NYSE:ONTO

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Executive Summary

Onto Innovation Inc. designs, develops, manufactures, and supports process control tools that performs macro-defect inspection and metrology, lithography systems, and process control analytical software used by semiconductor and advanced packaging device manufacturers worldwide. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Onto Innovation's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ONTO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ONTO's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-5.7%

ONTO

-5.1%

US Semiconductor

-4.6%

US Market


1 Year Return

104.3%

ONTO

71.3%

US Semiconductor

38.5%

US Market

Return vs Industry: ONTO exceeded the US Semiconductor industry which returned 70.9% over the past year.

Return vs Market: ONTO exceeded the US Market which returned 38.9% over the past year.


Shareholder returns

ONTOIndustryMarket
7 Day-5.7%-5.1%-4.6%
30 Day13.9%5.8%0.6%
90 Day39.3%14.5%1.9%
1 Year104.3%104.3%74.2%71.3%41.5%38.5%
3 Yearn/a109.7%98.8%56.7%46.7%
5 Yearn/a329.8%288.5%123.5%98.6%

Long-Term Price Volatility Vs. Market

How volatile is Onto Innovation's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Onto Innovation undervalued compared to its fair value and its price relative to the market?

45.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ONTO ($62.46) is trading below our estimate of fair value ($114.69)

Significantly Below Fair Value: ONTO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ONTO is poor value based on its PE Ratio (98.9x) compared to the US Semiconductor industry average (38.9x).

PE vs Market: ONTO is poor value based on its PE Ratio (98.9x) compared to the US market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: ONTO is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ONTO is good value based on its PB Ratio (2.4x) compared to the US Semiconductor industry average (4.7x).


Next Steps

Future Growth

How is Onto Innovation forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

55.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ONTO's forecast earnings growth (55.7% per year) is above the savings rate (2%).

Earnings vs Market: ONTO's earnings (55.7% per year) are forecast to grow faster than the US market (20.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ONTO's revenue (12.6% per year) is forecast to grow faster than the US market (10.4% per year).

High Growth Revenue: ONTO's revenue (12.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ONTO's Return on Equity is forecast to be low in 3 years time (11.4%).


Next Steps

Past Performance

How has Onto Innovation performed over the past 5 years?

-18.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ONTO has a large one-off loss of $10.7M impacting its December 26 2020 financial results.

Growing Profit Margin: ONTO's current net profit margins (5.6%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: ONTO's earnings have declined by 18.9% per year over the past 5 years.

Accelerating Growth: ONTO's earnings growth over the past year (922.8%) exceeds its 5-year average (-18.9% per year).

Earnings vs Industry: ONTO earnings growth over the past year (922.8%) exceeded the Semiconductor industry 18.2%.


Return on Equity

High ROE: ONTO's Return on Equity (2.5%) is considered low.


Next Steps

Financial Health

How is Onto Innovation's financial position?


Financial Position Analysis

Short Term Liabilities: ONTO's short term assets ($731.7M) exceed its short term liabilities ($120.1M).

Long Term Liabilities: ONTO's short term assets ($731.7M) exceed its long term liabilities ($83.3M).


Debt to Equity History and Analysis

Debt Level: ONTO is debt free.

Reducing Debt: ONTO has no debt compared to 5 years ago when its debt to equity ratio was 21.4%.

Debt Coverage: ONTO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ONTO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Onto Innovation current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ONTO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ONTO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ONTO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ONTO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ONTO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Mike Plisinski (50 yo)

1.33yrs

Tenure

US$2,376,153

Compensation

Mr. Michael P. Plisinski, also known as Mike is Chief Executive Officer and Director of Onto Innovation Inc. since October 25, 2019. Mr. Plisinski served as Chief Executive Officer of Rudolph Technologies ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD2.38M) is below average for companies of similar size in the US market ($USD4.97M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Plisinski
CEO & Director1.33yrsUS$2.38m0.42%
$ 12.8m
Steven Roth
Senior VP of Finance & Administration24.42yrsUS$881.16k0.090%
$ 2.7m
Kevin Heidrich
Senior Vice President of Marketing & Corporate Developmentno dataUS$721.29k0.085%
$ 2.6m
Rollin Kocher
Senior Vice President of Field Operationsno dataUS$984.23k0.059%
$ 1.8m
Rodney Smedt
Senior Vice President & General Manager of Metrology Business Unitno dataUS$845.39k0.070%
$ 2.1m
Greg Swyt
Vice President of Financeno dataUS$484.65k0.0089%
$ 270.2k
Michael Sheaffer
Senior Director of IR3.67yrsno datano data
Robert Koch
VP, General Counsel & Secretary17.75yrsUS$583.26k0.073%
$ 2.2m
Barry Hartunian
Global Vice President Human Resources1.17yrsno data0.00081%
$ 24.7k

3.7yrs

Average Tenure

57yo

Average Age

Experienced Management: ONTO's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Plisinski
CEO & Director1.33yrsUS$2.38m0.42%
$ 12.8m
Christine Tsingos
Independent Director1.33yrsUS$217.15k0.062%
$ 1.9m
Leo Berlinghieri
Independent Director1.33yrsUS$21.25k0.048%
$ 1.5m
Bruce Rhine
Independent Director1.33yrsUS$227.15k0.57%
$ 17.3m
David Miller
Independent Directorno dataUS$31.25kno data
Christopher Seams
Independent Chairman1.33yrsUS$199.65k0.048%
$ 1.5m
Edward Brown
Independent Director1.33yrsUS$209.65k0.086%
$ 2.6m
Vita Cassese
Independent Director1.33yrsUS$17.50k0.023%
$ 701.6k
Jeffrey Aukerman
Independent Director1.33yrsUS$21.25k0.049%
$ 1.5m

1.3yrs

Average Tenure

62yo

Average Age

Experienced Board: ONTO's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ONTO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Onto Innovation Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Onto Innovation Inc.
  • Ticker: ONTO
  • Exchange: NYSE
  • Founded: 1940
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$3.053b
  • Shares outstanding: 48.88m
  • Website: https://www.ontoinnovation.com

Number of Employees


Location

  • Onto Innovation Inc.
  • 16 Jonspin Road
  • Wilmington
  • Massachusetts
  • 1887
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ONTONYSE (New York Stock Exchange)YesNew Common StockUSUSDOct 2019
NNMDB (Deutsche Boerse AG)YesNew Common StockDEEUROct 2019

Biography

Onto Innovation Inc. designs, develops, manufactures, and supports process control tools that performs macro-defect inspection and metrology, lithography systems, and process control analytical software us...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/26 23:57
End of Day Share Price2021/02/26 00:00
Earnings2020/12/26
Annual Earnings2020/12/26


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.