ON Semiconductor Corp. (NASDAQ:ON)

The analysis of the financial ratios over the indicated periods reveals various trends in valuation metrics.

Price to Earnings (P/E) Ratio

The P/E ratio experienced significant fluctuations, starting from around 40.58 in late 2019 and rising sharply to a peak above 73 in mid-2020. Subsequently, it generally declined throughout 2021 and 2022, reaching lows near 15-16. Early 2023 showed some volatility with a rise above 23 and then a decline to around 12.65 before stabilizing near 14 in early 2024. This suggests periods of varying investor expectations regarding earnings growth and potential volatility in net income.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio mirrors the P/E trend to some extent, with highs exceeding 57 in late 2020, indicating high valuations relative to operating profits during that period. Thereafter, a downward trend is observed, with values converging in the low teens around 2022 and early 2023. Some fluctuations continued through 2023, culminating in a relatively lower ratio around 12 in early 2024. This pattern suggests changing market assessments of operating profitability and its sustainability.

Price to Sales (P/S) Ratio

The P/S ratio showed a general upward trend from approximately 1.19 in mid-2020 to peaks above 5.5 by late 2023, albeit with some declines toward the end of the period. The rise points to increasing market valuations relative to sales, possibly reflecting improved sales performance or stronger investor sentiment regarding revenue growth potential. The late 2023 decline and partial recovery in early 2024 indicate some market recalibration in relation to sales valuations.

Price to Book Value (P/BV) Ratio

This ratio demonstrated a clear upward progression from approximately 2.0 in early 2020 to a peak near 6.66 in late 2023. Such growth indicates rising market valuations relative to the book value of equity, which may reflect increased investor confidence in the company’s asset base or intangible value creation over the observed periods. Following the peak, the ratio decreased moderately into early 2024, suggesting some market adjustment in perceived book value relevance.

Overall, the valuation ratios indicate a period of heightened market optimism during 2020, followed by corrections and stabilization phases. The fluctuations point to dynamic investor sentiment influenced by earnings, operating performance, sales growth, and balance sheet strength. The latest data hints at a more conservative valuation stance relative to the peaks observed in prior years.

The financial data reveals various trends in share price, earnings per share (EPS), and price-to-earnings (P/E) ratio spanning from the first quarter of 2019 through the first quarter of 2024.

Share Price

The share price exhibited fluctuations over the reporting periods. Initially, it decreased from $22.20 in March 2019 to a low point of $15.66 by April 2020. Following this decline, the share price commenced a significant upward trajectory, peaking at $80.40 in December 2022. Post this peak, the price experienced volatility with values ranging between $65.34 and $107.75, ending at $70.82 in March 2024. This pattern indicates a strong recovery and growth phase after mid-2020, albeit with increased variability in recent quarters.

Earnings Per Share (EPS)

EPS data becomes available from December 2019 onwards. Starting at $0.52, EPS decreased to negative territory (-$0.05) by October 2020, suggesting a temporary downturn in profitability. Afterward, a consistent and robust growth trend is evident, with EPS rising steadily each quarter. The measure reached $5.17 by December 2023 and slightly declined to $5.06 by March 2024. This sustained increase reflects improving earnings capacity and operational performance through the periods.

Price-to-Earnings (P/E) Ratio

The P/E ratio displays notable volatility. Initially high at 40.58 in December 2019, it escalated to 76.81 by April 2020, a possible consequence of depressed earnings against share price movements. The ratio decreased considerably afterward, reaching a low near 12.65 in December 2023, before slightly rising again to 14.01 in March 2024. The downward trend in P/E in the later periods suggests enhanced earnings relative to the price or more moderate valuations, reflecting growing investor confidence in earnings quality.

In summary, the data shows an initial share price decline followed by substantial appreciation, coupled with a recovery and strong growth in earnings per share since late 2020. The P/E ratio's fluctuations indicate changing market valuations relative to earnings, with recent periods reflecting more conservative pricing relative to robust EPS growth.

The share price exhibits notable volatility and a general upward trend over the observed periods. Beginning at $22.20 in March 2019, it declined to a low of $15.66 in April 2020. Subsequently, the price experienced significant growth, peaking at $80.40 in December 2022, before undergoing fluctuations through 2023 and early 2024. Despite intermittent declines, the share price maintains levels considerably higher than the initial periods, reflecting increased market confidence or company valuation improvements.

