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Market Cap

US$2.9b

Last Updated

2021/05/17 22:16 UTC

Data Sources

Company Financials +

Executive Summary

Onto Innovation Inc. engages in the design, development, manufacture, and support of process control tools that performs macro defect inspection and metrology, lithography systems, and process control analytical software worldwide. More Details

Rewards

Trading at 78.4% below our estimate of its fair value

Earnings are forecast to grow 36.86% per year

Became profitable this year

Risk Analysis

No risks detected for ONTO from our risk checks.


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 +/- 9% a week.

Volatility Over Time: ONTO's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-5.7%

ONTO

-0.8%

US Semiconductor

-0.6%

US Market


1 Year Return

77.7%

ONTO

53.5%

US Semiconductor

46.0%

US Market

Return vs Industry: ONTO exceeded the US Semiconductor industry which returned 61% over the past year.

Return vs Market: ONTO exceeded the US Market which returned 50.8% over the past year.


Shareholder returns

ONTOIndustryMarket
7 Day-5.7%-0.8%-0.6%
30 Day-17.5%-9.8%-1.8%
90 Day-9.8%-10.1%0.2%
1 Year77.7%77.7%55.8%53.5%48.4%46.0%
3 Yearn/a96.0%86.0%60.5%50.4%
5 Yearn/a302.7%264.7%125.9%100.9%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ONTO ($58.3) is trading below our estimate of fair value ($269.6)

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 (47.8x) compared to the US Semiconductor industry average (30.7x).

PE vs Market: ONTO is poor value based on its PE Ratio (47.8x) compared to the US market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: ONTO is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: ONTO is good value based on its PB Ratio (2.2x) compared to the US Semiconductor industry average (4.3x).


Future Growth

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

36.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ONTO's forecast earnings growth (36.9% per year) is above the savings rate (2%).

Earnings vs Market: ONTO's earnings (36.9% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: ONTO's revenue (12% per year) is forecast to grow faster than the US market (9% per year).

High Growth Revenue: ONTO's revenue (12% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ONTO's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Onto Innovation performed over the past 5 years?

-13.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ONTO has high quality earnings.

Growing Profit Margin: ONTO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ONTO's earnings have declined by 13.7% per year over the past 5 years.

Accelerating Growth: ONTO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ONTO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Semiconductor industry (47%).


Return on Equity

High ROE: ONTO's Return on Equity (4.6%) is considered low.


Financial Health

How is Onto Innovation's financial position?


Financial Position Analysis

Short Term Liabilities: ONTO's short term assets ($754.8M) exceed its short term liabilities ($126.4M).

Long Term Liabilities: ONTO's short term assets ($754.8M) exceed its long term liabilities ($85.0M).


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%.

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


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?

1.6yrs

Average management tenure


CEO

Mike Plisinski (50 yo)

1.58yrs

Tenure

US$3,763,688

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD3.76M) is about average for companies of similar size in the US market ($USD5.32M).

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


Leadership Team

Experienced Management: ONTO's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: ONTO's board of directors are not considered experienced ( 1.6 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: Insufficient data to determine if insiders have bought more shares than they have sold 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$2.940b
  • Shares outstanding: 49.04m
  • Website: https://www.ontoinnovation.com

Number of Employees


Location

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

Listings


Biography

Onto Innovation Inc. engages in the design, development, manufacture, and support of process control tools that performs macro defect inspection and metrology, lithography systems, and process control anal...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/17 22:16
End of Day Share Price2021/05/17 00:00
Earnings2021/03/27
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.