Onto Innovation
Market Cap
US$1.6b
Last Updated
2019/10/31 23:39 UTC
Data Sources
Company Financials +
Executive Summary
Onto Innovation Inc. provides process control metrology and inspection systems for use primarily in the fabrication of semiconductors and other solid-state devices, and industrial and scientific applications worldwide.
Snowflake Analysis
Flawless balance sheet with high growth potential.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-9.6%
ONTO
-1.0%
US Semiconductor
0.06%
US Market
1 Year Return
-2.6%
ONTO
38.8%
US Semiconductor
19.4%
US Market
Return vs Industry: ONTO underperformed the US Semiconductor industry which returned 48.5% over the past year.
Return vs Market: ONTO underperformed the US Market which returned 24.7% over the past year.
Shareholder returns
| ONTO | Industry | Market | |
|---|---|---|---|
| 7 Day | -9.6% | -1.0% | 0.06% |
| 30 Day | -1.4% | 3.1% | 1.1% |
| 90 Day | 4.4% | 14.9% | 8.9% |
| 1 Year | -2.6%-2.6% | 41.4%38.8% | 21.9%19.4% |
| 3 Year | 52.2%52.2% | 91.3%81.0% | 48.9%39.3% |
| 5 Year | 126.0%126.0% | 154.4%130.0% | 71.9%53.1% |
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
3 months ago | Simply Wall St
Estimating The Fair Value Of Nanometrics Incorporated (NASDAQ:NANO)4 months ago | Simply Wall St
Nanometrics Incorporated (NASDAQ:NANO) Has Attractive Fundamentals4 months ago | Simply Wall St
What Kind Of Share Price Volatility Should You Expect For Nanometrics Incorporated (NASDAQ:NANO)?Valuation
Is Onto Innovation undervalued compared to its fair value and its price relative to the market?
25.74x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ONTO ($32.2) is trading above our estimate of fair value ($8.54)
Significantly Below Fair Value: ONTO is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ONTO is good value based on its PE Ratio (25.7x) compared to the Semiconductor industry average (34.5x).
PE vs Market: ONTO is poor value based on its PE Ratio (25.7x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: ONTO is good value based on its PEG Ratio (0.4x)
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 (3.3x).
Next Steps
Future Growth
How is Onto Innovation forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
69.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ONTO's forecast earnings growth (69.2% per year) is above the savings rate (2.7%).
Earnings vs Market: ONTO's earnings (69.2% per year) are forecast to grow faster than the US market (14.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ONTO's revenue (41.1% per year) is forecast to grow faster than the US market (7.5% per year).
High Growth Revenue: ONTO's revenue (41.1% per year) is forecast to grow faster 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
Next Steps
Past Performance
How has Onto Innovation performed over the past 5 years?
55.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ONTO has high quality earnings.
Growing Profit Margin: ONTO's current net profit margins (10.6%) are lower than last year (16.5%).
Past Earnings Growth Analysis
Earnings Trend: ONTO has become profitable over the past 5 years, growing earnings by 55.9% per year.
Accelerating Growth: ONTO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ONTO had negative earnings growth (-39.6%) over the past year, making it difficult to compare to the Semiconductor industry average (-15.8%).
Return on Equity
High ROE: ONTO's Return on Equity (9.3%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Onto Innovation's financial position?
Financial Position Analysis
Short Term Liabilities: ONTO's short term assets ($272.2M) exceed its short term liabilities ($51.0M).
Long Term Liabilities: ONTO's short term assets ($272.2M) exceed its long term liabilities ($11.2M).
Debt to Equity History and Analysis
Debt Level: ONTO is debt free.
Reducing Debt: ONTO had no debt 5 years ago.
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
Inventory Level: ONTO has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if ONTO's debt is covered by short term assets.
Next Steps
Dividend
What is Onto Innovation's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate ONTO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate ONTO's dividend yield against the top 25% of dividend payers, as the company has not reported any 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?
