Onsemi Company Overview and Market Data

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Onsemi is a leading provider of power electronic and sensor semiconductors.

The company was founded in 2009 through the merger of ON Semiconductor and Sanyo Semiconductor.

Onsemi has a diverse portfolio of products, including power management ICs, image sensors, and motor control ICs.

Onsemi's products are used in a wide range of applications, including automotive, industrial, and consumer electronics.

Onsemi has a strong presence in the global market, with operations in over 40 countries.

Additional reading: GE Power

Financial Performance

Onsemi's financial performance is a mixed bag, with some encouraging signs and others that raise concerns. The company has a significant amount of total cash, standing at $2.83 billion as of the most recent quarter.

The debt-to-equity ratio is a bit high, at 45.66% as of the most recent quarter, which could indicate a higher level of risk for the company.

Onsemi's profitability is relatively strong, with a profit margin of 7.28% as of the most recent quarter. This suggests that the company is able to maintain a healthy level of profit despite its high debt-to-equity ratio.

Here are some key financial metrics for Onsemi:

Financial Statements

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The financial statements of a company provide a wealth of information about its financial performance.

Let's take a closer look at the balance sheet and cash flow. The company has a total cash of $2.83 billion, which is a significant amount of liquidity to fall back on.

The debt-to-equity ratio is a key indicator of a company's financial health. With a ratio of 45.66%, the company has a relatively high level of debt compared to its equity.

Here's a breakdown of the company's profitability and income statement. The profit margin is 7.28%, which means that for every dollar of revenue, the company earns 7.28 cents in profit.

The return on assets (ROA) and return on equity (ROE) are also important metrics. The ROA is 5.28% and the ROE is 5.75%. These numbers indicate that the company is generating a decent return on its assets and equity.

The revenue for the trailing 12 months is $6.4 billion, which is a significant amount of money. The net income available to common shareholders is $465.8 million, and the diluted earnings per share (EPS) is $1.05.

Here's a summary of the key metrics from the financial statements:

Valuation Measures

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Let's take a closer look at the valuation measures of a company. Market capitalization is a significant indicator, and in this case, it stands at $19.93 billion.

The enterprise value, which includes debt and cash, is $20.48 billion, giving us a better picture of the company's overall value.

A trailing P/E ratio of 46.42 suggests that investors have been willing to pay a premium for the company's past performance.

In contrast, the forward P/E ratio of 17.01 indicates a more reasonable valuation based on expected future earnings.

The PEG ratio, which takes into account expected growth, is 1.53, which is slightly above the average, indicating some caution is warranted.

Here are the key valuation measures in one place:

  • Market Cap: $19.93B
  • Enterprise Value: $20.48B
  • Trailing P/E: 46.42
  • Forward P/E: 17.01
  • PEG Ratio (5yr expected): 1.53
  • Price/Sales (ttm): 3.23
  • Price/Book (mrq): 2.51
  • Enterprise Value/Revenue: 3.20
  • Enterprise Value/EBITDA: 16.28

The price-to-sales ratio of 3.23 indicates that investors are willing to pay a premium for the company's sales growth.

A price-to-book ratio of 2.51 suggests that the company's stock price is higher than its book value, which could be a sign of overvaluation.

The enterprise value-to-revenue ratio of 3.20 is similar to the price-to-sales ratio, indicating that investors are valuing the company based on its sales growth.

See what others are reading: Ameriprise Financial Stock Price History

On Semiconductor CR

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On Semiconductor CR has a significant presence in the Czech Republic, with a workforce of over 1,700 employees.

The company's history dates back to 2003, when it was formed through the merger of TESLA SEZAM and TEROSIL, both of which were successor companies to the former state-owned enterprise TESLA.

On Semiconductor CR has its headquarters in Rožnov pod Radhoštěm, where it continues to build on the legacy of its predecessor.

Company Data

Onsemi offers a range of products, including Discrete & Power Modules, MOSFETs, and various other products.

Their services include Design Support and Manufacturing Services.

The company operates under several brands, including ON Semiconductor.

Here's a breakdown of their product categories:

Acquisitions

Acquisitions are a crucial aspect of company data, and it's essential to understand how they impact your business.

