NYSE:ONTO stands out as a growth opportunity that won't break the bank.

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 Examination for NYSE:ONTO

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:ONTO boasts 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.
• ONTO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.80%.
• ONTO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.25% yearly.
• Based on estimates for the next years, ONTO will show a very strong growth in Earnings Per Share. The EPS will grow by 25.86% on average per year.
• ONTO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.86% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Understanding NYSE:ONTO's Valuation Score

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:ONTO scores a 5 out of 10:

• ONTO's Price/Earnings ratio is a bit cheaper when compared to the industry. ONTO is cheaper than 63.89% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of ONTO indicates a somewhat cheap valuation: ONTO is cheaper than 69.44% of the companies listed in the same industry.
• Based on the Enterprise Value to EBITDA ratio, ONTO is valued a bit cheaper than 63.89% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, ONTO is valued a bit cheaper than 72.22% 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.
• ONTO's earnings are expected to grow with 32.64% in the coming years. This may justify a more expensive valuation.

Evaluating Health: NYSE:ONTO

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:ONTO was assigned a score of 8 for health:

• ONTO has an Altman-Z score of 32.06. This indicates that ONTO is financially healthy and has little risk of bankruptcy at the moment.
• ONTO's Altman-Z score of 32.06 is amongst the best of the industry. ONTO outperforms 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.
• ONTO has a Current Ratio of 10.07. This indicates that ONTO is financially healthy and has no problem in meeting its short term obligations.
• ONTO's Current ratio of 10.07 is amongst the best of the industry. ONTO outperforms 96.30% 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 95.37% of its industry peers.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:ONTO scores a 5 out of 10:

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

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Keep in mind

This article should in no way be interpreted as advice. 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.