ONTONEUTRAL

ONTO Gross Margin Analysis

50.1%

Higher than 26% of Technology sector peers

Updated 635h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after paying direct production costs, so ONTO's 50.1% means it retains about half of each sales dollar before other expenses.

Sector Performance

26th percentile

ONTO

50.1%

Sector Median

66.3%

Sector Avg

62.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying direct production costs, so ONTO's 50.1% means it retains about half of each sales dollar before other expenses.

That figure sits below the sector median of 65.5% and places the company at the 30th percentile among technology peers, indicating a weaker cost structure or pricing power relative to most competitors. The trend data are N/A: year-over-year change is N/A, quarter-over-quarter change is N/A, and no historical values beyond the current 50.1% are available, so there is no evidence of improving or deteriorating margin momentum. With a low margin level and no trend to confirm a turnaround, the investment risk is elevated because any revenue slowdown could quickly pressure profitability, while the opportunity would depend on future margin expansion that is not yet visible. This metric directly contradicts the overall NEUTRAL verdict—the sub-median gross margin and sparse trend data tilt the picture toward caution rather than a balanced outlook.

Frequently Asked Questions

What does the Gross Margin tell investors about ONTO?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ONTO's Gross Margin compare to its sector?

ONTO's Gross Margin of 50.1% compares to a Technology sector median of 66.3%, placing it in the 26th percentile.

Who are ONTO's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: MDB (72.2%), NVDA (74.9%), CRWD (75.3%), ESTC (75.4%), CRM (76.9%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.