ONON
US • —
$94.54
P/E
67.51
PEG
—
FCF Yield
—
Rev Growth YoY
-9.0% YoY
Gross Margin
37.5%
Health Score
6/10
D/E Ratio
0.39
Confidence
MEDIUM
Business Snapshot
ON Semiconductor (ON) is a semiconductor manufacturer primarily focused on power management, sensing, and connectivity solutions for automotive, industrial, and cloud-power end markets. The company operates in the highly cyclical semiconductor industry, holding a competitive position as a supplier of intelligent power and sensing technologies, particularly in the automotive sector. With a market capitalisation that is not available in the provided data, establishing its exact size tier is not possible, though its P/E and P/S ratios suggest a large-cap or established mid-cap profile. A defining characteristic is its focus on energy-efficient solutions, positioning it to benefit from secular trends in electric vehicles and industrial automation, though recent data shows it is navigating a demand downturn.
Financial Health
The company reports a gross margin of 37.5% and a net margin of 9.5%, indicating reasonable profitability but without a prior year comparison for gross margin to assess the trend. The balance sheet appears healthy, with a conservative Debt/Equity ratio of 0.39x and a strong Current Ratio of 4.52x, providing ample short-term liquidity and financial flexibility...
Risk Assessment
- VALUATION — P/E of 67.51x is over 3x the sector average of 22x, pricing in optimistic future growth that current revenue trends do not support.
- REVENUE DECELERATION — Revenue declined 9.0% YoY, signalling a contraction in the core business during a period when the market is applying a premium valuation.
- INSIDER — 3 insider sells versus 0 buys over the last 90 days indicate a bearish sentiment from those with the most intimate knowledge of the company.
- EARNINGS QUALITY — Only 2 of the last 4 quarters beat analyst estimates, suggesting mixed earnings predictability and guidance credibility.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
The company reports a gross margin of 37.5% and a net margin of 9.5%, indicating reasonable profitability but without a prior year comparison for gross margin to assess the trend. The balance sheet appears healthy, with a conservative Debt/Equity ratio of 0.39x and a strong Current Ratio of 4.52x, providing ample short-term liquidity and financial flexibility. Free cash flow data is not available in the payload, preventing an assessment of cash generation or burn, which is a notable gap in evaluating financial health. Return on equity stands at 7.4%, a moderate figure that suggests capital efficiency is adequate but not exceptional. Overall, the company has a sound balance sheet with low leverage, supporting its ability to reinvest in the business, though the absence of FCF data leaves a critical question about its cash conversion quality unanswered.
- VALUATION — P/E of 67.51x is over 3x the sector average of 22x, pricing in optimistic future growth that current revenue trends do not support. - REVENUE DECELERATION — Revenue declined 9.0% YoY, signalling a contraction in the core business during a period when the market is applying a premium valuation. - INSIDER — 3 insider sells versus 0 buys over the last 90 days indicate a bearish sentiment from those with the most intimate knowledge of the company. - EARNINGS QUALITY — Only 2 of the last 4 quarters beat analyst estimates, suggesting mixed earnings predictability and guidance credibility. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
Unlock the full AI report
Full 8-section analysis includes:
Metric deep-dives