A Business at a Glance
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ON SEMICONDUCTOR CORP
ON
$36.2B
Mkt Cap
$86.81
-3.68%
ON SEMICONDUCTOR CORP (ON) has a current P/E ratio of 74.2, compared to its historical median P/E of 18.2. The stock is currently considered Expensive based on its historical valuation range.
ON SEMICONDUCTOR CORP (ON) has a 5-year average return on invested capital (ROIC) of 18.6%. This indicates strong capital allocation and a potential competitive advantage.
ON SEMICONDUCTOR CORP (ON) has a market capitalization of $34.0B. It is classified as a large-cap stock.
ON SEMICONDUCTOR CORP (ON) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 4.18%.
Based on historical P/E analysis, ON SEMICONDUCTOR CORP (ON) appears expensive. The current P/E of 74.2 is 308% above its historical median of 18.2. The estimated fair value CAGR (P/E method) is 29.5%.
ON SEMICONDUCTOR CORP (ON) operates in the Semiconductors & Related Devices industry, within the Technology sector.
ON SEMICONDUCTOR CORP (ON) reported annual revenue of $6.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
ON Semiconductor Corporation operates through three segments—Power Solutions Group (PSG), Analog and Mixed-Signal Group (AMG), and Intelligent Sensing Group (ISG)—offering intelligent power and intelligent sensing solutions that enable electrification, energy efficiency, safety, and automation across automotive, industrial, AI data center, and other end-markets. The company generates revenue primarily through the sale of semiconductor products to distributors (approximately 54% of 2025 revenue) and direct customers (approximately 46%), with sales agreements containing periodic renewal terms and standard two-year warranties. PSG provides discrete, module, and integrated power switching devices, signal conditioning, and circuit-protection technologies leveraging vertically integrated SiC manufacturing for supply assurance and cost competitiveness; AMG designs analog and mixed-signal solutions including power-management, sensor-interface, and connectivity products through its differentiated Treo Platform; and ISG develops advanced imaging technologies including CMOS image sensors, image signal processors, and photon-counting devices for automotive ADAS, industrial automation, and robotics. The company's competitive moat derives from its broad product portfolio, global manufacturing and logistics network enabling single-source purchasing, vertically integrated manufacturing capabilities particularly in SiC, and differentiated technology platforms like Treo that accelerate time-to-market for customers in high-growth markets including vehicle electrification, renewable energy, AI data centers, and factory automation.
【AI data center momentum accelerating】 Management expects AI data center revenue to double year-over-year in 2026, driven by broader adoption across the power tree with multiple XPU vendors and leading hyperscalers, with the company positioned to outpace power semiconductor market growth at more than 40% revenue growth and approaching 60% market share. Gross margin is expected to expand sequentially throughout 2026 as manufacturing utilization improves and FabRight restructuring actions deliver efficiencies, with larger step-function improvements anticipated in the second half of the year. Automotive markets show stabilization with production volumes expected to begin in the first quarter of 2026 following inventory digestion, supported by durable demand for high-efficiency EV platforms and silicon carbide content amid ongoing fuel supply disruption and elevated energy costs. The company expects to deliver strong operating leverage with incremental revenue driving expanded margins, earnings, and free cash flow, while continuing to rationalize its portfolio by exiting approximately 5% of 2025 revenue in non-core businesses and reallocating investments to differentiated power, sensing, and analog mixed-signal technologies.
| Metric | Target | Period |
|---|---|---|
| AI Data Center Revenue Growth | Double year-over-year | FY 2026 |
| AI Data Center Revenue Growth Rate | More than 40% year-over-year | FY 2026 |
AI Data Center Revenue Growth (FY 2026): “Looking ahead, we now expect our AI data center revenue to double year-over-year in 2026.”
