ON Semiconductor ON
ON Semiconductor designs and manufactures power semiconductors and sensors for automotive, industrial, and data center applications, with a high-margin business model focused on energy efficiency. ON Semiconductor shows solid financial health (ND/EBITDA of 0.40) and 36.60% earnings growth, with a valuation that, although demanding on P/E (51.13), is supported by a PEG of 0.17 and an FCF yield of 5.51%.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
ON Semiconductor designs and manufactures power semiconductors and sensors for automotive, industrial, and data center applications, with a high-margin business model focused on energy efficiency. ON Semiconductor shows solid financial health (ND/EBITDA of 0.40) and 36.60% earnings growth, with a valuation that, although demanding on P/E (51.13), is supported by a PEG of 0.17 and an FCF yield of 5.51%.
Score by category
| Category | Score |
|---|---|
| Financial health | 7.6 |
| Quality / Moat | 5.8 |
| Valuation | 6.8 |
| Growth | 7.6 |
| Dividend | 1.5 |
| Momentum | 7.5 |
| Risk & Context | 1.6 |
OVERALL SCORE: 5.9/10
Context and risks
The rise in 10-year Treasury yields (5.17%) and geopolitical tensions affecting the tech sector pressure ON's valuation, a growth company with a P/E of 51.13. However, its low leverage (ND/EBITDA of 0.40) mitigates the impact on its financial health.
News considered in the analysis
- Prediction: ON Semiconductor Could Be a Sleeper AI Infrastructure Winner — Artículo de opinión que destaca el potencial de ON en IA, pero sin hechos concretos nuevos; refuerza el sentimiento positivo ya presente.
- ON Semiconductor (ON) Stock Stays Near Fair Value Despite Its 69% Run — Análisis de valoración sin información nueva; el mercado ya ha descontado la subida.
- Penguin Solutions and onsemi Shares Skyrocket, What You Need To Know — Menciona una subida fuerte de la acción, probablemente ligada a noticias de IA o resultados; sugiere momentum positivo no totalmente descontado.
- ON Semiconductor (ON) Could Be 28% Below Fair Value As Product Momentum Builds — Análisis de valoración que sugiere infravaloración, basado en el impulso de producto; refuerza la tesis alcista sin ser un evento confirmado.
- Update: Dow Snaps 3-Day Losing Streak as Oil Retreats; Wall Street Logs Weekly Gains — Noticia de mercado general sin impacto específico en ON Semiconductor.
Verdict: Hold or buy on dips, given strong growth and reasonable valuation on a PEG basis, but watch the impact of rising interest rates on its multiple.
Main risk: The main risk is its high beta (2.1) and the sensitivity of its valuation (P/E 51.13) to a rising interest rate environment, which could compress its multiple despite solid growth.
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