Introduction
On Semiconductor Corporation provides intelligent power and intelligent sensing solutions with a primary focus towards automotive and industrial markets to help our customers solve challenging problems and create cutting-edge products for a better future. Our intelligent power technologies enable the electrification of the automotive industry that allows for lighter and longer-range electric vehicles, empowers efficient fast-charging systems and propels sustainable energy for the highest efficiency solar strings, industrial power and storage systems. Our intelligent power solutions for the automotive industry allow our customers to exceed range targets with lower weight and reduce system cost through efficiency. Our intelligent sensing technologies support the next generation industry, allowing for smarter factories and buildings while also enhancing the automotive mobility experience with imaging and depth sensing that make advanced vehicle safety and automated driving systems possible.
Asset Structure Analysis
On Semiconductor’s total assets were $13.2 billion as of December 31, 2023, up from $12 billion as of December 31, 2022.
Property, plant and equipment, net were $4.4 billion as of December 31, 2023, accounting for 33.2% of total assets.
Goodwill was $1.58 billion as of December 31, 2023, making up 12% of total assets.
Total current assets were $5.9 billion as of de ember 31, 2023, representing 44.7% of total assets.
Of total current assets, cash and cash equivalents were $2.48 billion, receivables, net were $935 million and inventories were $2.1 billion.
Liquidity and Solvency
Total current liabilities were $2.18 billion as of December 31, 2023 with the current ratio of 2.7.
Total liabilities were $5.4 billion as of December 31, 2023, with the debt ratio of 41%.
As you can see, On Semiconductor has a low level of debt.
Profitability Analysis
On Semiconductor’s revenues were $8.25 billion, $8.33 billion and $6.74 billion in 2023, 2022 and 2021, respectively.
The company’s gross profit was $3.88 billion, $4.08 billion and $2.71 billion in 2023, 2022 and 2021, respectively.
The gross margin was 47%, 49% and 40.4% in 2023, 2022 and 2021, respectively.
Net income was $2.19 billion, $1.9 billion and $1 billion in 2023, 2022 and 2021, respectively.
Cash Flow Analysis
Net cash provided by operating activities was $1.98 billion, $2.63 billion and $1.78 billion in 2023, 2022 and 2021, respectively.
Purchases of property, plant and equipment were $1.58 billion, $1 billion and $444.6 million in 2023, 2022 and 2021, respectively.
The free cash flow was $400 million, $1.63 billion and $1.34 billion in 2023, 2022 and 2021, respectively.
On Semiconductor’s operating performance for the six months ended to June 28, 2024
Revenues were $3.6 billion and $4.05 billion in the six months ended to June 28, 2024 and the six months ended to June 30, 2023.
Net income was $792 million and $1.94 billion in the six months ended to June 28, 2024 and the six months ended to June 30, 2023.
Conclusion
On Semiconductor has a low level of debt.
We think there are two factors that affect On Semiconductor stock prices. One factor is the growth of revenues and another factor is the amount of capital expenditures.
It is difficult to weight the company’s valuation and a conservative estimate is $20 billion.
Disclaimer: The content is for reference only and does not constitute investment advice.
