ONTO INNOVATION INC (ONTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ONTO - US6833441057 - Common Stock
189.65 USD
+9.27 (+5.14%)
189.65 USD
0 (0%)
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. Both the health and profitability get an excellent rating, making ONTO a very profitable company, without any liquidiy or solvency issues. ONTO is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes ONTO very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year ONTO was profitable.
In the past year ONTO had a positive cash flow from operations.
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 has a Return On Assets of 8.01%. This is in the better half of the industry: ONTO outperforms 76.11% of its industry peers.
ONTO's Return On Equity of 8.74% is fine compared to the rest of the industry. ONTO outperforms 70.80% of its industry peers.
With a decent Return On Invested Capital value of 9.62%, ONTO is doing good in the industry, outperforming 78.76% of the companies in the same industry.
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 has a better Operating Margin (21.25%) than 80.53% of its industry peers.
In the last couple of years the Operating Margin of ONTO has remained more or less at the same level.
The Gross Margin of ONTO (54.83%) is better than 73.45% of its industry peers.
ONTO's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ONTO is destroying 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 32.62. This indicates that ONTO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 32.62, ONTO belongs to the best of the industry, outperforming 92.92% of the companies in the same industry.
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 | 32.62 |
ROIC/WACC0.89
WACC10.76%
2.3 Liquidity
A Current Ratio of 9.49 indicates that ONTO has no problem at all paying its short term obligations.
ONTO has a better Current ratio (9.49) than 93.81% of its industry peers.
A Quick Ratio of 7.89 indicates that ONTO has no problem at all paying its short term obligations.
ONTO has a Quick ratio of 7.89. This is amongst the best in 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
The Earnings Per Share has been growing slightly by 5.92% over the past year.
ONTO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.96% yearly.
ONTO shows a small growth in Revenue. In the last year, the Revenue has grown by 6.38%.
Measured over the past years, ONTO shows a very strong growth in Revenue. The Revenue has been growing by 26.41% on average per year.
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
The Earnings Per Share is expected to grow by 16.13% on average over the next years. This is quite good.
Based on estimates for the next years, ONTO will show a quite strong growth in Revenue. The Revenue will grow by 13.56% on average per year.
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.
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
The Price/Earnings ratio is 36.54, which means the current valuation is very expensive for ONTO.
Based on the Price/Earnings ratio, ONTO is valued a bit cheaper than the industry average as 72.57% of the companies are valued more expensively.
ONTO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.19.
The Price/Forward Earnings ratio is 30.59, which means the current valuation is very expensive for ONTO.
Based on the Price/Forward Earnings ratio, ONTO is valued a bit cheaper than the industry average as 68.14% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.92. ONTO is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.54 | ||
| Fwd PE | 30.59 |
4.2 Price Multiples
ONTO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ONTO is cheaper than 67.26% of the companies in the same industry.
79.65% 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 | 36.03 | ||
| EV/EBITDA | 30.3 |
4.3 Compensation for Growth
The decent profitability rating of ONTO 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)0.99
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% |
189.65
+9.27 (+5.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.42%
Inst Owner Change-0.56%
Ins Owners0.62%
Ins Owner Change0.53%
Market Cap9.42B
Revenue(TTM)1.00B
Net Income(TTM)175.05M
Analysts80
Price Target166.54 (-12.19%)
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 | 36.54 | ||
| Fwd PE | 30.59 | ||
| P/S | 9.39 | ||
| P/FCF | 36.03 | ||
| P/OCF | 32.55 | ||
| P/B | 4.7 | ||
| P/tB | 6 | ||
| EV/EBITDA | 30.3 |
EPS(TTM)5.19
EY2.74%
EPS(NY)6.2
Fwd EY3.27%
FCF(TTM)5.26
FCFY2.78%
OCF(TTM)5.83
OCFY3.07%
SpS20.19
BVpS40.32
TBVpS31.62
PEG (NY)N/A
PEG (5Y)0.99
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 | 32.62 |
F-Score7
WACC10.76%
ROIC/WACC0.89
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.