ONTOONTO
US • —
$378.45
P/E
175.70
PEG
—
FCF Yield
—
Rev Growth YoY
+0.5% YoY
Gross Margin
53.8%
Health Score
6/10
D/E Ratio
—
Confidence
LOW
Business Snapshot
Onto Innovation (ONTO) is a specialty semiconductor equipment company focused on process control and metrology systems used in advanced chip manufacturing. The company's products inspect and measure wafers during production, making it a niche but critical supplier to leading-edge foundries and memory manufacturers. Operating in the highly cyclical semiconductor capital equipment market, ONTO holds a competitive position as a focused player in the optical and e-beam inspection segments, though it is smaller than broad-line competitors. A defining characteristic is its extremely conservative balance sheet with zero debt, providing significant strategic flexibility in an industry that requires heavy R&D investment.
Financial Health
Gross margin stands at 53.8%, though a prior-year comparison is unavailable to assess trajectory, while net margin of 10.3% reflects modest profitability despite high revenue. The balance sheet is exceptionally strong, with a debt-to-equity ratio of 0.0x and a current ratio of 5.79x, indicating fortress-level liquidity and no financial leverage...
Risk Assessment
- VALUATION — P/E of 175.7x is approximately 8x the sector average of 22x, implying extreme growth expectations that current earnings do not support.
- EARNINGS QUALITY — Only 1 of the last 4 quarterly earnings reports beat analyst estimates, indicating poor guidance credibility and frequent negative surprises.
- EARNINGS MOMENTUM — Net income declined 51.2% year-over-year, a severe contraction that signals operational or cyclical distress.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- FCF / CASH BURN — Free cash flow data is unavailable or negative, preventing a DCF calculation and obscuring the company's true cash generation capability....
Gross margin stands at 53.8%, though a prior-year comparison is unavailable to assess trajectory, while net margin of 10.3% reflects modest profitability despite high revenue. The balance sheet is exceptionally strong, with a debt-to-equity ratio of 0.0x and a current ratio of 5.79x, indicating fortress-level liquidity and no financial leverage. Free cash flow data is unavailable, preventing a direct assessment of cash generation or burn, which is a notable gap in evaluating financial health. Return on equity of 5.2% is low, suggesting the company is not generating high returns on its substantial equity base. Overall, the financial health is solid from a solvency standpoint but opaque on cash flow efficiency, limiting conclusions about dividend or reinvestment capacity.
- VALUATION — P/E of 175.7x is approximately 8x the sector average of 22x, implying extreme growth expectations that current earnings do not support. - EARNINGS QUALITY — Only 1 of the last 4 quarterly earnings reports beat analyst estimates, indicating poor guidance credibility and frequent negative surprises. - EARNINGS MOMENTUM — Net income declined 51.2% year-over-year, a severe contraction that signals operational or cyclical distress. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - FCF / CASH BURN — Free cash flow data is unavailable or negative, preventing a DCF calculation and obscuring the company's true cash generation capability.
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