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Is ON Semiconductor Corp. (ON) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is ON Semiconductor Corp. (ON - Free Report) . ON is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 10.97 right now. For comparison, its industry sports an average P/E of 16.31. Over the past year, ON's Forward P/E has been as high as 15.81 and as low as 10.46, with a median of 12.87.

We also note that ON holds a PEG ratio of 0.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ON's PEG compares to its industry's average PEG of 1.12. Over the past 52 weeks, ON's PEG has been as high as 1.24 and as low as 0.63, with a median of 0.85.

Investors should also recognize that ON has a P/B ratio of 2.94. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. ON's current P/B looks attractive when compared to its industry's average P/B of 3.31. ON's P/B has been as high as 4.14 and as low as 2.80, with a median of 3.57, over the past year.

Finally, investors should note that ON has a P/CF ratio of 6.58. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ON's current P/CF looks attractive when compared to its industry's average P/CF of 14.75. Over the past 52 weeks, ON's P/CF has been as high as 10.55 and as low as 6.25, with a median of 8.11.

Value investors will likely look at more than just these metrics, but the above data helps show that ON Semiconductor Corp. Is likely undervalued currently. And when considering the strength of its earnings outlook, ON sticks out at as one of the market's strongest value stocks.




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