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 7 out of 10 in our fundamental rating. ONTO was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. ONTO gets an excellent profitability rating and is at the same time showing great financial health properties. ONTO is growing strongly while it is still valued neutral. This is a good combination! With these ratings, ONTO could be worth investigating further for growth and quality investing!.
1. Profitability
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.
In the past 5 years ONTO always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 9.53%, ONTO is doing good in the industry, outperforming 76.85% of the companies in the same industry.
ONTO has a better Return On Equity (10.47%) than 67.59% of its industry peers.
ONTO's Return On Invested Capital of 9.57% is fine compared to the rest of the industry. ONTO outperforms 75.93% 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 11.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.53% | ||
| ROE | 10.47% | ||
| ROIC | 9.57% |
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
Looking at the Profit Margin, with a value of 20.43%, ONTO belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
In the last couple of years the Profit Margin of ONTO has grown nicely.
ONTO has a better Operating Margin (20.64%) than 78.70% of its industry peers.
ONTO's Operating Margin has been stable in the last couple of years.
ONTO has a Gross Margin of 53.88%. This is in the better half of the industry: ONTO outperforms 73.15% of its industry peers.
In the last couple of years the Gross Margin of ONTO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.64% | ||
| PM (TTM) | 20.43% | ||
| GM | 53.88% |
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.
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
An Altman-Z score of 22.50 indicates that ONTO is not in any danger for bankruptcy at the moment.
The Altman-Z score of ONTO (22.50) is better than 90.74% 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 | 22.5 |
ROIC/WACC0.86
WACC11.16%
2.3 Liquidity
A Current Ratio of 8.69 indicates that ONTO has no problem at all paying its short term obligations.
With an excellent Current ratio value of 8.69, ONTO belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
ONTO has a Quick Ratio of 7.00. This indicates that ONTO is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 7.00, ONTO belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.69 | ||
| Quick Ratio | 7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 43.43% over the past year.
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.
The Revenue has grown by 21.00% in the past year. This is a very strong growth!
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)43.43%
EPS 3Y11.5%
EPS 5Y36.96%
EPS Q2Q%42.45%
Revenue 1Y (TTM)21%
Revenue growth 3Y7.77%
Revenue growth 5Y26.41%
Sales Q2Q%20.6%
3.2 Future
The Earnings Per Share is expected to grow by 22.01% on average over the next years. This is a very strong growth
ONTO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.32% yearly.
EPS Next Y21.84%
EPS Next 2Y22.83%
EPS Next 3Y22.1%
EPS Next 5Y22.01%
Revenue Next Year12.95%
Revenue Next 2Y13.44%
Revenue Next 3Y13.5%
Revenue Next 5Y18.32%
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 24.83, the valuation of ONTO can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ONTO indicates a somewhat cheap valuation: ONTO is cheaper than 71.30% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, ONTO is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.38, the valuation of ONTO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ONTO is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
ONTO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.83 | ||
| Fwd PE | 20.38 |
4.2 Price Multiples
ONTO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ONTO is cheaper than 73.15% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ONTO is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.61 | ||
| EV/EBITDA | 16.59 |
4.3 Compensation for Growth
The 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 22.10% in the coming years.
PEG (NY)1.14
PEG (5Y)0.67
EPS Next 2Y22.83%
EPS Next 3Y22.1%
5. Dividend
5.1 Amount
No dividends for ONTO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
132.82
-1.43 (-1.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners96.52%
Inst Owner Change-0.25%
Ins Owners0.53%
Ins Owner Change-3.59%
Market Cap6.54B
Analysts85
Price Target251.96 (89.7%)
Short Float %2.49%
Short Ratio1.29
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)2.36%
Min EPS beat(2)-0.51%
Max EPS beat(2)5.24%
EPS beat(4)3
Avg EPS beat(4)4.88%
Min EPS beat(4)-0.51%
Max EPS beat(4)8.02%
EPS beat(8)4
Avg EPS beat(8)1.76%
EPS beat(12)7
Avg EPS beat(12)3.26%
EPS beat(16)11
Avg EPS beat(16)4.36%
Revenue beat(2)0
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)-0.67%
Revenue beat(4)2
Avg Revenue beat(4)-0.1%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)0.89%
Revenue beat(8)3
Avg Revenue beat(8)-1.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.9%
Revenue beat(16)9
Avg Revenue beat(16)0.11%
PT rev (1m)-2.18%
PT rev (3m)-3.18%
EPS NQ rev (1m)-1.48%
EPS NQ rev (3m)-2.53%
EPS NY rev (1m)-3.92%
EPS NY rev (3m)-4.54%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-3.16%
Revenue NY rev (3m)-3.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.83 | ||
| Fwd PE | 20.38 | ||
| P/S | 6.63 | ||
| P/FCF | 30.61 | ||
| P/OCF | 26.64 | ||
| P/B | 3.4 | ||
| P/tB | 4.46 | ||
| EV/EBITDA | 16.59 |
EPS(TTM)5.35
EY4.03%
EPS(NY)6.52
Fwd EY4.91%
FCF(TTM)4.34
FCFY3.27%
OCF(TTM)4.99
OCFY3.75%
SpS20.04
BVpS39.09
TBVpS29.8
PEG (NY)1.14
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.53% | ||
| ROE | 10.47% | ||
| ROCE | 10.46% | ||
| ROIC | 9.57% | ||
| ROICexc | 40.92% | ||
| ROICexgc | N/A | ||
| OM | 20.64% | ||
| PM (TTM) | 20.43% | ||
| GM | 53.88% | ||
| FCFM | 21.65% |
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%
ROICexcg growth 3YN/A
ROICexcg 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-Score8
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 51.2% | ||
| Cap/Sales | 3.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.34% | ||
| Profit Quality | 106% | ||
| Current Ratio | 8.69 | ||
| Quick Ratio | 7 | ||
| Altman-Z | 22.5 |
F-Score8
WACC11.16%
ROIC/WACC0.86
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)43.43%
EPS 3Y11.5%
EPS 5Y36.96%
EPS Q2Q%42.45%
EPS Next Y21.84%
EPS Next 2Y22.83%
EPS Next 3Y22.1%
EPS Next 5Y22.01%
Revenue 1Y (TTM)21%
Revenue growth 3Y7.77%
Revenue growth 5Y26.41%
Sales Q2Q%20.6%
Revenue Next Year12.95%
Revenue Next 2Y13.44%
Revenue Next 3Y13.5%
Revenue Next 5Y18.32%
EBIT growth 1Y65.54%
EBIT growth 3Y8.75%
EBIT growth 5YN/A
EBIT Next Year45.57%
EBIT Next 3Y25.57%
EBIT Next 5Y28.54%
FCF growth 1Y43.09%
FCF growth 3Y9.39%
FCF growth 5Y80.04%
OCF growth 1Y42.86%
OCF growth 3Y11.91%
OCF growth 5Y68.48%