Inquiry Into ON Semiconductor's Competitor Dynamics In Semiconductors & Semiconductor Equipment Industry

Benzinga - by Benzinga Insights, Benzinga Staff Writer.

In the fast-paced and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating ON Semiconductor (NASDAQ:ON) in comparison to its major competitors within the Semiconductors & Semiconductor Equipment industry. By analyzing crucial financial metrics, market position, and growth potential, our objective is to provide valuable insights for investors and offer a deeper understanding of company's performance in the industry.

ON Semiconductor Background Onsemi is a supplier of power semiconductors and sensors focused on the automotive and industrial markets. Onsemi is the second-largest power chipmaker in the world and the largest supplier of image sensors to the automotive market. While the firm used to be highly vertically integrated, it now pursues a hybrid manufacturing strategy for flexible capacity. Onsemi is pivoting to focus on emerging applications like electric vehicles, autonomous vehicles, industrial automation, and renewable energy.

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.dividend-frequency { font-size: 12px; color: #6c757d; } By conducting an in-depth analysis of ON Semiconductor, we can identify the following trends:

• The stock's Price to Earnings ratio of 15.88 is lower than the industry average by 0.12x, suggesting potential value in the eyes of market participants.

• The current Price to Book ratio of 4.26, which is 0.42x the industry average, is substantially lower than the industry average, indicating potential undervaluation.

• Based on its sales performance, the stock could be deemed undervalued with a Price to Sales ratio of 4.2, which is 0.36x the industry average.

• The Return on Equity (ROE) of 7.37% is 0.63% above the industry average, highlighting efficient use of equity to generate profits.

• With lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $790 Million, which is 0.17x below the industry average, the company may face lower profitability or financial challenges.

• Compared to its industry, the company has lower gross profit of $940 Million, which indicates 0.21x below the industry average, potentially indicating lower revenue after accounting for production costs.

• The company's revenue growth of -4.06% is significantly lower compared to the industry average of 10.27%. This indicates a potential fall in the company's sales performance.

The debt-to-equity (D/E) ratio is a measure that indicates the level of debt a company has taken on relative to the value of its assets net of liabilities.

Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.

When assessing ON Semiconductor against its top 4 peers using the Debt-to-Equity ratio, the following comparisons can be made:

• When comparing the debt-to-equity ratio, ON Semiconductor is in a stronger financial position compared to its top 4 peers.

• The company has a lower level of debt relative to its equity, indicating a more favorable balance between the two with a lower debt-to-equity ratio of 0.43.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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