On Semiconductor Story

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ON -- USA Stock  

USD 37.74  2.92  7.18%

As many investors are getting excited about technology space, it is fair to outline ON Semiconductor. We will check why this entity may not get much respect from institutional investors given the current market uncertainty. What is the stock valuation so far in 2021? We are going to cover ON Semiconductor perspective on valuation to give investors a better transparency on taking a position in it.
Published over three weeks ago
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Is ON Semiconductor outlook positive for March 2021?
This firm reports 4.39 B of total liabilities with total debt to equity ratio (D/E) of 1.27, which is normal for its line of buisiness. On a scale of 0 to 100, ON Semiconductor holds a performance score of 20. The company owns a Beta (Systematic Risk) of 0.1323, which implies not very significant fluctuations relative to the market. Let's try to break down what ON Semiconductor's beta means in this case. As returns on the market increase, ON Semiconductor returns are expected to increase less than the market. However, during the bear market, the loss on holding ON Semiconductor will be expected to be smaller as well. Although it is vital to follow ON Semiconductor existing price patterns, it is good to be conservative about what you can do with the information regarding equity price patterns. The way in which we are forecasting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-seven technical indicators for ON Semiconductor, which you can use to evaluate the performance of the company. Please employ ON Semiconductor maximum drawdown, and the relationship between the information ratio and expected short fall to make a quick decision on whether ON Semiconductor current price history will revert.
We determine the current worth of On Semiconductor using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of On Semiconductor based exclusively on its fundamental and basic technical indicators. By analyzing On Semiconductor's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of On Semiconductor's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of On Semiconductor. We calculate exposure to On Semiconductor's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to On Semiconductor's related companies.

On Semiconductor Investment Alerts

On Semiconductor investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring On Semiconductor performance across your portfolios.Please check all investment alerts for On Semiconductor

On Semiconductor Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare On Semiconductor value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across On Semiconductor competition to find correlations between indicators driving the intrinsic value of On Semiconductor.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for On Semiconductor, but it might be worth checking our own buy vs. sell analysis

Acquisition by Thad Trent of 38232 shares of On Semiconductor subject to Rule 16b-3

Legal trades by On Semiconductor insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
On Semiconductor insider trading alert for grant of common by Thad Trent, Exec VP & CFO, on 18th of February 2021. This event was filed by On Semiconductor Corp with SEC on 2021-02-18. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving On Semiconductor Investor Appetite?

The latest price rise of ON Semiconductor may encourage institutional investors to take a closer look at the company as it is trading at a share price of 34.49 on 7,943,300 in trading volume. The company executives may have good odds in positioning the company resources to exploit market volatility in March. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.95. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
 2018 2019 2020 2021 (projected)
Long Term Debt to Equity0.830.870.780.73
Interest Coverage6.943.133.64.65

Margins Breakdown

ON Semiconductor profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or ON Semiconductor itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of ON Semiconductor profit margins.
Profit Margin
Operating Margin
Operating Margin7.17
EBITDA Margin14.94
Gross Margin31.65
Profit Margin4.38

ON Semiconductor Earnings Before Interest Taxes and Depreciation Amortization USD is quite stable at the moment. Further, ON Semiconductor Revenue Per Employee is increasing over the last 8 years. ON Semiconductor Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. Further, ON Semiconductor Revenue Per Employee is increasing over the last 8 years. The previous year's value of ON Semiconductor Revenue Per Employee was 182,195.

Another setback for ON Semiconductor institutional investors

The standard deviation is down to 2.02 as of today. ON Semiconductor has relatively low volatility with skewness of -0.26 and kurtosis of 0.09. However, we advise all investors to independently investigate ON Semiconductor to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Whereas some companies under the semiconductors industry are still a bit expensive, ON Semiconductor may offer a potential longer-term growth to institutional investors. With an optimistic outlook on your 30 days horizon, it may be a good time to buy new shares of ON Semiconductor or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to ON Semiconductor.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of On Semiconductor. Please refer to our Terms of Use for any information regarding our disclosure principles.

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