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 6 out of 10 in our fundamental rating. ONTO was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. ONTO is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. ONTO is growing strongly while it is still valued neutral. This is a good combination! These ratings could make ONTO a good candidate for growth 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.
In the past 5 years ONTO has always been profitable.
ONTO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ONTO's Return On Assets of 8.83% is fine compared to the rest of the industry. ONTO outperforms 74.07% of its industry peers.
ONTO has a Return On Equity of 9.62%. This is in the better half of the industry: ONTO outperforms 65.74% of its industry peers.
ONTO has a better Return On Invested Capital (7.38%) than 73.15% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ONTO is below the industry average of 11.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.83% | ||
| ROE | 9.62% | ||
| ROIC | 7.38% |
ROA(3y)9.14%
ROA(5y)5.93%
ROE(3y)10.31%
ROE(5y)6.71%
ROIC(3y)8.41%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of ONTO (19.44%) is better than 78.70% of its industry peers.
In the last couple of years the Profit Margin of ONTO has declined.
ONTO's Operating Margin of 19.12% is fine compared to the rest of the industry. ONTO outperforms 75.93% of its industry peers.
In the last couple of years the Operating Margin of ONTO has declined.
The Gross Margin of ONTO (52.87%) is better than 70.37% of its industry peers.
ONTO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.12% | ||
| PM (TTM) | 19.44% | ||
| GM | 52.87% |
OM growth 3Y46.51%
OM growth 5Y-5.94%
PM growth 3Y38.66%
PM growth 5Y-3.5%
GM growth 3Y1.53%
GM growth 5Y-1.59%
2. Health
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.
The number of shares outstanding for ONTO has been increased compared to 1 year ago.
ONTO has more shares outstanding than it did 5 years ago.
ONTO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
ONTO has an Altman-Z score of 33.91. This indicates that ONTO is financially healthy and has little risk of bankruptcy at the moment.
ONTO has a better Altman-Z score (33.91) 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 33.91 |
ROIC/WACC0.51
WACC14.44%
2.3 Liquidity
A Current Ratio of 10.07 indicates that ONTO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 10.07, ONTO belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
ONTO has a Quick Ratio of 7.94. This indicates that ONTO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 7.94, ONTO belongs to the top of the industry, outperforming 95.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 10.07 | ||
| Quick Ratio | 7.94 |
3. Growth
3.1 Past
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.
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.
EPS 1Y (TTM)15.57%
EPS 3Y24.56%
EPS 5Y9.4%
EPS Q2Q%39.58%
Revenue 1Y (TTM)10.8%
Revenue growth 3Y13.6%
Revenue growth 5Y20.25%
Sales Q2Q%21.73%
3.2 Future
The Earnings Per Share is expected to grow by 25.56% on average over the next years. This is a very strong growth
Based on estimates for the next years, ONTO will show a quite strong growth in Revenue. The Revenue will grow by 17.34% on average per year.
EPS Next Y43.21%
EPS Next 2Y35.3%
EPS Next 3Y32.64%
EPS Next 5Y25.56%
Revenue Next Year22.11%
Revenue Next 2Y19.39%
Revenue Next 3Y19.01%
Revenue Next 5Y17.34%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 37.46, which means the current valuation is very expensive for ONTO.
ONTO's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.42, ONTO is valued a bit more expensive.
With a Price/Forward Earnings ratio of 26.88, ONTO can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ONTO is valued a bit cheaper than 60.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.39. ONTO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.46 | ||
| Fwd PE | 26.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ONTO is valued a bit cheaper than 60.19% of the companies in the same industry.
70.37% 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 | 40.93 | ||
| EV/EBITDA | 30.48 |
4.3 Compensation for Growth
The 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.
