ONTO INNOVATION INC (ONTO) Fundamental Analysis & Valuation
NYSE:ONTO • US6833441057
193.82 USD
+2.16 (+1.13%)
At close: Mar 10, 2026
193.83 USD
+0.01 (+0.01%)
After Hours: 3/10/2026, 5:34:31 PM
This ONTO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 7 out of 10 to ONTO. ONTO was compared to 115 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make ONTO a good candidate for growth and quality investing.
1. ONTO Profitability Analysis
1.1 Basic Checks
- ONTO had positive earnings in the past year.
- ONTO had a positive operating cash flow in the past year.
- ONTO had positive earnings in each of the past 5 years.
- Each year in the past 5 years ONTO had a positive operating cash flow.
1.2 Ratios
- ONTO has a better Return On Assets (5.78%) than 72.17% of its industry peers.
- The Return On Equity of ONTO (6.51%) is better than 61.74% of its industry peers.
- ONTO has a Return On Invested Capital of 7.97%. This is in the better half of the industry: ONTO outperforms 76.52% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ONTO is below the industry average of 10.52%.
- 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 Profit Margin of 13.60%. This is in the better half of the industry: ONTO outperforms 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.
- ONTO's Gross Margin of 54.19% is fine compared to the rest of the industry. ONTO outperforms 71.30% of its industry peers.
- ONTO's Gross Margin has improved in the last couple of years.
| 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.
- Compared to 1 year ago, ONTO has more shares outstanding
- The number of shares outstanding for ONTO has been increased 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 23.07. This indicates that ONTO is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 23.07, ONTO belongs to the best of the industry, outperforming 86.96% 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 | 23.07 |
ROIC/WACC0.7
WACC11.36%
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.
- ONTO's Current ratio of 5.79 is fine compared to the rest of the industry. ONTO outperforms 77.39% of its industry peers.
- 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's Quick ratio of 4.43 is fine compared to the rest of the industry. ONTO outperforms 74.78% 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.
- ONTO shows a small growth in Revenue. In the last year, the Revenue has grown by 1.82%.
- 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 25.64% on average per year.
- Based on estimates for the next years, ONTO will show a quite strong growth in Revenue. The Revenue will grow by 19.37% on average per year.
EPS Next Y34.6%
EPS Next 2Y29.98%
EPS Next 3Y25.55%
EPS Next 5Y25.65%
Revenue Next Year24.07%
Revenue Next 2Y20.1%
Revenue Next 3Y16.66%
Revenue Next 5Y19.37%
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 accelerating: in the next years the growth will be better than in the last years.
4. ONTO Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 39.23, 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 72.17% of the companies in the same industry.
- When comparing the Price/Earnings ratio of ONTO to the average of the S&P500 Index (26.45), we can say ONTO is valued slightly more expensively.
- A Price/Forward Earnings ratio of 29.15 indicates a quite expensive valuation of ONTO.
- 65.22% of the companies in the same industry are more expensive than ONTO, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.65, ONTO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.23 | ||
| Fwd PE | 29.15 |
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.
- 82.61% 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 | 32.13 | ||
| EV/EBITDA | 32.46 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of ONTO may justify a higher PE ratio.
- ONTO's earnings are expected to grow with 25.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.13
PEG (5Y)1.9
EPS Next 2Y29.98%
EPS Next 3Y25.55%
5. ONTO Dividend Analysis
5.1 Amount
- No dividends for ONTO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ONTO Fundamentals: All Metrics, Ratios and Statistics
193.82
+2.16 (+1.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-19 2026-02-19/amc
Earnings (Next)05-06 2026-05-06
Inst Owners98.44%
Inst Owner Change-0.91%
Ins Owners0.64%
Ins Owner Change0.69%
Market Cap9.63B
Revenue(TTM)1.01B
Net Income(TTM)136.76M
Analysts81.43
Price Target258.73 (33.49%)
Short Float %2.04%
Short Ratio1.09
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)24.46%
PT rev (3m)63.13%
EPS NQ rev (1m)4.61%
EPS NQ rev (3m)5.87%
EPS NY rev (1m)5.56%
EPS NY rev (3m)7.47%
Revenue NQ rev (1m)4.64%
Revenue NQ rev (3m)5.78%
Revenue NY rev (1m)5.12%
Revenue NY rev (3m)6.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.23 | ||
| Fwd PE | 29.15 | ||
| P/S | 9.58 | ||
| P/FCF | 32.13 | ||
| P/OCF | 29.34 | ||
| P/B | 4.59 | ||
| P/tB | 8.31 | ||
| EV/EBITDA | 32.46 |
EPS(TTM)4.94
EY2.55%
EPS(NY)6.65
Fwd EY3.43%
FCF(TTM)6.03
FCFY3.11%
OCF(TTM)6.61
OCFY3.41%
SpS20.23
BVpS42.27
TBVpS23.31
PEG (NY)1.13
PEG (5Y)1.9
Graham Number68.54
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 | 23.07 |
F-Score6
WACC11.36%
ROIC/WACC0.7
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 5Y25.65%
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 5Y19.37%
EBIT growth 1Y-4.2%
EBIT growth 3Y-4.09%
EBIT growth 5Y50.89%
EBIT Next Year57.76%
EBIT Next 3Y29.28%
EBIT Next 5Y30.76%
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 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 5 / 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 8 / 10.
Can you provide the expected EPS growth for ONTO stock?
The Earnings per Share (EPS) of ONTO INNOVATION INC (ONTO) is expected to grow by 34.6% in the next year.