Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)
P to FCFE Ratio, Current
P to FCFE Ratio, Historical

Free Cash Flow to Equity (FCFE)

ON Semiconductor Corp., FCFE calculation

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income attributable to ON Semiconductor Corporation	2,183,700)	1,902,200)	1,009,600)	234,200)	211,700)
Net income attributable to non-controlling interest	1,900)	1,600)	1,600)	2,200)	2,200)
Net noncash charges	654,600)	979,700)	829,700)	646,600)	747,500)
Changes in assets and liabilities, exclusive of acquisitions and divestitures	(862,700)	(250,400)	(58,900)	1,300)	(266,700)
Net cash provided by operating activities	1,977,500)	2,633,100)	1,782,000)	884,300)	694,700)
Purchase of property, plant and equipment	(1,575,600)	(1,005,000)	(444,600)	(383,600)	(534,600)
Proceeds from sale of property, plant and equipment	4,000)	59,100)	14,000)	6,300)	1,900)
Deposits (made) utilized for purchases of property, plant and equipment	36,500)	(31,000)	(47,400)	2,200)	4,600)
Issuance and borrowings under debt agreements	1,845,000)	500,000)	787,300)	1,858,000)	1,404,800)
Reimbursement of debt issuance and other financing costs	4,500)	—)	2,700)	—)	—)
Payment of debt issuance and other financing costs	(12,400)	—)	(3,800)	(2,400)	(24,000)
Repayment of borrowings under debt agreements	(1,723,400)	(530,000)	(1,270,500)	(2,023,900)	(594,400)
Payment of finance lease obligations	(15,300)	(11,500)	—)	—)	(800)
Payment for purchase of bond hedges	(414,000)	—)	(160,300)	—)	—)
Free cash flow to equity (FCFE)	126,800)	1,614,700)	659,400)	340,900)	952,200)

Based on: 10-K (reporting date: 2023-12-31), 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).

The financial data reveals notable trends in the cash flow activities over the five-year period ending in 2023. Specifically, the net cash provided by operating activities has shown a substantial increase from 2019 through 2022, followed by a significant decline in 2023. Concurrently, the free cash flow to equity (FCFE) displays a fluctuating pattern, with marked decreases and increases across the years.

Net Cash Provided by Operating Activities: This metric started at $694.7 million in 2019 and increased steadily to $884.3 million in 2020. A sharp rise is observed in 2021, reaching $1.782 billion, followed by a further peak at $2.633 billion in 2022. However, in 2023, the figure dropped substantially to $1.978 billion, indicating a reversal of the prior growth trend.
Free Cash Flow to Equity (FCFE): FCFE exhibited more volatility during the period. It began at $952.2 million in 2019 but declined dramatically to $340.9 million in 2020. The value recovered to $659.4 million in 2021 and then surged notably to $1.615 billion in 2022. In 2023, FCFE plummeted sharply to $126.8 million, reflecting a considerable reduction in cash available to equity holders.

In summary, operating cash flows have generally trended upward until 2022, suggesting improved operational efficiency or profitability over those years. The subsequent drop in 2023 could indicate increased operating costs, reduced sales, or other operational challenges. The FCFE trends, more erratic than operating cash flows, suggest fluctuating capital expenditures, financing activities, or changes in working capital that materially affected the free cash available to equity investors. The sharp declines in both metrics in 2023 warrant further investigation into the underlying causes for the decreased liquidity and cash available to shareholders.

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Price to FCFE Ratio, Current

ON Semiconductor Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	430,231,889
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)	126,800)
FCFE per share	0.29
Current share price (P)	70.82
Valuation Ratio
P/FCFE	240.29
Benchmarks
P/FCFE, Competitors¹
Advanced Micro Devices Inc.	139.02
Analog Devices Inc.	31.83
Applied Materials Inc.	18.18
Broadcom Inc.	32.61
Intel Corp.	—
KLA Corp.	31.45
Lam Research Corp.	31.13
Micron Technology Inc.	—
NVIDIA Corp.	64.68
Qualcomm Inc.	16.90
Texas Instruments Inc.	48.64
P/FCFE, Sector
Semiconductors & Semiconductor Equipment	135.73
P/FCFE, Industry
Information Technology	56.69

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

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

Price to FCFE Ratio, Historical

ON Semiconductor Corp., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
No. shares of common stock outstanding¹	427,328,652	431,967,907	432,497,822	411,881,071	411,065,636
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)²	126,800)	1,614,700)	659,400)	340,900)	952,200)
FCFE per share³	0.30	3.74	1.52	0.83	2.32
Share price^1, 4	77.59	80.40	58.66	41.85	20.90
Valuation Ratio
P/FCFE⁵	261.49	21.51	38.47	50.56	9.02
Benchmarks
P/FCFE, Competitors⁶
Advanced Micro Devices Inc.	241.70	33.46	44.72	133.51	—
Analog Devices Inc.	22.28	24.14	34.67	33.98	37.52
Applied Materials Inc.	17.53	19.17	27.20	23.21	19.53
Broadcom Inc.	30.06	14.62	22.35	9.16	5.64
Intel Corp.	—	—	14.25	8.57	—
KLA Corp.	26.78	9.01	28.05	19.15	9.84
Lam Research Corp.	18.67	24.95	34.58	16.89	6.14
Micron Technology Inc.	—	18.66	37.24	81.71	13.92
NVIDIA Corp.	151.07	54.83	35.22	44.24	—
Qualcomm Inc.	11.97	19.13	17.93	34.91	16.39
Texas Instruments Inc.	37.61	23.88	21.87	24.10	—
P/FCFE, Sector
Semiconductors & Semiconductor Equipment	47.55	29.02	24.87	17.64	—
P/FCFE, Industry
Information Technology	33.16	26.84	27.24	23.37	—

Based on: 10-K (reporting date: 2023-12-31), 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).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 126,800,000 ÷ 427,328,652 = 0.30

⁴ Closing price as at the filing date of ON Semiconductor Corp. Annual Report.

⁵ 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 77.59 ÷ 0.30 = 261.49

⁶ Click competitor name to see calculations.

Share Price: The share price demonstrated a consistent upward trend from 2019 to 2022, increasing from $20.9 to a peak of $80.4. However, in 2023, there was a slight decline to $77.59, indicating a potential stabilization or slight correction after significant growth.
Free Cash Flow to Equity (FCFE) per Share: FCFE per share fluctuated notably over the observed period. It started at $2.32 in 2019, dipped sharply to $0.83 in 2020, then recovered to $1.52 in 2021 and further increased to $3.74 in 2022. In 2023, the FCFE per share dropped significantly to $0.3, marking a substantial decrease compared to the previous year.
Price to FCFE (P/FCFE) Ratio: The P/FCFE ratio exhibited considerable volatility, reflecting changes in both share price and FCFE per share. In 2019, the ratio was relatively low at 9.02, but it surged dramatically to 50.56 in 2020. It declined somewhat to 38.47 in 2021 and further decreased to 21.51 in 2022, suggesting improved valuation relative to free cash flow that year. However, in 2023, the ratio escalated sharply to 261.49, a level significantly higher than previous years, indicating that the share price may not be currently supported by free cash flow fundamentals.

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ON Semiconductor Corp. (NASDAQ:ON)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical