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ON Semiconductor Corporation ON

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At $74.21, ON sits 45% below its high, trading at 16.5x what the street thinks it earns in 2027 while throwing off a 6.1% trailing free cash flow yield.

That yield rests on capital spending cut 78% in two years, and the spending has to come back if the revenue does.

Key data

ItemValue
Price, 2026-08-21 close$74.21
Market capitalization$28.9B
FY2025 revenue$6.0B, down 15%
Net debt$968M against roughly $1.2B trailing EBITDA
Diluted shares, quarter ended 2026-07-03404.4M, down 6.5% in eighteen months
Trailing free cash flow yield6.1%, on $4.54 per share
Gross margin, latest quarter38.4%, versus 32.3% for FY2025
Forward P/E on FY2027 consensus16.5x, on $4.50 non-GAAP

ON · price with moving averages

Daily · 6MWeekly · 3Y
$27$52$78$103$129 Sep '23Apr '24Nov '24Jun '25Jan '26Sep '26 BID
EMAs82140

Source: market data.

The business

ON Semiconductor sells power and sensing chips. Automakers are the largest buyer group, taking parts that manage battery power in electric vehicles, run onboard chargers, and feed the image sensors behind driver assistance cameras. Industrial is second: factory automation, energy infrastructure, and power delivery inside AI data centers. ON gets paid per chip shipped, so revenue tracks unit demand and its own fab utilization, with no subscription or recurring layer underneath to smooth a downturn.

The engine of the last cycle was silicon carbide, a material that handles high voltage more efficiently than standard silicon and became the standard in EV traction inverters. ON spent $1.54B in 2023 to own that supply chain. Then EV demand slowed, automakers worked down chip inventory, and revenue fell from $8.3B in 2022 to $6.0B in 2025 while gross margin went from 47.1% to 32.3%.

Inside the complete One Pager

  1. 01The business
  2. 02Things you might not know
  3. 03Fundamentals
  4. 04Valuation
  5. 05Management
  6. 06Compensation
  7. 07The linchpins
  8. 08Last word

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