Canada Markets closed

Here's How Much a $1000 Investment in ON Semiconductor Corp. Made 10 Years Ago Would Be Worth Today

·4 min read

How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in ON Semiconductor Corp. (ON) ten years ago? It may not have been easy to hold on to ON for all that time, but if you did, how much would your investment be worth today?

ON Semiconductor Corp.'s Business In-Depth

With that in mind, let's take a look at ON Semiconductor Corp.'s main business drivers.

onsemi, is an original equipment manufacturer of a broad range of discrete and embedded semiconductor components. The company was spun off from Motorola in Aug 1999 and went public through an IPO in May 2000.

onsemi’s product lines include discretes, such as bipolar transistors, diodes, filters, FETs, rectifiers and thyristors.

onsemi’s acquisition of GT Advanced Technologies will help the company to grow and innovate disruptive intelligent power technologies. Moreover secure supply of SiC to meet growing demand of customers for SiC based solutions. Moreover, the company’s acquisitions of Cypress Semiconductor’s CMOS Image Sensor Business Unit, SANYO Semiconductor, AMI Semiconductor, Analog Devices’ power PC controller business, CMD, Catalyst, and SoundDesign gave it new technical capabilities, some custom ASIC products, higher-margin products, exposure to new end markets and greater product breadth.

The power management product line includes AC-DC controllers and regulators, DC-DC converters and regulators, drivers, thermal managers, and voltage controllers, references and supervisors.

The logic product line includes clocking, memory, differential logic and standard logic products.

Signal processing products include amplifiers and comparators, analog switches, digital potentiometers, DSP systems and interfaces.

The company also offers custom application specific integrated circuits (ASICs), foundry services and memory products.

Customers include OEMs, electronic manufacturing service (EMS) providers and distributors. Top OEM customers include Motorola, Delta, Hewlett-Packard, Samsung, Siemens, Apple, Dell, Nokia, Intel, Sony, Continental Automotive Systems, DaimlerChrysler, Delphi, TRW and Visteon.

Top distributor customers include Arrow, Avnet, EBV Elektronik, Future, Solomon Enterprise and World Peace. Top EMS customers are Flextronics, Jabil and Celestica.

Phoenix, AZ-based onsemi reported revenues of $6.74 billion in 2021. The company generated 13.8% of total revenues in 2021 from the United States.

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in ON Semiconductor Corp. ten years ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in August 2012 would be worth $10,682.89, or a 968.29% gain, as of August 5, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 198.49% and gold's return of 8.46% over the same time frame.

Analysts are anticipating more upside for ON.

onsemi is benefiting from broad-based strength across industrial, computing, consumer and automotive end-markets for both silicon carbide and insulated-gate bipolar transistor-based products. The company continues to gain traction among electric vehicle manufacturers. onsemi benefited from a strong demand environment, particularly for power and sensing products in automotive and industrial end markets. The company’s plan to exit non-core businesses are expected to expand gross margin in the long term. Shares have outperformed the industry year to date. However, the company is suffering from supply chain constraints. Investments on silicon carbide ramp will hurt margin in the near term. onsemi expects that the demand will continue to outpace supply in its core end markets – automotive and industrial - throughout 2022.

The stock is up 30.84% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 11 higher, for fiscal 2022. The consensus estimate has moved up as well.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
ON Semiconductor Corporation (ON) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research