Stock Alert for ON Semiconductor Corp. (ONNN)
  • Stock Alert for ON Semiconductor Corp. (ONNN)
  • Stock Alert for ON Semiconductor Corp. (ONNN)
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    Stock Alert for ON Semiconductor Corp. ($ONNN)

    ON Semiconductor Corp. (Nasdaq: $ONNN)

    ON Semiconductor Corp. (ONNN) designs, produces and markets semiconductor components to a worldwide market.  The Company’s portfolio of components products control, convert, protect and monitor power supplied to various components in electronic devices.

    Founded in 1999, the Company is headquartered in Phoenix, Arizona.

    Share Statistics (19-Apr-10)

    FY

    2008

    FY

    2009

    %

    Chg

    Q4 2008

    Q4 2009

    %

    Chg

    Symbol

    ONNN

    Revenue, $Mn

    2,055

    1,769

    -13.9%

    488.7

    497.1

    1.72%

    Current price

    $8.51

    Gross marg.

    36.3%

    35.1%

    -16.7%

    38%

    39%

    4.8%

    52wk Range:

    $4.65- 9.12

    Oper. margin

    -17.6%

    7.9%

    -139%

    -102%

    17%

    -117%

    Avg Vol (3m):

    10,953,800

    Net margin

    -20.9%

    3.5%

    -114%

    -107%

    14%

    -113%

    Market Cap.

    3.64B

    Dil. Shares Outst.

    425.60M

    EPS, $

    -0.100

    -0.989

    -288%

    -0.391

    0.146

    -137%

    Source: Reuters.com, SEC Filings.

    Financial Strength

    Financial Strength (19-Apr-2010) Company Industry Sector S&P 500
    Quick Ratio (MRQ) 1.45 0.52 1.42 0.81
    Current Ratio (MRQ) 1.89 0.64 1.68 0.97
    Long-Term Debt to Equity (MRQ) 73.87 9.59 24.36 152.68
    Total Debt to Equity (MRQ) 94.77 15.94 38.43 216.11

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    The mean of 22 analysts rate shares of ONNN an “Outperform.”

    Analyst Recommendations and Revisions

    1-5 Linear Scale Current

    1 Month Ago

    2 Month Ago

    3 Month Ago

    (1) BUY 11 11 11 11
    (2) OUTPERFORM 6 6 6 6
    (3) HOLD 4 4 4 4
    (4) UNDERPERFORM 1 1 1 1
    (5) SELL 0 0 0 0
    No Opinion 0 0 0 0
    Mean Rating 1.77 1.77 1.77 1.77

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    The semiconductor industry reported total revenue of $220.1 billion in 2009, a decline of 16%, compared with $261.9 billion in 2008, according to World Semiconductor Trade Statistics (WSTS) project.  The Company participates in and reviews the industry survey to evaluate trends of the industry as well as the Company’s performance against trends.

    The semiconductor industry experienced a revenue decline in 2001, stabilized in 2002, grew rapidly in the 2003 and 2004 period.  The WSTS project reported industry revenue growth of 8.9% in 2006, 3.2% in 2007, and 2.5% in 2008.

    The Company’s sales remained stable in 2005, reflecting greater product demand, but offset by lower unit prices.  Company revenue grew despite lower unit prices in 2006, reflecting greater volume from 2005 levels.  In 2007, unit prices declined again, but increased volume from 2006 more than offset price declines, lifting overall revenue for the Company for the year.  In 2008, the Company acquired AMIS and Catalyst, expanding the Company’s market and total revenue.  Revenue reached $49.3 billion in 2009.

    The WSTS project anticipates approximately 1.5% growth per year for 2010 through 2012.  The Company said in its 10-k of February 25 that though industry revenue is expected to expand during the 2010 through 2012 period, industry trends aren’t necessarily indicative of the Company’s projected performance during this period.

    Latest Company Financial Results

    On April 15, the Company reported first-quarter financial results, beating analysts’ estimates across the board.  The Company cited seasonally strong order trends in Asia and overall renewed demand in all of its business segments.

    The Company’s results comes on the heels of better-than-expected fiscal results reported on April 13 from semiconductor bellwether Intel Corp. (Nasdaq: INTC), giving rise to the notion that the semiconductor industry may have weathered the recession.

    Revenue spiked 69% to $378 million for the first quarter, beating the Street’s expectation of $371.6 million.

    The Company earned $22.6 million, or 18 cents per share, compared with a loss of $51.1 million, or a loss of 41 cents per share, for the equivalent quarter last year.

    The Company provided guidance for the second quarter of between $395 million and $400 million in revenue, adding that its present backlog is enough to reach the lower end of the range.

    Analyst Bill Ong of Merriman Curhan Ford said that the Company may have recovered to pre-recession levels.

    Analyst Kevin Cassidy of Thomas Weisel said it’s safe to say that the Company has survived the recession, adding that he expects between 10% and 20% of total revenue will be derived from outsourced capacity.

    Technical Analysis

    Source: http://stockcharts.com/h-sc/ui?s=ONNN

    ONNN is trading above its 13-day moving average. This is considered to be the sign of a bullish trend. There is more weight to this indication because the moving average is ascending and suggests that there has been buying interest in this stock.

    ONNN’s recent volatility has been greater than normal since early April. This is evidenced by the increased distance between the upper and lower Bollinger Bands. These bands measure volatility using standard deviation and a large width is due to higher volatility.  Additionally, ONNN is trading above its mean Bollinger Band.

    The MACD for ONNN currently indicates a bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average.  Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name

    Ticker

    Price/

    Mrkt. Cap.

    P/E

    P/S

    Apr-19-2010

    Symbol

    Share, $

    $ Mn

    2009

    2010

    2009

    2010

    Fairchild Semiconductor Int.

    FCS

    11.92

    1,490

    110.4

    9.31

    1.12

    n/a

    STMicroelectronics NV

    STM

    10.31

    9,060

    n/a

    13.39

    1.06

    n/a

    Texas Instruments Inc.

    TXN

    26.43

    32,820

    23.02

    12.01

    3.17

    n/a

    Semi. Broad line Median

    52.67

    n/a

    2.87

    n/a

    ON Semiconductor Corp.

    ONNN

    8.51

    3,640

    60.35

    8.86

    2.1

    n/a

    Source: Thomson Financial

    Insider Trading Activity

    NET SHARES PURCHASE ACTIVITY

    Inside Purchases – Last 6 Months

    Shares

    Transaction

    Purchases

    n/a

    0

    Sales

    347,223

    21

    Net Shares Purchased (Sold)

    (347,223)

    21

    Total Insider Shares Held

    22.05M

    n/a

    % Net Shares Purchased (Sold)

    (1.6%)

    n/a

    Net Institutional Purchases – Prior Qtr to Latest Qtr

    Shares

    Net Shares Purchased (Sold)

    (44,596,400)

    % Change in Institutional Shares Held

    (13.2%)

    Source: Yahoo Finance

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