Is ON a high-quality business?

AlphaMadera's AlphaQuality grade scores ON Semiconductor Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how ON compares to a Buffett-style quality bar.

What is ON Semiconductor Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to ON based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes ON a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

ON - ON Semiconductor Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $94.25 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

C+ 60.2 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

C 56.4

5yr Avg ROIC 14.3% 78/100
Operating Margin Trend -1.67 pp/yr 7/100

Capital Efficiency

Weight: 15%

A- 86.4

5yr Avg ROE 17.7% 86/100
5yr Share-Count CAGR -1.9% 86/100

Growth Quality

Weight: 10%

F 14.4

5yr Revenue CAGR -2.9% 14/100
5yr EPS CAGR -40.2% 0/100
Revenue-Growth Years (5) 2/5 40/100

Cash Generation

Weight: 15%

B+ 76.3

5yr FCF Margin 16.9% 85/100
5yr FCF/NI Conversion 2.96x 66/100

Balance Sheet

Weight: 25%

B+ 75.8

Net Debt / EBITDA 1.04x 84/100
Interest Coverage (EBIT/Int) 2.85x 43/100
Altman Z-Score 7.60 100/100

Stability

Weight: 20%

D 35.2

EPS Volatility (σ/μ) 0.90 4/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 3/5 40/100

5 of 5 gurus held; 1 new buy; 1 added; 3 trimmed; 1 full exit.

Holders: 5
Avg Δ position: -50.9%
New buys: 1
Full exits: 1

Laffont new
Druckenmiller sold -100%
Wood decreased -81%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.