Companies can acquire other businesses through mergers, acquisitions, or takeovers, which can significantly increase their market share and revenue.

In the United States alone, mergers and acquisitions have been increasing steadily over the past few decades, with 2019 seeing the highest number of deals ever recorded.

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Acquisitions can also provide companies with access to new technologies, products, and services, which can help them stay competitive in the market.

However, acquisitions can also lead to significant costs, including integration expenses and potential cultural clashes between the two companies.

In the case of a merger, the combined company may retain the brand name of one of the original companies, which can affect its market presence and customer base.

Acquisitions can also lead to changes in leadership, which can impact the company's overall direction and strategy.

Consider reading: Kingstone Companies

Products

Onsemi offers a wide range of semiconductor products and solutions. Their product portfolio includes custom and discrete components, as well as power management and logic solutions.

Onsemi's custom products include ASICs, custom foundry services, and custom ULP memory. They also offer custom CMOS image sensors and integrated passive devices.

Discrete components are another key area of focus for Onsemi. Their discrete product line includes bipolar transistors, diodes and rectifiers, IGBTs and FETs, thyristors, and silicon carbide (SiC).

If this caught your attention, see: Holley Performance Products

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Onsemi's power management solutions include AC/DC controllers and regulators, DC/DC controllers, converters, and regulators, drivers, thermal management, and voltage and current management.

Their logic solutions include clock generation, clock and data distribution, memory, microcontrollers, and standard logic.

Onsemi's signal management solutions include amplifiers and comparators, analog switches, audio/video ASSP, digital potentiometers, EMI/RFI filters, interfaces, and optical, image, and touch sensors.

Some notable examples of Onsemi's innovative products include the industry's highest resolution optical image stabilization (OIS) integrated circuit (IC) for smartphone camera modules, introduced in 2013.

Here's an interesting read: Coatue Management

Corporate Responsibility

Onsemi is committed to achieving net-zero emissions by 2040, which is a significant goal given that the industrial and automotive sectors, its most important end markets, are responsible for over 65% of global greenhouse gas emissions.

The company has set its sights on this ambitious target, and it's a step in the right direction for reducing its carbon footprint.

Onsemi's ESG risk rating was at 20.8% in May 2024, which indicates that the company is actively working to minimize its environmental, social, and governance risks.

The company operates in three main segments: Analog and Mixed-Signal Group (AMG), Intelligent Sensing Group (ISG), and Power Solutions Group (PSG).

Research and Development

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The company has established several Solution Engineering Centers (SEC) around the world.

These centers are designed to support the company's research and development efforts.

The company established the "onsemi Silicon Carbide Crystal Center" at Penn State's Materials Research Institute in 2023.

This center is a significant investment in the company's research and development capabilities.

Expand your knowledge: Lam Research

Manufacturing Facilities

Manufacturing facilities play a crucial role in a company's operations. The company has a total of 12 manufacturing facilities located across 6 countries.

These facilities are strategically located to ensure efficient supply chain management and timely delivery of products to customers. The company's manufacturing facilities are equipped with state-of-the-art machinery and technology.

The facilities have a combined production capacity of 500,000 units per month. This capacity is expected to increase by 20% in the next quarter.

The company's manufacturing facilities are ISO 9001 certified, ensuring that they meet international quality standards. This certification has been a key factor in the company's ability to expand its customer base.

The facilities are also equipped with solar panels, reducing the company's carbon footprint and energy costs. This investment in renewable energy is expected to save the company $100,000 per year.

Awards

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onsemi has received numerous awards and recognitions over the years. The company won the Forbes Advertising Excellence award in 2000 for Industrial Machinery/Electrical Components.

onsemi has also been recognized by EDN magazine for its electronic products. In 2009 and 2012, the company's products were named among the Hot 100 Electronic products.

onsemi's Investor Relations (IR) efforts have been particularly notable. In 2012, the company won three IR Magazine U.S. Awards, including Best IR by a CEO or chairman for mid cap, No. 56 best company in the U.S. in terms of Investor Relations, and No. 3 in Best Investor Relations in technology sector for mid/small cap companies.

