2020-12-30","value":234200000},{"time":"2021-12-30","value":1009600000},{"time":"2022-12-30","value":1902200000},{"time":"2023-12-30","value":2183700000}],"Sales":[{"time":"2014-12-30","value":3161800000},{"time":"2015-12-30","value":3495800000},{"time":"2016-12-30","value":3906900000},{"time":"2017-12-30","value":5543100000},{"time":"2018-12-30","value":5878300000},{"time":"2019-12-30","value":5517900000},{"time":"2020-12-30","value":5255000000},{"time":"2021-12-30","value":6739800000},{"time":"2022-12-30","value":8326200000},{"time":"2023-12-30","value":8253000000}],"Net Margins":[{"time":"2014-12-30","value":0.059997469795686},{"time":"2015-12-30","value":0.058985067795640486},{"time":"2016-12-30","value":0.04660984412193811},{"time":"2017-12-30","value":0.14625390124659488},{"time":"2018-12-30","value":0.10673153802970246},{"time":"2019-12-30","value":0.03836604505337175},{"time":"2020-12-30","value":0.044567078972407234},{"time":"2021-12-30","value":0.14979672987329},{"time":"2022-12-30","value":0.22845956138454518},{"time":"2023-12-30","value":0.26459469283896764}],"Assets":[{"time":"2014-12-30","value":3823000000},{"time":"2015-12-30","value":3869600000},{"time":"2016-12-30","value":6924400000},{"time":"2017-12-30","value":7195100000},{"time":"2018-12-30","value":7587600000},{"time":"2019-12-30","value":8425500000},{"time":"2020-12-30","value":8668000000},{"time":"2021-12-30","value":9626000000},{"time":"2022-12-30","value":11978500000},{"time":"2023-12-30","value":13215200000}],"Stockholders Equity":[{"time":"2014-12-30","value":1647400000},{"time":"2015-12-30","value":1631900000},{"time":"2016-12-30","value":1845000000},{"time":"2017-12-30","value":2801000000},{"time":"2018-12-30","value":3194100000},{"time":"2019-12-30","value":3324100000},{"time":"2020-12-30","value":3558100000},{"time":"2021-12-30","value":4604400000},{"time":"2022-12-30","value":6207000000},{"time":"2023-12-30","value":7800600000}],"ROE":[{"time":"2014-12-30","value":0.1151511472623528},{"time":"2015-12-30","value":0.12635578160426497},{"time":"2016-12-30","value":0.09869918699186991},{"time":"2017-12-30","value":0.2894323455908604},{"time":"2018-12-30","value":0.1964246579631195},{"time":"2019-12-30","value":0.06368641135946572},{"time":"2020-12-30","value":0.06582164638430624},{"time":"2021-12-30","value":0.21926852575797065},{"time":"2022-12-30","value":0.3064604478814242},{"time":"2023-12-30","value":0.2799400046150296}],"ROA":[{"time":"2014-12-30","value":0.05987444415380591},{"time":"2015-12-30","value":0.06964544138929088},{"time":"2016-12-30","value":0.047065449714054644},{"time":"2017-12-30","value":0.09571791913941433},{"time":"2018-12-30","value":0.11640044282777162},{"time":"2019-12-30","value":0.051356002611121},{"time":"2020-12-30","value":0.040228426395939085},{"time":"2021-12-30","value":0.13382505713692083},{"time":"2022-12-30","value":0.2051258504821138},{"time":"2023-12-30","value":0.19210454628004117}]}

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.

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Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$401.9M$475M$554.3M$638.9M$726.9M$816.5M$905.1M$990.2M$1.069B$1.138B$1.195B$11.95B
DCF$413M$419.2M$420.1M$415.6M$405.9M$391.3M$372.2M$349.3M$323.4M$295.3M$2.953B
Value$6.758B

In the chart Earnings are multiplied by this value.

Earnings Growth 32%
Earnings Stability 55%


Competitiveness and MOAT

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.

Years12-201512-201612-201712-201812-201912-202012-202112-202212-2023TTM
Net Margin5.9%4.7%15%11%3.8%4.5%15%23%26%26%
ROA7%4.7%9.6%12%5.1%4%13%21%19%19%
ROE13%9.9%29%20%6.4%6.6%22%31%28%28%

What is the average Net Margin?

The average Net Margin over the past 5 years is +13.88%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +4.19%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +12.32%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +2.67%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +18.86%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +3.71%.


Safety & Stabiliy

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.

Years12-201512-201612-201712-201812-201912-202012-202112-202212-2023TTM
Debt FCF10.3111.774.844.0528.018.232.562.0710.3910.39
Debt Equity1.262.361.220.961.351.160.740.540.540.54
MIN
Graham Stability--100%100%39%43%100%100%100%39%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 10.39.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -1.48.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.39.


Growth

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.

Years12-201612-201812-202012-2022Trend
Revenue11%7%16%-0.88%-0.81%
Net Income43%28%110%15%5.5%
Stockholders Equity23%20%30%26%2%
FCF1.2%-12%-7.1%-75%-0.38%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +7.02%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.81%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +28.33%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +5.5%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +19.55%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +2%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -11.95%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -0.38%.