There Is Still Room For ON Semiconductor Corporation (ON) to Improve Its Value – Let’s Wait for Clarity

The closing price of ON Semiconductor Corporation (NASDAQ: ON) was $70.08 for the day, down -1.02% from the previous closing price of $70.80. In other words, the price has decreased by -$0.72 from its previous closing price. On the day, 4530295 shares were traded. ON stock price reached its highest trading level at $71.20 during the session, while it also had its lowest trading level at $69.25.

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Our analysis of ON’s different ratios will help us gain a deeper understanding of the company. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 11.85 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 17.12. For the most recent quarter (mrq), Quick Ratio is recorded 2.10 and its Current Ratio is at 3.00. In the meantime, Its Debt-to-Equity ratio is 0.57 whereas as Long-Term Debt/Eq ratio is at 0.54.

Upgrades & Downgrades

On November 16, 2022, Credit Suisse started tracking the stock assigning a Neutral rating and target price of $83.

Insider Transactions:

Also, insider trades can serve as a great indicator of what management thinks about the future direction of a stock’s price. A recent insider transaction in this stock occurred on Oct 07 when COLPITTS BERNARD RAYMOND JR sold 2,111 shares for $68.01 per share. The transaction valued at 143,569 led to the insider holds 22,931 shares of the business.

KEETON SIMON sold 4,550 shares of ON for $341,250 on Aug 18. The EVP & GM, PSG now owns 162,791 shares after completing the transaction at $75.00 per share. On Aug 12, another insider, KEETON SIMON, who serves as the EVP & GM, PSG of the company, sold 2,813 shares for $70.00 each. As a result, the insider received 196,910 and left with 167,341 shares of the company.

Valuation Measures:

As of this moment, ON’s Price-to-Earnings (P/E) ratio for their current fiscal year is 18.18, and their Forward P/E ratio for the next fiscal year is 15.54. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.99. For the stock, the TTM Price-to-Sale (P/S) ratio is 3.60 while its Price-to-Book (P/B) ratio in mrq is 5.36.

Stock Price History:

Over the past 52 weeks, ON has reached a high of $77.28, while it has fallen to a 52-week low of $44.76. The 50-Day Moving Average of the stock is 67.77, while the 200-Day Moving Average is calculated to be 62.53.

Shares Statistics:

ON traded an average of 6.38M shares per day over the past three months and 5.61M shares per day over the past ten days. A total of 432.90M shares are outstanding, with a floating share count of 430.73M. Shares short for ON as of Oct 13, 2022 were 20.74M with a Short Ratio of 23.70M, compared to 20.03M on Sep 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 4.79% and a Short% of Float of 4.80%.

Earnings Estimates

The firm’s stock currently is rated by 26 analysts. On average, analysts expect EPS of $1.31 for the current quarter, with a high estimate of $1.37 and a low estimate of $1.25, while EPS last year was $0.87. The consensus estimate for the next quarter is $1.25, with high estimates of $1.34 and low estimates of $1.06.

Analysts are recommending an EPS of between $5.29 and $4.86 for the fiscal current year, implying an average EPS of $5.1. EPS for the following year is $4.87, with 28 analysts recommending between $5.46 and $3.31.

Revenue Estimates

It is expected that $90B in revenue will be generated in the current quarter, according to 24 analysts. It ranges from a high estimate of $2.14B to a low estimate of $2.06B. As of the current estimate, ON Semiconductor Corporation’s year-ago sales were $1.74B, an estimated increase of 21.70% from the year-ago figure. For the next quarter, 24 analysts are estimating revenue of $2.1B, an increase of 13.50% less than the figure of $21.70% in the same quarter last year. There is a high estimate of $2.14B for the next quarter, whereas the lowest estimate is $2.02B.

A total of 29 analysts have provided revenue estimates for ON’s current fiscal year. The highest revenue estimate was $8.31B, while the lowest revenue estimate was $8.15B, resulting in an average revenue estimate of $8.24B. In the same quarter a year ago, actual revenue was $6.74B, up 22.30% from the average estimate. Based on 29 analysts’ estimates, the company’s revenue will be $8.31B in the next fiscal year. The high estimate is $9B and the low estimate is $6.87B. The average revenue growth estimate for next year is up 0.80% from the average revenue estimate for this year.