ONTO INNOVATION INC (NYSE:ONTO) – A Strong Growth Stock with Reasonable Valuation

ONTO INNOVATION INC (NYSE:ONTO) stands out as an affordable growth stock based on our screening criteria. The company combines strong growth metrics with solid profitability and financial health, all while trading at a reasonable valuation.

Growth Prospects

• Past Performance: ONTO has demonstrated impressive growth, with earnings per share (EPS) increasing by 42.36% over the past year and revenue growing by 21.23%. The company’s five-year average EPS growth stands at 36.96%, while revenue has expanded at 26.41% annually.
• Future Expectations: Analysts project continued strength, with EPS expected to grow by 21.31% annually and revenue by 16.21% over the next few years.

Valuation

• Attractive Multiples: ONTO trades at a P/E ratio of 16.92, below both the industry average (35.93) and the S&P 500 (26.43). Its forward P/E of 14.52 is also favorable compared to peers.
• Enterprise Value to EBITDA: The stock is priced lower than 82.73% of its semiconductor industry peers based on this metric.

Financial Health & Profitability

• Strong Balance Sheet: ONTO has no debt, with a current ratio of 8.42 and quick ratio of 6.74, indicating excellent liquidity.
• High Profit Margins: The company boasts a 21.36% net profit margin, outperforming 84.55% of industry competitors. Its operating margin of 22.14% is also well above average.

For a deeper look at ONTO’s fundamentals, review the full analysis report.

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

Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.