Last Updated: 15 Sep 2024
Executive Summary
ON Semiconductor Corporation (ON) is a leading manufacturer of semiconductor components for various electronic devices. The company has a strong financial position with a market capitalization of $30.72 billion, an EBITDA of $2.986 billion, and a PERatio of 16.34. ON's latest stock price is $71.72, and analysts have a consensus target price of $86.49, indicating a potential upside of 20.6%.
Company Overview
ON Semiconductor was founded in 1999 and is headquartered in Phoenix, Arizona. The company designs, manufactures, and sells a broad portfolio of semiconductor components, including power management ICs, analog ICs, sensors, and discrete devices. ON's products are used in a wide range of applications, including automotive, industrial, computing, and consumer electronics.
Fundamental Analysis
ON's financial performance has been solid in recent years. The company's revenue has grown steadily, reaching $7.797 billion in the trailing twelve months (TTM). Gross profit margin has remained stable at around 52%, and operating margin has improved to 26.6% TTM. ON's earnings per share (EPS) have also increased, reaching $4.39 TTM.
In terms of profitability, ON has a profit margin of 24.8%, an operating margin of 26.6%, a return on assets of 11.2%, and a return on equity of 25.2%. These metrics indicate that ON is using its assets and equity efficiently to generate profits.
Technical Analysis
ON's stock price has been trending sideways in recent months, with support at around $70 and resistance at around $75. The 50-day moving average is currently at $73.18, and the 200-day moving average is at $73.93. The relative strength index (RSI) is at 48, indicating that the stock is neither overbought nor oversold.
Short Term Outlook
In the short term, ON's stock price is likely to continue trading within the current range. The company's earnings are expected to remain stable, and there are no major catalysts on the horizon. However, if the overall market sentiment improves, ON's stock price could break out of its current range and move higher.
Long Term Outlook
In the long term, ON's growth prospects are positive. The company is well-positioned to benefit from the increasing demand for semiconductors in the automotive, industrial, and consumer electronics markets. ON's strong financial position and experienced management team should enable the company to continue to grow its market share and increase its profitability.
Analyst Recommendations
Analysts have a consensus rating of "Buy" on ON Semiconductor. The average target price is $86.49, which implies a potential upside of 20.6% from the current price. Two analysts have a "Strong Buy" rating, 15 have a "Buy" rating, 13 have a "Hold" rating, 2 have a "Sell" rating, and 0 have a "Strong Sell" rating.
