FFilingSight

ON Semiconductor Corp. (ON) 10-K Red Flags

Risk signals extracted deterministically from ON Semiconductor Corp.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.

Detected red flags (17)

  • Receivables outpacing revenue: Accounts receivable grew +47.7% YoY vs revenue growth of +0.7%. The +47.0% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
  • Gross margin compression: Gross margin contracted +15.9%pp (from 296.0% to 280.1%). This may reflect input cost inflation, pricing pressure, or product mix shift toward lower-margin segments.
  • Free cash flow deteriorating: FCF declined +72.6% YoY (from $1.60B to $438.4M). With OCF at $1.98B and capex at $1.54B, cash generation capacity is weakening — monitor for dividend/buyback sustainability.
  • Going concern doubt: The term "going concern" appears in 16 recent filing(s) (vs 1 in the prior period). This risk language is ongoing.
  • Material weakness in internal controls: The term "material weakness" appears in 20 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
  • NEW: Substantial doubt about ability to continue in latest filing: The term "substantial doubt" "ability to continue" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 1 filing(s).
  • Endogenous analysis: Revenue grew +0.7% but receivables grew +47.7% — the receivables-to-revenue gap suggests growth may be partially driven by extended credit terms rather than genuine demand. If DSO continues to rise, a revenue reversal or bad-debt charge could follow.
  • Endogenous analysis: Free cash flow declined despite stable or rising capex, indicating the cash burn is operational rather than investment-driven. This is a structural concern — cost reduction or asset sales may be needed to restore FCF.
  • Endogenous analysis: The combination of explicit "going concern" language in the filing with deteriorating cash flow or rising leverage is a severe warning signal — the company's own auditors have flagged doubt about the ability to continue as a going concern.
  • 7 new XBRL disclosure(s) in latest filing — expanding reporting scope.
  • 20 disclosure(s) dropped from prior year — reduced reporting granularity.
  • 3 new risk-language term(s) detected in filing text: Substantial doubt about ability to continue, Restatement of financial statements, Off-balance sheet arrangements.
  • Ongoing high-severity risk language: Going concern doubt, Material weakness in internal controls.
  • Market cap $35.75B at $91.22 per share.
  • Trailing P/E 18.65, P/S 25.78, P/B 4.90.
  • Receivables outpacing revenue: Accounts receivable grew +47.7% YoY vs revenue growth of +0.7%. The +47.0% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
  • Gross margin compression: Gross margin contracted +15.9%pp (from 296.0% to 280.1%). This may reflect input cost inflation, pricing pressure, or product mix shift toward lower-margin segments.

Filings & ownership

  • Latest annual report (10-K) filed Feb 9, 2026.
  • Latest quarterly report (10-Q) filed May 4, 2026.
  • 18 recent 8-K material-event filings in the index.
  • Recent insider Form 4s: 0 buy vs 0 sell transactions.
  • ~10,000+ recent 13F-HR filings reference ON Semiconductor Corp.; broad institutional reporting.
  • Recent filers include CADIAN CAPITAL MANAGEMENT, LLC, CADIAN CAPITAL MANAGEMENT, LLC, Stone Harbor Investment Partners LP.
  • 20 recent 13G passive institutional ownership notices.

Full ON analyst report

Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.

View full report →

Not investment advice. FilingSight is an automated analytical research tool, not a registered investment advisor. Ratings and scores are quantitative analytical classifications, not buy or sell recommendations. Nothing here is personalized to your circumstances. Investing involves risk of loss — consult a licensed professional. See full disclosures.