AI Data Center Revenue Growth Rate (FY 2026): “we now expect to outpace the power semiconductor growth for this market in 2026, with more than 40% revenue growth year-over-year”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 6.1B | 6.0B | 7.1B | 8.3B | 8.3B | 6.7B |
| Net Income | 574M | 121M | 1.6B | 2.2B | 1.9B | 1.0B |
| EPS | $1.42 | $0.29 | $3.63 | $4.89 | $4.25 | $2.27 |
| Free Cash Flow | 1.2B | 1.4B | 1.2B | 438M | 1.6B | 1.3B |
| ROIC | 6.8% | 0.9% | 16.7% | 28.4% | 29.1% | 18.0% |
| Gross Margin | 37.5% | 33.1% | 45.4% | 47.1% | 49.0% | 40.3% |
| Debt/Equity | 0.41 | 0.42 | 0.41 | 0.47 | 0.56 | 0.71 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 605M | 84M | 1.8B | 2.5B | 2.4B | 1.3B |
| Operating Margin | 10.0% | 1.4% | 25.0% | 30.8% | 28.3% | 19.1% |
| ROE | 7.9% | 1.5% | 19.0% | 31.3% | 35.3% | 24.9% |
| Shares Outstanding | 392M | 417M | 433M | 447M | 448M | 445M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 3.2B | 3.5B | 3.9B | 5.5B | 5.9B | 5.5B | 5.3B | 6.7B | 8.3B | 8.3B | 7.1B | 6.0B | 6.1B |
| Gross Margin | 34.3% | 34.1% | 33.3% | 36.7% | 38.1% | 35.8% | 32.7% | 40.3% | 49.0% | 47.1% | 45.4% | 33.1% | 37.5% |
| R&D | 367M | 397M | 447M | 595M | 651M | 641M | 643M | 655M | 600M | 577M | 613M | 584M | 564M |
| SG&A | 181M | 182M | 230M | 285M | 293M | 284M | 259M | 305M | 343M | 362M | 376M | 349M | 354M |
| EBIT | 229M | 261M | 247M | 682M | 847M | 433M | 349M | 1.3B | 2.4B | 2.5B | 1.8B | 84M | 605M |
| Op. Margin | 7.2% | 7.5% | 6.3% | 12.3% | 14.4% | 7.8% | 6.6% | 19.1% | 28.3% | 30.8% | 25.0% | 1.4% | 10.0% |
| Net Income | 190M | 206M | 182M | 811M | 627M | 212M | 234M | 1.0B | 1.9B | 2.2B | 1.6B | 121M | 574M |
| Net Margin | 6.0% | 5.9% | 4.7% | 14.6% | 10.7% | 3.8% | 4.5% | 15.0% | 22.8% | 26.5% | 22.2% | 2.0% | 9.5% |
| Non-Recurring | 37M | 11M | 125M | 30M | 12M | 28M | 69M | 81M | 408M | 77M | 86M | 561M | 24M |
| Returns on Capital | |||||||||||||
| ROIC | 10.9% | 10.5% | 7.2% | 14.8% | 14.6% | 6.1% | 5.7% | 18.0% | 29.1% | 28.4% | 16.7% | 0.9% | 6.8% |
| ROE | 12.2% | 12.7% | 10.6% | 35.2% | 21.1% | 6.5% | 6.8% | 24.9% | 35.3% | 31.3% | 19.0% | 1.5% | 7.9% |
| ROA | 5.3% | 5.4% | 3.4% | 11.5% | 8.5% | 2.6% | 2.7% | 11.0% | 17.6% | 17.3% | 11.5% | 0.9% | 4.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 481M | 471M | 581M | 1.1B | 1.3B | 695M | 884M | 1.8B | 2.6B | 2.0B | 1.9B | 1.8B | 1.4B |
| Free Cash Flow | 263M | 187M | 370M | 707M | 759M | 160M | 501M | 1.3B | 1.6B | 438M | 1.2B | 1.4B | 1.2B |
| Owner Earnings | 167M | 66M | 161M | 543M | 687M | 22M | 192M | 1.1B | 2.0B | 1.2B | 1.1B | 929M | 444M |
| CapEx | 219M | 283M | 211M | 388M | 515M | 535M | 384M | 445M | 1.0B | 1.5B | 694M | 341M | 216M |
| Maint. CapEx | 269M | 358M | 364M | 482M | 509M | 593M | 625M | 597M | 552M | 610M | 643M | 686M | 805M |
| Growth CapEx | 0 | 0 | 0 | 0 | 6.1M | 0 | 0 | 0 | 484M | 930M | 51M | 0 | 0 |
| D&A | 269M | 358M | 364M | 482M | 509M | 593M | 625M | 597M | 552M | 610M | 643M | 686M | 805M |
| CapEx/OCF | 42.4% | 57.5% | 36.3% | 35.4% | 40.4% | 77.0% | 43.4% | 24.9% | 38.2% | 77.8% | 36.4% | 19.4% | 15.4% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 122M | 348M | 0 | 25M | 315M | 139M | 65M | 0 | 260M | 564M | 654M | 1.4B | 1.4B |
