ON Semiconductor Corporation (ON) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: ON Semiconductor Corporation

Updated on October 31, 2026 · accounts published on August 3, 2026

A shrinking chipmaker that still turns its sales into solid cash

ON Semiconductor trades at a P/E of 45.9 over the last 12 months, 43 % above its sector median, while revenue fell 15 % in the same period.

• Is ON Semiconductor expensive or cheap? Its P/E of 45.9 over the last 12 months sits 43 % above the 32.0 median of its sector.
• How is the business doing? Revenue fell 15 % over the last 12 months and the 11.7 % operating margin trails its 15.4 % average for 2014-2025.
• How strong is the balance sheet? Net debt was 1.5× EBITDA in fiscal 2025, inside the 2.0× semiconductor ceiling, and equals just 3.4 % of the share price.
• What to expect from the next earnings? Analysts expect EPS of $0.88 on November 2, 2026, and the 2026 consensus has held at $3.20 over the last 30 days.
• Is it growing with real cash or by diluting shareholders? Free cash flow was 24 % of revenue in fiscal 2025, above the 20 % healthy mark, with stock-based pay at 0.0 % of revenue.

Is ON Semiconductor expensive or cheap?

ON Semiconductor trades at a P/E of 45.9 over the last 12 months, 43 % above the 32.0 median of 314 technology companies. EV/EBITDA points the same way: 18.7× against a five-year average of 14.8×, past the 110 % line that marks the multiple as expensive in this sector. The free cash flow yield of 5.7 % is the friendlier figure, because cash has held up better than earnings. The share price is up 41 % over 12 months yet 46 % below its 52-week high of $133.93. Investors are paying for a recovery the earnings do not show yet.

How is the business doing?

Revenue is down 15.3 % year on year over the last 12 months and EPS has dropped 92 %, so the business is in a clear downturn. The operating margin of 11.7 % over the last 12 months is below both the 12.5 % of fiscal 2025 and the 15.4 % average of 2014-2025, which means profitability is still sliding. ROIC of 5.2 % sits 2.9 points under the 8.2 % sector median. The longer record is better: ROIC topped 10 % in 6 of the last 10 fiscal years, with a low of 4.6 % in 2020. The company has recovered from weak years before.

How strong is the balance sheet?

Debt is not the problem. Net debt was $2.41 per share in fiscal 2025 ($8.61 of debt against $6.20 of cash). That is only 3.4 % of the current price and 1.5× EBITDA, under the 2.0× that semiconductor companies can tolerate. Over the last 12 months debt to equity is 0.62 and the current ratio is 3.46, so short-term obligations are covered more than three times. An Altman Z of 4.6 puts the company in the safe zone. The weak spot is momentum: a Piotroski score of 4 out of 9 matches the falling profits and margins.

What to expect from the next earnings?

ON Semiconductor reports on November 2, 2026. Of the 47 analysts who cover it, 24 rate it a buy, 22 a hold and 1 a sell. The bar for the quarter is EPS of $0.88, up from the $0.74 reported on August 3, 2026, which beat the $0.71 estimate by 3.5 %. The company has beaten EPS estimates in 6 of the last 8 quarters. Over the last 30 days the 2026 EPS consensus has stayed at $3.20 across 20 analysts, and revenue estimates have barely moved. The thing to watch is whether margins stop falling.

Is it growing with real cash or by diluting shareholders?

In technology, generic ratios fall short. Growth, pricing power and dilution from stock-based pay say more about whether profits reach shareholders. ON Semiconductor passes on cash. Free cash flow was 23.7 % of revenue in fiscal 2025, above the healthy 20 %, and stock-based compensation was 0.0 % of revenue, well under the 10 % limit. It fails on growth and pricing power. Revenue per share shrank 8.8 % a year over fiscal 2022-2025, against a healthy 15 % rise. The fiscal 2025 gross margin of 32.3 % is short of the 45 % expected from a chipmaker, and ROIC of 5.2 % misses the 15 % bar.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.