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ONTO

NYSE
Weak · 28/100

Onto Innovation Inc

Information Technology
Semiconductors

$308.59

0.3%

Updated Today 12:11 PM ET

Report Card

ONTO at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Weak · 28/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▲ Up 194.7% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$15.30B

P/E

143.78x

Forward P/E (est.)

ROE

5.2%

Revenue Growth

0.5%

EPS Growth

-51.2%

Profit Margin

10.3%

FCF Yield

1.5%

Debt / Equity

0x

ROIC

5.0%

Interest Coverage

401.59x

Current Ratio

6.15x

Dividend Yield

Implied Growth (rev. DCF)

6.9%

Rating Score

28/100

Business Overview
Research

Onto Innovation Inc (ONTO) is a large-cap company in the Semiconductors industry, part of the Information Technology sector of the S&P 500, with a market value around $15.30B.

In its latest reported year it generated about $1.01B in revenue and $136.76M in net profit.

Our model rates ONTO Weak (28/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what ONTO's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. ONTO trades near $308.59, above its 50-day average ($293.71) and 200-day average ($206.82). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 47 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.

Volatility — ATR. Average True Range is the typical daily move. ONTO's is $29.00 (~9.4% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month ONTO found buyers near $250.21 (support) and sellers near $386.46 (resistance); its 52-week range is $89.40–$386.46. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.3× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

15.9%

1/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $221.13M in 2016 to $1.01B in 2026, a 20.8% compound annual growth rate. The most recent year was roughly flat (0.5%) year over year. Slower, mature growth is common for established businesses.

Profitability
Research
2/4 checks passedProfitableNet margin above sector midpointROE above 12%ROIC above 10%

Gross Margin

49.7%

Operating Margin

13.2%

Net Margin

13.6%

ROE

5.2%

Onto Innovation Inc keeps about 10.3% of each sales dollar as net profit, with a 49.7% gross margin and 13.2% operating margin. Return on equity is 5.2% and return on invested capital about 5.0%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research
4/4 checks passedDebt under 1× equityDebt under 2× equityInterest covered 3×+Short-term bills covered

Total Debt

$0.00

Net Debt

-$252.25M

Net cash position

Net Debt / EBITDA

-1.9x

Debt / Equity

0x

Leverage: debt-to-equity is 0.0x, and operating profit covers interest about 401.6x, with a current ratio of 6.2x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $0.00 of total debt against $252.25M of cash.

Cash Flow Analysis
Research
2/3 checks passedPositive free cash flowFCF yield above 2%Market expects achievable growth (<8%)

Operating CF

$328.31M

Free Cash Flow

$299.80M

FCF Margin

29.8%

In the latest year Onto Innovation Inc produced about $328.31M of operating cash flow and $299.80M of free cash flow after capital spending. That is a free-cash-flow yield of about 1.5% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research
1/3 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandTrading below DCF fair value

P/E

143.78x

P/S

15.22x

P/B

4.21x

EV / EBITDA

ONTO trades at 143.8x trailing earnings, 15.2x sales, and 4.2x book value. Reverse-engineering today's price implies the market expects roughly 6.9% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

$85.00

Current price

$308.59

-72% · Above fair-value estimate

Starting FCF (latest 10-K)

$299.80M

Growth, years 1–5

0.5%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$1.99B
PV of terminal value$2.23B
Estimated equity value$4.23B
Shares outstanding50M

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
143.8xExpensive
Forward P/E
P/S ratio
15.2xExpensive
Revenue growth
0.5%Weak
EPS growth
-51.2%Weak
Gross margin
49.7%Strong
Net margin
10.3%Strong
ROE
5.2%Weak

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $308.59 today · expected CAGR -2%9%

Metric20262027202820292030
Revenue$1.04B$1.07B$1.10B$1.13B$1.17B
Net income$144.96M$149.31M$153.79M$158.40M$163.15M
EPS$2.91$3.00$3.09$3.18$3.28
Share price (low)$250.61$258.13$265.88$273.85$282.07
Share price (high)$419.63$432.22$445.19$458.55$472.30
CAGR (low–high)-19% / 36%-9% / 18%-5% / 13%-3% / 10%-2% / 9%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for ONTO:

  • A conservative balance sheet (debt/equity 0.0x) lowers risk.
  • As an established S&P 500 member in Information Technology, it brings scale and a long operating history.
Bear Case

The case against ONTO:

  • Revenue growth is slow (0.5%), limiting the upside engine.
  • A rich 143.8x earnings multiple prices in a lot of growth.
  • Our model's overall read is Weak (28/100).
Key Risks
Research

Valuation risk — at 143.8x earnings, disappointing results could compress the multiple.

Growth risk — sluggish revenue (0.5%) leaves little margin for execution missteps.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen weakly: Onto Innovation Inc is a large-cap information technology business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 143.8x earnings, which our model scores Weak (28/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

ONTO — frequently asked questions

Is ONTO a good stock to buy?

We don't give buy or sell advice. Our model rates Onto Innovation Inc Weak (28/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is ONTO's rating on The Stocks School?

Onto Innovation Inc currently scores 28/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does ONTO's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Onto Innovation Inc's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for ONTO calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this ONTO analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell ONTO. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.