ONTO INNOVATION INC (ONTO) Fundamental Analysis & Valuation
NYSE:ONTO • US6833441057
Current stock price
292.92 USD
-2.14 (-0.73%)
At close:
293.6 USD
+0.68 (+0.23%)
After Hours:
This ONTO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ONTO Profitability Analysis
1.1 Basic Checks
- ONTO had positive earnings in the past year.
- In the past year ONTO had a positive cash flow from operations.
- ONTO had positive earnings in each of the past 5 years.
- ONTO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ONTO's Return On Assets of 5.78% is fine compared to the rest of the industry. ONTO outperforms 72.17% of its industry peers.
- Looking at the Return On Equity, with a value of 6.51%, ONTO is in the better half of the industry, outperforming 62.61% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 7.97%, ONTO is in the better half of the industry, outperforming 76.52% of the companies in the same industry.
- ONTO had an Average Return On Invested Capital over the past 3 years of 7.91%. This is below the industry average of 10.73%.
- The last Return On Invested Capital (7.97%) for ONTO is above the 3 year average (7.91%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 6.51% | ||
| ROIC | 7.97% |
ROA(3y)7.22%
ROA(5y)8.54%
ROE(3y)7.99%
ROE(5y)9.58%
ROIC(3y)7.91%
ROIC(5y)9.12%
1.3 Margins
- ONTO has a better Profit Margin (13.60%) than 71.30% of its industry peers.
- In the last couple of years the Profit Margin of ONTO has grown nicely.
- Looking at the Operating Margin, with a value of 19.42%, ONTO is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
- ONTO's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 54.19%, ONTO is doing good in the industry, outperforming 71.30% of the companies in the same industry.
- In the last couple of years the Gross Margin of ONTO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.42% | ||
| PM (TTM) | 13.6% | ||
| GM | 54.19% |
OM growth 3Y-4.09%
OM growth 5Y34.06%
PM growth 3Y-15.08%
PM growth 5Y19.55%
GM growth 3Y0.34%
GM growth 5Y1.6%
2. ONTO Health Analysis
2.1 Basic Checks
- ONTO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- ONTO has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ONTO has more 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 34.40. This indicates that ONTO is financially healthy and has little risk of bankruptcy at the moment.
- ONTO's Altman-Z score of 34.40 is amongst the best of the industry. ONTO outperforms 86.96% 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 | 34.4 |
ROIC/WACC0.62
WACC12.92%
2.3 Liquidity
- ONTO has a Current Ratio of 5.79. This indicates that ONTO is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 5.79, ONTO is in the better half of the industry, outperforming 76.52% of the companies in the same industry.
- ONTO has a Quick Ratio of 4.43. This indicates that ONTO is financially healthy and has no problem in meeting its short term obligations.
- ONTO has a Quick ratio of 4.43. This is in the better half of the industry: ONTO outperforms 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.79 | ||
| Quick Ratio | 4.43 |
3. ONTO Growth Analysis
3.1 Past
- ONTO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.66%.
- Measured over the past years, ONTO shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.68% on average per year.
- Looking at the last year, ONTO shows a small growth in Revenue. The Revenue has grown by 1.82% in the last year.
- ONTO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.55% yearly.
EPS 1Y (TTM)-7.66%
EPS 3Y-3.57%
EPS 5Y20.68%
EPS Q2Q%-16.56%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y0%
Revenue growth 5Y12.55%
Sales Q2Q%1.11%
3.2 Future
- Based on estimates for the next years, ONTO will show a very strong growth in Earnings Per Share. The EPS will grow by 26.16% on average per year.
- ONTO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.01% yearly.
EPS Next Y34.6%
EPS Next 2Y29.98%
EPS Next 3Y25.55%
EPS Next 5Y26.16%
Revenue Next Year24.07%
Revenue Next 2Y20.1%
Revenue Next 3Y16.66%
Revenue Next 5Y21.01%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. ONTO Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 59.30, which means the current valuation is very expensive for ONTO.
- Based on the Price/Earnings ratio, ONTO is valued a bit cheaper than 64.35% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.64, ONTO is valued quite expensively.
- The Price/Forward Earnings ratio is 44.05, which means the current valuation is very expensive for ONTO.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ONTO is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of ONTO to the average of the S&P500 Index (21.36), we can say ONTO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.3 | ||
| Fwd PE | 44.05 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ONTO is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, ONTO is valued a bit cheaper than 77.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.6 | ||
| EV/EBITDA | 52.2 |
4.3 Compensation for Growth
- ONTO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ONTO has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as ONTO's earnings are expected to grow with 25.55% in the coming years.
