# ON Semiconductor (ON.US)

Canonical: https://gigainvestors.com/s/ON

Analysis as of: 2026-10-16T07:30:54.315Z. Financial observations: FY2000–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $73.70 per share; close as of 2026-10-15.

Estimated value: low $38.38 per share, central $42.34 per share, high $47.62 per share. Buy at or below the central value $42.34 per share. Valuation as of 2026-10-16T07:30:54.315Z; scenarios are not confidence intervals.

Expected annual return: 6.5% at the stated quote. About 6.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 0

- Operating margin variation: 0.59×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.07×

- FY2017: 0.13×

- FY2018: 0.15×

- FY2019: 0.11×

- FY2020: 0.07×

- FY2021: 0.19×

- FY2022: 0.28×

- FY2023: 0.31×

- FY2024: 0.25×

- FY2025: 0.01×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 4.3pp below the typical margin (limit 4pp)

- ROIC, median of available years: 18.4%

- ROIC, second-lowest year: 8.1%

- Typical minus recent gross margin: 4.3 pp

- Typical gross margin (annual median): 37.4%

- Recent gross margin (lower of latest and 3-year median): 33.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 9.0%

- ROIC including acquisitions, ten-year median: 13.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 8.1%

- FY2017: 18.5%

- FY2018: 18.2%

- FY2019: 11.2%

- FY2020: 8.1%

- FY2021: 25.6%

- FY2022: 38.6%

- FY2023: 35.8%

- FY2024: 20.0%

- FY2025: 1.1%

### economics: fail

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.92×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $6.3B

- Net income, five-year total: $6.8B

- Return on incremental invested capital: -8.2%

- Working capital / revenue, annual change: 1.3 pp

- Working capital / revenue, change between three-year averages: 10.9 pp

- Working capital / revenue, final three-year average: 35.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.10×

- FY2022: 1.00×

- FY2023: 0.57×

- FY2024: 0.97×

- FY2025: 3.85×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 18.2% vs 20.0%

- Per-share earnings: 0.48 to 3.63 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.4%

- Ordinary dilution, 5-year annual growth: -0.3%

- Market cap gain: $16B

- Cumulative retained earnings: $8.8B

- Diluted shares, 10-year annual growth: -0.4%

- Diluted shares, 5-year annual growth: -0.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 28.7%

- Per-share value change: $3.15

- Per-share value, starting three-year median: $0.48

- Per-share value, ending three-year median: $3.63

- Buybacks concentrated in cheaper years (correlation): 0.01

- Average buyback yield: 1.9%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $3.9B

- Cumulative net income, 10 years: $8.9B

- ROIC, first three-year median: 18.2%

- ROIC, last three-year median: 20.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.43

- FY2017: $1.89

- FY2018: $1.44

- FY2019: $0.51

- FY2020: $0.56

- FY2021: $2.27

- FY2022: $4.24

- FY2023: $4.89

- FY2024: $3.63

- FY2025: $0.29

### accounting: pass

- Sloan accruals: -13.1%

- Receivables to sales index (DSRI): 0.97×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 8.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 14.54×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.26×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.8%

- FY2017: -3.9%

- FY2018: -8.5%

- FY2019: -5.7%

- FY2020: -7.5%

- FY2021: -8.0%

- FY2022: -6.1%

- FY2023: 1.6%

- FY2024: -2.4%

- FY2025: -13.1%

## Holders

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 39% since May 2026 · "ON Q1 Earnings Call: Auto Weakness, Industrial Stabilization, and Cost Actions Shape Outlook" (finance.yahoo.com, May 2025) · sales -15.3%

Story as of 2026-10-16T09:59:19.695Z; price observation 2026-10-15.

Price needs cash profits to grow 9.3% a year for ten years

- 2025-05-19: ON Q1 Earnings Call: Auto Weakness, Industrial Stabilization, and Cost Actions Shape Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/q1-earnings-call-auto-weakness-112852692.html))

- 2025-07-29: Onsemi stock rises on Nvidia collaboration for AI power solutions ([finance.yahoo.com](https://finance.yahoo.com/news/onsemi-stock-rises-nvidia-collaboration-122422564.html))

- 2025-08-04: ON Semi Q2 earnings fall as margins narrow; co says demand stabilizes ([investing.com](https://www.investing.com/news/earnings/on-semi-q2-earnings-fall-as-margins-narrow-co-says-demand-stabilizes-4167834))

- 2026-02-14: ON Semiconductor Earnings Beat Supports AI And Automotive Shift With Buybacks ([finance.yahoo.com](https://finance.yahoo.com/news/semiconductor-earnings-beat-supports-ai-231004531.html))

- 2026-05-05: ON Semiconductor reports earnings beat on AI data strength, improving industrial trends ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/onsemi-reports-earnings-beat-ai-154500571.html))

### Sales · FY2024–2025

sales -15.3%; source https://www.sec.gov/Archives/edgar/data/1097864/000109786426000006/on-20251231.htm; observed 2026-02-09.

