On Semiconductor manufactures and sells semiconductor components for various electronic devices worldwide. It operates in four segments: Application Products Group, Image Sensor Group, Standard Products Group, and System Solutions Group. The company was founded in 1999 and is based in Phoenix, Arizona.
ON Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ON, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that On Semiconductor Corp ranked in the 11th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of On Semiconductor Corp, consider:
Its compound free cash flow growth rate, as measured over the past 5.68 years, is -0.05% -- higher than merely 18.02% of stocks in our DCF forecasting set.
On Semiconductor Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 8. This value is greater than only 23.73% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CASA, SIMO, WK, ELSE, and GLW can be thought of as valuation peers to ON, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Earlier today, STMicroelectronics posted positive preliminary Q3 results and raised its full-year sales outlook.Rosenblatt Securities analyst Kevin Cassidy says the news is positive for ON Semiconductor (ON), which has a similar auto end market exposure.Cassidy now sees "likely upside to our and consensus estimates" for ON and maintains a Buy rating.The...
ON Semiconductor ([[ON]] +2.7%) President and CEO, Keith D. Jackson plans to retire effective May 2021.Mr. Jackson will assist the BOD in its search for his successor.He will also be retiring as a member of the board.He joined in 2002 and has seen the transition of company from $300M to...
ON Semiconductor (Nasdaq: ON), driving energy efficient innovations, today announced the immediate availability of Veridify’s Public Key security tools for the RSL10, the industry’s lowest power Flash-based Bluetooth® Low Energy radio System on Chip (SoC). Veridify Security’s tools are available in a CMSIS-Pack, giving developers a familiar and fast implementation path to protect their RSL10 solutions with critical security features including device-to-device authentication, data protection, and secure firmware updates.
ON Semiconductor (Nasdaq: ON), driving energy efficient innovations, has introduced a full SiC power module for solar inverter applications, which has been selected by the global leading provider of power and thermal management solutions, Delta, to support its M70A three-phase PV string inverter portfolio.
The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 821 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds' and investors' portfolio positions as of March 31st, a week after the market trough. Now, we are […]