CluenexON Semiconductor Corporation ON
ON Semiconductor Corporation scores weak on business quality (4.2 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What ON Semiconductor Corporation does
ON Semiconductor supplies power and sensing semiconductors to automotive and industrial markets, generating revenue from specialized chips that manage power conversion.
- What it does best
ON excels in power management efficiency, supported by an operating margin of 18.1% that edges out peers like GFS at 11.6%. This edge stems from proprietary silicon carbide manufacturing capacity and long-term customer supply agreements.
- The main risk
The primary threat is aggressive pricing pressure in automotive power chips, which risks eroding its 37.7% gross margin if electric vehicle adoption rates stall further.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins sit at 18.1% with an ROE of 8.4%, showing moderate profitability that compresses as revenue declines, indicating limited operating leverage during downturns.
Its narrow moat relies on automotive design wins that lock in tier-1 manufacturers for multi-year vehicle lifecycles, though low sector percentiles in gross margin leave room for rivals.
Revenue growth has stalled, dropping 15.3% to $6.2B as key end markets slow down, reversing the multi-year expansion seen in prior annual reporting periods.
Debt is manageable with a debt-to-equity ratio of 0.4 and interest coverage at 18.2x, making debt costs a minor burden while free cash flow hits $1.5B, keeping the balance sheet solid.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on ON
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
ON Semiconductor Corporation scores weak on the Cluenex quality check (4.2 of 10), measured against its own industry. Profitability is fair, moat weak, growth slow and financial health strong.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Nov 2, 2026, before the open.
See ON today
- Today's verdict on ON, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “ON Semiconductor Corporation (ON)”, https://cluenex.com/stocks/on/, data as of Oct 10, 2026.