- FY2016: $3.9B 

- FY2017: $5.5B 

- FY2018: $5.9B 

- FY2019: $5.5B 

- FY2020: $5.3B 

- FY2021: $6.7B 

- FY2022: $8.3B 

- FY2023: $8.3B 

- FY2024: $7.1B 

- FY2025: $6.0B 

### Gross margin · FY2025

gross margin 33.1%; source https://www.sec.gov/Archives/edgar/data/1097864/000109786426000006/on-20251231.htm; observed 2026-02-09.

- FY2016: 33.3% 

- FY2017: 36.7% 

- FY2018: 38.1% 

- FY2019: 35.8% 

- FY2020: 32.7% 

- FY2021: 40.3% 

- FY2022: 49.0% 

- FY2023: 47.1% 

- FY2024: 45.4% 

- FY2025: 33.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in semiconductors; annual sales are USD 6 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1097864/000109786426000006/on-20251231.htm (filed 2026-02-09); FY2025: revenue 5995400000; grossProfit 1983900000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ON.US: 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 Group segment develops complementary metal-oxide-semiconductor image sensors, image signal processors, short-wave infrared sensors, and other products, as well as photon-counting technologies, including single-photon avalanche diode arrays and silicon photomultiplier devices for depth sensing, factory automation, safety systems, and robotics industries. ON Semiconductor Corporation was incorporated in 1992 and is headquartered in Scottsdale, Arizona.

### Why customers stay

Margins ranged from 33.1% to 47.1% during 2023–25; it earns 18.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-09); FY2023: grossProfit / revenue = 47.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-09); FY2024: grossProfit / revenue = 45.4%.

- Source: https://www.sec.gov/Archives/edgar/data/1097864/000109786426000006/on-20251231.htm (filed 2026-02-09); FY2025: grossProfit / revenue = 33.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-09); 10-year return on capital observations [[2016,0.08079709107567212],[2017,0.18514684952775262],[2018,0.18195031732751607],[2019,0.11216386593078705],[2020,0.08136360454534848],[2021,0.25600182009229505],[2022,0.38638665015517165],[2023,0.35848230675816883],[2024,0.19974275985062542],[2025,0.011464836588303589]]; median 0.18354858342763436. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 26.7% of cash earnings; paid dividends in 8 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-09); FY2016: growth capex 0; upkeep 212900000; cash acquisitions 2284000000; owner earnings 333300000. Growth capex plus acquisitions / owner earnings = 6.8526852685268524.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-09); FY2017: growth capex 0; upkeep 387500000; cash acquisitions 800000; owner earnings 905100000. Growth capex plus acquisitions / owner earnings = 0.0008838802342282621.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-09); FY2018: growth capex 6100000; upkeep 508700000; cash acquisitions 70900000; owner earnings 627400000. Growth capex plus acquisitions / owner earnings = 0.12272872170863883.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-09); FY2019: growth capex 0; upkeep 634600000; cash acquisitions 888000000; owner earnings 170200000. Growth capex plus acquisitions / owner earnings = 5.217391304347826.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-09); FY2020: growth capex 0; upkeep 483600000; owner earnings 375700000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-09); FY2021: growth capex 0; upkeep 492000000; owner earnings 1114300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-09); FY2022: growth capex 484200000; upkeep 551800000; cash acquisitions 0; owner earnings 1902200000. Growth capex plus acquisitions / owner earnings = 0.25454736620754914.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-09); FY2023: growth capex 0; upkeep 1539100000; cash acquisitions 236300000; owner earnings 1254100000. Growth capex plus acquisitions / owner earnings = 0.18842197591898574.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-09); FY2024: growth capex 0; upkeep 694000000; cash acquisitions 20500000; owner earnings 1521700000. Growth capex plus acquisitions / owner earnings = 0.013471774988499705.

- Source: https://www.sec.gov/Archives/edgar/data/1097864/000109786426000006/on-20251231.htm (filed 2026-02-09); FY2025: growth capex 0; upkeep 341200000; cash acquisitions 124500000; owner earnings 465800000. Growth capex plus acquisitions / owner earnings = 0.2672820953198798.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-09); Dividend observations: [[2016,4300000],[2017,1209400000],[2018,21000000],[2019,26200000],[2020,23600000],[2021,38900000],[2022,4300000],[2023,2087500000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1097864/000109786426000006/on-20251231.htm (filed 2026-02-09); FY2025: cash repurchases 1377600000 USD.

