NYSE:ONTO is showing decent growth, but is still valued reasonably.

ONTO INNOVATION INC (NYSE:ONTO) was identified as an affordable growth stock by our stock screener. NYSE:ONTO is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Growth Assessment of NYSE:ONTO

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:ONTO has achieved a 8 out of 10:

• The Earnings Per Share has grown by an nice 15.57% over the past year.
• The Earnings Per Share has been growing by 9.40% on average over the past years. This is quite good.
• The Revenue has grown by 10.80% in the past year. This is quite good.
• The Revenue has been growing by 20.25% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 29.23% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 17.85% on average over the next years. This is quite good.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Valuation Examination for NYSE:ONTO

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:ONTO boasts a 5 out of 10:

• ONTO's Price/Earnings ratio is a bit cheaper when compared to the industry. ONTO is cheaper than 61.11% of the companies in the same industry.
• Based on the Price/Forward Earnings ratio, ONTO is valued a bit cheaper than the industry average as 63.89% of the companies are valued more expensively.
• 62.04% of the companies in the same industry are more expensive than ONTO, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of ONTO indicates a somewhat cheap valuation: ONTO is cheaper than 70.37% of the companies listed in the same industry.
• ONTO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• ONTO's earnings are expected to grow with 33.07% in the coming years. This may justify a more expensive valuation.

How We Gauge Health for NYSE:ONTO

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ONTO has achieved a 8 out of 10:

• An Altman-Z score of 32.40 indicates that ONTO is not in any danger for bankruptcy at the moment.
• The Altman-Z score of ONTO (32.40) is better than 92.59% of its industry peers.
• ONTO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• A Current Ratio of 10.07 indicates that ONTO has no problem at all paying its short term obligations.
• ONTO's Current ratio of 10.07 is amongst the best of the industry. ONTO outperforms 97.22% of its industry peers.
• A Quick Ratio of 7.94 indicates that ONTO has no problem at all paying its short term obligations.
• With an excellent Quick ratio value of 7.94, ONTO belongs to the best of the industry, outperforming 95.37% of the companies in the same industry.

Understanding NYSE:ONTO's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:ONTO, the assigned 5 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 8.83%, ONTO is in the better half of the industry, outperforming 73.15% of the companies in the same industry.
• The Return On Equity of ONTO (9.62%) is better than 64.81% of its industry peers.
• ONTO has a Return On Invested Capital of 7.38%. This is in the better half of the industry: ONTO outperforms 74.07% of its industry peers.
• ONTO has a Profit Margin of 19.44%. This is in the better half of the industry: ONTO outperforms 77.78% of its industry peers.
• The Operating Margin of ONTO (19.12%) is better than 75.00% of its industry peers.
• The Gross Margin of ONTO (52.87%) is better than 71.30% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.