ON Semiconductor (ON) AI Stock Analysis

• Market Cap: $19.43B
• Dividend Yield: N/A
• Average Volume (3M): 9.21M
• Price to Earnings (P/E): 65.4
• Beta (1Y): 1.46
• Revenue Growth: -16.13%
• EPS Growth: -81.06%
• Country: US
• Employees: 26,400
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.63
• Shares Outstanding: 402,378,420
• 10 Day Avg. Volume: 11,028,919
• 30 Day Avg. Volume: 9,205,033
• PEG Ratio: -0.62
• Price to Book (P/B): 3.06
• Price to Sales (P/S): 3.80
• P/FCF Ratio: 22.23
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 3.37
• Enterprise Value/Gross Profit: 9.44
• Enterprise Value/Ebitda: 22.78
• 1Y Price Target: $59.00
• Price Target Upside: 20.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $55.00 ▲(12.70% Upside)

ON Semiconductor's overall stock score is driven by a solid earnings call performance and strong cash flow generation, despite challenges in revenue growth and valuation concerns. The company's strategic focus on key growth areas like AI and automotive, along with effective cash management, supports its long-term potential.

Positive Factors

Strategic Acquisitions

These acquisitions enhance ON Semiconductor's analog and mixed-signal offerings, positioning the company for growth in AI and data centers.

Automotive and Industrial Growth

Growth in these sectors reflects stabilization and demand normalization, crucial for long-term revenue stability and market leadership.

Technological Innovations

These innovations indicate strong R&D progress, enhancing ON Semiconductor's market leadership in power solutions and energy efficiency.

Negative Factors

Declining Revenue and Margins

The decline in revenue and profit margins poses a risk to future profitability, challenging the company's ability to sustain long-term growth.

Regional Revenue Declines

These regional declines highlight challenges in key markets, potentially affecting the company's global revenue base and growth prospects.

Impact of Noncore Business Exits

While focusing on core strengths, these exits create short-term revenue headwinds, impacting overall financial performance and growth.

ON Semiconductor Business Overview & Revenue Model

Company Description

ON Semiconductor (ON) is a leading global supplier of semiconductor-based solutions, specializing in the design and manufacture of a wide range of semiconductor products. The company operates across various sectors, including automotive, industrial, communications, consumer electronics, and computing. Its core product offerings include power management solutions, sensors, analog ICs, and discrete components, which enable energy efficiency and connectivity in electronic devices.

How the Company Makes Money

ON Semiconductor generates revenue primarily through the sale of its semiconductor products. The company's revenue model is based on selling integrated circuits, discrete components, and custom solutions to a diverse customer base that spans multiple industries. Key revenue streams include automotive electronics, where ON provides solutions for electric vehicles and advanced driver-assistance systems, as well as industrial applications that require energy-efficient power management and sensing technology. Additionally, ON has established significant partnerships with major technology firms, enhancing its market presence and driving sales through collaborative projects. Factors such as the growing demand for energy-efficient solutions, the expansion of electric vehicles, and advancements in IoT technology contribute to the company's earnings.

ON Semiconductor Financial Statement Overview

Summary

ON Semiconductor shows mixed financial performance with declining revenue and profitability, as indicated by reduced margins and negative revenue growth. However, the company maintains a solid balance sheet with moderate leverage and strong cash flow generation, positioning it well for future growth opportunities.

Income Statement

ON Semiconductor's income statement shows a decline in revenue and profitability in the TTM period, with a negative revenue growth rate of -3.3%. Gross profit margin decreased to 37.2% from 44.8% in the previous year, and net profit margin fell to 7.3% from 22.2%. The EBIT and EBITDA margins also saw significant declines. Despite these challenges, the company maintains a positive net income, indicating resilience in a challenging market environment.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.42, indicating moderate leverage. The return on equity (ROE) decreased to 5.6% in the TTM period from 17.9% in the previous year, suggesting reduced profitability. However, the equity ratio remains healthy, showcasing a strong capital structure with stockholders' equity covering a significant portion of total assets.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 27.4% in the TTM period, highlighting effective cash management. The operating cash flow to net income ratio is 1.45, indicating robust cash generation relative to net income. The free cash flow to net income ratio of 0.70 further underscores the company's ability to convert earnings into cash, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.19B	7.08B	8.25B	8.33B	6.74B	5.25B
Gross Profit	2.21B	3.22B	3.88B	4.08B	2.71B	1.72B
EBITDA	916.80M	2.54B	3.22B	3.01B	1.88B	970.10M
Net Income	319.10M	1.57B	2.18B	1.90B	1.01B	234.20M
Balance Sheet
Total Assets	13.01B	14.09B	13.22B	11.98B	9.63B	8.67B
Cash, Cash Equivalents and Short-Term Investments	2.87B	2.99B	2.48B	2.92B	1.35B	1.08B
Total Debt	3.63B	3.37B	3.36B	3.23B	3.10B	3.49B
Total Liabilities	5.08B	5.28B	5.41B	5.77B	5.02B	5.11B
Stockholders Equity	7.91B	8.80B	7.78B	6.19B	4.59B	3.54B
Cash Flow
Free Cash Flow	1.64B	1.21B	438.40M	1.60B	1.29B	400.70M
Operating Cash Flow	1.78B	1.91B	1.98B	2.63B	1.78B	884.30M
Investing Cash Flow	-639.50M	-1.01B	-1.74B	-705.40M	-915.10M	-453.60M
Financing Cash Flow	-1.14B	-683.80M	-686.50M	-370.00M	-569.40M	-244.00M

