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Here's How Much a $1000 Investment in ON Semiconductor Corp. Made 10 Years Ago Would Be Worth Today
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in ON Semiconductor Corp. (ON - Free Report) 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
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For ON Semiconductor Corp. if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in September 2012 would be worth $10,738.20, or a gain of 973.82%, as of September 9, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 178.61% and gold's return of -5.62% over the same time frame.
Going forward, analysts are expecting 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 has jumped 6.31% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 12 higher, for fiscal 2022; the consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in ON Semiconductor Corp. Made 10 Years Ago Would Be Worth Today
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in ON Semiconductor Corp. (ON - Free Report) 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
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For ON Semiconductor Corp. if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in September 2012 would be worth $10,738.20, or a gain of 973.82%, as of September 9, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 178.61% and gold's return of -5.62% over the same time frame.
Going forward, analysts are expecting 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 has jumped 6.31% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 12 higher, for fiscal 2022; the consensus estimate has moved up as well.