Onsemi, whose stock price has recently plummeted due to the announcement of poor performance compared to the previous year, is seeking a rebound by proposing an active shareholder return and growth strategy. Investment experts have lowered their target stock price for Onsemi, but still maintain a buy opinion, expecting a rebound.

ON Semiconductor (hereinafter ON Semi) recently announced its fourth quarter and annual performance for 2024. Last year's fourth quarter performance was $1.7225 billion, or approximately KRW 2.5 trillion.

Operating profit on a GAAP basis was 23.7% and on a NON-GAAP basis was 26.7%. Annual free cash flow was $1.2 billion, a three-fold increase from the previous year.

On the other hand, annual performance recorded $7.0823 billion, a 14% decrease from $8.253 billion recorded in 2023, and operating profit also fell by about 5%p, falling short of market expectations.

“Our performance over the past four years, as we navigated the market downturn, demonstrates that ONSemi is a structurally differentiated company that can weather long-term volatility,” said Hassan El Khoury, CEO of ONSemi. “While 2025 remains uncertain, ONSemi remains committed to our long-term strategy.”

Onsemi's stock price recently rebounded after falling to $47 on such low guidance. Investment bank Jefferies & Company lowered its target price for Onsemi from $100 to $85, maintaining a buy recommendation and adding strength to the rebound outlook.

Onsemi is said to have actively implemented shareholder returns by using 54% of its free cash flow to buy back its own shares during the fourth quarter of 2024, and its stock price is currently at $50, down 41% from its 52-week high of $85.