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

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Coherent Corp.

KLA Corp.

Rockwell Automation, Inc.

Keysight Technologies, Inc.

Cognex Corp.

NCR Voyix Corp.

Emerson Electric Co.

Onto Innovation, Inc.

Novanta, Inc.

Fortive Corp.

Sensata Technologies Holding Plc

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 -6.28%, 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 13.22% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -6.28% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Onto Innovation, Inc. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Onto Innovation, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Onto Innovation, Inc.

-6.28%

-0.39

69.46%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.21%

EBIT Growth (5y)

61.84%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.44

Sales to Capital Employed (avg)

0.51

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

2.45

EV to EBIT

16.07

EV to EBITDA

12.91

EV to Capital Employed

3.58

EV to Sales

3.76

PEG Ratio

0.31

Dividend Yield

ROCE (Latest)

22.30%

ROE (Latest)

12.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

8What is working for the Company

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

CASH AND EQV(HY)

Highest at USD 1,745.55 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.73 times

-3What is not working for the Company

OPERATING PROFIT MARGIN(Q)

Lowest at 27.19 %

NET PROFIT(Q)

Lowest at USD 53.04 MM

EPS(Q)

Lowest at USD 0.69

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

Operating Cash Flow

Highest at USD 273.17 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Lowest at -44.9 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Cash and Eqv

Highest at USD 1,745.55 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 1.73 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -7.29% (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.

Operating Profit Margin

Lowest at 27.19 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at USD 53.04 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.69

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Non Operating Income

Highest at USD 0.19 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income