ON Semiconductor Corp.(NASDAQ:ONNN)

ON Semiconductor (Nasdaq: ONNN) is driving innovation in energy efficient electronics, empowering design engineers to reduce global energy use. The company offers a comprehensive portfolio of power and signal management, logic, discrete and custom solutions to help customers solve their unique design challenges in automotive, communications, computing, consumer, industrial, medical and military / aerospace applications. ON Semiconductor operates a responsive, reliable, world- class supply chain and quality program, and a network of manufacturing facilities, sales offices and design centers in key markets throughout North America, Europe, and the Asia Pacific regions.

ON Semiconductor (Nasdaq: ONNN), has collaborated with Teledyne Imaging Sensors to manufacture an Extremely Large Stitched Read Out Integrated Circuit (ELS ROIC) for astronomy. The H4RG-15 image sensor, designed by Teledyne, is the latest generation of a 20-year effort sponsored by the National Science Foundation, the National Aeronautics and Space Administration, and Teledyne internal funding to develop increasingly larger and more powerful infrared sensors for astronomical research.

Valuation

P/E 69.56
P/E Growth Ratio 0.01
P/BV 1.87
P/S 0.94
P/CF 9.23

Over the past 12 months, ON Semiconductor generated $48.2 million cash while it booked net income of $38.8 million. That means it turned 1.6% of its revenue into FCF. The company has a P/E ratio of 69.56., above the S&P 500 P/E ratio of 17.7.

ON Semiconductor is exercising its option to redeem all remaining outstanding 1.875 percent Convertible Senior Subordinated Notes due in 2025 (CUSIP No. 682189AC9 and 682189AD7) (the “Notes”) amounting to an aggregate principal amount of $95 million. The redemption date will be December 20, 2012. ON Semiconductor expects to fund the payment of this redemption using available liquidity.

Technicals

At the current price of around $6.24, ONNN has a market capitalization of around $2799 million. From a technical standpoint, this stock is currently trading below both its 100-day of $6.41 and 250day moving averages of $7.40. It has been showing support around $5.70 and resistance in the $6.47 price range. MACD (12,26) and RSI(14) are  increasing. The overall technical indicator shows a buy with the $7.56 target price in short term.

 

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