ONTO INNOVATION INC (ONTO) Stock Fundamental Analysis
NYSE:ONTO - New York Stock Exchange, Inc. - US6833441057 - Common Stock - Currency: USD
Taking everything into account, ONTO scores 7 out of 10 in our fundamental rating. ONTO was compared to 110 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 growing strongly while it is still valued neutral. This is a good combination! This makes ONTO very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year ONTO was profitable.
ONTO had a positive operating cash flow in the past year.
Each year in the past 5 years ONTO has been profitable.
ONTO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ONTO (10.35%) is better than 80.91% of its industry peers.
With a decent Return On Equity value of 11.40%, ONTO is doing good in the industry, outperforming 72.73% of the companies in the same industry.
ONTO's Return On Invested Capital of 10.70% is amongst the best of the industry. ONTO outperforms 80.91% of its industry peers.
ONTO had an Average Return On Invested Capital over the past 3 years of 9.69%. This is in line with the industry average of 10.58%.
The 3 year average ROIC (9.69%) for ONTO is below the current ROIC(10.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.35% | ||
| ROE | 11.4% | ||
| ROIC | 10.7% |
ROA(3y)9.44%
ROA(5y)7.81%
ROE(3y)10.48%
ROE(5y)8.77%
ROIC(3y)9.69%
ROIC(5y)8.09%
1.3 Margins
Looking at the Profit Margin, with a value of 21.36%, ONTO belongs to the top of the industry, outperforming 83.64% of the companies in the same industry.
ONTO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 22.14%, ONTO belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Operating Margin of ONTO has remained more or less at the same level.
ONTO has a Gross Margin of 54.60%. This is in the better half of the industry: ONTO outperforms 73.64% of its industry peers.
In the last couple of years the Gross Margin of ONTO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.14% | ||
| PM (TTM) | 21.36% | ||
| GM | 54.6% |
OM growth 3Y0.92%
OM growth 5YN/A
PM growth 3Y4.23%
PM growth 5Y101.1%
GM growth 3Y-0.48%
GM growth 5Y3.97%
2. Health
2.1 Basic Checks
ONTO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ONTO has been increased compared to 1 year ago.
Compared to 5 years ago, ONTO has less shares outstanding
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.
2.2 Solvency
ONTO has an Altman-Z score of 16.85. This indicates that ONTO is financially healthy and has little risk of bankruptcy at the moment.
ONTO's Altman-Z score of 16.85 is amongst the best of the industry. ONTO outperforms 86.36% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 16.85 |
ROIC/WACC1.06
WACC10.09%
2.3 Liquidity
A Current Ratio of 8.42 indicates that ONTO has no problem at all paying its short term obligations.
ONTO's Current ratio of 8.42 is amongst the best of the industry. ONTO outperforms 91.82% of its industry peers.
A Quick Ratio of 6.74 indicates that ONTO has no problem at all paying its short term obligations.
ONTO's Quick ratio of 6.74 is amongst the best of the industry. ONTO outperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.42 | ||
| Quick Ratio | 6.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.36% over the past year.
Measured over the past years, ONTO shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.96% on average per year.
ONTO shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.23%.
ONTO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.41% yearly.
EPS 1Y (TTM)42.36%
EPS 3Y11.5%
EPS 5Y36.96%
EPS Q2Q%27.97%
Revenue 1Y (TTM)21.23%
Revenue growth 3Y7.77%
Revenue growth 5Y26.41%
Sales Q2Q%16.5%
3.2 Future
ONTO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.55% yearly.
ONTO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.71% yearly.
EPS Next Y-1.22%
EPS Next 2Y6.13%
EPS Next 3Y9.87%
EPS Next 5Y16.55%
Revenue Next Year1.69%
Revenue Next 2Y4.86%
Revenue Next 3Y6.74%
Revenue Next 5Y12.71%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.77, the valuation of ONTO can be described as rather expensive.
Based on the Price/Earnings ratio, ONTO is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.15, ONTO is valued a bit cheaper.
ONTO is valuated correctly with a Price/Forward Earnings ratio of 16.75.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ONTO indicates a somewhat cheap valuation: ONTO is cheaper than 78.18% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ONTO to the average of the S&P500 Index (21.60), we can say ONTO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.77 | ||
| Fwd PE | 16.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ONTO is valued cheaply inside the industry as 83.64% of the companies are valued more expensively.
