ONTO INNOVATION INC (NYSE:ONTO) – A Strong Growth Stock at a Reasonable Price

ONTO INNOVATION INC (NYSE:ONTO) was identified as an affordable growth stock by our stock screener. The company combines strong growth with solid profitability and financial health, all while trading at a reasonable valuation. Here’s why ONTO stands out.

Growth Prospects

ONTO has demonstrated impressive growth, with key metrics highlighting its momentum:

• Earnings Per Share (EPS) grew by 42.36% over the past year and has a 36.96% annualized growth rate over the last five years.
• Revenue increased by 21.01% in the past year, with a 26.41% annual growth rate over the last five years.
• Analysts expect continued growth, with EPS projected to rise by 21.31% annually and revenue by 16.21% in the coming years.

Attractive Valuation

Despite its strong growth, ONTO remains reasonably priced:

• The Price/Earnings (P/E) ratio of 16.46 is below the industry average, making it cheaper than 83.64% of its peers.
• Its Price/Forward Earnings ratio of 12.56 is also favorable compared to both the industry and the broader market.
• The Enterprise Value/EBITDA and Price/Free Cash Flow ratios indicate further undervaluation relative to competitors.

Financial Health & Profitability

ONTO maintains a strong financial position:

• No debt, giving it excellent solvency and liquidity metrics.
• Current Ratio of 8.69 and Quick Ratio of 7.00 suggest ample ability to meet short-term obligations.
• Profit Margins are robust, with a 20.43% net margin, outperforming 84.55% of industry peers.

For a deeper look, review the full fundamental analysis report for ONTO.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own research before making investment decisions.