NASDAQ · Technology

ON Semiconductor Corporation

ON · Semiconductors

$121.62

▲ 8.7 (7.7%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

C⤢

Gross Profit Margin 38.5%

Operating Margin 18.2%

Net Income Margin -2.2%

Fin. Health

C⤢

Years to Pay Off Debt -90.0 yrs

Working Capital vs Long-Term Debt $1.6B

Working Capital $4.6B

Valuation

F⤢

Price-to-Book 6.48x

Cash Flow

A⤢

Free Cash Flow $217M

Owner Earnings $275M

Profitability

Gross Profit Margin 38.5%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 18.2%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin -2.2%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt -90.0 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt $1.6B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $4.6B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About ON Semiconductor Corporation

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.

Market Data

Market Cap $47.3B

Enterprise Value $47.2B

P/E (TTM) 89.43

Dividend Yield N/A

Exchange NASDAQ

Key Margins

Gross Profit 38.5%

Operating Margin 18.2%

Net Margin -2.2%

Company Info

Sector Technology

Industry Semiconductors

Employees 22600

Country United States

Visit website

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	38.5%▲	36.0%•	N/A
Operating Margin %	18.2%▲	16.9%•	N/A
Net Income %	-2.2%▼	11.9%•	N/A
Diluted EPS	-0.08▼	0.45•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$12.0B	$12.5B	N/A
Total Debt	$3.0B▲	$3.0B•	N/A
Working Capital	$4.6B▲	$4.5B•	N/A
Years to Pay Debt	-90.01	16.53	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$217M▼	$485M•	N/A
Owner Earnings	$275M	$466M	N/A
CapEx % of Net Income	N/A	38.0%	N/A

Income Statement

	2026	2025
Tax Effect Of Unusual Items	-86,277	-9,561
Tax Rate For Calcs	0	0
Normalized EBITDA	584,100	508,100
Total Unusual Items	-329,300	-58,800
Total Unusual Items Excluding Goodwill	-329,300	-58,800
Net Income From Continuing Operation Net Minority Interest	-33,400	181,800
Reconciled Depreciation	286,700	214,900
Reconciled Cost Of Revenue	654,000	775,000
EBITDA	254,800	449,300
EBIT	-31,900	234,400
Net Interest Income	5,000	3,300
Interest Expense	12,700	17,300
Interest Income	17,700	20,600
Normalized Income	209,623	231,039
Net Income From Continuing And Discontinued Operation	-33,400	181,800
Total Expenses	1,237,400	1,271,200
Total Operating Income As Reported	-53,400	200,100
Diluted Average Shares	394,100	402,300
Basic Average Shares	394,100	400,800
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	-33,400	181,800
Net Income Common Stockholders	-33,400	181,800
Net Income	-33,400	181,800
Minority Interests	-500	0
Net Income Including Noncontrolling Interests	-32,900	181,800
Net Income Continuous Operations	-32,900	181,800
Tax Provision	-11,700	35,300
Pretax Income	-44,600	217,100
Other Income Expense	-325,500	-45,100
Other Non Operating Income Expenses	3,800	13,700
Special Income Charges	-329,300	-58,800
Impairment Of Capital Assets
Restructuring And Mergern Acquisition	329,300	-437,200
Net Non Operating Interest Income Expense	5,000	3,300
Interest Expense Non Operating	12,700	17,300
Interest Income Non Operating	17,700	20,600
Operating Income	275,900	258,900
Operating Expense	307,200	292,100
Depreciation Amortization Depletion Income Statement	10,500	10,800
Depreciation And Amortization In Income Statement	10,500	10,800
Amortization	10,500	10,800
Amortization Of Intangibles Income Statement	10,500	10,800
Research And Development	144,300	133,800
Selling General And Administration	152,400	147,500
Selling And Marketing Expense	63,000	61,500
General And Administrative Expense	89,400	86,000
Other Gand A	89,400	86,000
Gross Profit	583,100	551,000
Cost Of Revenue	930,200	979,100
Total Revenue	1,513,300	1,530,100
Operating Revenue	1,513,300	1,530,100

