On Semiconductor reports roughly 1.04
B in cash with 936.8
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.44.
On Semiconductor has
performance score of 3 on a scale of 0 to 100. The company owns a Beta (Systematic Risk) of 1.3496, which implies a somewhat significant risk relative to the market. Let's try to break down what On Semiconductor's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, On Semiconductor will likely underperform. Although it is extremely important to respect
On Semiconductor existing
price patterns, it is better to be realistic regarding the information on equity
price patterns. The approach into 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. By analyzing
On Semiconductor technical indicators, you can today evaluate if the expected return of 0.0972% will be sustainable into the future.
On Semiconductor now owns a risk of 2.1%. Please check On Semiconductor
standard deviation, as well as the
relationship between the maximum drawdown and
expected short fall to decide if On Semiconductor will be following its current price history.
Investing in ON Semiconductor, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding ON Semiconductor along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, frequently view the market will even out over time. This tendency of ON Semiconductor's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of ON Semiconductor in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as ON Semiconductor. Your research has to be compared to or analyzed against ON Semiconductor's peers to derive any actionable benefits. When done correctly, ON Semiconductor's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in ON Semiconductor.
How important is ON Semiconductor's Liquidity
ON Semiconductor
financial leverage refers to using borrowed capital as a funding source to finance ON Semiconductor ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ON Semiconductor financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to ON Semiconductor's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of ON Semiconductor's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between ON Semiconductor's total debt and its cash.
ON Semiconductor Correlation with Peers
Investors in ON Semiconductor can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in ON Semiconductor. Diversification will allow for the same portfolio return with reduced risk. The correlation table of ON Semiconductor and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities ON Semiconductor is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of ON Semiconductor for more details
Breaking it down a bit more
We consider On Semiconductor very steady.
On Semiconductor retains Efficiency (Sharpe Ratio) of 0.0462, which implies the firm had 0.0462% of return per unit of price deviation over the last 3 months. Our approach into forecasting the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-one
technical indicators for On Semiconductor, which you can use to evaluate the future volatility of the company. Please check On Semiconductor
market risk adjusted performance of
(0.046368), and Standard Deviation of 2.2 to confirm if the risk estimate we provide is consistent with the expected return of 0.0972%.
Will price continue to rise in September 2021?
Latest kurtosis is at -0.59. 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 Takeaway
Whereas some other entities under the semiconductors industry are still a bit expensive, On Semiconductor may offer a potential longer-term growth to institutional investors. The bottom line, as of the 2nd of August 2021, we believe On Semiconductor is currently
undervalued. It responds to the market and projects
very low probability of distress in the next two years. Our present 90 days buy-hold-sell recommendation on the company is
Strong Hold.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of ON Semiconductor. Please refer to our
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