ON
ON Semiconductor
$80.44
▲ 2.7%Updated Aug 7, 11:30 AM ET
ON at a glance — five pillars scored 0–100 from real filed financials.
Overall: Weak · 32/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 132.7% over the last 12 months
Market Cap
$35.50B
P/E
55.73x
Forward P/E (est.)
57.38x
ROE
7.4%
Revenue Growth
-9.0%
EPS Growth
-2.9%
Profit Margin
9.5%
FCF Yield
5.3%
Debt / Equity
0.39x
ROIC
1.0%
Interest Coverage
1.13x
Current Ratio
4.87x
Dividend Yield
—
Implied Growth (rev. DCF)
4.8%
Rating Score
32/100
ON Semiconductor (ON) is a large-cap company in the Semiconductors industry, part of the Information Technology sector of the S&P 500, with a market value around $35.50B.
In its latest reported year it generated about $6.00B in revenue and $121.00M in net profit.
Our model rates ON Weak (32/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (10 years of history).
The numbers don't show a durable competitive advantage — margins, growth, or returns on capital have been unstable or thin. Great returns are still possible; they just aren't protected.
41.9% average over the last 3 years
±5.8 pts around 39.1% across 10 years
grew in 4 of the last 9 year-over-year periods
positive in 10 of 10 years
1.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what ON's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. ON trades near $80.44, around its 50-day average ($110.69) and 200-day average ($71.04). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 38 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. ON's is $9.84 (~12.2% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month ON found buyers near $86.47 (support) and sellers near $134.49 (resistance); its 52-week range is $44.56–$134.92. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.1× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
-2.9%
Revenue moved from $3.91B in 2016 to $6.00B in 2025, a 4.9% compound annual growth rate. The most recent year declined 9.0% year over year. Shrinking revenue is worth a closer look — is it cyclical or structural?
Gross Margin
33.1%
Operating Margin
1.4%
Net Margin
2.0%
ROE
7.4%
ON Semiconductor keeps about 9.5% of each sales dollar as net profit, with a 33.1% gross margin and 1.4% operating margin. Return on equity is 7.4% and return on invested capital about 1.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$3.00B
Net Debt
$1.00B
Net Debt / EBITDA
11.89x
Debt / Equity
0.39x
Leverage: debt-to-equity is 0.4x, and operating profit covers interest about 1.1x, with a current ratio of 4.9x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $3.00B of total debt against $2.00B of cash.
Operating CF
$1.76B
Free Cash Flow
$1.42B
FCF Margin
23.7%
In the latest year ON Semiconductor produced about $1.76B of operating cash flow and $1.42B of free cash flow after capital spending. That is a free-cash-flow yield of about 5.3% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
55.73x
P/S
7.84x
P/B
1.93x
EV / EBITDA
—
ON trades at 55.7x trailing earnings (about 57.4x on estimated forward earnings), 7.8x sales, and 1.9x book value. Reverse-engineering today's price implies the market expects roughly 4.8% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$37.15
Current price
$80.44
Starting FCF (latest 10-K)
$1.42B
Growth, years 1–5
-5.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where ON sits versus its Information Technology sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How ON stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (230 S&P 500 companies), ON ranks #91 of 230 by our overall rating. It trades at a premium versus the sector on earnings (55.7x P/E vs. 38.9x median) with a lower return on equity (7.4% vs. 17.5%) and slower revenue growth (-9.0% vs. 17.7%).
P/E vs sector
55.7x
median 38.9x
ROE vs sector
7.4%
median 17.5%
Growth vs sector
-9.0%
median 17.7%
Sector rank
#91
of 230 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 230 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $80.44 today · expected CAGR -28% – -20%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $6.18B | $6.36B | $6.55B | $6.75B | $6.95B |
| Net income | $185.26M | $190.82M | $196.54M | $202.44M | $208.51M |
| EPS | $0.42 | $0.43 | $0.45 | $0.46 | $0.47 |
| Share price (low) | $14.27 | $14.70 | $15.14 | $15.60 | $16.06 |
| Share price (high) | $23.51 | $24.21 | $24.94 | $25.69 | $26.46 |
| CAGR (low–high) | -82% / -71% | -57% / -45% | -43% / -32% | -34% / -25% | -28% / -20% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for ON:
- Healthy free-cash-flow yield (~5.3%) funds buybacks and dividends.
- A conservative balance sheet (debt/equity 0.4x) lowers risk.
The case against ON:
- Revenue growth is slow/negative (-9.0%), limiting the upside engine.
- Interest coverage is thin (1.1x), so debt costs bite.
- A rich 55.7x earnings multiple prices in a lot of growth.
- Our model's overall read is Weak (32/100).
Valuation risk — at 55.7x earnings, disappointing results could compress the multiple.
Growth risk — sluggish revenue (-9.0%) leaves little margin for execution missteps.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen weakly: ON Semiconductor is a large-cap information technology business with shrinking revenue, with modest profitability, and a sound balance sheet. It trades at 55.7x earnings, which our model scores Weak (32/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 38 Wall Street analysts covering ON recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more cautious over the last three months (-5 pts of buy ratings).
Latest SEC Filings
ON's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
ON — frequently asked questions
Is ON a good stock to buy?
We don't give buy or sell advice. Our model rates ON Semiconductor Weak (32/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is ON's rating on The Stocks School?
ON Semiconductor currently scores 32/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does ON's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from ON Semiconductor's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for ON calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this ON analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell ON. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.