Balance Sheet

	2026	2025	2024
Treasury Shares Number	234,350	228,222
Ordinary Shares Number	391,871	396,741
Share Issued	626,221	624,962
Net Debt	979,300	832,900
Total Debt	3,006,500	3,004,800
Tangible Book Value	5,289,600	5,649,500
Invested Capital	10,284,600	10,653,800
Working Capital	4,590,300	4,535,400
Net Tangible Assets	5,289,600	5,649,500
Capital Lease Obligations	23,600	24,300
Common Stock Equity	7,301,700	7,673,300
Total Capitalization	10,284,600	10,653,800
Total Equity Gross Minority Interest	7,320,800	7,691,900
Minority Interest	19,100	18,600
Stockholders Equity	7,301,700	7,673,300
Gains Losses Not Affecting Retained Earnings	-61,700	-55,500
Other Equity Adjustments	-61,700	-55,500
Treasury Stock	6,433,900	6,057,900
Retained Earnings	8,208,500	8,241,900
Additional Paid In Capital	5,582,500	5,538,600
Capital Stock	6,300	6,200
Common Stock	6,300	6,200
Total Liabilities Net Minority Interest	4,690,000	4,832,200
Total Non Current Liabilities Net Minority Interest	3,504,700	3,544,500
Other Non Current Liabilities	452,200	498,500
Non Current Deferred Liabilities	46,500	41,700
Non Current Deferred Taxes Liabilities	46,500	41,700
Long Term Debt And Capital Lease Obligation	3,006,000	3,004,300
Long Term Capital Lease Obligation	23,100	23,800
Long Term Debt	2,982,900	2,980,500
Current Liabilities	1,185,300	1,287,700
Other Current Liabilities		220,300	276,700
Current Deferred Liabilities		51,800	98,200
Current Deferred Revenue		51,800	98,200
Current Debt And Capital Lease Obligation	500	500
Current Capital Lease Obligation	500	500
Current Debt
Other Current Borrowings
Current Provisions		250,800	225,500
Payables And Accrued Expenses	1,184,800	764,300
Current Accrued Expenses	698,700	177,300
Payables	486,100	587,000
Total Tax Payable		14,700	25,100
Income Tax Payable		14,700	25,100
Accounts Payable	486,100	572,300
Total Assets	12,010,800	12,524,100
Total Non Current Assets	6,235,200	6,701,000
Other Non Current Assets	254,300	356,000
Non Current Deferred Assets	933,200	929,100
Non Current Deferred Taxes Assets	933,200	929,100
Goodwill And Other Intangible Assets	2,012,100	2,023,800
Other Intangible Assets	332,200	343,900
Goodwill	1,679,900	1,679,900
Net PPE	3,035,600	3,392,100
Accumulated Depreciation		-4,171,700	-3,958,800
Gross PPE	3,035,600	7,563,800
Other Properties	3,035,600	23,100
Machinery Furniture Equipment		5,927,200	6,781,300
Buildings And Improvements		1,497,000	1,423,200
Land And Improvements		116,500	115,700
Current Assets	5,775,600	5,823,100
Other Current Assets	419,600	352,900
Assets Held For Sale Current	40,400	25,000
Inventory	2,049,200	1,989,600
Finished Goods	358,900	337,100
Work In Process	1,423,800	1,388,900
Raw Materials	266,500	263,600
Receivables	862,800	908,000
Accounts Receivable	862,800	908,000
Cash Cash Equivalents And Short Term Investments	2,403,600	2,547,600
Other Short Term Investments	400,000	400,000
Cash And Cash Equivalents	2,003,600	2,147,600

Cash Flow

	2026	2025	2024
Free Cash Flow	217,200	485,400
Repurchase Of Capital Stock	-345,700	-450,200
Repayment Of Debt	-100	-375,500
Capital Expenditure	-21,900	-69,100
Interest Paid Supplemental Data	18,600	5,100
Income Tax Paid Supplemental Data	46,600		53,400
End Cash Position	2,005,100	2,149,000
Beginning Cash Position	2,149,000	2,474,000
Effect Of Exchange Rate Changes	-300	-4,900
Changes In Cash	-143,600	-320,100
Financing Cash Flow	-366,000	-823,900
Cash Flow From Continuing Financing Activities	-366,000	-823,900
Net Other Financing Charges	-26,900	-3,700
Proceeds From Stock Option Exercised	6,700	5,500
Net Common Stock Issuance	-345,700	-450,200
Common Stock Payments	-345,700	-450,200
Net Issuance Payments Of Debt	-100	-375,500
Net Long Term Debt Issuance	-100	-375,500
Long Term Debt Payments	-100	-375,500
Investing Cash Flow	-16,700	-50,700
Cash Flow From Continuing Investing Activities	-16,700	-50,700
Net Other Investing Changes	4,200	0	0
Net Investment Purchase And Sale	0	0
Sale Of Investment	300,000	250,000
Purchase Of Investment	-300,000	-250,000
Net Business Purchase And Sale	0	-7,000
Purchase Of Business	0	-7,000
Net PPE Purchase And Sale	-20,900	-43,700
Sale Of PPE	1,000	25,400
Purchase Of PPE	-21,900	-69,100
Operating Cash Flow	239,100	554,500
Cash Flow From Continuing Operating Activities	239,100	554,500
Change In Working Capital	-201,300	184,600
Change In Other Current Liabilities	-17,800	-10,700
Change In Other Current Assets	-38,500	91,300
Change In Payables And Accrued Expense	-111,400	1,200
Change In Accrued Expense	-35,500	-40,300
Change In Payable	-75,900	41,500
Change In Account Payable	-75,900	41,500
Change In Inventory	-59,800	58,700
Change In Receivables	26,200	44,100
Other Non Cash Items	700	0
Stock Based Compensation	37,300	37,800
Asset Impairment Charge	147,000	8,100
Deferred Tax	2,700	-80,600
Deferred Income Tax	2,700	-80,600
Depreciation Amortization Depletion	286,700	214,900
Depreciation And Amortization	286,700	214,900
Operating Gains Losses	-1,100	7,900
Gain Loss On Sale Of PPE	-1,100	7,900
Net Income From Continuing Operations	-32,900	181,800

