ON

ON Semiconductor Corp.

TMT


Presented:01/29/2024
Price:$73.02
Cap:$31.45B
Current Price:$69.32
Cap:$29.69B

Presented

Date01/29/2024
Price$73.02
Market Cap$31.45B
Ent Value$37.87B
P/E Ratio14.73x
Book Value$18.25
Div Yield0%
Shares O/S430.70M
Ave Daily Vol8,122,227
Short Int8.29%

Current

Price$69.32
Market Cap$29.69B
ON Semiconductor Corp. engages in the provision of power and sensing solutions, and technologies for electrification of the automotive industry. It operates through the following segments: Power Solutions Group (PSG), Advanced Solutions Group (ASG), and Intelligent Sensing Group (ISG). The PSG segment offers analog, discrete, module, and integrated semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage regulation functions. The ASG segment designs and develops analog, mixed-signal, advanced logic, application specific standard products, and application specific integrated circuits, radio frequency, and integrated power solutions. The ISG segment includes the design and development of complementary metal oxide semiconductor image sensors, image signal processors, single photon detectors, including silicon photomultipliers and single photon avalanche diode arrays, as well as actuator drivers for autofocus and image. The company was founded on July 4, 1999 and is headquartered in Scottsdale, AZ.

Publicly traded companies mentioned herein: ON Semiconductor Corp (ON), Tesla Inc (TSLA)

Highlights

The presenter is short shares of ON Semiconductor Corp (ON), a manufacturer of semiconductor components with end market exposure as follows: Automotive (~50% of total revenue), Industrial (~25%), Other (computing, consumer, networking, communications; ~25%). At the company’s May 2023 Analyst Day, management laid out a path to grow revenues at a 10% – 12% CAGR through 2027. However, the presenter sees both secular and company-specific headwinds over the medium term. He therefore expects 2025 topline growth to miss the consensus ~9% estimate by ~200bps, creating the potential for downside from the current $73 share price to $60. 

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Idea Discussion

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