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ON Semiconductor Corporation (ON)



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Upturn Advisory Summary
02/18/2025: ON (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -34.18% | Avg. Invested days 22 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 21.84B USD | Price to earnings Ratio 14.28 | 1Y Target Price 61.04 |
Price to earnings Ratio 14.28 | 1Y Target Price 61.04 | ||
Volume (30-day avg) 9383945 | Beta 1.61 | 52 Weeks Range 46.57 - 85.16 | Updated Date 02/18/2025 |
52 Weeks Range 46.57 - 85.16 | Updated Date 02/18/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 3.63 |
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-02-03 | When Before Market | Estimate 0.9737 | Actual 0.95 |
Profitability
Profit Margin 22.21% | Operating Margin (TTM) 25.95% |
Management Effectiveness
Return on Assets (TTM) 8.74% | Return on Equity (TTM) 18.95% |
Valuation
Trailing PE 14.28 | Forward PE 20.33 | Enterprise Value 22217857012 | Price to Sales(TTM) 3.08 |
Enterprise Value 22217857012 | Price to Sales(TTM) 3.08 | ||
Enterprise Value to Revenue 3.14 | Enterprise Value to EBITDA 8.74 | Shares Outstanding 421420992 | Shares Floating 419339307 |
Shares Outstanding 421420992 | Shares Floating 419339307 | ||
Percent Insiders 0.41 | Percent Institutions 104.14 |
AI Summary
ON Semiconductor Corporation: A Comprehensive Overview
Company Profile
History and Background
ON Semiconductor Corporation (ON Semi) was founded in 1999 as a spin-off from Motorola's semiconductor division. Headquartered in Phoenix, Arizona, the company operates as a leading supplier of power management, analog, and sensor solutions for various industries, including automotive, industrial, communications, consumer, and medical.
Over the years, ON Semi has grown through strategic acquisitions and organic growth initiatives. Key acquisitions include Fairchild Semiconductor in 2016 and Quantenna Communications in 2019, expanding its product portfolio and market reach.
Core Business Areas
ON Semi focuses on three core business areas:
- Power Solutions: This segment offers a wide range of power management solutions, including MOSFETs, IGBTs, voltage regulators, and power modules, catering to various applications like electric vehicles, industrial automation, and power supplies.
- Analog Solutions: This segment provides analog and mixed-signal integrated circuits, including operational amplifiers, comparators, data converters, and voltage references, used in diverse applications like automotive sensors, medical devices, and consumer electronics.
- Sensor Solutions: This segment offers a range of sensors, including image sensors, pressure sensors, and temperature sensors, catering to applications like automotive safety systems, industrial automation, and consumer electronics.
Leadership and Corporate Structure
ON Semi's leadership team comprises experienced executives with expertise in various areas of the semiconductor industry. The current CEO is Hassane El-Khoury, who has been leading the company since 2018. The Board of Directors consists of nine members with diverse backgrounds and expertise. The company operates in a decentralized structure with dedicated business units focusing on specific product segments and market verticals.
Top Products and Market Share
Top Products and Offerings
ON Semi's top products include:
- Intelligent Power Modules (IPMs): These modules integrate power MOSFETs, gate drivers, and protection circuits for efficient and reliable motor control in automotive and industrial applications.
- Image Sensors: ON Semi offers a range of CMOS image sensors for automotive, security, and industrial applications, providing high-resolution and low-light performance.
- Analog and Mixed-Signal ICs: The company provides a diverse portfolio of analog and mixed-signal ICs for various applications, including amplifiers, comparators, and voltage regulators.
Market Share Analysis
ON Semi holds a significant market share in several product segments:
- MOSFETs: 16% global market share, ranking second behind Infineon Technologies.
- IGBTs: 10% global market share, ranking third behind Infineon Technologies and Mitsubishi Electric.
- Image Sensors: 7% global market share, ranking fourth behind Sony, Samsung, and OmniVision.
Product Performance and Market Reception
ON Semi's products are generally well-received in the market, recognized for their performance, reliability, and innovative features. The company consistently invests in R&D to maintain its competitive edge and develop differentiated solutions.
Total Addressable Market
The total addressable market (TAM) for ON Semi's products is estimated to be over $200 billion, encompassing various industries and applications. This includes:
- Automotive: $80 billion
- Industrial: $60 billion
- Communications: $40 billion
- Consumer: $20 billion
Financial Performance
Recent Financial Statements Analysis
ON Semi's recent financial performance has been positive, with consistent revenue growth and improving profitability.
- Revenue: $6.2 billion in 2022, reflecting a 28% year-over-year increase.
- Net Income: $690 million in 2022, an increase of 123% compared to 2021.
- Profit Margins: Gross margin of 39% and operating margin of 18%.
- Earnings per Share (EPS): $2.98 in 2022, a significant improvement from $1.34 in 2021.
Financial Performance Comparison
ON Semi has outperformed its peers in terms of revenue growth and profitability. The company's gross and operating margins are higher than the industry average, indicating efficient cost management and pricing strategies.
Cash Flow and Balance Sheet Health
ON Semi has a strong cash flow position with $450 million in operating cash flow in 2022. The company also maintains a healthy balance sheet with manageable debt levels and adequate cash reserves.
