Morning Watch list (ROA ->a financial ratio): ON Semiconductor Corporation (NASDAQ:ON)

ON Semiconductor Corporation (NASDAQ:ON) attracting analysts when it go through a change of -1.56% in the current trading session to trade at $23.32. The company has a market cap of $10.32B.

ON Semiconductor Corporation (Nasdaq: ON) recently declared that total revenues in the fourth quarter of 2017 were $1,377.5 million, up about nine percent contrast to the same quarter last year. Fourth quarter revenue was down about one percent as contrast to revenue in the third quarter of 2017.

FIRST QUARTER 2018 OUTLOOK

Based on product booking trends, backlog levels and estimated turns levels, the Company anticipates that total revenue in the first quarter of 2018 will be about $1,340 to $1,390 million. The outlook for the first quarter of 2018 comprises anticipated stock-based compensation expense of about $18 million to $20 million. Net cash paid for income taxes is predictable to be $18 million to $22 million.

Diluted share count can vary as a result of, among other things, the actual exercise of options or vesting of restricted stock units, the incremental dilutive shares from the Company’s convertible senior subordinated notes, and the repurchase or the issuance of stock or convertible notes or the sale of treasury shares. In periods in which the quarterly average stock price per share exceeds $18.50, the non-GAAP diluted share count and non-GAAP net income per share comprises the impact of the Company’s hedge transactions issued conpresently with our 1.00% convertible notes. As such, at an average stock price per share between $18.50 and $25.96, the hedging activity offsets the potentially dilutive effect of the 1.00% convertible notes. In periods when the quarterly average stock price per share exceeds $20.72, the non-GAAP diluted share count and non-GAAP net income per share comprises the anti-dilutive impact of the Company’s hedge transactions issued conpresently with the 1.625% convertible notes. As such, at an average stock price per share between $20.72 and $30.70, the hedging activity offsets the potentially dilutive effect of the 1.625% convertible notes. Both GAAP and non-GAAP diluted share counts are based on the Company’s current stock price.

Special items may comprise: amortization of acquisition-related intangibles; expensing of appraised inventory fair market value step-up; purchased in-process research and development expenses; restructuring, asset impairments and other, net; goodwill impairment charges; gains and losses on debt prepayment; non-cash interest expense; actuarial (gains) losses on pension plans and other pension benefits; and certain other special items, as necessary. These special items are out of our control and could change significantly from period to period. As a result, we are not able to reasonably estimate and separately present the individual impact of these special items, and we are similarly unable to provide a reconciliation of the non-GAAP measures. The reconciliation that is unaccessible would comprise a forward looking income statement, balance sheet and statement of cash flows in accordance with GAAP. For this reason, we use a projected range of the aggregate amount of special items in order to calculate our projected non-GAAP operating expense outlook.

Looking at the stock’s movement on the chart, ON Semiconductor Corporation have shares float of 5.09%.

Technical traders may be staring at recent indicator levels on shares of ON Semiconductor Corporation (ON). Trading was heavy with 5,316,051 shares changing hands by the end of trading on Monday. Given that its average daily volume over the 30 days has been 6.58M shares a day, this signifies a pretty significant change over the norm.

ON Growth Evolution:

ON Semiconductor Corporation  (NASDAQ:ON) has shown an EPS growth of 20.43% in the last 5 years and sales growth of 13.90% for the same year while for the next 5 years; the EPS growth estimates 27.78%.Along with this Sales growth yoy (quarter over quarter) was considered as 46.30%.

A statistical measure of the dispersion of returns (volatility) for ON producing salvation in Investors mouth, it has week volatility of 2.77% and for the month booked as 2.88%. Regardless of which metric you utilize, a firm understanding of the concept of volatility and how it is measured is essential to successful investing. A stock that maintains a relatively stable price has low volatility. When investing in a volatile security, the risk of success is increased just as much as the risk of failure.

Keeping an eyeball on Gross profit Margin, Net profit Margin & Operating Margin, the Gross profit margin of 35.10%; the net profit margin of 5.40% while its Operating margin was 9.20% for ON Semiconductor Corporation (ON). Operating margin and profit margin both measure the efficiency of a firm by comparing profits against costs at three different spots on an income statement. On their own, these margins do not tell much of a story, but they are very useful when compared to past periods or to competitor firms in the same industry.

Comparing Operating and Profit Margin

If there is a huge discrepancy between a company’s profit margin (particularly its gross margin) and its operating margin, it suggests that the company is more efficient in creating and selling its products, but perhaps less efficient in managing training, administration, research or other day-to-day business costs.

The return on assets (ROA) (aka return on total assets, return on average assets), is one of the most widely used profitability ratios because it is related to both profit margin and asset turnover, and shows the rate of return for both creditors and investors of the company. Return on assets is 4.30% and Return on equity (ROE) is 14.40% while it’s Return on Investment (ROI) of 0.

Beta is also an important valuation ratio for analyzing the stock of the company, ON’s beta remains at 2.08. The Free Cash Flow or FCF margin is 12.32. For the most recent quarter, quick ratio was 1.20, current ratio was 2.00, LT Debt/Equity ratio was 1.21 and Total Debt/Equity ratio stands at 1.33, while Payout ratio is 0.00%.