Is ONTO INNOVATION INC (NYSE:ONTO) suited for quality investing?

In this article we will dive into ONTO INNOVATION INC (NYSE:ONTO) as a possible candidate for quality investing. Investors should always do their own research, but we noticed ONTO INNOVATION INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Why NYSE:ONTO may be interesting for quality investors.

• ONTO INNOVATION INC has demonstrated significant revenue growth over the past 5 years, with a 31.2% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• ONTO INNOVATION INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 24.74% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• ONTO INNOVATION INC maintains a healthy Debt/Free Cash Flow Ratio of 0.0, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• ONTO INNOVATION INC demonstrates consistent Profit Quality over the past 5 years, with a strong 252.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• ONTO INNOVATION INC has experienced impressive EBIT growth over the past 5 years, with 40.78% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• The EBIT 5-year growth of ONTO INNOVATION INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental Analysis Observations

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

ONTO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 105 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 quite expensive at the moment. It does show a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of ONTO

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.