Operating profit per share data, available from April 2020 onward, shows an overall positive trajectory. The metric starts at $1.05 and demonstrates consistent growth with minor fluctuations, reaching a peak of $6.11 in December 2023 before slightly decreasing to $5.94 and $5.81 in the following quarters. This steady increase suggests progressive improvements in operational profitability on a per-share basis.

The price-to-operating profit (P/OP) ratio varies significantly throughout the period. Initially high ratios of 19.86 to 57.47 indicate that share prices were relatively elevated compared to operating profits. Over time, the P/OP ratio generally declines, dropping to levels between 10 and 15 in the later quarters. This trend points to a realignment where operating profits have increased faster than share prices or share prices have moderated relative to earnings, reflecting a potential normalization or improved valuation accuracy.

Share Price

Starts at $22.20 in early 2019, dips to $15.66 in early 2020, then rises sharply to above $80 in late 2022. It fluctuates afterward but remains generally higher than initial levels.

Operating Profit per Share

Data from April 2020 indicates steady increases in operating profits per share, peaking at $6.11 toward the end of 2023, suggesting improving profitability.

Price to Operating Profit Ratio (P/OP)

Initially very high and volatile, ratios decline over time, stabilizing in lower ranges, indicating a better balance between price and operational earnings.

Overall, the data indicates progressive operational improvements and a maturing market valuation. The increasing operating profit per share aligns with a generally elevated share price, though with some volatility. The declining P/OP ratio suggests that earnings growth may be outpacing share price increases, potentially signaling a more sustainable valuation level after a period of rapid price appreciation.

The share price exhibited notable volatility over the observed periods. Initially, it decreased from $22.20 in March 2019 to a low of $15.66 by April 2020, likely reflecting market pressures during that interval. Subsequently, the price showed a strong recovery and upward momentum, reaching a peak of $80.40 in December 2022. Following this peak, the share price experienced a decline and further fluctuations, ending at $70.82 in March 2024. This pattern indicates cycles of investor optimism and correction phases in the company's market valuation over time.

Sales per share data, available starting from April 2020, shows a gradual and steady increase across subsequent quarters. Beginning with $13.42, it rose progressively to $19.36 by December 2023, followed by a slight decline to $18.96 in March 2024. This upward trend suggests consistent revenue growth on a per-share basis, reflecting either increased sales volume, improved pricing, or both, indicating positive operational performance throughout most of the period.

The price-to-sales (P/S) ratio reveals a dynamic investor valuation relative to sales. After an initial reading of 1.56 in April 2020, the ratio fluctuated but generally exhibited an increasing trend with some short-term declines. It peaked notably at 5.57 in September 2023, indicating heightened market optimism or expectation of future growth relative to sales at that time. The ratio then decreased to 3.74 by March 2024. This variation suggests changing market sentiment and possibly adjustments in expected profitability or risk perceptions.

Overall, the financial indicators depict a company experiencing improving operational results as represented by steadily increasing sales per share, alongside marked fluctuations in market valuation reflected in share price and P/S ratio. The upward trend in sales per share confirms strengthening business performance, while the volatility in share price and P/S ratio underscores the sensitivity of investor sentiment to broader market and possibly company-specific developments during the timeframe.

The share price of the company demonstrated notable volatility and an overall upward trajectory from March 2019 to March 2024. Initially, the price fluctuated between approximately $15.66 and $24.36 until late 2020, followed by a significant increase peaking near $80.4 by the end of 2022. Subsequently, the share price experienced a decline and continued fluctuations, closing around $70.82 by March 2024.

The book value per share (BVPS) showed consistent growth throughout the period under review. Starting from $7.75 in early 2019, the BVPS increased steadily each quarter, reaching $18.88 by March 2024. This gradual rise indicates a strengthening in the company's net asset base on a per-share basis, reflecting potential accumulation of equity or retained earnings over time.

The price-to-book value ratio (P/BV) exhibited considerable variation aligned with share price movements. Initially, the P/BV ratio ranged from approximately 2.0 to near 3.0, indicating the market priced the shares at about two to three times the book value. By the end of 2020 and throughout 2021, this ratio surged significantly, peaking above 6.6 in mid-2023, corresponding with elevated share prices relative to book value. Toward early 2024, the P/BV ratio declined, stabilizing around 3.75 by March 2024. This suggests that while market valuation became more optimistic at times, it moderated closer to a multiple of the underlying book value in the most recent quarters.

In summary, the company experienced a stable increase in tangible book value alongside pronounced volatility and growth in market valuations. The rising BVPS signals strengthening fundamentals, while fluctuations in share price and the P/BV ratio reflect changing investor sentiment and market dynamics over the analyzed period.