| Buyback Yield | 2.7% | 8.1% | N/A | 0.3% | 4.4% | 1.4% | 0.5% | N/A | 1.0% | 1.5% | 2.3% | 6.0% | 4.2% |
| Stock-Based Comp | 46M | 47M | 56M | 70M | 78M | 79M | 68M | 101M | 101M | 121M | 136M | 144M | 148M |
| Debt Repayment | 91M | 496M | 314M | 1.8B | 298M | 594M | 2.0B | 1.3B | 530M | 1.7B | 0 | 375M | 375M |
| Balance Sheet | |||||||||||||
| Net Debt | 714M | 791M | 2.6B | 2.0B | 1.7B | 2.8B | 2.6B | 1.9B | 571M | 1.1B | 656M | 707M | 580M |
| Cash & Equiv. | 512M | 618M | 1.0B | 949M | 1.1B | 894M | 1.1B | 1.4B | 2.9B | 2.5B | 2.7B | 2.1B | 2.4B |
| Long-Term Debt | 982M | 851M | 3.1B | 2.7B | 2.6B | 2.9B | 3.0B | 2.9B | 3.0B | 2.5B | 3.3B | 3.0B | 3.0B |
| Debt/Equity | 0.76 | 0.88 | 2.00 | 1.07 | 0.88 | 1.13 | 1.03 | 0.71 | 0.56 | 0.47 | 0.41 | 0.42 | 0.41 |
| Interest Coverage | 6.7 | 5.3 | 1.7 | 4.8 | 6.6 | 2.9 | 2.1 | 9.9 | 24.9 | 33.9 | 28.4 | 1.2 | 1.2 |
| Equity | 1.6B | 1.6B | 1.8B | 2.8B | 3.2B | 3.3B | 3.5B | 4.6B | 6.2B | 7.8B | 8.8B | 7.7B | 7.3B |
| Total Assets | 3.8B | 3.9B | 6.9B | 7.2B | 7.6B | 8.4B | 8.7B | 9.6B | 12.0B | 13.2B | 14.1B | 12.5B | 12.0B |
| Total Liabilities | 2.2B | 2.2B | 5.0B | 4.4B | 4.4B | 5.1B | 5.1B | 5.0B | 5.8B | 5.4B | 5.3B | 4.8B | 4.7B |
| Intangibles | 459M | 326M | 762M | 628M | 566M | 591M | 469M | 496M | 360M | 299M | 258M | 344M | 332M |
| Retained Earnings | -916M | -709M | -527M | 352M | 980M | 1.2B | 1.4B | 2.4B | 4.4B | 6.5B | 8.1B | 8.2B | 8.2B |
| Working Capital | 765M | 652M | 1.4B | 1.5B | 1.7B | 1.2B | 1.5B | 2.2B | 3.7B | 3.7B | 5.4B | 4.5B | 4.6B |
| Current Assets | 1.8B | 1.9B | 2.9B | 2.9B | 3.2B | 3.0B | 3.2B | 3.8B | 5.7B | 5.9B | 6.8B | 5.8B | 5.8B |
| Current Liabilities | 1.0B | 1.2B | 1.5B | 1.4B | 1.5B | 1.8B | 1.7B | 1.5B | 2.1B | 2.2B | 1.3B | 1.3B | 1.2B |
| Per Share Data | |||||||||||||
| EPS | 0.43 | 0.48 | 0.43 | 1.89 | 1.44 | 0.51 | 0.56 | 2.27 | 4.25 | 4.89 | 3.63 | 0.29 | 1.42 |
| Owner EPS | 0.38 | 0.15 | 0.38 | 1.26 | 1.58 | 0.05 | 0.46 | 2.44 | 4.42 | 2.79 | 2.60 | 2.23 | 1.13 |
| Book Value | 3.69 | 3.74 | 4.31 | 6.48 | 7.28 | 7.95 | 8.46 | 10.31 | 13.83 | 17.43 | 20.30 | 18.39 | 18.63 |
| Cash Flow/Share | 1.09 | 1.10 | 1.37 | 2.55 | 2.92 | 1.67 | 2.11 | 4.01 | 5.88 | 4.43 | 4.40 | 4.22 | 3.52 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 441.2M | 429.6M | 423.5M | 428.9M | 435.7M | 415.1M | 418.2M | 444.8M | 447.6M | 446.6M | 433.3M | 417.2M | 391.9M |
| Valuation | |||||||||||||
| P/E Ratio | 23.7 | 20.8 | 30.4 | 11.2 | 11.3 | 48.0 | 57.1 | 30.1 | 14.2 | 17.4 | 18.2 | 189.4 | 61.3 |
| P/FCF | 17.2 | 22.9 | 14.9 | 12.8 | 9.4 | 63.5 | 26.7 | 22.7 | 16.9 | 86.6 | 23.6 | 16.2 | 28.8 |
| EV/EBIT | 23.5 | 19.1 | 32.4 | 15.2 | 9.3 | 29.4 | 43.7 | 23.9 | 10.3 | 15.3 | 16.4 | 277.4 | 57.2 |
| Price/Book | 2.8 | 2.7 | 3.0 | 3.3 | 2.2 | 3.1 | 3.8 | 6.6 | 4.4 | 4.9 | 3.3 | 3.0 | 4.7 |
| Price/Sales | 1.3 | 1.4 | 1.1 | 1.3 | 1.6 | 1.5 | 1.7 | 2.9 | 3.3 | 4.5 | 4.4 | 3.4 | 5.6 |
| FCF Yield | 5.8% | 4.4% | 6.7% | 7.8% | 10.7% | 1.6% | 3.7% | 4.4% | 5.9% | 1.2% | 4.2% | 6.2% | 3.5% |