83.64% of the companies in the same industry are more expensive than ONTO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.94 | ||
| EV/EBITDA | 11.67 |
4.3 Compensation for Growth
ONTO has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y6.13%
EPS Next 3Y9.87%
5. Dividend
5.1 Amount
No dividends for ONTO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
100.93
+2.05 (+2.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.87%
Inst Owner Change3.19%
Ins Owners0.64%
Ins Owner Change0.43%
Market Cap4.93B
Analysts78.67
Price Target162.4 (60.9%)
Short Float %3.44%
Short Ratio1.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.12%
Min EPS beat(2)1%
Max EPS beat(2)5.24%
EPS beat(4)3
Avg EPS beat(4)3.44%
Min EPS beat(4)-0.51%
Max EPS beat(4)8.02%
EPS beat(8)5
Avg EPS beat(8)1.94%
EPS beat(12)7
Avg EPS beat(12)2.5%
EPS beat(16)11
Avg EPS beat(16)4.09%
Revenue beat(2)0
Avg Revenue beat(2)-1.26%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)-0.67%
Revenue beat(4)1
Avg Revenue beat(4)-0.76%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)0.89%
Revenue beat(8)3
Avg Revenue beat(8)-1.64%
Revenue beat(12)4
Avg Revenue beat(12)-1.22%
Revenue beat(16)8
Avg Revenue beat(16)-0.15%
PT rev (1m)-21.38%
PT rev (3m)-35.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.62%
EPS NY rev (1m)-5.71%
EPS NY rev (3m)-18.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.8%
Revenue NY rev (1m)-3.04%
Revenue NY rev (3m)-9.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.77 | ||
| Fwd PE | 16.75 | ||
| P/S | 4.81 | ||
| P/FCF | 19.94 | ||
| P/OCF | 17.58 | ||
| P/B | 2.57 | ||
| P/tB | 3.35 | ||
| EV/EBITDA | 11.67 |
EPS(TTM)5.68
EY5.63%
EPS(NY)6.03
Fwd EY5.97%
FCF(TTM)5.06
FCFY5.02%
OCF(TTM)5.74
OCFY5.69%
SpS20.98
BVpS39.28
TBVpS30.09
PEG (NY)N/A
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.35% | ||
| ROE | 11.4% | ||
| ROCE | 11.7% | ||
| ROIC | 10.7% | ||
| ROICexc | 19.04% | ||
| ROICexgc | 32.38% | ||
| OM | 22.14% | ||
| PM (TTM) | 21.36% | ||
| GM | 54.6% | ||
| FCFM | 24.13% |
ROA(3y)9.44%
ROA(5y)7.81%
ROE(3y)10.48%
ROE(5y)8.77%
ROIC(3y)9.69%
ROIC(5y)8.09%
ROICexc(3y)26.36%
ROICexc(5y)19.22%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)10.6%
ROCE(5y)8.85%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y40.61%
ROICexc growth 5YN/A
OM growth 3Y0.92%
OM growth 5YN/A
PM growth 3Y4.23%
PM growth 5Y101.1%
GM growth 3Y-0.48%
GM growth 5Y3.97%
F-Score8
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 56.54% | ||
| Cap/Sales | 3.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.21% | ||
| Profit Quality | 113% | ||
| Current Ratio | 8.42 | ||
| Quick Ratio | 6.74 | ||
| Altman-Z | 16.85 |
F-Score8
WACC10.09%
ROIC/WACC1.06
Cap/Depr(3y)37.74%
Cap/Depr(5y)27.42%
Cap/Sales(3y)2.61%
Cap/Sales(5y)2.01%
Profit Quality(3y)94.1%
Profit Quality(5y)145.35%
High Growth Momentum
Growth
EPS 1Y (TTM)42.36%
EPS 3Y11.5%
EPS 5Y36.96%
EPS Q2Q%27.97%
EPS Next Y-1.22%
EPS Next 2Y6.13%
EPS Next 3Y9.87%
EPS Next 5Y16.55%
Revenue 1Y (TTM)21.23%
Revenue growth 3Y7.77%
Revenue growth 5Y26.41%
Sales Q2Q%16.5%
Revenue Next Year1.69%
Revenue Next 2Y4.86%
Revenue Next 3Y6.74%
Revenue Next 5Y12.71%
EBIT growth 1Y67.76%
EBIT growth 3Y8.75%
EBIT growth 5YN/A
EBIT Next Year7.9%
EBIT Next 3Y15.64%
EBIT Next 5Y20.46%
FCF growth 1Y110.52%
FCF growth 3Y9.39%
FCF growth 5Y80.04%
OCF growth 1Y98.53%
OCF growth 3Y11.91%
OCF growth 5Y68.48%