The company reports 3.49
B of total liabilities with total debt to equity ratio (D/E) of 0.96, which is normal for its line of buisiness. On Semiconductor is FAIRLY VALUED at 39.74 per share with modest projections ahead. The company has Net Profit Margin (PM) of
6.19 %, which may suggest that it has sound control over its expenditures, executes well on its competitive polices, or have a solid pricing strategies. This is very large. Likewise, it shows Net Operating Margin (NOM) of
21.05 %, which signifies that for every $100 of sales, it has a net operating income of 0.21.
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.
ON Semiconductor Gross Profit
ON Semiconductor Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing ON Semiconductor previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show ON Semiconductor Gross Profit growth over the last 10 years. Please check ON Semiconductor's
gross profit and other
fundamental indicators for more details.
Breaking it down a bit more
The latest indifference towards the small price fluctuations of On Semiconductor may encourage institutional investors to take a closer look at the company as it is trading at a share price of
39.06 on very low momentum in trading volume. The company executives did not add any value to On Semiconductor investors in
July. However, most investors can still diversify their portfolios with On Semiconductor to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.09. The current volatility is consistent with the ongoing market swings in
July 2021 as well as with On Semiconductor unsystematic, company-specific events.
| 2018 | 2019 | 2020 | 2021 (projected) |
Interest Expense | 128.2 M | 148.3 M | 170.54 M | 139.04 M | Gross Profit | 2.24 B | 1.97 B | 2.27 B | 1.95 B |
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.
| Operating Margin | 6.89 |
| EBITDA Margin | 15.96 |
| Gross Margin | 31.81 |
| Profit Margin | 4.85 |
On Semiconductor Net Income Per Employee is quite stable at the moment. Also, On Semiconductor Earnings Before Interest Taxes and Depreciation Amortization EBITDA is quite stable at the moment.
Will price continue to rise in September 2021?
On Semiconductor latest standard deviation surges over 2.2. On Semiconductor exhibits very low volatility with skewness of -0.16 and kurtosis of -0.59. However, we advise investors to further study On Semiconductor technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure On Semiconductor's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact On Semiconductor's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Take On On Semiconductor
Whereas other entities within the semiconductors industry are still a little expensive, even after the recent corrections, On Semiconductor may offer a potential longer-term growth to institutional investors. To conclude, as of the 1st of August 2021, our up-to-date 90 days buy-sell recommendation on the company is
Strong Hold. We believe On Semiconductor is
fairly valued with
very low probability of financial unrest for the next two years.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile 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
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