Onto Innovation Inc.
Onto Innovation Inc. Fundamental Analysis
Onto Innovation Inc. (ONTO) shows moderate financial fundamentals with a PE ratio of 76.38, profit margin of 13.60%, and ROE of 6.85%. The company generates $1.0B in annual revenue with strong year-over-year growth of 21.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 75.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ONTO's fundamental strength across five key dimensions:
Efficiency Score
WeakONTO struggles to generate sufficient returns from assets.
Valuation Score
ModerateONTO shows balanced valuation metrics.
Growth Score
ExcellentONTO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentONTO maintains a strong and stable balance sheet.
Profitability Score
WeakONTO struggles to sustain strong margins.
Key Financial Metrics
Is ONTO Expensive or Cheap?
P/E Ratio
ONTO trades at 76.38 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ONTO's PEG of -3.49 indicates potential undervaluation.
Price to Book
The market values Onto Innovation Inc. at 4.97 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 55.66 times EBITDA. This signals the market has high growth expectations.
How Well Does ONTO Make Money?
Net Profit Margin
For every $100 in sales, Onto Innovation Inc. keeps $13.60 as profit after all expenses.
Operating Margin
Core operations generate 13.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.85 in profit for every $100 of shareholder equity.
ROA
Onto Innovation Inc. generates $5.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Onto Innovation Inc. generates strong operating cash flow of $291.13M, reflecting robust business health.
Free Cash Flow
Onto Innovation Inc. generates strong free cash flow of $262.94M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.30 in free cash annually.
FCF Yield
ONTO converts 2.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
76.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How ONTO Stacks Against Its Sector Peers
| Metric | ONTO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 76.38 | 35.19 | Worse (Expensive) |
| ROE | 6.85% | 1155.00% | Weak |
| Net Margin | 13.60% | -127067.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 5.79 | 4.71 | Strong Liquidity |
| ROA | 5.78% | -314918.00% (disorted) | Weak |
ONTO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Onto Innovation Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
94.46%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
6261.55%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
715.71%
Industry Style: Growth, Innovation, High Beta
High Growth