PEG (NY)1.71
PEG (5Y)2.87
EPS Next 2Y29.98%
EPS Next 3Y25.55%
5. ONTO Dividend Analysis
5.1 Amount
- ONTO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ONTO Fundamentals: All Metrics, Ratios and Statistics
292.92
-2.14 (-0.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Industry Strength100
Industry Growth73.29
Earnings (Last)02-19 2026-02-19/amc
Earnings (Next)05-05 2026-05-05/amc
Inst Owners98.32%
Inst Owner Change0.25%
Ins Owners0.7%
Ins Owner Change0.75%
Market Cap14.57B
Revenue(TTM)1.01B
Net Income(TTM)136.76M
Analysts81.43
Price Target319.93 (9.22%)
Short Float %2.39%
Short Ratio1.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1
Avg EPS beat(2)0.11%
Min EPS beat(2)-3.63%
Max EPS beat(2)3.84%
EPS beat(4)2
Avg EPS beat(4)-0.59%
Min EPS beat(4)-3.63%
Max EPS beat(4)3.84%
EPS beat(8)5
Avg EPS beat(8)2.14%
EPS beat(12)6
Avg EPS beat(12)0.98%
EPS beat(16)9
Avg EPS beat(16)2.3%
Revenue beat(2)0
Avg Revenue beat(2)-2.07%
Min Revenue beat(2)-2.12%
Max Revenue beat(2)-2.02%
Revenue beat(4)0
Avg Revenue beat(4)-1.86%
Min Revenue beat(4)-2.12%
Max Revenue beat(4)-1.44%
Revenue beat(8)2
Avg Revenue beat(8)-0.98%
Revenue beat(12)3
Avg Revenue beat(12)-1.83%
Revenue beat(16)5
Avg Revenue beat(16)-1.14%
PT rev (1m)23.65%
PT rev (3m)85.78%
EPS NQ rev (1m)7.2%
EPS NQ rev (3m)12.14%
EPS NY rev (1m)0%
EPS NY rev (3m)6.15%
Revenue NQ rev (1m)4.18%
Revenue NQ rev (3m)9.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.3 | ||
| Fwd PE | 44.05 | ||
| P/S | 14.49 | ||
| P/FCF | 48.6 | ||
| P/OCF | 44.38 | ||
| P/B | 6.94 | ||
| P/tB | 12.58 | ||
| EV/EBITDA | 52.2 |
EPS(TTM)4.94
EY1.69%
EPS(NY)6.65
Fwd EY2.27%
FCF(TTM)6.03
FCFY2.06%
OCF(TTM)6.6
OCFY2.25%
SpS20.21
BVpS42.23
TBVpS23.29
PEG (NY)1.71
PEG (5Y)2.87
Graham Number68.5139 (-76.61%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.78% | ||
| ROE | 6.51% | ||
| ROCE | 9.08% | ||
| ROIC | 7.97% | ||
| ROICexc | 14.08% | ||
| ROICexgc | 62.59% | ||
| OM | 19.42% | ||
| PM (TTM) | 13.6% | ||
| GM | 54.19% | ||
| FCFM | 29.82% |
ROA(3y)7.22%
ROA(5y)8.54%
ROE(3y)7.99%
ROE(5y)9.58%
ROIC(3y)7.91%
ROIC(5y)9.12%
ROICexc(3y)23.94%
ROICexc(5y)20.98%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)9.01%
ROCE(5y)10.4%
ROICexgc growth 3Y20.94%
ROICexgc growth 5Y58.45%
ROICexc growth 3Y-7.62%
ROICexc growth 5Y44.36%
OM growth 3Y-4.09%
OM growth 5Y34.06%
PM growth 3Y-15.08%
PM growth 5Y19.55%
GM growth 3Y0.34%
GM growth 5Y1.6%
F-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 47.18% | ||
| Cap/Sales | 2.84% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 128.43% | ||
| Profit Quality | 219.22% | ||
| Current Ratio | 5.79 | ||
| Quick Ratio | 4.43 | ||
| Altman-Z | 34.4 |
F-Score6
WACC12.92%
ROIC/WACC0.62
Cap/Depr(3y)43.99%
Cap/Depr(5y)35.73%
Cap/Sales(3y)2.94%
Cap/Sales(5y)2.44%
Profit Quality(3y)149.51%
Profit Quality(5y)123.25%
High Growth Momentum
Growth
EPS 1Y (TTM)-7.66%
EPS 3Y-3.57%
EPS 5Y20.68%
EPS Q2Q%-16.56%
EPS Next Y34.6%
EPS Next 2Y29.98%
EPS Next 3Y25.55%
EPS Next 5Y26.16%
Revenue 1Y (TTM)1.82%
Revenue growth 3Y0%
Revenue growth 5Y12.55%
Sales Q2Q%1.11%
Revenue Next Year24.07%
Revenue Next 2Y20.1%
Revenue Next 3Y16.66%
Revenue Next 5Y21.01%
EBIT growth 1Y-4.2%
EBIT growth 3Y-4.09%
EBIT growth 5Y50.89%
EBIT Next Year57.76%
EBIT Next 3Y29.28%
EBIT Next 5Y30.7%
FCF growth 1Y40.24%
FCF growth 3Y36.34%
FCF growth 5Y24.02%
OCF growth 1Y33.64%
OCF growth 3Y33.92%
OCF growth 5Y25.37%
ONTO INNOVATION INC / ONTO Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for ONTO INNOVATION INC?
ChartMill assigns a fundamental rating of 7 / 10 to ONTO.
Can you provide the valuation status for ONTO INNOVATION INC?
ChartMill assigns a valuation rating of 4 / 10 to ONTO INNOVATION INC (ONTO). This can be considered as Fairly Valued.
How profitable is ONTO INNOVATION INC (ONTO) stock?
ONTO INNOVATION INC (ONTO) has a profitability rating of 7 / 10.
What are the PE and PB ratios of ONTO INNOVATION INC (ONTO) stock?
The Price/Earnings (PE) ratio for ONTO INNOVATION INC (ONTO) is 59.3 and the Price/Book (PB) ratio is 6.94.