ONON Semiconductor Corporation demonstrates solid fundamentals with strong profitability and a healthy balance sheet. Its position in intelligent sensing and power solutions aligns with key growth themes. However, recent performance and some technical indicators suggest a cautious approach is warranted due to potential short-term headwinds. The company is suitable for investors seeking exposure to the semiconductor industry's long-term growth, particularly in automotive and industrial applications.
ON Semiconductor is well-positioned to benefit from significant secular growth trends in automotive electrification, industrial automation, and cloud computing, driven by its focus on intelligent sensing and power solutions.
ON Semiconductor demonstrates strong financial health with robust profitability and effective revenue-to-profit conversion. The company manages its debt levels prudently, supported by consistent free cash flow generation.
Current technical indicators present a mixed picture. While longer-term moving averages suggest an underlying bullish trend, shorter-term indicators and recent price action indicate potential downward pressure or consolidation.
| Factor | Score |
|---|---|
| Automotive Electrification & ADAS | 90 |
| Industrial Automation & IoT | 85 |
| Cloud Computing & Data Centers | 70 |
| ESG & Sustainability | 65 |
| Supply Chain Resilience | 70 |
| Factor | Score |
|---|---|
| Valuation | 40 |
| Profitability | 90 |
| Growth | 45 |
| Balance Sheet Health | 80 |
| Cash Flow | 85 |
| Factor | Score |
|---|---|
| Trend Analysis | 60 |
| Momentum | 65 |
| Volume Confirmation | 70 |
| Support & Resistance | 75 |
Undervalued by Historical Standards
The trailing P/E ratio of 38.5 is above the current market average, but the company's historical P/E has often been higher, suggesting potential undervaluation relative to its own past trading multiples.
Improving Net Margins
Net margins have shown an upward trend from 15.0% in 2021 to 22.2% in 2024, indicating increasing efficiency in converting revenue to profit.
High P/E Ratio
The trailing P/E ratio of 38.5 is significantly higher than the sector average, suggesting the stock may be overvalued compared to its peers.
Declining Revenue and Net Income
Revenue and net income have decreased in the latest reported periods (e.g., 2024Q4 vs. 2023Q4), indicating a potential slowdown in business growth.
August 2025
4
Next Earnings Date
H: $0.58
A: $0.53
L: $0.50
H: 1.47B
A: 1.45B
L: 1.43B
ON Semiconductor Corporation provides intelligent sensing and power solutions in Hong Kong, Singapore, the United Kingdom, 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.
58.00 USD
The 39 analysts offering 1 year price forecasts for ON have a max estimate of 75.00 and a min estimate of 33.00.