Looking for growth without the hefty price tag? Consider NYSE:ONTO.

ONTO INNOVATION INC (NYSE:ONTO) has caught the eye of our stock screener as an affordable growth stock. NYSE:ONTO is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Growth Analysis for NYSE:ONTO

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:ONTO was assigned a score of 8 for growth:

• ONTO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.57%, which is quite good.
• ONTO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.40% yearly.
• Looking at the last year, ONTO shows a quite strong growth in Revenue. The Revenue has grown by 10.80% in the last year.
• The Revenue has been growing by 20.25% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, ONTO will show a very strong growth in Earnings Per Share. The EPS will grow by 29.23% on average per year.
• ONTO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.85% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

ChartMill's Evaluation of Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:ONTO was assigned a score of 5 for valuation:

• Compared to the rest of the industry, the Price/Earnings ratio of ONTO indicates a somewhat cheap valuation: ONTO is cheaper than 63.89% of the companies listed in the same industry.
• ONTO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ONTO is cheaper than 66.67% of the companies in the same industry.
• Based on the Enterprise Value to EBITDA ratio, ONTO is valued a bit cheaper than the industry average as 63.89% of the companies are valued more expensively.
• ONTO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ONTO is cheaper than 73.15% of the companies 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.
• A more expensive valuation may be justified as ONTO's earnings are expected to grow with 32.64% in the coming years.

Health Assessment of NYSE:ONTO

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:ONTO has earned a 8 out of 10:

• ONTO has an Altman-Z score of 32.04. This indicates that ONTO is financially healthy and has little risk of bankruptcy at the moment.
• ONTO has a better Altman-Z score (32.04) than 91.67% of its industry peers.
• There is no outstanding debt for ONTO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and 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.
• ONTO has a better Quick ratio (7.94) than 96.30% of its industry peers.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:ONTO has earned a 5 out of 10:

• The Return On Assets of ONTO (8.83%) is better than 75.00% of its industry peers.
• ONTO has a better Return On Equity (9.62%) than 66.67% 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.
• The Profit Margin of ONTO (19.44%) is better than 78.70% of its industry peers.
• With a decent Operating Margin value of 19.12%, ONTO is doing good in the industry, outperforming 75.93% of the companies in the same industry.
• The Gross Margin of ONTO (52.87%) is better than 70.37% of its industry peers.

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

Our latest full fundamental report of ONTO contains the most current fundamental analsysis.

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.