Should you consider ONTO INNOVATION INC (NYSE:ONTO) for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if ONTO INNOVATION INC (NYSE:ONTO) is suited for quality investing. Investors should of couse do their own research, but we spotted ONTO INNOVATION INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

• Over the past 5 years, ONTO INNOVATION INC has experienced impressive revenue growth, with 31.2% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• ONTO INNOVATION INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 24.74% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• The Debt/Free Cash Flow Ratio of ONTO INNOVATION INC stands at 0.0, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• The Profit Quality (5-year) of ONTO INNOVATION INC stands at 252.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• ONTO INNOVATION INC has consistently achieved strong EBIT growth over the past 5 years, with a 40.78% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• ONTO INNOVATION INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

How does the complete fundamental picture look for NYSE:ONTO?

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to ONTO. ONTO was compared to 106 industry peers in the Semiconductors & Semiconductor Equipment industry. ONTO has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ONTO is valied quite expensively at the moment, while it does show a decent growth rate.

Check the latest full fundamental report of ONTO for a complete fundamental analysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.