### Are managers owners

Insiders own 0.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ON.US SharesStats.PercentInsiders = 0.307 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 9.3% yearly over ten years; actual growth was 5.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-09); Ten-year compound average after fade. Initial solved rate 0.12131905277508259. Price 73.7; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.6816269284712483 → FY2025 1.1311316172899466. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $11.67 per share

- 2016-11: $11.78 per share

- 2016-12: $12.76 per share

- 2017-01: $13.32 per share

- 2017-02: $15.13 per share

- 2017-03: $15.49 per share

- 2017-04: $14.18 per share

- 2017-05: $15.48 per share

- 2017-06: $14.04 per share

- 2017-07: $14.95 per share

- 2017-08: $17.08 per share

- 2017-09: $18.47 per share

- 2017-10: $21.32 per share

- 2017-11: $20.08 per share

- 2017-12: $20.94 per share

- 2018-01: $24.74 per share

- 2018-02: $23.92 per share

- 2018-03: $24.46 per share

- 2018-04: $22.08 per share

- 2018-05: $25.13 per share

- 2018-06: $22.24 per share

- 2018-07: $22.05 per share

- 2018-08: $21.34 per share

- 2018-09: $18.43 per share

- 2018-10: $17.00 per share

- 2018-11: $19.18 per share

- 2018-12: $16.51 per share

- 2019-01: $20.04 per share

- 2019-02: $21.48 per share

- 2019-03: $20.57 per share

- 2019-04: $23.06 per share

- 2019-05: $17.76 per share

- 2019-06: $20.21 per share

- 2019-07: $21.51 per share

- 2019-08: $17.80 per share

- 2019-09: $19.21 per share

- 2019-10: $20.40 per share

- 2019-11: $21.47 per share

- 2019-12: $24.38 per share

- 2020-01: $23.15 per share

- 2020-02: $18.66 per share

- 2020-03: $12.44 per share

- 2020-04: $16.05 per share

- 2020-05: $16.49 per share

- 2020-06: $19.82 per share

- 2020-07: $20.60 per share

- 2020-08: $21.37 per share

- 2020-09: $21.69 per share

- 2020-10: $25.09 per share

- 2020-11: $28.75 per share

- 2020-12: $32.73 per share

- 2021-01: $34.49 per share

- 2021-02: $40.27 per share

- 2021-03: $41.61 per share

- 2021-04: $39.00 per share

- 2021-05: $40.04 per share

- 2021-06: $38.28 per share

- 2021-07: $39.06 per share

- 2021-08: $44.36 per share

- 2021-09: $45.77 per share

- 2021-10: $48.07 per share

- 2021-11: $61.43 per share

- 2021-12: $67.92 per share

- 2022-01: $59.00 per share

- 2022-02: $62.61 per share

- 2022-03: $62.61 per share

- 2022-04: $52.11 per share

- 2022-05: $60.68 per share

- 2022-06: $50.31 per share

- 2022-07: $66.78 per share

- 2022-08: $68.77 per share

- 2022-09: $62.33 per share

- 2022-10: $61.43 per share

- 2022-11: $75.20 per share

- 2022-12: $62.37 per share

- 2023-01: $73.45 per share

- 2023-02: $77.41 per share

- 2023-03: $82.32 per share

- 2023-04: $71.96 per share

- 2023-05: $83.60 per share

- 2023-06: $94.58 per share

- 2023-07: $107.75 per share

- 2023-08: $98.46 per share

- 2023-09: $92.95 per share

- 2023-10: $62.64 per share

- 2023-11: $71.33 per share

- 2023-12: $83.53 per share

- 2024-01: $71.13 per share

- 2024-02: $78.92 per share

- 2024-03: $73.55 per share

- 2024-04: $70.16 per share

- 2024-05: $73.04 per share

- 2024-06: $68.55 per share

- 2024-07: $78.25 per share

- 2024-08: $77.87 per share

- 2024-09: $72.61 per share

- 2024-10: $70.49 per share

- 2024-11: $71.12 per share

- 2024-12: $63.05 per share

- 2025-01: $52.34 per share

- 2025-02: $47.05 per share

- 2025-03: $40.69 per share

- 2025-04: $39.70 per share

- 2025-05: $42.02 per share

- 2025-06: $52.41 per share

- 2025-07: $56.36 per share

- 2025-08: $49.59 per share

- 2025-09: $49.31 per share

- 2025-10: $50.08 per share

- 2025-11: $50.24 per share

- 2025-12: $54.15 per share

- 2026-01: $59.89 per share

- 2026-02: $66.48 per share

- 2026-03: $61.92 per share

- 2026-04: $100.81 per share

- 2026-05: $120.62 per share

- 2026-06: $94.54 per share

- 2026-07: $81.61 per share

- 2026-08: $74.09 per share

- 2026-09: $76.87 per share

- 2026-10: $73.70 per share

## Annual estimated value (USD per share)

- FY2016: low $10.44 per share, central $11.56 per share, high $13.06 per share

- FY2017: low $15.48 per share, central $19.70 per share, high $22.72 per share

- FY2018: low $16.51 per share, central $20.87 per share, high $24.03 per share

- FY2019: low $14.64 per share, central $16.87 per share, high $19.32 per share

- FY2020: low $14.03 per share, central $15.64 per share, high $17.79 per share

- FY2021: low $21.82 per share, central $26.20 per share, high $30.10 per share

- FY2022: low $31.73 per share, central $40.79 per share, high $46.74 per share

- FY2023: low $41.98 per share, central $55.80 per share, high $64.53 per share

- FY2024: low $40.88 per share, central $52.16 per share, high $59.94 per share

- FY2025: low $32.21 per share, central $35.83 per share, high $40.66 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1097864/000109786426000006/on-20251231.htm); period 2025-12-31, filed 2026-02-09.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.