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $1.4B ▲ $1.5B +4.7%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 20.3% ▲ 38.5% +18.2pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 19.1% ▲ 18.2% -0.9pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: -33.6% ▲ -2.2% +31.4pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$1.5B/qtr (≈$6.1B ann.)

vs > $1.5B annualised revenue

✅ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

4.87x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$217M

vs Positive

Operating Cash Flow

$239M

Latest quarter · Buffett's cash reality check

ROIC

2.0%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

6.5x

Net Assets: $7.3B

Asset Context — Semiconductors

This company's primary assets are likely intangible (brand, IP, talent, network effects) and don't appear on the balance sheet. Net Assets may significantly understate intrinsic value. ROIC and free cash flow are more reliable indicators of business quality.

⚠️ Operating income is positive but net income is negative. This typically reflects below-the-line items: interest expense, impairment charges, tax adjustments, or one-time write-offs. The core business may be healthy — operating margin is a better signal of ongoing profitability here.

Peers & Industry Comparison

Semiconductors — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
ON	$121.62	$47.3B	89.43	38.5%	-2.2%	$1.5B
NVDA NVIDIA Corporation	$210.69	$5,103.1B	32.3	74.1%	63.0%	$253.5B
AMD Advanced Micro Devices, Inc.	$537.37	$876.2B	179.7	53.1%	13.4%	$37.5B
INTC Intel Corporation	$133.99	$673.4B	N/A	37.2%	-5.9%	$53.8B
QCOM QUALCOMM Incorporated	$226.11	$238.3B	24.3	54.8%	22.3%	$44.5B
AVGO Broadcom Inc.	$411.35	$1,957.0B	68.2	76.3%	38.8%	$75.5B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.34%

Low — management has little skin in the game

Return on Equity (ROE)

-0.5%

Weak — poor returns on equity

Return on Assets (ROA)

-0.3%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$1.4B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+0.1% YoY

Debt is roughly stable

Leadership Team

Hassane El-Khoury

President, CEO & Director

Age 45

Pay: $1,242,399

Thad Trent

Executive VP, CFO, Treasurer & Principal Accounting Officer

Age 57

Pay: $1,188,542

Sudhir Gopalswamy

Group President of Intelligent Sensing & Analog and Mixed Signal Group

Age 55

Pay: $1,007,662

Wei-Chung Wang Ph.

Executive Vice President of Global Manufacturing & Operations

Parag Agarwal

Vice President of Investor Relations & Corporate Development

Top Institutional Holders

Institution	% Owned	Shares
FMR, LLC	14.84%	58,158,341
Blackrock Inc.	10.18%	39,911,681
Vanguard Capital Management LLC	6.54%	25,633,199
Vanguard Portfolio Management LLC	5.12%	20,062,560
State Street Corporation	4.67%	18,307,578
JPMORGAN CHASE & CO	4.11%	16,107,943
Janus Henderson Group PLC	3.50%	13,700,884
Geode Capital Management, LLC	2.75%	10,763,837

Risk Analysis

Beta (Market Risk)

1.98

High volatility — moves more than the market

Short Interest

11.0% of float

Moderate short interest

Debt-to-Equity

0.44x

Conservative balance sheet — low financial risk

Current Ratio

4.87x

Strong liquidity — Graham approved

52-Week Price Range

Low: $44.56 Current: $121.62 High: $134.92

Currently at 85% of 52-week range

ON Semiconductor Corporation

Metric Explanations

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis