📊 ON Key Takeaways
Is On Semiconductor Corp. (ON) a Good Investment?
ON Semiconductor faces significant near-term headwinds with revenue declining 15.3% YoY and operating losses of -$53.4M, indicating the company has transitioned from profitability to unprofitability. While the balance sheet remains solid with strong liquidity and moderate leverage, the negative interest coverage ratio (-3.4x) and deteriorating profitability trends suggest the company cannot sustain operations profitably without a sector recovery. The strong operating cash flow ($239M) appears driven by working capital management rather than operational performance, creating downside risk if conditions deteriorate further.
Revenue contraction and sharp margin compression weigh on profitability, driving weak ROE/ROA despite stable net income, while fundamentals remain supported by strong liquidity and robust free cash flow generation. Moderate leverage and acceptable interest coverage provide resilience, but clearer evidence of demand stabilization and margin recovery is needed before turning more constructive.
On Semiconductor Corp. Key Strengths (ON)
- Strong positive free cash flow of $217.2M with 14.4% FCF margin despite operating losses
- Excellent liquidity position with current ratio of 4.87x and $2.0B cash balance
- Moderate leverage at 0.41x debt/equity ratio with $7.3B stockholders equity providing financial flexibility
- Strong liquidity with 4.5x current and 3.0x quick ratios plus $2.15B cash
- Robust free cash flow ($1.42B, 23.7% margin)
- Moderate leverage (0.39x D/E) with 5.4x interest coverage
ON Stock Risks: On Semiconductor Corp. Investment Risks
- Revenue contraction of 15.3% YoY with company now unprofitable across operating and net income metrics
- Negative interest coverage ratio of -3.4x indicates company cannot service debt obligations from operating income
- Semiconductor sector cyclical downturn with gross margin compression and uncertain recovery timeline; 38.5% gross margin may face further pressure
- Revenue down 15.3% YoY indicating demand softness
- Operating margin compressed to 1.4% with weak ROE/ROA
- Cash flow strength may reflect working-capital releases that could reverse
Key Metrics to Watch
- Quarterly revenue trends and gross margin stability to assess sector recovery timing
- Path to operating profitability and return to positive operating margin
- Operating cash flow sustainability to confirm it is not dependent on unsustainable working capital benefits
- Gross margin
- Revenue YoY growth
On Semiconductor Corp. (ON) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 4.87x current ratio provides a solid financial cushion.
ON Profit Margin, ROE & Profitability Analysis
ON vs Technology Sector: How On Semiconductor Corp. Compares
How On Semiconductor Corp. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is On Semiconductor Corp. Stock Overvalued? ON Valuation Analysis 2026
Based on fundamental analysis, On Semiconductor Corp. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
On Semiconductor Corp. Balance Sheet: ON Debt, Cash & Liquidity
ON Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: On Semiconductor Corp.'s revenue has grown significantly by 22% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.89 reflects profitable operations.
ON Revenue Growth, EPS Growth & YoY Performance
ON Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.4B | -$33.4M | $-0.08 |
| Q3 2025 | $1.6B | -$60.8M | $-0.15 |
| Q2 2025 | $1.5B | $170.3M | $0.41 |
| Q1 2025 | $1.4B | $453.0M | $1.04 |
| Q3 2024 | $1.8B | $401.7M | $0.93 |
| Q2 2024 | $1.7B | $338.2M | $0.78 |
| Q1 2024 | $1.9B | $453.0M | $1.03 |
| Q3 2023 | $2.2B | $311.9M | $0.70 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
On Semiconductor Corp. Dividends, Buybacks & Capital Allocation
ON SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for On Semiconductor Corp. (CIK: 0001097864)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ON
What is the AI rating for ON?
On Semiconductor Corp. (ON) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ON's key strengths?
Claude: Strong positive free cash flow of $217.2M with 14.4% FCF margin despite operating losses. Excellent liquidity position with current ratio of 4.87x and $2.0B cash balance. ChatGPT: Strong liquidity with 4.5x current and 3.0x quick ratios plus $2.15B cash. Robust free cash flow ($1.42B, 23.7% margin).
What are the risks of investing in ON?
Claude: Revenue contraction of 15.3% YoY with company now unprofitable across operating and net income metrics. Negative interest coverage ratio of -3.4x indicates company cannot service debt obligations from operating income. ChatGPT: Revenue down 15.3% YoY indicating demand softness. Operating margin compressed to 1.4% with weak ROE/ROA.
What is ON's revenue and growth?
On Semiconductor Corp. reported revenue of $1.5B.
Does ON pay dividends?
On Semiconductor Corp. does not currently pay dividends.
Where can I find ON SEC filings?
Official SEC filings for On Semiconductor Corp. (CIK: 0001097864) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ON's EPS?
On Semiconductor Corp. has a diluted EPS of $-0.08.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ON's fundamental grade?
Based on our AI fundamental analysis in May 2026, On Semiconductor Corp. has a C grade with 74% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ON stock overvalued or undervalued?
Valuation metrics for ON: ROE of -0.5% (sector avg: 22%), net margin of -2.2% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is ON's AI grade for 2026?
Our dual AI analysis gives On Semiconductor Corp. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ON's free cash flow?
On Semiconductor Corp.'s operating cash flow is $239.1M, with capital expenditures of $21.9M. FCF margin is 14.4%.
How does ON compare to other Technology stocks?
Vs Technology sector averages: Net margin -2.2% (avg: 18%), ROE -0.5% (avg: 22%), current ratio 4.87 (avg: 2.5).