ONTO INNOVATION INC (ONTO) Stock Fundamental Analysis
NYSE:ONTO - New York Stock Exchange, Inc. - US6833441057 - Common Stock - Currency: USD
Taking everything into account, ONTO scores 7 out of 10 in our fundamental rating. ONTO was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. ONTO scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ONTO is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, ONTO could be worth investigating further for growth and quality 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.
Each year in the past 5 years ONTO has been profitable.
ONTO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ONTO has a better Return On Assets (9.53%) than 80.91% of its industry peers.
ONTO has a Return On Equity of 10.47%. This is in the better half of the industry: ONTO outperforms 69.09% of its industry peers.
With a decent Return On Invested Capital value of 9.57%, ONTO is doing good in the industry, outperforming 79.09% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ONTO is in line with the industry average of 11.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.53% | ||
| ROE | 10.47% | ||
| ROIC | 9.57% |
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
The Profit Margin of ONTO (20.43%) is better than 84.55% of its industry peers.
ONTO's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 20.64%, ONTO is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ONTO has remained more or less at the same level.
ONTO has a better Gross Margin (53.88%) than 71.82% of its industry peers.
ONTO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.64% | ||
| PM (TTM) | 20.43% | ||
| GM | 53.88% |
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.
The number of shares outstanding for ONTO has been increased compared to 1 year ago.
Compared to 5 years ago, ONTO has less shares outstanding
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 16.50 indicates that ONTO is not in any danger for bankruptcy at the moment.
ONTO has a Altman-Z score of 16.50. This is amongst the best in the industry. ONTO outperforms 87.27% 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 | 16.5 |
ROIC/WACC0.84
WACC11.45%
2.3 Liquidity
A Current Ratio of 8.69 indicates that ONTO has no problem at all paying its short term obligations.
ONTO's Current ratio of 8.69 is amongst the best of the industry. ONTO outperforms 92.73% of its industry peers.
A Quick Ratio of 7.00 indicates that ONTO has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 7.00, ONTO belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.69 | ||
| Quick Ratio | 7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 42.36% over the past year.
ONTO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.96% yearly.
The Revenue has grown by 21.01% in the past year. This is a very strong growth!
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)42.36%
EPS 3Y11.5%
EPS 5Y36.96%
EPS Q2Q%27.97%
Revenue 1Y (TTM)21.01%
Revenue growth 3Y7.77%
Revenue growth 5Y26.41%
Sales Q2Q%16.5%
3.2 Future
The Earnings Per Share is expected to grow by 21.31% on average over the next years. This is a very strong growth
Based on estimates for the next years, ONTO will show a quite strong growth in Revenue. The Revenue will grow by 16.21% on average per year.
EPS Next Y4.76%
EPS Next 2Y11.2%
EPS Next 3Y14.99%
EPS Next 5Y21.31%
Revenue Next Year4.88%
Revenue Next 2Y7.58%
Revenue Next 3Y11%
Revenue Next 5Y16.21%
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
A Price/Earnings ratio of 16.20 indicates a correct valuation of ONTO.
Based on the Price/Earnings ratio, ONTO is valued cheaply inside the industry as 80.91% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ONTO to the average of the S&P500 Index (25.82), we can say ONTO is valued slightly cheaper.
ONTO is valuated correctly with a Price/Forward Earnings ratio of 13.91.
Based on the Price/Forward Earnings ratio, ONTO is valued a bit cheaper than the industry average as 79.09% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, ONTO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.2 | ||
| Fwd PE | 13.91 |
4.2 Price Multiples
ONTO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ONTO is cheaper than 84.55% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ONTO is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.02 | ||
| EV/EBITDA | 9.4 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of ONTO may justify a higher PE ratio.
A more expensive valuation may be justified as ONTO's earnings are expected to grow with 14.99% in the coming years.
PEG (NY)3.4
PEG (5Y)0.44
EPS Next 2Y11.2%
EPS Next 3Y14.99%
5. Dividend
5.1 Amount
ONTO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
92.02
-2.81 (-2.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners96.52%
Inst Owner Change3.17%
Ins Owners0.53%
Ins Owner Change-3.29%
Market Cap4.49B
Analysts85
Price Target206.57 (124.48%)
Short Float %4%
Short Ratio1.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)2.36%
Min EPS beat(2)-0.51%
Max EPS beat(2)5.24%
EPS beat(4)3
Avg EPS beat(4)4.88%
Min EPS beat(4)-0.51%
Max EPS beat(4)8.02%
EPS beat(8)4
Avg EPS beat(8)1.76%
EPS beat(12)7
Avg EPS beat(12)3.26%
EPS beat(16)11
Avg EPS beat(16)4.36%
Revenue beat(2)0
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-1.42%
Max Revenue beat(2)-0.67%
Revenue beat(4)2
Avg Revenue beat(4)-0.1%
Min Revenue beat(4)-1.42%
Max Revenue beat(4)0.89%
Revenue beat(8)3
Avg Revenue beat(8)-1.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.9%
Revenue beat(16)9
Avg Revenue beat(16)0.11%
PT rev (1m)-13.83%
PT rev (3m)-19.8%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-1.17%
EPS NY rev (1m)-11.59%
EPS NY rev (3m)-15.55%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-7.06%
Revenue NY rev (3m)-10.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.2 | ||
| Fwd PE | 13.91 | ||
| P/S | 4.55 | ||
| P/FCF | 21.02 | ||
| P/OCF | 18.29 | ||
| P/B | 2.33 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 9.4 |
EPS(TTM)5.68
EY6.17%
EPS(NY)6.62
Fwd EY7.19%
FCF(TTM)4.38
FCFY4.76%
OCF(TTM)5.03
OCFY5.47%
SpS20.22
BVpS39.43
TBVpS30.07
PEG (NY)3.4
PEG (5Y)0.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.53% | ||
| ROE | 10.47% | ||
| ROCE | 10.46% | ||
| ROIC | 9.57% | ||
| ROICexc | 40.92% | ||
| ROICexgc | N/A | ||
| OM | 20.64% | ||
| PM (TTM) | 20.43% | ||
| GM | 53.88% | ||
| FCFM | 21.65% |
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%
ROICexcg growth 3YN/A
ROICexcg 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-Score8
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 51.2% | ||
| Cap/Sales | 3.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.34% | ||
| Profit Quality | 106% | ||
| Current Ratio | 8.69 | ||
| Quick Ratio | 7 | ||
| Altman-Z | 16.5 |
F-Score8
WACC11.45%
ROIC/WACC0.84
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)42.36%
EPS 3Y11.5%
EPS 5Y36.96%
EPS Q2Q%27.97%
EPS Next Y4.76%
EPS Next 2Y11.2%
EPS Next 3Y14.99%
EPS Next 5Y21.31%
Revenue 1Y (TTM)21.01%
Revenue growth 3Y7.77%
Revenue growth 5Y26.41%
Sales Q2Q%16.5%
Revenue Next Year4.88%
Revenue Next 2Y7.58%
Revenue Next 3Y11%
Revenue Next 5Y16.21%
EBIT growth 1Y65.54%
EBIT growth 3Y8.75%
EBIT growth 5YN/A
EBIT Next Year32.68%
EBIT Next 3Y20.16%
EBIT Next 5Y25.6%
FCF growth 1Y43.09%
FCF growth 3Y9.39%
FCF growth 5Y80.04%
OCF growth 1Y42.86%
OCF growth 3Y11.91%
OCF growth 5Y68.48%