ON Semiconductor Corporation [NASDAQ:ON]: Analyst Rating and Earnings
Experts stock market traders frequently make a point to check what top Wall Street analysts say regarding a potential buy. Regarding ON Semiconductor Corporation [ON] currently, the latest Wall Street ratings we can see is from the fiscal quarter that’s going to end in December. On average, stock market experts give ON an Outperform rating. Its stock price has been found in the range of 14.55 to 26.38. This is compared to its latest closing price of $19.75.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for ON Semiconductor Corporation [ON] is sitting at 2.19. This is compared to 1 month ago, when its average rating was 2.24.
For the quarter ending in Mar-19 ON Semiconductor Corporation [ON] generated $1.39 billion in sales. That’s 0.23% lower than the average estimate of $1.39 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on Mon 29 Jul (In 73 Days).
Fundamental Analysis of ON Semiconductor Corporation [ON]
Now let’s turn to look at profitability: with a current Operating Margin for ON Semiconductor Corporation [ON] sitting at +14.68 and its Gross Margin at +36.18, this company’s Net Margin is now 10.20%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 14.73, and its Return on Invested Capital has reached 11.40%. Its Return on Equity is 21.09, and its Return on Assets is 8.49. These metrics all suggest that ON Semiconductor Corporation is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, ON Semiconductor Corporation [ON] has generated a Total Debt to Total Equity ratio of 87.21. Similarly, its Total Debt to Total Capital is 46.59, while its Total Debt to Total Assets stands at 36.46. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 82.85, and its Long-Term Debt to Total Capital is 44.25. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 7.53 and its Total Debt to EBITDA Value is 2.02. The Enterprise Value to Sales for this firm is now 1.75, and its Total Debt to Enterprise Value stands at 0.31. ON Semiconductor Corporation [ON] has a Price to Book Ratio of 2.15, a Price to Cash Flow Ratio of 5.65 and P/E Ratio of 14.06. These metrics all suggest that ON Semiconductor Corporation is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, ON Semiconductor Corporation [ON] earns $164,658 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 8.47 and its Total Asset Turnover is 0.80. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.32 and its Current Ratio is 2.16. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
ON Semiconductor Corporation [ON] has 415.76M shares outstanding, amounting to a total market cap of $8.21B. Its stock price has been found in the range of 14.55 to 26.38. At its current price, it has moved by -25.47% from its 52-week high, and it has moved 35.12% from its 52-week low.
This stock’s Beta value is currently 2.09, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 34.23. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is ON Semiconductor Corporation [ON] a Reliable Buy?
Shares of ON Semiconductor Corporation [ON], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.