Why is ON Semiconductor Corp. ?
1
High Management Efficiency with a high ROCE of 23.83%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 2.10 times
3
Healthy long term growth as Operating profit has grown by an annual rate 12.48%
4
The company has declared positive results in Mar'2026 after 9 consecutive negative quarters
- INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
- OPERATING PROFIT(Q) Highest at USD 562.6 MM
- OPERATING PROFIT MARGIN(Q) Highest at 37.18 %
5
With ROCE of 9.19%, it has a very expensive valuation with a 4.09 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 132.72%, its profits have fallen by -54.2%
6
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Market Beating Performance
- The stock has generated a return of 132.72% in the last 1 year, much higher than market (S&P 500) returns of 25.41%
How much should you hold?
- Overall Portfolio exposure to ON Semiconductor Corp. should be less than 10%
- Overall Portfolio exposure to Other Electrical Equipment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is ON Semiconductor Corp. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
ON Semiconductor Corp.
132.72%
1.19
55.02%
S&P 500
25.41%
1.92
13.25%
Quality key factors
Factor
Value
Sales Growth (5y)
2.67%
EBIT Growth (5y)
12.48%
EBIT to Interest (avg)
23.25
Debt to EBITDA (avg)
0.67
Net Debt to Equity (avg)
0.05
Sales to Capital Employed (avg)
0.63
Tax Ratio
13.89%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
23.83%
ROE (avg)
23.72%
Valuation Key Factors 
Factor
Value
P/E Ratio
43
Industry P/E
Price to Book Value
4.28
EV to EBIT
44.56
EV to EBITDA
23.24
EV to Capital Employed
4.09
EV to Sales
5.56
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
9.19%
ROE (Latest)
10.06%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
11What is working for the Company
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
OPERATING PROFIT(Q)
Highest at USD 562.6 MM
OPERATING PROFIT MARGIN(Q)
Highest at 37.18 %
RAW MATERIAL COST(Y)
Fallen by -96.17% (YoY
PRE-TAX PROFIT(Q)
At USD 284.7 MM has Grown at 42.67%
NET PROFIT(Q)
Highest at USD 295.9 MM
-4What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 1,396.6 MM
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.86 times
Here's what is working for ON Semiconductor Corp.
Operating Profit
Highest at USD 562.6 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 37.18 % and Grown
In each period in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
At USD 284.7 MM has Grown at 42.67%
over average net sales of the previous four periods of USD 199.55 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 295.9 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
At USD 295.9 MM has Grown at 53.78%
over average net sales of the previous four periods of USD 192.41 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Raw Material Cost
Fallen by -96.17% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 286.7 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Depreciation
At USD 286.7 MM has Grown at 33.41%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (USD MM)
Here's what is not working for ON Semiconductor Corp.
Operating Cash Flow
Lowest at USD 1,396.6 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Inventory Turnover Ratio
Lowest at 1.86 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio






