ONTO INNOVATION INC (ONTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ONTO - US6833441057 - Common Stock
217.85 USD
+15.64 (+7.73%)
215.563 USD
-2.29 (-1.05%)
We assign a fundamental rating of 7 out of 10 to ONTO. ONTO was compared to 113 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 valued quite expensive, but it does show an excellent growth. These ratings could make ONTO a good candidate 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.
- In the past 5 years ONTO has always been profitable.
- Each year in the past 5 years ONTO had a positive operating cash flow.
1.2 Ratios
- ONTO has a better Return On Assets (8.01%) than 76.11% of its industry peers.
- With a decent Return On Equity value of 8.74%, ONTO is doing good in the industry, outperforming 70.80% of the companies in the same industry.
- ONTO has a Return On Invested Capital of 9.62%. This is in the better half of the industry: ONTO outperforms 78.76% 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 10.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.01% | ||
| ROE | 8.74% | ||
| ROIC | 9.62% |
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
- ONTO's Profit Margin of 17.46% is fine compared to the rest of the industry. ONTO outperforms 78.76% of its industry peers.
- In the last couple of years the Profit Margin of ONTO has grown nicely.
- ONTO's Operating Margin of 21.25% is amongst the best of the industry. ONTO outperforms 80.53% of its industry peers.
- ONTO's Operating Margin has been stable in the last couple of years.
- ONTO's Gross Margin of 54.83% is fine compared to the rest of the industry. ONTO outperforms 73.45% of its industry peers.
- In the last couple of years the Gross Margin of ONTO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.25% | ||
| PM (TTM) | 17.46% | ||
| GM | 54.83% |
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 below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, ONTO has more shares outstanding
- The number of shares outstanding for ONTO has been reduced compared to 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 37.17. This indicates that ONTO is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of ONTO (37.17) is better than 93.81% 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 | 37.17 |
ROIC/WACC0.9
WACC10.75%
2.3 Liquidity
- ONTO has a Current Ratio of 9.49. This indicates that ONTO is financially healthy and has no problem in meeting its short term obligations.
- ONTO has a Current ratio of 9.49. This is amongst the best in the industry. ONTO outperforms 93.81% of its industry peers.
- ONTO has a Quick Ratio of 7.89. This indicates that ONTO is financially healthy and has no problem in meeting its short term obligations.
- ONTO's Quick ratio of 7.89 is amongst the best of the industry. ONTO outperforms 92.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.49 | ||
| Quick Ratio | 7.89 |
3. Growth
3.1 Past
- ONTO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.92%.
- 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 small growth in Revenue. In the last year, the Revenue has grown by 6.38%.
- ONTO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.41% yearly.
EPS 1Y (TTM)5.92%
EPS 3Y11.5%
EPS 5Y36.96%
EPS Q2Q%-31.34%
Revenue 1Y (TTM)6.38%
Revenue growth 3Y7.77%
Revenue growth 5Y26.41%
Sales Q2Q%-13.49%
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 16.13% yearly.
- The Revenue is expected to grow by 13.56% on average over the next years. This is quite good.
EPS Next Y-5.49%
EPS Next 2Y7.64%
EPS Next 3Y12.75%
EPS Next 5Y16.13%
Revenue Next Year1.99%
Revenue Next 2Y9.37%
Revenue Next 3Y11.56%
Revenue Next 5Y13.56%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 41.97, the valuation of ONTO can be described as expensive.
- ONTO's Price/Earnings ratio is a bit cheaper when compared to the industry. ONTO is cheaper than 70.80% of the companies in the same industry.
- ONTO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.54.
- ONTO is valuated quite expensively with a Price/Forward Earnings ratio of 35.14.
- ONTO's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. ONTO is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.97 | ||
| Fwd PE | 35.14 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ONTO is valued a bit cheaper than 63.72% of the companies in the same industry.
- 77.88% 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 | 41.39 | ||
| EV/EBITDA | 35.57 |
4.3 Compensation for Growth
- ONTO has a very decent profitability rating, which may justify a higher PE ratio.