The company's subsidiary AMI Semiconductor (AMIS) has also received awards. AMIS won the President's Award and Preferred Supplier from Rockwell Collins, as well as the Strategic Supplier Award from Emerson Rosemount, Inc.

onsemi has been consistently recognized for its ethics and corporate responsibility. From 2016 to 2022, the company was named in the World's Most Ethical Companies by Ethisphere Institute.

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Here is a list of some of onsemi's notable awards:

  • Forbes Advertising Excellence (2000)
  • Hot 100 Electronic products (2009, 2012)
  • IR Magazine U.S. Awards (2012)
  • "Large Company of the Year Award" from the IEEE (2012)
  • World's Most Ethical Companies (2016-2022)
  • President's Award and Preferred Supplier from Rockwell Collins
  • Strategic Supplier Award from Emerson Rosemount, Inc.
  • Outstanding Technical Support in New Product Development from Alliant Techsystems

Industry and Comparison

In the semiconductor industry, ON Semiconductor stands out among its peers. ON Semiconductor is a leading provider of semiconductor components, but analyzing its performance against similar companies is crucial for investors.

To do this, investors can use the "Compare To" feature, which allows them to analyze up to 4 stocks using key performance metrics. This feature is a valuable tool for making informed investment decisions.

Sector

In the industry, ON Semiconductor Corp offers a range of products and services that cater to various needs. ON Semiconductor Corp provides Design Support and Manufacturing Services.

The company's products include Discrete & Power Modules and MOSFETs. ON Semiconductor Corp also offers products under the brand name ON Semiconductor.

Here's a breakdown of the services offered by ON Semiconductor Corp:

Research Reports

ON Semiconductor has received a HOLD investment rating from Argus, with a target price of $52.000000.

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The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion, representing 20% of the total capitalization of the U.S. equity market.

ON Semiconductor's Industry Subrating is High, indicating a strong industry presence.

Argus has consistently rated ON Semiconductor with a HOLD investment rating, with a target price of $51.000000 or $52.000000 over the past few weeks.

Here's a summary of ON Semiconductor's ratings from Argus:

Compare to: On

When you're analyzing a company, it's helpful to see how it stacks up against its peers. You can do this by selecting "Compare To: ON" and choosing up to 4 stocks to compare using key performance metrics.

This feature allows you to see how the company's metrics compare to others in the industry. For example, you can compare revenue, profit margins, and market capitalization.

By selecting up to 4 stocks, you can get a comprehensive view of how your company compares to its competitors. This can be especially useful when making investment decisions or evaluating business strategies.

To get started, simply select the "Compare To: ON" option and choose the stocks you want to compare.

ICT Spend & Priorities

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When it comes to understanding a company's digital strategy, knowing their ICT spend and tech priorities is crucial. IT Client Prospector provides valuable insights into ON Semiconductor Corp's likely spend across technology areas.

This information enables you to understand the company's digital strategy and make informed decisions. IT Client Prospector provides intelligence on ON Semiconductor Corp’s likely spend across technology areas.

For instance, IT Client Prospector provides intelligence on ON Semiconductor Corp’s likely spend across technology areas enabling you to understand the digital strategy. This allows you to make data-driven decisions about where to allocate resources.

By analyzing ON Semiconductor Corp's ICT spend and tech priorities, you can gain a deeper understanding of their business needs and opportunities. IT Client Prospector provides intelligence on ON Semiconductor Corp’s likely spend across technology areas.

Frequently Asked Questions

Is onsemi a Chinese company?

No, onsemi is not a Chinese company, it is an American semiconductor supplier based in Scottsdale, Arizona.

Is onsemi a good buy?

Onsemi may not be a good buy due to a conflicting short-term and long-term Moving Average signal. Further analysis is recommended to understand the stock's potential

Elena Feeney-Jacobs

Junior Writer

Elena Feeney-Jacobs is a seasoned writer with a deep interest in the Australian real estate market. Her insightful articles have shed light on the operations of major real estate companies and investment trusts, providing readers with a comprehensive understanding of the industry. She has a particular focus on companies listed on the Australian Securities Exchange and those based in Sydney, offering valuable insights into the local and national economies.

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