ONTO INNOVATION INC (ONTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ONTO - US6833441057 - Common Stock
156.36 USD
-4.01 (-2.5%)
155.06 USD
-1.3 (-0.83%)
Taking everything into account, ONTO scores 7 out of 10 in our fundamental rating. ONTO was compared to 112 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 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
ONTO had positive earnings in the past year.
ONTO had a positive operating cash flow in the past year.
Each year in the past 5 years ONTO has been profitable.
In the past 5 years ONTO always reported a positive cash flow from operatings.
1.2 Ratios
ONTO has a better Return On Assets (8.01%) than 75.89% of its industry peers.
With a decent Return On Equity value of 8.74%, ONTO is doing good in the industry, outperforming 70.54% of the companies in the same industry.
ONTO's Return On Invested Capital of 9.62% is fine compared to the rest of the industry. ONTO outperforms 78.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ONTO is in line with the industry average of 10.81%.
| 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 has a better Profit Margin (17.46%) than 78.57% of its industry peers.
ONTO's Profit Margin has improved in the last couple of years.
ONTO has a better Operating Margin (21.25%) than 80.36% of its industry peers.
ONTO's Operating Margin has been stable in the last couple of years.
The Gross Margin of ONTO (54.83%) is better than 73.21% 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.
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
An Altman-Z score of 27.25 indicates that ONTO is not in any danger for bankruptcy at the moment.
ONTO's Altman-Z score of 27.25 is amongst the best of the industry. ONTO outperforms 91.96% of its industry peers.
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 | 27.25 |
ROIC/WACC0.91
WACC10.53%
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 better Current ratio (9.49) than 93.75% of its industry peers.
A Quick Ratio of 7.89 indicates that ONTO has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 7.89, ONTO belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 36.96% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 6.38% in the past year.
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
Based on estimates for the next years, ONTO will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.13% 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 13.56% on average per year.
EPS Next Y-5.49%
EPS Next 2Y7.54%
EPS Next 3Y12.72%
EPS Next 5Y16.13%
Revenue Next Year1.99%
Revenue Next 2Y9.33%
Revenue Next 3Y10.32%
Revenue Next 5Y13.56%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
With a Price/Earnings ratio of 30.13, ONTO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ONTO is valued a bit cheaper than the industry average as 77.68% of the companies are valued more expensively.
ONTO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.56, which is the current average of the S&P500 Index.
ONTO is valuated quite expensively with a Price/Forward Earnings ratio of 25.27.
ONTO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ONTO is cheaper than 71.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ONTO to the average of the S&P500 Index (23.79), we can say ONTO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.13 | ||
| Fwd PE | 25.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ONTO is valued a bit cheaper than 69.64% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ONTO indicates a rather cheap valuation: ONTO is cheaper than 83.04% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.71 | ||
| EV/EBITDA | 24.08 |
4.3 Compensation for Growth
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 12.72% in the coming years.
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y7.54%
EPS Next 3Y12.72%
5. Dividend
5.1 Amount
ONTO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
156.36
-4.01 (-2.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners97.48%
Inst Owner Change-3.23%
Ins Owners0.68%
Ins Owner Change2.94%
Market Cap7.76B
Revenue(TTM)1.00B
Net Income(TTM)175.05M
Analysts80
Price Target158.6 (1.43%)
Short Float %3.56%
Short Ratio1.57
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)-2.72%
PT rev (3m)9.59%
EPS NQ rev (1m)1.37%
EPS NQ rev (3m)0.11%
EPS NY rev (1m)1.57%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)2.98%
Revenue NQ rev (3m)2.45%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.13 | ||
| Fwd PE | 25.27 | ||
| P/S | 7.75 | ||
| P/FCF | 29.71 | ||
| P/OCF | 26.83 | ||
| P/B | 3.88 | ||
| P/tB | 4.95 | ||
| EV/EBITDA | 24.08 |
EPS(TTM)5.19
EY3.32%
EPS(NY)6.19
Fwd EY3.96%
FCF(TTM)5.26
FCFY3.37%
OCF(TTM)5.83
OCFY3.73%
SpS20.19
BVpS40.32
TBVpS31.62
PEG (NY)N/A
PEG (5Y)0.82
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 | 27.25 |
F-Score7
WACC10.53%
ROIC/WACC0.91
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 2Y7.54%
EPS Next 3Y12.72%
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 2Y9.33%
Revenue Next 3Y10.32%
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.
What is the valuation status of ONTO INNOVATION INC (ONTO) stock?
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.
What is the financial health of ONTO INNOVATION INC (ONTO) stock?
The financial health rating of ONTO INNOVATION INC (ONTO) is 9 / 10.