- ONTO's earnings are expected to grow with 12.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.14
EPS Next 2Y7.64%
EPS Next 3Y12.75%
5. Dividend
5.1 Amount
- ONTO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
217.85
+15.64 (+7.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-05 2026-02-05/amc
Inst Owners98.42%
Inst Owner Change-0.56%
Ins Owners0.62%
Ins Owner Change0.53%
Market Cap10.82B
Revenue(TTM)1.00B
Net Income(TTM)175.05M
Analysts80
Price Target166.54 (-23.55%)
Short Float %3.45%
Short Ratio2.05
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)0.14%
Min EPS beat(2)-3.56%
Max EPS beat(2)3.84%
EPS beat(4)3
Avg EPS beat(4)1.63%
Min EPS beat(4)-3.56%
Max EPS beat(4)5.24%
EPS beat(8)6
Avg EPS beat(8)2.99%
EPS beat(12)7
Avg EPS beat(12)2.53%
EPS beat(16)10
Avg EPS beat(16)3.06%
Revenue beat(2)0
Avg Revenue beat(2)-1.78%
Min Revenue beat(2)-2.12%
Max Revenue beat(2)-1.44%
Revenue beat(4)0
Avg Revenue beat(4)-1.52%
Min Revenue beat(4)-2.12%
Max Revenue beat(4)-0.67%
Revenue beat(8)3
Avg Revenue beat(8)-0.39%
Revenue beat(12)3
Avg Revenue beat(12)-1.81%
Revenue beat(16)6
Avg Revenue beat(16)-0.84%
PT rev (1m)5%
PT rev (3m)9.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.25%
EPS NY rev (1m)0%
EPS NY rev (3m)1.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.97 | ||
| Fwd PE | 35.14 | ||
| P/S | 10.79 | ||
| P/FCF | 41.39 | ||
| P/OCF | 37.39 | ||
| P/B | 5.4 | ||
| P/tB | 6.89 | ||
| EV/EBITDA | 35.57 |
EPS(TTM)5.19
EY2.38%
EPS(NY)6.2
Fwd EY2.85%
FCF(TTM)5.26
FCFY2.42%
OCF(TTM)5.83
OCFY2.67%
SpS20.19
BVpS40.32
TBVpS31.62
PEG (NY)N/A
PEG (5Y)1.14
Graham Number68.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.01% | ||
| ROE | 8.74% | ||
| ROCE | 10.53% | ||
| ROIC | 9.62% | ||
| ROICexc | 18.73% | ||
| ROICexgc | 32.05% | ||
| OM | 21.25% | ||
| PM (TTM) | 17.46% | ||
| GM | 54.83% | ||
| FCFM | 26.07% |
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score7
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 53.19% | ||
| Cap/Sales | 2.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.89% | ||
| Profit Quality | 149.28% | ||
| Current Ratio | 9.49 | ||
| Quick Ratio | 7.89 | ||
| Altman-Z | 37.17 |
F-Score7
WACC10.75%
ROIC/WACC0.9
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)5.92%
EPS 3Y11.5%
EPS 5Y36.96%
EPS Q2Q%-31.34%
EPS Next Y-5.49%
EPS Next 2Y7.64%
EPS Next 3Y12.75%
EPS Next 5Y16.13%
Revenue 1Y (TTM)6.38%
Revenue growth 3Y7.77%
Revenue growth 5Y26.41%
Sales Q2Q%-13.49%
Revenue Next Year1.99%
Revenue Next 2Y9.37%
Revenue Next 3Y11.56%
Revenue Next 5Y13.56%
EBIT growth 1Y18.22%
EBIT growth 3Y8.75%
EBIT growth 5YN/A
EBIT Next Year8.93%
EBIT Next 3Y19.24%
EBIT Next 5Y20.39%
FCF growth 1Y99.17%
FCF growth 3Y9.39%
FCF growth 5Y80.04%
OCF growth 1Y80.94%
OCF growth 3Y11.91%
OCF growth 5Y68.48%
ONTO INNOVATION INC / ONTO 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.
What is the profitability of ONTO stock?
ONTO INNOVATION INC (ONTO) has a profitability rating of 7 / 10.
How financially healthy is ONTO INNOVATION INC?
The financial health rating of ONTO INNOVATION INC (ONTO) is 9 / 10.
Can you provide the expected EPS growth for ONTO stock?
The Earnings per Share (EPS) of ONTO INNOVATION INC (ONTO) is expected to decline by -5.49% in the next year.