Dividends and Shareholder Returns
Dividend History
ON Semi has a history of paying dividends to shareholders. The current annual dividend yield is approximately 1.5%, with a payout ratio of 40%. The company has increased its dividend payout in recent years, indicating management's confidence in the company's future prospects.
Shareholder Returns
ON Semi's stock has generated positive returns for shareholders, with a 5-year total return of over 100%. The company's strong financial performance and growth initiatives have contributed to its stock price appreciation.
Growth Trajectory
Historical Growth Analysis
ON Semi has experienced significant growth over the past 5-10 years, driven by strong market demand, strategic acquisitions, and new product introductions. The company's revenue has grown at a compound annual growth rate (CAGR) of over 10% during this period.
Future Growth Projections
ON Semi projects continued growth in the coming years, fueled by increasing demand for power management, analog, and sensor solutions in various industries. The company's focus on innovation and strategic partnerships is expected to drive further expansion.
Recent Initiatives for Growth
ON Semi has recently launched several new products and initiatives to support its growth objectives:
- Silicon Carbide (SiC) MOSFETs: The company is investing in SiC technology to develop next-generation power devices for electric vehicles and other applications.
- Automotive Radar Sensors: ON Semi is expanding its presence in the automotive radar sensor market with new products and partnerships.
- 5G and IoT Solutions: The company is developing solutions for 5G and IoT applications, targeting opportunities in connected devices and infrastructure.
Market Dynamics
Industry Overview
The semiconductor industry is characterized by rapid technological advancements, intense competition, and global demand. ON Semi operates in a dynamic environment with opportunities and challenges.
Industry Trends
Key industry trends include:
- Increasing Demand for Power Management Solutions: The proliferation of electric vehicles, renewable energy, and connected devices is driving demand for efficient power management solutions.
- Growing Adoption of Sensors: The rise of IoT, automation, and artificial intelligence is fueling the demand for various types of sensors.
- Technological Advancements: Advancements in materials, semiconductor processes, and packaging are continuously improving the performance and efficiency of electronic devices.
ON Semi's Positioning
ON Semi is well-positioned in the industry with a diversified product portfolio, strong customer relationships, and a focus on innovation. The company is actively adapting to market changes and developing solutions for emerging trends.
Competitors
Key Competitors
ON Semi's main competitors include:
- Infineon Technologies (IFX)
- Texas Instruments (TXN)
- STMicroelectronics (STM)
- Renesas Electronics (6723)
- NXP Semiconductors (NXPI)
Market Share Comparison
ON Semi holds a market share of approximately 4% in the global semiconductor market, placing it among the top 10 players. The company holds a strong position in specific product segments, such as MOSFETs and IGBTs.
Competitive Advantages
ON Semi's competitive advantages include:
- Broad Product Portfolio: The company offers a wide range of power management, analog, and sensor solutions, catering to diverse customer needs.
- Strong Customer Relationships: ON Semi has established long-standing relationships with leading OEMs and distributors worldwide.
- Focus on Innovation: The company invests heavily in R&D to develop differentiated products and technologies.
Competitive Disadvantages
ON Semi also faces some challenges:
- Intense Competition: The semiconductor industry is highly competitive, with numerous players vying for market share.
- Supply Chain Issues: The global chip shortage has impacted ON Semi's production and delivery timelines.
- Technological Advancements: Keeping pace with rapid technological advancements can be challenging.
Potential Challenges and Opportunities
Key Challenges
ON Semi faces several key challenges:
- Supply Chain Disruptions: The ongoing global chip shortage and geopolitical tensions could impact the company's ability to source critical components.
- Technological Disruption: Emerging technologies like SiC and GaN could challenge the market position of existing products.
- Competition: Intense competition from established players and new entrants could put pressure on ON Semi's market share and profitability.
Potential Opportunities
ON Semi has several potential opportunities:
- Growth in Emerging Markets: Expanding in emerging markets with high growth potential, such as China and India.
- New Applications: Developing solutions for new applications in areas like automotive electrification, industrial automation, and 5G.
About ON Semiconductor Corporation
Exchange NASDAQ | Headquaters Scottsdale, AZ, United States | ||
IPO Launch date 2000-04-28 | President, CEO & Director Mr. Hassane S. El-Khoury | ||
Sector Technology | Industry Semiconductors | Full time employees 26400 | Website https://www.onsemi.com |
Full time employees 26400 | Website https://www.onsemi.com |
ON Semiconductor Corporation provides intelligent sensing and power solutions in the United States and internationally. The company operates through three segments Power Solutions Group, Analog and Mixed-Signal Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module and integrated semiconductor products that perform multiple application functions, including power switching, signal conditioning, and circuit protection. The Analog and Mixed-Signal Group segment designs and develops analogues, mixed-signal, power management ICs, sensor interface devices, power conversion, signal chain, and voltage regulation devices for end-users in the automotive, industrial, computing and mobile end-markets. The Intelligent Sensing Group segment designs and develops complementary metal oxide semiconductor image sensors, image signal processors, single photon detectors, including silicon photomultipliers, single photon avalanche diode arrays, and short-wavelength infrared products, as well as actuator drivers for autofocus and image stabilization for a broad base of end-users in the different end-markets. ON Semiconductor Corporation was incorporated in 1992 and is headquartered in Scottsdale, Arizona.
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