ON Semiconductor Corporation: Growth At A Reasonable Price



ON Semiconductor (ON) is a $6 billion technology company whose growth has accelerated dramatically to over 20% per annum since 2013. More importantly, the consensus of leading analysts forecast earnings growth to continue in excess of 22% on average through 2019. The stock can be purchased at a very attractive blended P/E ratio of 13.7 indicating the opportunity to buy above-average growth at a very reasonable price. Consequently, this growth stock appears attractive for investors looking for above-average future capital appreciation.

ON Semiconductor Corporation provides semiconductor components across a diversified industry base. Some of their noteworthy claims to fame include: top 10 global automotive semiconductor supplier- leading provider in the wireless device industry for smart phones, tablets, wearables, and other hand-held devices-top 5 global supplier of motor controllers-Sensor portfolio extends to imaging, where they are number 2 in security and surveillance.

Who They Are

They describe themselves as follows: “ON Semiconductor is driving energy efficient innovations, empowering customers to reduce global energy use. The company is a leading supplier of semi conductor-based solutions, offering a comprehensive portfolio of energy-efficient power management, analog, sensors, logic, timing, connectivity, discrete, SoC and custom devices.

The company’s products help engineers solve their unique design challenges in automotive, communications, consumer, industrial, medical, aerospace and defense applications. ON Semiconductor operates a responsive, reliable, world-class supply chain and quality program, a robust compliance and ethics program, and a network of manufacturing facilities, sales offices and design centers in key markets throughout North America, Europe and Asia and Pacific regions.”

The following short business description courtesy S&P Capital IQ:

“ON Semiconductor Corporation manufactures and sells semiconductor components for various electronic devices worldwide. It operates through three segments: Power Solutions Group, Analog Solutions Group, and Image Sensor Group.

The Power Solutions Group segment offers discrete, module, and integrated semiconductor products for various applications, such as power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference.

The Analog Solutions Group segment designs and develops analog, mixed-signal, and logic application specific integrated circuits and standard products, as well as power solutions for a range of end-users in the automotive, consumer, computing, industrial, communications, medical, and aerospace/defense markets. This segment also provides trusted foundry, trusted design, and manufacturing services, as well as integrated passive devices technology.

The Image Sensor Group segment offers complementary metal oxide semiconductors and charge-coupled device image sensors, as well as proximity sensors, image signal processors, and actuator drivers for autofocus and image stabilization for a range of customers in automotive, industrial, consumer, wireless, medical, and aerospace/defense markets.

The company serves original equipment manufacturers, distributors, and electronic manufacturing service providers. ON Semiconductor Corporation was founded in 1999 and is headquartered in Phoenix, Arizona.”


Disclosure: No position at the time of writing.

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