Stock Analysis on Net

ON Semiconductor Corp. (NASDAQ:ON)

Enterprise Value to FCFF (EV/FCFF) 

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

ON Semiconductor Corp., FCFF calculation

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income attributable to ON Semiconductor Corporation 1,902,200 1,009,600 234,200 211,700 627,400
Net income attributable to non-controlling interest 1,600 1,600 2,200 2,200 2,500
Net noncash charges 979,700 829,700 646,600 747,500 714,000
Changes in assets and liabilities, exclusive of acquisitions and divestitures (250,400) (58,900) 1,300 (266,700) (69,700)
Net cash provided by operating activities 2,633,100 1,782,000 884,300 694,700 1,274,200
Cash paid for interest expense, net of tax1 65,044 84,594 86,189 75,136 66,720
Purchase of property, plant and equipment (1,005,000) (444,600) (383,600) (534,600) (514,800)
Proceeds from sale of property, plant and equipment 59,100 14,000 6,300 1,900 36,500
Deposits (made) utilized for purchases of property, plant and equipment (31,000) (47,400) 2,200 4,600 4,100
Finance ROU assets obtained in exchange of lease liabilities (25,400) (22,300)
Free cash flow to the firm (FCFF) 1,695,844 1,366,294 595,389 241,736 866,720

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the ON Semiconductor Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. ON Semiconductor Corp. FCFF increased from 2020 to 2021 and from 2021 to 2022.

Interest Paid, Net of Tax

ON Semiconductor Corp., interest paid, net of tax calculation

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Effective Income Tax Rate (EITR)
EITR1 19.40% 12.70% 21.00% 22.70% 16.60%
Interest Paid, Net of Tax
Cash paid for interest expense, before tax 80,700 96,900 109,100 97,200 80,000
Less: Cash paid for interest expense, tax2 15,656 12,306 22,911 22,064 13,280
Cash paid for interest expense, net of tax 65,044 84,594 86,189 75,136 66,720

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 See details »

2 2022 Calculation
Cash paid for interest expense, tax = Cash paid for interest expense × EITR
= 80,700 × 19.40% = 15,656


Enterprise Value to FCFF Ratio, Current

ON Semiconductor Corp., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 35,889,798
Free cash flow to the firm (FCFF) 1,695,844
Valuation Ratio
EV/FCFF 21.16
Benchmarks
EV/FCFF, Competitors1
Advanced Micro Devices Inc. 48.57
Analog Devices Inc. 26.68
Applied Materials Inc. 22.28
Broadcom Inc. 16.74
First Solar Inc.
Intel Corp.
KLA Corp. 18.79
Lam Research Corp. 27.04
Micron Technology Inc. 21.10
NVIDIA Corp. 170.57
Qualcomm Inc. 20.37
Texas Instruments Inc. 27.60
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment 38.35
EV/FCFF, Industry
Information Technology 28.35

Based on: 10-K (reporting date: 2022-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

ON Semiconductor Corp., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 35,060,420 27,134,222 19,667,423 11,331,972 10,974,357
Free cash flow to the firm (FCFF)2 1,695,844 1,366,294 595,389 241,736 866,720
Valuation Ratio
EV/FCFF3 20.67 19.86 33.03 46.88 12.66
Benchmarks
EV/FCFF, Competitors4
Advanced Micro Devices Inc. 38.82 43.41 126.98 169.58
Analog Devices Inc. 23.12 39.16 27.12 21.68 16.04
Applied Materials Inc. 19.06 26.22 22.52 18.91 9.96
Broadcom Inc. 14.74 19.47 16.54 15.04 13.02
First Solar Inc.
Intel Corp. 16.94 11.08 17.39 15.50
KLA Corp. 19.05 26.29 18.70 20.92 14.15
Lam Research Corp. 24.03 24.02 25.91 9.83 10.36
Micron Technology Inc. 18.28 33.81 292.39 14.33 5.37
NVIDIA Corp. 78.07 69.47 41.65 27.92 47.71
Qualcomm Inc. 18.20 17.47 30.89 14.91 22.53
Texas Instruments Inc. 27.05 24.23 27.67 20.75 16.49
EV/FCFF, Sector
Semiconductors & Semiconductor Equipment 35.05 26.37 22.31 18.50 15.89
EV/FCFF, Industry
Information Technology 26.63 28.03 26.16 21.64 18.26

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 See details »

2 See details »

3 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 35,060,420 ÷ 1,695,844 = 20.67

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. ON Semiconductor Corp. EV/FCFF ratio decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.