ON Semiconductor Corp. (ON) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Advanced Micro Devices, Inc.

Broadcom Inc.

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Analog Devices, Inc.

Texas Instruments Incorporated

Intel Corp.

QUALCOMM, Inc.

NXP Semiconductors NV

ON Semiconductor Corp.

Microchip Technology, Inc.

Why is ON Semiconductor Corp. ?

The company has declared Negative results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 1,832.1 MM
INTEREST(HY) At USD 35.9 MM has Grown at 41.34%
ROCE(HY) Lowest at 5.72%

With ROCE of 16.05%, it has a fair valuation with a 3.55 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -33.26%, its profits have fallen by -41.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -33.26% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is ON Semiconductor Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

ON Semiconductor Corp.

-21.52%

-0.58

59.01%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.94%

EBIT Growth (5y)

24.21%

EBIT to Interest (avg)

23.25

Debt to EBITDA (avg)

0.67

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

0.69

Tax Ratio

13.89%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

23.83%

ROE (avg)

23.72%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.67

EV to EBIT

22.12

EV to EBITDA

14.88

EV to Capital Employed

3.55

EV to Sales

4.47

PEG Ratio

Dividend Yield

ROCE (Latest)

16.05%

ROE (Latest)

15.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

CASH AND EQV(HY)

Highest at USD 5,844.8 MM

-24What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 1,832.1 MM

INTEREST(HY)

At USD 35.9 MM has Grown at 41.34%

ROCE(HY)

Lowest at 5.72%

NET PROFIT(Q)

At USD 212.08 MM has Fallen at -33.83%

RAW MATERIAL COST(Y)

Grown by 17.66% (YoY

NET SALES(Q)

At USD 1,468.7 MM has Fallen at -11.86%

PRE-TAX PROFIT(Q)

At USD 251.4 MM has Fallen at -28.43%

Here's what is working for ON Semiconductor Corp.

Cash and Eqv

Highest at USD 5,844.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for ON Semiconductor Corp.

Operating Cash Flow

Lowest at USD 1,832.1 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Profit

At USD 212.08 MM has Fallen at -33.83%

over average net sales of the previous four periods of USD 320.51 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 35.9 MM has Grown at 41.34%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Sales

At USD 1,468.7 MM has Fallen at -11.86%

over average net sales of the previous four periods of USD 1,666.32 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Pre-Tax Profit

At USD 251.4 MM has Fallen at -28.43%

over average net sales of the previous four periods of USD 351.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Raw Material Cost

Grown by 17.66% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.13 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income