ON Value Scorecard - ON Semiconductor

Value Scorecard · run 2026-10-18

13 value checks: 12 scored 1 to 5, plus moat evidence

32/60

low-moderate value score

Earnings & returns

EPS Trend

1/5

Diluted EPS: $4.24 (2022), $4.89 (2023), $3.63 (2024), $0.29 (2025). The latest figure is half the 2022 figure or less; the framework scores that as 1.

ROE Trend

5/5

ROE (net income / common equity): 30.7% (2022), 28.1% (2023), 17.9% (2024), 1.6% (2025). Median 23.0%, lowest 1.6%; the framework scores a median above 20% as 5.

ROIC

1/5

ROIC of 0.7%: operating income of $84.20M divided by $11.24B of capital (total assets $12.52B minus current liabilities $1.29B), fiscal year to Dec 31, 2025, as filed in the 10-K (SEC EDGAR). The framework scores below 5% as 1.

Profit Margins

4/5

Net margin of 10.2%; the framework scores 10-20% as 4; gross margin 42.8%, operating margin 19.5%.

Balance sheet & cash

Debt-to-Equity

4/5

Debt-to-equity of 0.65; the framework scores 0.3-0.8 as 4 (total debt $4.71B, total cash $3.86B).

Free Cash Flow

2/5

Free cash flow (operating cash flow minus capital expenditure): $1.60B (2022), $438.40M (2023), $1.21B (2024), $1.42B (2025). It ended at or below 2022; the framework scores that as 2.

Retained Earnings

5/5

Retained earnings, as filed in the 10-Ks (SEC EDGAR): $4.36B (2022), $6.55B (2023), $8.12B (2024), $8.24B (2025). It rose every year; the framework scores that as 5.

Valuation models

Graham IV

1/5

IV = EPS x (8.5 + 2g) x (4.4 / Y) = $1.48 x (8.5 + 2 x 0.0) x (4.4 / 4.5) = $12.30 (EPS CAGR -75.6% floored at 0%; the formula returns a negative value below -4.25% growth). Current price $72.02; price is 485.5% above the model value.

DCF Value

1/5

FCF/share = $4.255, stage 1 growth = 0.0% (revenue CAGR -14.8% floored at 0%; the company is valued as if it does not grow rather than extrapolating the decline) for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $16.13, PV of terminal value = $38.88, DCF value = $55.01. Current price $72.02; price is 30.9% above the model value.

Margin of Safety

1/5

Graham value $12.30 (price is 485.5% above the model value); DCF value $55.01 (price is 30.9% above the model value).

Price-to-Book

2/5

P/B of 3.88; the framework scores 3.0-5.0 as 2.

Business quality

Moat Evidence

Not scored

A moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.

Return on capital, each year

Above 15% in 3 of 10 years (2016-2025); lowest 0.7%, highest 23.8%.

Gross margin, each year

Between 32.7% and 49.0% over 10 years (a range of 16.3 points).

Competition, in the company’s own words · 10-K filed Feb 9, 2026

We face significant competition from major international semiconductor companies, as well as smaller companies focused on specific market niches. Because some of our components include functionality that in some cases may be integrated into more complex ICs, we also face competition from manufacturers of ICs, ASICs and fully-customized ICs, as well as customers who develop their own IC products. See "Risk Factors —

The opening of the company’s “Competition” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.

Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.

Capital Allocation

5/5

Capital allocation, 2022-2025: dividends or buybacks paid in every year (pass); $2.86B paid out against $4.67B of free cash flow (pass); total debt $3.23B to $3.00B, down 7.0%, 3.4x EBITDA (pass: not up more than 10%); shares outstanding 0.43B to 0.40B, down 8.1% (pass). 4 of 4 tests passed; the framework scores that as 5.

Filings

Company notices to the SEC

Not scored

Three kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.

These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.

How the Graham and DCF values were calculated

  Graham Formula:
    IV = EPS x (8.5 + 2g) x (4.4 / Y)
    EPS = $1.48, g = 0.0%, Y = 4.5
    g floored at 0.0% (3-year EPS CAGR was -75.6%; below -4.25% the formula returns a negative value)
    IV = $12.30
    Current price $72.02 vs Graham value $12.30 — price is 485.5% above the model value.

  DCF:
    FCF/share = $4.255
    Stage 1 growth = 0.0% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
    Stage 1 g floored at 0.0% (3-year revenue CAGR was -14.8%; the company is valued as if it does not grow rather than extrapolating the decline)
      Y1: $4.255 → PV $3.868
      Y2: $4.255 → PV $3.517
      Y3: $4.255 → PV $3.197
      Y4: $4.255 → PV $2.906
      Y5: $4.255 → PV $2.642
    Stage 1 PV sum = $16.13
    Terminal value at end of Y5 = $62.61
    PV of terminal value = $38.88
    DCF value = $55.01
    Current price $72.02 vs DCF value $55.01 — price is 30.9% above the model value.

Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $72.02. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: Graham value, DCF value, margin of safety, ROIC, profit margins, debt-to-equity, price-to-book, EPS trend, ROE trend, free cash flow, retained earnings and capital allocation. No AI is involved in this scorecard. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.

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