ON Semiconductor Corporation
Find Ratings ReportsON SEMICONDUCTOR CORP's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. ON SEMICONDUCTOR CORP has strong liquidity. Currently, the Quick Ratio is 1.61 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 25.75% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 2018.1 | 2103.6 |
EBITDA ($mil) | 783.7 | 833.6 |
EBIT ($mil) | 623.4 | 700.4 |
Net Income ($mil) | 562.7 | 604.3 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 2485.0 | 2965.2 |
Total Assets ($mil) | 13215.2 | 11978.5 |
Total Debt ($mil) | 3623.8 | 3512.4 |
Equity ($mil) | 7782.6 | 6188.5 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 54.02 | 53.91 |
EBITDA Margin | 38.83 | 39.62 |
Operating Margin | 30.89 | 33.3 |
Sales Turnover | 0.62 | 0.7 |
Return on Assets | 16.52 | 15.88 |
Return on Equity | 28.06 | 30.74 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 2.71 | 2.78 |
Debt/Capital | 0.32 | 0.36 |
Interest Expense | 15.8 | 27.5 |
Interest Coverage | 39.46 | 25.47 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 426.39 | 431.94 |
Div / share | 0.0 | 0.0 |
EPS | 1.28 | 1.35 |
Book value / share | 18.25 | 14.33 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 7397543.0 | 7076188.0 |
BUY. ON SEMICONDUCTOR CORP's P/E ratio indicates a significant discount compared to an average of 53.34 for the Computer and Electronic Product Manufacturing subsector and a significant discount compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 4.23 indicates a discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 23.59. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average. Upon assessment of these and other key valuation criteria, ON SEMICONDUCTOR CORP proves to trade at a discount to investment alternatives.
Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
ON 15.78 | Peers 53.34 | ON 16.64 | Peers 44.47 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. ON is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. ON is trading at a significant discount to its peers. |
|||||||||||||||||||||||
Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
ON 14.78 | Peers 26.06 | ON NM | Peers 1.95 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. ON is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. ON's negative PEG ratio makes this valuation measure meaningless. |
|||||||||||||||||||||||
Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
ON 4.23 | Peers 23.59 | ON 15.05 | Peers 123.02 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. ON is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, ON is expected to significantly trail its peers on the basis of its earnings growth rate. |
|||||||||||||||||||||||
Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
ON 3.99 | Peers 14.13 | ON -0.88 | Peers 27.20 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. ON is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. ON significantly trails its peers on the basis of sales growth. |
|||||||||||||||||||||||