ON Semiconductor Corporation (ON) Stock

ON Semiconductor Corporation (ON) is a Technology stock trading at $71.93 (as of 2026-08-24), with a market capitalization of $28.00B and a trailing P/E of 44.4. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

ON Semiconductor Corporation designs and develops semiconductor solutions for sensing and power applications, offering products such as power switching and conversion, signal conditioning, circuit protection, signal amplification, and voltage regulation. It operates across multiple groups and serves end-markets including automotive, industrial power, and energy systems such as solar, fast-charging, and storage.

Understand ON Semiconductor Corporation: how it makes money

ON Semiconductor provides intelligent sensing and power semiconductor products, and it makes money by selling analog, discrete, module, and integrated semiconductors into power and electrification end markets such as automotive, industrial power, solar, and storage.

ON's profitability is structurally tied to converting semiconductor demand into efficient manufacturing output, with support from long-term supply agreements (committed revenue under long-term supply agreements in Power Solutions) but sensitivity to utilization and working capital (die bank and factory utilization, days of inventory).

Revenue by segment (latest quarter)
Power Solutions$0.7B
Advanced Solutions$0.6B
Intelligent Sensing$0.2B

Business quality (Weak): Segment disclosure is clear (Power Solutions, Advanced Solutions, Intelligent Sensing), but current profitability is under pressure (operating margin negative), so investors should focus on utilization and how much revenue is anchored by long-term supply agreements.

Valuation: At 67× earnings, ON trades 30% above the Semiconductors average (51×). Note: one-time items can distort reported P/E.

Bull case

  • Long-term demand support in Power Solutions: Power Solutions has committed revenue under long-term supply agreements (2.5B), and long-term supply agreements coverage is shown as 200.
  • Exposure to electrification-driven end markets: The company targets intelligent power uses that support automotive electrification and fast-charging systems, with revenue from the Automotive end market shown as 0.8B.
  • Silicon carbide commitments: Committed silicon carbide revenue is shown as 4.5B (2023 to 2025) and 4.0B (next three years via long-term supply agreements).

Bear case

  • Operating losses despite solid gross margin: For the period ending 2026-04-03, operating margin is -3.5% while gross margin is 38.5%.
  • Working capital is elevated: Days of Inventory is 192, and Days Sales Outstanding is 40, which can pressure cash flow and cost absorption.
  • Manufacturing run-rate pressure versus peak: Wafer starts decrease versus peak is shown as 20%, which can negatively impact utilization and cost structure.
  • Non-core exit benefits not apparent in provided data: Non-Core Exits Completed Revenue Headwind Reduction is shown as 0.0.
Valuation — source: SEC EDGAR (first-party)
Price$71.93
Market Cap$28.00B
P/E Ratio44.4
EV / EBITDA18.1
Price / Book3.87
Price / Sales4.52
FCF Yield4.8%
DCF Value (model)$29.12
DCF Upside vs Price-59.5%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$6.00B
Net Margin2.0%
Revenue Growth (YoY)9.2%
EPS Growth (YoY)41.5%
FCF Growth (YoY)505.7%
Financial Health — source: SEC EDGAR
Altman Z-Score5.38 (safe)
Piotroski F-Score4/9 (moderate)
Valuation vs Sector & Industry
Stock P/E44.4
Sector P/E (Technology)33.9
Industry P/E (Electronic Equipment)38.8
vs Sector31.0%
vs Industry14.6%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderFMR LLC ($3.60B)
Institutional Holders Tracked10
Congressional Trades (recent)10
Company
SectorTechnology
IndustryElectronic Equipment
CEOHassane S. El-Khoury
Employees26,400
CountryUS
IPO Date2000-05-02

Related Companies (Electronic Equipment; 8 comparable electronics makers)

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  • First Solar, Inc. (FSLR)
  • Qnity Electronics, Inc. (Q)
  • Marvell Technology, Inc. (MRVL)
ON earnings history · ON institutional & insider holders · ON KPIs & operating metrics · ON financials · ON investor presentations & press releases · ON SEC filings · ON peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-24.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.