Reasonable growth and debt and a high ROIC for ONTO INNOVATION INC (NYSE:ONTO).

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 course 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.

Exploring Why NYSE:ONTO Holds Appeal for Quality Investors.

• The 5-year revenue growth of ONTO INNOVATION INC has been remarkable, with 31.2% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• The ROIC excluding cash and goodwill of ONTO INNOVATION INC stands at 24.74%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• ONTO INNOVATION INC maintains a healthy Debt/Free Cash Flow Ratio of 0.0, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• 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 experienced impressive EBIT growth over the past 5 years, with 40.78% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, ONTO INNOVATION INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

A complete fundamental analysis of NYSE:ONTO

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

ONTO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 104 industry peers in the Semiconductors & Semiconductor Equipment industry. ONTO gets an excellent profitability rating and is at the same time showing great financial health properties. ONTO is valied quite expensively at the moment, while it does show a decent growth rate. This makes ONTO very considerable for quality investing!

For an up to date full fundamental analysis you can check the fundamental report of ONTO

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.