ON Semiconductor Corporation

Valuation Analysis

About the Company

ON Semiconductor Corporation provides intelligent sensing and power solutions in Hong Kong, Singapore, the United Kingdom, the United States, and internationally. It operates through three segments: Power Solutions Group, Analog and Mixed-Signal Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and integrated semiconductor devices designed to enable power conversion, including power switching, signal conditioning, and circuit protection technologies. Its Analog and Mixed-Signal Group segment designs and develops analog and mixed-signal solutions, including power management, sensor interface, connectivity, and standard products for automotive, industrial automation, AI data centers, computing, and mobile end markets. The Intelligent Sensing Gro

ON Semiconductor Corporation Stock at a Glance

ON Semiconductor Corporation (ON) is currently trading at $116.79 with a market capitalization of $45.4B. The trailing P/E ratio stands at 86.51x, with a forward P/E of 27.38x. The 52-week range spans from $44.56 to $134.92; the current price is 13.4% below the yearly high. Year-over-year revenue growth stands at +4.7%. The net profit margin stands at 9.46%.

💰 Dividend

ON Semiconductor Corporation currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

29 analysts rate ON Semiconductor Corporation (ON) on consensus: Buy. The average price target is $106.31, implying -8.97% from the current price. Analyst price targets range from $68.00 to $150.00.

ON Semiconductor Corporation: The Investment Case in Detail

ON Semiconductor Corporation (ON) operates in the Technology — specifically Semiconductors — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

The combination of a 42.67% gross margin and 18.23% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat.

The Bear Case

Revenue growth has slowed to just 4.7%, which is below nominal GDP — the business is no longer outgrowing the broader economy. A trailing P/E above 50 combined with revenue growth below 20% is a dangerous combination — the market is paying a steep growth multiple for what is, by the data, only moderately fast expansion. With a beta near 1.98, the share price moves sharply more than the broader market — drawdowns in market corrections can be unusually severe and require strong nerves.

Valuation in Context

With a PEG ratio of 0.39, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity.

What to Watch Next

• The forward P/E of 27.38x is meaningfully below the trailing 86.51x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to above-average price swings, elevated short interest (11.04%).

Trading Data

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