ON Semiconductor Gross Profit vs. Profit Margin

ON Stock  USD 71.12  0.77  1.09%   
Considering ON Semiconductor's profitability and operating efficiency indicators, ON Semiconductor is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in January. Profitability indicators assess ON Semiconductor's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
2000-03-31
Previous Quarter
772 M
Current Value
799.4 M
Quarterly Volatility
271.8 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, ON Semiconductor's Price To Sales Ratio is very stable compared to the past year. As of the 1st of December 2024, EV To Sales is likely to grow to 4.69, while Days Sales Outstanding is likely to drop 36.11. At this time, ON Semiconductor's Interest Income is very stable compared to the past year. As of the 1st of December 2024, Net Interest Income is likely to grow to about 19.2 M, while Accumulated Other Comprehensive Income is likely to drop (47.5 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.280.4706
Way Down
Slightly volatile
For ON Semiconductor profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ON Semiconductor to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ON Semiconductor utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ON Semiconductor's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ON Semiconductor over time as well as its relative position and ranking within its peers.
  

ON Semiconductor's Revenue Breakdown by Earning Segment

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Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ON Semiconductor. If investors know ON Semiconductor will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ON Semiconductor listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.28)
Earnings Share
4.03
Revenue Per Share
17.235
Quarterly Revenue Growth
(0.19)
Return On Assets
0.0956
The market value of ON Semiconductor is measured differently than its book value, which is the value of ON Semiconductor that is recorded on the company's balance sheet. Investors also form their own opinion of ON Semiconductor's value that differs from its market value or its book value, called intrinsic value, which is ON Semiconductor's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ON Semiconductor's market value can be influenced by many factors that don't directly affect ON Semiconductor's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ON Semiconductor's value and its price as these two are different measures arrived at by different means. Investors typically determine if ON Semiconductor is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ON Semiconductor's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

ON Semiconductor Profit Margin vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining ON Semiconductor's current stock value. Our valuation model uses many indicators to compare ON Semiconductor value to that of its competitors to determine the firm's financial worth.
ON Semiconductor is regarded fifth in gross profit category among its peers. It is regarded third in profit margin category among its peers . The ratio of Gross Profit to Profit Margin for ON Semiconductor is about  17,131,092,437 . At this time, ON Semiconductor's Gross Profit is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the ON Semiconductor's earnings, one of the primary drivers of an investment's value.

ON Semiconductor Profit Margin vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

ON Semiconductor

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
4.08 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

ON Semiconductor

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.24 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

ON Semiconductor Profit Margin Comparison

ON Semiconductor is currently under evaluation in profit margin category among its peers.

ON Semiconductor Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in ON Semiconductor, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ON Semiconductor will eventually generate negative long term returns. The profitability progress is the general direction of ON Semiconductor's change in net profit over the period of time. It can combine multiple indicators of ON Semiconductor, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-45.2 M-47.5 M
Operating Income2.5 B2.7 B
Income Before Tax2.5 B2.7 B
Total Other Income Expense Net-2.9 M-3 M
Net Income Applicable To Common Shares2.2 B2.3 B
Net Income2.2 B2.3 B
Income Tax Expense-350.2 M-332.7 M
Net Income From Continuing Ops2.2 B2.3 B
Non Operating Income Net Other111.7 M117.2 M
Interest Income93.1 M97.8 M
Net Interest Income18.3 M19.2 M
Change To Netincome9.7 M9.2 M
Net Income Per Share 5.07  5.32 
Income Quality 0.90  0.86 
Net Income Per E B T 0.86  1.10 

ON Semiconductor Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on ON Semiconductor. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of ON Semiconductor position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the ON Semiconductor's important profitability drivers and their relationship over time.

Use ON Semiconductor in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if ON Semiconductor position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ON Semiconductor will appreciate offsetting losses from the drop in the long position's value.

ON Semiconductor Pair Trading

ON Semiconductor Pair Trading Analysis

The ability to find closely correlated positions to ON Semiconductor could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ON Semiconductor when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back ON Semiconductor - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling ON Semiconductor to buy it.
The correlation of ON Semiconductor is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as ON Semiconductor moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ON Semiconductor moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for ON Semiconductor can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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To learn how to invest in ON Semiconductor Stock, please use our How to Invest in ON Semiconductor guide.
You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
To fully project ON Semiconductor's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of ON Semiconductor at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include ON Semiconductor's income statement, its balance sheet, and the statement of cash flows.
Potential ON Semiconductor investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although ON Semiconductor investors may work on each financial statement separately, they are all related. The changes in ON Semiconductor's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on ON Semiconductor's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.