Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have spent a good deal of time with onsemi's July 3, 2026 10-Q, its second-quarter earnings call, and the filings of its competitors, and we will save you the suspense: this is a well-managed, average business in a brutally cyclical, capital-hungry industry, currently priced as if it were something considerably better than average. The company's own income statement makes our argument for us. Gross margins went from 49% in 2022 to 38% in 2025 — an 1,100 basis point round trip — not because management did anything foolish, but because that is what happens to semiconductor companies when the cycle turns and factories run empty. A business with genuine pricing power does not do that. Coca-Cola's gross margin does not depend on how full the bottling plant is.
Recent filings analysed: 8-K (2026-08-03), 10-Q (2026-08-03), 8-K (2026-06-25), 8-K (2026-05-18).
Stock screener · Superinvestor 13F holdings · Analyst sentiment · Market valuation