Is the business good?
How good a business is ON?
ON Semiconductor earns 6.8% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
6.8%
Return on invested capital · cost of capital 9.0% · 2.2 points below what the capital costs: growth destroys value
- Operating margin
- 11%
Operating margin · Semiconductors median 8.5% · 12 months to Q2 2026
- Cash conversion
- 2.38×
Cash conversion · 2.76× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −2.5%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 6.6% |
| FY2021 | 19% |
| FY2022 | 28% |
| FY2023 | 31% |
| FY2024 | 25% |
| FY2025 | 1.4% |
Details›
- Gross margin12 months to Q2 2026
- 38%
- Operating margin12 months to Q2 2026
- 11%
- Net margin12 months to Q2 2026
- 10%
- Free cash flow margin
- 24%
- R&D as % of revenue
- 9.0%
- Revenue, trailing twelve months
- $6.20B
- Free cash flow, trailing twelve months
- $1.50B
- Net income, trailing twelve months
- $630M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.