1.8yrs
Average management tenure
CEO
Pierre-Yves Lesaicherre (56yo)
1.8yrs
Tenure
US$2,936,885
Compensation
Dr. Pierre-Yves Lesaicherre, Ph.D., has been President, Chief Executive Officer and Director of Nanometrics Incorporated since November 27, 2017. Dr. Lesaicherre served as the Chief Executive Officer of Lu ...
CEO Compensation Analysis
Compensation vs Market: Pierre-Yves's total compensation ($USD2.94M) is about average for companies of similar size in the US market ($USD3.86M).
Compensation vs Earnings: Insufficient data to compare Pierre-Yves's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.8yrs | US$2.94m | 0.12% $1.9m | |
| Principal Financial Officer & VP of Finance | 1.8yrs | US$700.04k | 0.030% $489.6k | |
| Senior Vice President of Operations | 1.6yrs | US$1.63m | 0.098% $1.6m | |
| General Counsel | 4.3yrs | US$1.05m | 0.094% $1.5m | |
| Senior Vice President of Sales & Marketing | 1.8yrs | US$1.31m | 0.077% $1.2m | |
| Senior Vice President of Corporate Development | 1.8yrs | US$527.13k | 0.078% $1.3m | |
| Senior VP of Research & Development | 0.3yrs | no data | no data |
1.8yrs
Average Tenure
56yo
Average Age
Experienced Management: ONTO's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.8yrs | US$2.94m | 0.12% $1.9m | |
| Independent Director | 5.4yrs | US$249.12k | 0.11% $1.7m | |
| Independent Director | 2.6yrs | US$239.12k | 0.034% $545.3k | |
| Chairman | 12.3yrs | US$271.60k | 2.78% $44.6m | |
| Independent Director | 4.2yrs | US$239.10k | 0.077% $1.2m | |
| Independent Director | 6.6yrs | US$249.08k | 0.13% $2.2m | |
| Director | 12.2yrs | US$219.12k | 0.86% $13.8m |
5.4yrs
Average Tenure
61yo
Average Age
Experienced Board: ONTO's board of directors are considered experienced (5.4 years average tenure).
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: 1975
- Industry: Semiconductor Equipment
- Sector: Semiconductors
- Market Cap: US$1.605b
- Shares outstanding: 49.85m
- Website: https://www.ontoinnovation.com
Number of Employees
Location
- Onto Innovation Inc.
- 16 Jonspin Road
- Wilmington
- Massachusetts
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ONTO | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Nov 1984 |
| NNM | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Nov 1984 |
Biography
Onto Innovation Inc. provides process control metrology and inspection systems for use primarily in the fabrication of semiconductors and other solid-state devices, and industrial and scientific applications worldwide. The company offers automated metrology systems that provide optical critical dimension, thin film metrology, and wafer stress metrology for transistor and interconnect metrology applications; and integrated metrology systems that are installed onto wafer processing equipment to provide near real-time measurements. Its materials characterization products include systems that are used to monitor the physical, optical, electrical, and material characteristics of discrete electronic industry; opto-electronic; high brightness LED; solar photovoltaic; compound semiconductor; strained silicon; and silicon-on-insulator devices, including composition, crystal structure, layer thickness, dopant concentration, contamination, and electron mobility. The company also offers NanoDiffract, a modeling, visualization, and analysis software that takes signals from the metrology systems providing critical dimension, thickness, and optical properties from in line measurements; SpectraProbe, a model-less fitting engine that enables fast time to solution for in-line excursion detection and control; and NanoGen, an enterprise scale computing hardware system that is deployed to run the computing intensive analysis software. Onto Innovation Inc. was founded in 1975 and is headquartered in Wilmington, Massachusetts.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/31 23:39 |
| End of Day Share Price | 2019/10/31 00:00 |
| Earnings | 2019/06/29 |
| Annual Earnings | 2018/12/29 |
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.