Onto Innovation, Inc. (ONTO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Coherent Corp.

KLA Corp.

Rockwell Automation, Inc.

Keysight Technologies, Inc.

NCR Voyix Corp.

Sensata Technologies Holding Plc

Cognex Corp.

Emerson Electric Co.

Novanta, Inc.

Onto Innovation, Inc.

Fortive Corp.

Why is Onto Innovation, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 17.21% and Operating profit at 61.84%

The company has declared Positive results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 273.17 MM
DEBT-EQUITY RATIO (HY) Lowest at -44.9 %
RAW MATERIAL COST(Y) Fallen by -7.29% (YoY)

With ROE of 12.97%, it has a attractive valuation with a 2.45 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -4.31%, its profits have risen by 61.4% ; the PEG ratio of the company is 0.3

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -4.31% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Onto Innovation, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Onto Innovation, Inc.

33.87%

-0.38

69.59%

S&P 500

17.45%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.55%

EBIT Growth (5y)

49.65%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

0.50

Tax Ratio

9.24%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

16.63%

ROE (avg)

10.08%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.39

EV to EBIT

23.58

EV to EBITDA

19.16

EV to Capital Employed

5.36

EV to Sales

5.56

PEG Ratio

0.73

Dividend Yield

ROCE (Latest)

22.75%

ROE (Latest)

12.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bullish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -7.77% (YoY

NET SALES(Q)

Highest at USD 266.87 MM

-19What is not working for the Company

ROCE(HY)

Lowest at 6.79%

DEBT-EQUITY RATIO (HY)

Highest at 0 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.48 times

OPERATING PROFIT(Q)

Lowest at USD 42.65 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 15.98 %

PRE-TAX PROFIT(Q)

At USD 48.31 MM has Fallen at -24.54%

NET PROFIT(Q)

Lowest at USD 26.05 MM

EPS(Q)

Lowest at USD 0.21

Here's what is working for Onto Innovation, Inc.

Net Sales

Highest at USD 266.87 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Raw Material Cost

Fallen by -7.77% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Onto Innovation, Inc.

Net Profit

At USD 26.05 MM has Fallen at -54.75%

over average net sales of the previous four periods of USD 57.57 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Profit

Lowest at USD 42.65 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 15.98 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At USD 48.31 MM has Fallen at -24.54%

over average net sales of the previous four periods of USD 64.03 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 26.05 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.21

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 0 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 3.48 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at USD 0.29 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income