ON Semiconductor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ON, the sentiment is Negative. The current price of 48.8 is below the 20-day moving average (MA) of 51.00, below the 50-day MA of 50.10, and above the 200-day MA of 48.49, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 44.55 is Neutral, neither overbought nor oversold. The STOCH value of 17.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ON.

ON Semiconductor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVDA	85 Outperform	$4.83T	56.55	109.42%	0.02%	71.55%	64.54%
UMC	76 Outperform	$19.23B	14.73	10.97%	6.23%	5.87%	-20.93%
ON	68 Neutral	$19.43B	65.35	3.87%	―	-16.13%	-81.06%
ASX	67 Neutral	$33.69B	14.61	11.17%	2.25%	8.01%	10.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	59 Neutral	$21.34B	41.17	3.00%	1.47%	-17.33%	-76.71%
GFS	58 Neutral	$19.03B	―	-1.01%	―	-0.65%	-114.26%

ON Semiconductor Corporate Events

ON Semiconductor Exceeds Expectations in Q3 2025

ON Semiconductor Corporation, a key player in the semiconductor industry, focuses on automotive and industrial markets, offering innovative power and sensing technologies. The company reported its third quarter 2025 results, surpassing expectations with a revenue of $1,550.9 million and a GAAP gross margin of 37.9%. The results highlight the company’s strategic strength and market resilience.

onsemi Acquires Aura Semiconductor’s Vcore Power Technologies

On September 23, 2025, onsemi announced a strategic acquisition agreement with Aura Semiconductor to acquire Vcore power technologies and associated intellectual property licenses. This acquisition aims to enhance onsemi’s power management portfolio, particularly in AI data center applications, by delivering solutions with superior power density and efficiency. The transaction, valued at up to $144 million, is expected to close in the fourth quarter of 2025 and is anticipated to have minimal impact on onsemi’s earnings in the first fiscal year following the close.

The most recent analyst rating on (ON) stock is a Hold with a $56.00 price target. To see the full list of analyst forecasts on ON Semiconductor stock, see the ON Stock Forecast page.

ON Semiconductor’s Earnings Call: Mixed Sentiments and Strategic Growth

In the recent earnings call, ON Semiconductor Corporation presented a mixed sentiment, highlighting both positive growth and ongoing challenges. The company reported strong growth in the Chinese market and the AI data center sector, alongside strategic milestones with the Treo platform and share repurchases. However, these positive developments were tempered by declines in automotive and ISG revenue, as well as lower gross margin guidance due to underutilization charges.

ON Semiconductor: Navigating Uncertainties and Risks in 2024

ON Semiconductor Corporation faces significant business risks due to various trends, uncertainties, and potential changes in their operational and financial landscape. The company regularly updates its risk factors, but there have been no substantial changes from those disclosed in their 2024 Form 10-K. Forward-looking statements in their reports highlight potential discrepancies between projected and actual outcomes, emphasizing the inherent uncertainty in their strategic plans. Investors are advised to consider these risks carefully, as unforeseen factors could materially impact the company’s performance and stock value.

ON Semiconductor Reports Q2 2025 Financial Results

ON Semiconductor Corporation, commonly known as onsemi, is a leading provider of intelligent power and sensing technologies, primarily serving the automotive and industrial sectors. The company is recognized for its innovative solutions that drive advancements in vehicle electrification, sustainable energy grids, industrial automation, and 5G infrastructure.