ON Semiconductor Corp

ON: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$72.00	Zjzrf	Ysypbst

Onsemi Earnings: Results Surpassed Expectations in the Face of Headwinds

William Kerwin , Verushka Shetty

Jul 31, 2023

We maintain our $97 per share fair value estimate for narrow-moat Onsemi after the firm reported second-quarter results and third-quarter guidance modestly above our expectations. The firm is executing well on its strategy to expand its foothold in the automotive and industrial markets, and we are pleased with its progress ramping silicon carbide, or SiC, power semiconductors. Despite numerous headwinds affecting near-term profitability, we view this as transitory, as Onsemi positions itself to secure long-term sustainable growth. With shares trading around $108, we view the stock as slightly overvalued.

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