📊 ONTO Key Takeaways
Is Onto Innovation Inc.. (ONTO) a Good Investment?
Onto Innovation maintains a fortress balance sheet with zero debt and strong free cash flow generation ($299.8M), providing financial stability. However, the company faces significant operational headwinds with anemic revenue growth of 1.8% YoY and sharp net income declines of 32.2% YoY, indicating margin compression and deteriorating capital efficiency.
Why Buy Onto Innovation Inc.. Stock? ONTO Key Strengths
- Fortress balance sheet with zero long-term debt and $346.1M cash position
- Strong free cash flow generation of $299.8M representing 29.8% FCF margin with modest $28.5M CapEx
- Excellent liquidity metrics (5.79x current ratio, 4.43x quick ratio) with no solvency risk
ONTO Stock Risks: Onto Innovation Inc.. Investment Risks
- Net income declined 32.2% YoY despite marginal 1.8% revenue growth indicating significant margin compression
- Anemic 1.8% YoY revenue growth suggests limited organic expansion and potential cyclical or structural headwinds
- Modest return on equity of 6.5% and ROA of 5.8% indicate suboptimal capital efficiency despite substantial $2.1B equity base
Key Metrics to Watch
- Operating margin recovery - current 13.2% margin decline is critical to reverse
- Revenue growth acceleration - need tangible improvement from 1.8% run rate
- Return on Equity trend - 6.5% must improve to justify accumulated shareholder capital
Onto Innovation Inc.. (ONTO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 29.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 5.79x current ratio provides a solid financial cushion.
ONTO Profit Margin, ROE & Profitability Analysis
ONTO vs Market Sector: How Onto Innovation Inc.. Compares
How Onto Innovation Inc.. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Onto Innovation Inc.. Stock Overvalued? ONTO Valuation Analysis 2026
Based on fundamental analysis, Onto Innovation Inc.. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Onto Innovation Inc.. Balance Sheet: ONTO Debt, Cash & Liquidity
ONTO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Onto Innovation Inc..'s revenue has grown significantly by 229% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.49 reflects profitable operations.
ONTO Revenue Growth, EPS Growth & YoY Performance
ONTO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $218.2M | $28.2M | $0.57 |
| Q2 2025 | $242.3M | $33.9M | $0.69 |
| Q1 2025 | $228.8M | $46.9M | $0.94 |
| Q3 2024 | $207.2M | N/A | $0.73 |
| Q2 2024 | $190.7M | N/A | $0.53 |
| Q1 2024 | $199.2M | N/A | $0.59 |
| Q3 2023 | $207.2M | $25.9M | $0.73 |
| Q2 2023 | $190.7M | $25.9M | $0.53 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Onto Innovation Inc.. Dividends, Buybacks & Capital Allocation
ONTO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Onto Innovation Inc.. (CIK: 0000704532)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ONTO
What is the AI rating for ONTO?
Onto Innovation Inc.. (ONTO) has an AI rating of HOLD with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are ONTO's key strengths?
Claude: Fortress balance sheet with zero long-term debt and $346.1M cash position. Strong free cash flow generation of $299.8M representing 29.8% FCF margin with modest $28.5M CapEx.
What are the risks of investing in ONTO?
Claude: Net income declined 32.2% YoY despite marginal 1.8% revenue growth indicating significant margin compression. Anemic 1.8% YoY revenue growth suggests limited organic expansion and potential cyclical or structural headwinds.
What is ONTO's revenue and growth?
Onto Innovation Inc.. reported revenue of $1.0B.
Does ONTO pay dividends?
Onto Innovation Inc.. does not currently pay dividends.
Where can I find ONTO SEC filings?
Official SEC filings for Onto Innovation Inc.. (CIK: 0000704532) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ONTO's EPS?
Onto Innovation Inc.. has a diluted EPS of $2.78.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ONTO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Onto Innovation Inc.. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ONTO stock overvalued or undervalued?
Valuation metrics for ONTO: ROE of 6.5% (sector avg: 15%), net margin of 13.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy ONTO stock in 2026?
Our dual AI analysis gives Onto Innovation Inc.. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ONTO's free cash flow?
Onto Innovation Inc..'s operating cash flow is $328.3M, with capital expenditures of $28.5M. FCF margin is 29.8%.
How does ONTO compare to other Market stocks?
Vs Default sector averages: Net margin 13.6% (avg: 12%), ROE 6.5% (avg: 15%), current ratio 5.79 (avg: 1.8).