ONTO INNOVATION INC (ONTO)
US6833441057 - Common Stock
Overall ONTO gets a fundamental rating of 6 out of 10. We evaluated ONTO against 108 industry peers in the Semiconductors & Semiconductor Equipment industry. While ONTO has a great health rating, its profitability is only average at the moment. ONTO is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! 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.
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
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's Return On Equity of 9.62% is fine compared to the rest of the industry. ONTO outperforms 65.74% of its industry peers.
ONTO's Return On Invested Capital of 7.38% is fine compared to the rest of the industry. ONTO outperforms 74.07% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ONTO is below the industry average of 11.05%.
| 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
ONTO has a better Profit Margin (19.44%) than 77.78% of its industry peers.
In the last couple of years the Profit Margin of ONTO has declined.
ONTO has a better Operating Margin (19.12%) than 75.93% of its industry peers.
ONTO's Operating Margin has declined in the last couple of years.
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.
ONTO has more shares outstanding than it did 1 year ago.
ONTO has more shares outstanding than it did 5 years ago.
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
An Altman-Z score of 30.98 indicates that ONTO is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 30.98, ONTO belongs to the best of the industry, outperforming 92.59% 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 | 30.98 |
ROIC/WACC0.5
WACC14.76%
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 97.22% 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.
ONTO has a better Quick ratio (7.94) than 96.30% of its industry peers.
| 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.
The Earnings Per Share has been growing by 9.40% on average over the past years. This is quite good.
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 29.23% 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 17.85% yearly.
EPS Next Y43.24%
EPS Next 2Y35.45%
EPS Next 3Y33.07%
EPS Next 5Y29.23%
Revenue Next Year22.11%
Revenue Next 2Y19.44%
Revenue Next 3Y18.93%
Revenue Next 5Y17.85%
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 33.68, which means the current valuation is very expensive for ONTO.
ONTO's Price/Earnings ratio is a bit cheaper when compared to the industry. ONTO is cheaper than 62.04% of the companies in the same industry.
ONTO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 24.12, the valuation of ONTO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ONTO is valued a bit cheaper than 65.74% of the companies in the same industry.
ONTO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.68 | ||
| Fwd PE | 24.12 |
4.2 Price Multiples
62.04% of the companies in the same industry are more expensive than ONTO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ONTO is valued a bit cheaper than 71.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.8 | ||
| EV/EBITDA | 27.12 |
4.3 Compensation for Growth
ONTO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ONTO's earnings are expected to grow with 33.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)3.58
EPS Next 2Y35.45%
EPS Next 3Y33.07%
5. Dividend
5.1 Amount
ONTO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ONTO INNOVATION INC
NYSE:ONTO (11/22/2024, 12:17:09 PM)
165.03
-1.47 (-0.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.15B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.68 | ||
| Fwd PE | 24.12 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.78
PEG (5Y)3.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.83% | ||
| ROE | 9.62% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.12% | ||
| PM (TTM) | 19.44% | ||
| GM | 52.87% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 10.07 | ||
| Quick Ratio | 7.94 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)15.57%
EPS 3Y24.56%
EPS 5Y
EPS Q2Q%
EPS Next Y43.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.8%
Revenue growth 3Y13.6%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y