ONTO INNOVATION INC (ONTO) Stock Fundamental Analysis
USA - NYSE:ONTO - US6833441057 - Common Stock
133.08 USD
+2.7 (+2.07%)
133.07 USD
-0.01 (-0.01%)
ONTO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 112 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 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.
ONTO had positive earnings in each of the past 5 years.
In the past 5 years ONTO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.34%, ONTO is in the better half of the industry, outperforming 79.46% of the companies in the same industry.
ONTO's Return On Equity of 10.18% is fine compared to the rest of the industry. ONTO outperforms 74.11% of its industry peers.
ONTO has a Return On Invested Capital of 10.69%. This is amongst the best in the industry. ONTO outperforms 81.25% of its industry peers.
ONTO had an Average Return On Invested Capital over the past 3 years of 9.69%. This is in line with the industry average of 10.94%.
The last Return On Invested Capital (10.69%) for ONTO is above the 3 year average (9.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.34% | ||
| ROE | 10.18% | ||
| ROIC | 10.69% |
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
With an excellent Profit Margin value of 19.29%, ONTO belongs to the best of the industry, outperforming 83.04% of the companies in the same industry.
ONTO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 22.40%, ONTO belongs to the top of the industry, outperforming 81.25% 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 Gross Margin of 54.92%. This is in the better half of the industry: ONTO outperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of ONTO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.4% | ||
| PM (TTM) | 19.29% | ||
| GM | 54.92% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ONTO is destroying value.
ONTO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ONTO has less shares outstanding
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.
2.2 Solvency
ONTO has an Altman-Z score of 23.71. This indicates that ONTO is financially healthy and has little risk of bankruptcy at the moment.
ONTO's Altman-Z score of 23.71 is amongst the best of the industry. ONTO outperforms 90.18% 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 | 23.71 |
ROIC/WACC0.93
WACC11.55%
2.3 Liquidity
ONTO has a Current Ratio of 9.59. This indicates that ONTO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ONTO (9.59) is better than 94.64% of its industry peers.
ONTO has a Quick Ratio of 7.86. This indicates that ONTO is financially healthy and has no problem in meeting its short term obligations.
ONTO's Quick ratio of 7.86 is amongst the best of the industry. ONTO outperforms 91.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.59 | ||
| Quick Ratio | 7.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.12% 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.
ONTO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.51%.
The Revenue has been growing by 26.41% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)24.12%
EPS 3Y11.5%
EPS 5Y36.96%
EPS Q2Q%-5.3%
Revenue 1Y (TTM)15.51%
Revenue growth 3Y7.77%
Revenue growth 5Y26.41%
Sales Q2Q%4.65%
3.2 Future
The Earnings Per Share is expected to grow by 15.71% on average over the next years. This is quite good.
ONTO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.58% yearly.
EPS Next Y-6.58%
EPS Next 2Y3.42%
EPS Next 3Y9.59%
EPS Next 5Y15.71%
Revenue Next Year1.2%
Revenue Next 2Y5%
Revenue Next 3Y8.04%
Revenue Next 5Y13.58%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.72, which indicates a rather expensive current valuation of ONTO.
81.25% of the companies in the same industry are more expensive than ONTO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.49. ONTO is around the same levels.
A Price/Forward Earnings ratio of 23.26 indicates a rather expensive valuation of ONTO.
ONTO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ONTO is cheaper than 75.00% of the companies in the same industry.
ONTO's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.72 | ||
| Fwd PE | 23.26 |
4.2 Price Multiples
ONTO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ONTO is cheaper than 77.68% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ONTO is valued cheaper than 82.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.34 | ||
| EV/EBITDA | 16.7 |
4.3 Compensation for Growth
The excellent profitability rating of ONTO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.64
EPS Next 2Y3.42%
EPS Next 3Y9.59%
5. Dividend
5.1 Amount
ONTO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
133.08
+2.7 (+2.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.21%
Inst Owner Change3.03%
Ins Owners0.69%
Ins Owner Change6.72%
Market Cap6.52B
Analysts80
Price Target151.86 (14.11%)
Short Float %4.52%
Short Ratio1.5
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)-1.28%
Min EPS beat(2)-3.56%
Max EPS beat(2)1%
EPS beat(4)2
Avg EPS beat(4)0.54%
Min EPS beat(4)-3.56%
Max EPS beat(4)5.24%
EPS beat(8)5
Avg EPS beat(8)2.42%
EPS beat(12)7
Avg EPS beat(12)2.31%
EPS beat(16)10
Avg EPS beat(16)3.1%
Revenue beat(2)0
Avg Revenue beat(2)-1.64%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)-1.44%
Revenue beat(4)0
Avg Revenue beat(4)-1.34%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)-0.67%
Revenue beat(8)3
Avg Revenue beat(8)-0.83%
Revenue beat(12)3
Avg Revenue beat(12)-1.66%
Revenue beat(16)7
Avg Revenue beat(16)-0.66%
PT rev (1m)4.93%
PT rev (3m)-6.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.09%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)-4.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.83%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.72 | ||
| Fwd PE | 23.26 | ||
| P/S | 6.29 | ||
| P/FCF | 27.34 | ||
| P/OCF | 23.87 | ||
| P/B | 3.32 | ||
| P/tB | 4.28 | ||
| EV/EBITDA | 16.7 |
EPS(TTM)5.61
EY4.22%
EPS(NY)5.72
Fwd EY4.3%
FCF(TTM)4.87
FCFY3.66%
OCF(TTM)5.57
OCFY4.19%
SpS21.15
BVpS40.07
TBVpS31.07
PEG (NY)N/A
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.34% | ||
| ROE | 10.18% | ||
| ROCE | 11.7% | ||
| ROIC | 10.69% | ||
| ROICexc | 19.48% | ||
| ROICexgc | 32.7% | ||
| OM | 22.4% | ||
| PM (TTM) | 19.29% | ||
| GM | 54.92% | ||
| FCFM | 23.01% |
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-Score9
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 61.61% | ||
| Cap/Sales | 3.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.72% | ||
| Profit Quality | 119.32% | ||
| Current Ratio | 9.59 | ||
| Quick Ratio | 7.86 | ||
| Altman-Z | 23.71 |
F-Score9
WACC11.55%
ROIC/WACC0.93
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)24.12%
EPS 3Y11.5%
EPS 5Y36.96%
EPS Q2Q%-5.3%
EPS Next Y-6.58%
EPS Next 2Y3.42%
EPS Next 3Y9.59%
EPS Next 5Y15.71%
Revenue 1Y (TTM)15.51%
Revenue growth 3Y7.77%
Revenue growth 5Y26.41%
Sales Q2Q%4.65%
Revenue Next Year1.2%
Revenue Next 2Y5%
Revenue Next 3Y8.04%
Revenue Next 5Y13.58%
EBIT growth 1Y45.04%
EBIT growth 3Y8.75%
EBIT growth 5YN/A
EBIT Next Year10.59%
EBIT Next 3Y19.11%
EBIT Next 5Y20.15%
FCF growth 1Y71.45%
FCF growth 3Y9.39%
FCF growth 5Y80.04%
OCF growth 1Y67.49%
OCF growth 3Y11.91%
OCF growth 5Y68.48%