PEG (NY)0.87
PEG (5Y)3.98
EPS Next 2Y35.3%
EPS Next 3Y32.64%
5. Dividend
5.1 Amount
No dividends for ONTO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ONTO INNOVATION INC
NYSE:ONTO (1/28/2025, 8:04:00 PM)
After market: 183.27 -0.29 (-0.16%)183.56
+0.29 (+0.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.22%
Inst Owner Change0.33%
Ins Owners0.69%
Ins Owner Change-9.84%
Market Cap9.07B
Analysts85.33
Price Target260.23 (41.77%)
Short Float %2.37%
Short Ratio1.49
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)1
Avg EPS beat(2)3.76%
Min EPS beat(2)-0.51%
Max EPS beat(2)8.02%
EPS beat(4)3
Avg EPS beat(4)4.34%
Min EPS beat(4)-0.51%
Max EPS beat(4)8.02%
EPS beat(8)4
Avg EPS beat(8)2.98%
EPS beat(12)7
Avg EPS beat(12)3.54%
EPS beat(16)11
Avg EPS beat(16)5.14%
Revenue beat(2)1
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)0.89%
Revenue beat(4)3
Avg Revenue beat(4)0.73%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)2.63%
Revenue beat(8)3
Avg Revenue beat(8)-1.96%
Revenue beat(12)6
Avg Revenue beat(12)-0.61%
Revenue beat(16)10
Avg Revenue beat(16)0.21%
PT rev (1m)0%
PT rev (3m)-2.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.74%
EPS NY rev (1m)0%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.46 | ||
| Fwd PE | 26.88 | ||
| P/S | 9.62 | ||
| P/FCF | 40.93 | ||
| P/OCF | 36.08 | ||
| P/B | 4.76 | ||
| P/tB | 6.21 | ||
| EV/EBITDA | 30.48 |
EPS(TTM)4.9
EY2.67%
EPS(NY)6.83
Fwd EY3.72%
FCF(TTM)4.48
FCFY2.44%
OCF(TTM)5.09
OCFY2.77%
SpS19.08
BVpS38.54
TBVpS29.55
PEG (NY)0.87
PEG (5Y)3.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.83% | ||
| ROE | 9.62% | ||
| ROCE | 9.34% | ||
| ROIC | 7.38% | ||
| ROICexc | 13.26% | ||
| ROICexgc | 22.62% | ||
| OM | 19.12% | ||
| PM (TTM) | 19.44% | ||
| GM | 52.87% | ||
| FCFM | 23.51% |
ROA(3y)9.14%
ROA(5y)5.93%
ROE(3y)10.31%
ROE(5y)6.71%
ROIC(3y)8.41%
ROIC(5y)N/A
ROICexc(3y)15.33%
ROICexc(5y)N/A
ROICexgc(3y)49.68%
ROICexgc(5y)N/A
ROCE(3y)10.64%
ROCE(5y)N/A
ROICexcg growth 3Y139.9%
ROICexcg growth 5Y11.84%
ROICexc growth 3Y95.65%
ROICexc growth 5Y-12.73%
OM growth 3Y46.51%
OM growth 5Y-5.94%
PM growth 3Y38.66%
PM growth 5Y-3.5%
GM growth 3Y1.53%
GM growth 5Y-1.59%
F-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 44.49% | ||
| Cap/Sales | 3.16% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 101.69% | ||
| Profit Quality | 120.93% | ||
| Current Ratio | 10.07 | ||
| Quick Ratio | 7.94 | ||
| Altman-Z | 33.91 |
F-Score6
WACC14.44%
ROIC/WACC0.51
Cap/Depr(3y)26.75%
Cap/Depr(5y)25.47%
Cap/Sales(3y)2.04%
Cap/Sales(5y)1.8%
Profit Quality(3y)97.01%
Profit Quality(5y)243.09%
High Growth Momentum
Growth
EPS 1Y (TTM)15.57%
EPS 3Y24.56%
EPS 5Y9.4%
EPS Q2Q%39.58%
EPS Next Y43.21%
EPS Next 2Y35.3%
EPS Next 3Y32.64%
EPS Next 5Y25.56%
Revenue 1Y (TTM)10.8%
Revenue growth 3Y13.6%
Revenue growth 5Y20.25%
Sales Q2Q%21.73%
Revenue Next Year22.11%
Revenue Next 2Y19.39%
Revenue Next 3Y19.01%
Revenue Next 5Y17.34%
EBIT growth 1Y19.1%
EBIT growth 3Y66.44%
EBIT growth 5Y13.11%
EBIT Next Year46.98%
EBIT Next 3Y40.06%
EBIT Next 5Y29.14%
FCF growth 1Y76.35%
FCF growth 3Y13.49%
FCF growth 5Y9.29%
OCF growth 1Y84.47%
OCF growth 3Y17.5%
OCF growth 5Y10.73%