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 (19)
- Receivables outpacing revenue: Accounts receivable grew +11.4% YoY vs revenue growth of -15.3%. The +26.7% 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 +12.3%pp (from 45.4% to 33.1%). This may reflect input cost inflation, pricing pressure, or product mix shift toward lower-margin segments.
- Interest coverage deteriorating below 3x: Interest coverage fell from 18.63x to 1.13x. Operating income of $84.2M covers interest of $74.8M only 1.13x — approaching the threshold where debt service becomes constrained. Monitor for covenant breaches.
- NEW: Going concern doubt in latest filing: The term "going concern" "substantial doubt" 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).
- Material weakness in internal controls: The term "material weakness" "internal control" appears in 5 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 -15.3% but receivables grew +11.4% — 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.
- 10 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- 4 new risk-language term(s) detected in filing text: Going concern doubt, Substantial doubt about ability to continue, Restatement of financial statements, Off-balance sheet arrangements.
- Ongoing high-severity risk language: Material weakness in internal controls.
- Revenue declined **+15.3%** YoY to $6.00B.
- 5-year revenue CAGR **-2.3%**; 10y CAGR +4.9%.
- Market cap $29.81B at $76.58 per share.
- Trailing P/E 264.07, P/S 4.97, P/B 4.13.
- Price $76.58 — downtrend (below 200-DMA); 1-month momentum negative.
- RSI(14) 36.82.
- Receivables outpacing revenue: Accounts receivable grew +11.4% YoY vs revenue growth of -15.3%. The +26.7% 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 +12.3%pp (from 45.4% to 33.1%). 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 Aug 3, 2026.
- 20 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.
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