| Market Cap | 4.5B | 4.3B | 5.5B | 9.1B | 7.1B | 10.2B | 13.4B | 30.4B | 27.0B | 37.9B | 28.6B | 22.9B | 34.0B |
| Avg. Price | 9.01 | 11.09 | 10.08 | 16.45 | 21.75 | 20.34 | 21.17 | 43.87 | 62.08 | 83.38 | 72.17 | 49.52 | 86.81 |
| Year-End Price | 10.21 | 10.00 | 13.07 | 21.13 | 16.33 | 24.49 | 31.95 | 68.32 | 60.28 | 84.98 | 66.01 | 54.93 | 86.81 |
ON SEMICONDUCTOR CORP passes 5 of 9 quality checks, suggesting mixed fundamentals.
ON SEMICONDUCTOR CORP trades at 74.2x trailing earnings, compared to its 15-year median P/E of 18.2x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 18.5x vs a median of 19.8x. The company's 5-year average ROIC is 18.6% with a gross margin of 43.0%. Total shareholder yield (buybacks) is 4.2%. At current prices, the estimated annualized return to fair value is +17.6%.
ON SEMICONDUCTOR CORP (ON) has a net profit margin of 2.0%. This is a modest margin.
ON SEMICONDUCTOR CORP (ON) generated $1.4 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
ON SEMICONDUCTOR CORP (ON) has a debt-to-equity ratio of 0.42. This indicates a conservatively financed balance sheet.
ON SEMICONDUCTOR CORP (ON) reported earnings per share (EPS) of $0.29 in its most recent fiscal year.
ON SEMICONDUCTOR CORP (ON) has a return on equity (ROE) of 1.5%. This indicates moderate shareholder returns.
ON SEMICONDUCTOR CORP (ON) has a 5-year average gross margin of 43.0%. This indicates decent pricing power.
The Ledger Terminal provides 18 years of financial data for ON SEMICONDUCTOR CORP (ON), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
ON SEMICONDUCTOR CORP (ON) has a book value per share of $18.39, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects AI data center revenue to double year-over-year in 2026, driven by broader adoption across the power tree with multiple XPU vendors and leading hyperscalers, with the company positioned to outpace power semiconductor market growth at more than 40% revenue growth and approaching 60% market share. Gross margin is expected to expand sequentially throughout 2026 as manufacturing utilization improves and FabRight restructuring actions deliver efficiencies, with larger step-function improvements anticipated in the second half of the year. Automotive markets show stabilization with production volumes expected to begin in the first quarter of 2026 following inventory digestion, supported by durable demand for high-efficiency EV platforms and silicon carbide content amid ongoing fuel supply disruption and elevated energy costs. The company expects to deliver strong operating leverage with incremental revenue driving expanded margins, earnings, and free cash flow, while continuing to rationalize its portfolio by exiting approximately 5% of 2025 revenue in non-core businesses and reallocating investments to differentiated power, sensing, and analog mixed-signal technologies.
Based on recent SEC filings and earnings calls, ON SEMICONDUCTOR CORP (ON) has provided the following forward guidance: AI Data Center Revenue Growth: Double year-over-year (FY 2026); AI Data Center Revenue Growth Rate: More than 40% year-over-year (FY 2026).