Does ON Semiconductor Corporation have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores ON Semiconductor Corporation (ON) 54.1 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 51, returns on capital 62, balance-sheet safety 40, capital discipline 61.

Is ON stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $44.05 per share versus a recent price of $87.41 — 98% above value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has ON's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 54.1 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

ON Semiconductor Corporation

ON · Technology · $34.7B mkt cap · FY2025 filings · Shallow moat ·

Doesn't clear the bar

Shallow moat

The four filters

Pricing power51

Median gross margin 37.4% over 10y, stable.

Returns on capital62

Median ROIC 14.4%, above the 9% hurdle in 60% of years.

Balance-sheet safety40

Net debt/EBITDA 1.1x, interest coverage 1x.

Capital discipline61

Owner earnings +3.7%/yr, share count shrinking (buybacks).

Margin of safety

Above valueOn sale

98% above value

Owner earnings (normalized): $1.6B
Est. intrinsic value / share: $44.05
Recent price: $87.41
Discount to value: 98% above value

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

19 years of fundamentals

The business, in plain English

ON Semiconductor Corporation booked $6.0B of revenue in FY2025 in the Technology sector and kept 33.1% of it as gross profit — a moderate-margin business by that measure. After every other cost, 2.0% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $2.1B (FY2008) to $6.0B (FY2025) — about 6.5% a year compounded over 17 years.

It earned 0.9% on invested capital in FY2025, with a median of 9.9% across 18 filed years. The Returns on Capital filter above scores it 62/100.

The balance sheet carried $3.0B of total debt in FY2025 against $465.8M of owner earnings — roughly 6.4 years of owner earnings to retire it all. Balance-Sheet Safety scores it 40/100.

The share count fell 7.1% between FY2009 and FY2025 — management has been retiring shares, which concentrates each remaining owner's claim. Capital Discipline scores it 61/100.

Put together: Returns on Capital is the strongest of the four filters (62/100) and Balance-Sheet Safety the weakest (40/100), which is how ON lands at 54/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$6.0B FY2025

Gross marginRevenue kept after cost of goods33.1% FY2025

Return on invested capitalOperating profit on the capital employed0.9% FY2025

Owner earningsCash an owner could take out$465.8M FY2025

Gaps in a line mean that item isn’t in ON’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale54.1 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — ON has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Technology context

#179 of 532 scored Technology companies, ranked by Moat Score.

Nearest peers by Moat Score

#177MU Micron Technology, Inc.54.2 out of 100, Shallow moatShallow moat
#178PAYS PAYSIGN, INC.54.2 out of 100, Shallow moatShallow moat
#180HQY HEALTHEQUITY, INC.54.1 out of 100, Shallow moatShallow moat
#181NCMI NATIONAL CINEMEDIA, INC.54.0 out of 100, Shallow moatShallow moat

Compare ON with its nearest peers →All Technology companies on the Index →

Common questions about ON

Does ON Semiconductor Corporation have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores ON Semiconductor Corporation (ON) 54.1 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 51, returns on capital 62, balance-sheet safety 40, capital discipline 61.
Is ON stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $44.05 per share versus a recent price of $87.41 — 98% above value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has ON's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 54.1 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell ON. See the disclaimer.