Onto Innovation Profitability Analysis

ONTO Stock  USD 233.14  5.62  2.47%   
Considering Onto Innovation's profitability and operating efficiency indicators, Onto Innovation is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in June. Profitability indicators assess Onto Innovation's ability to earn profits and add value for shareholders.
Net Income  
First Reported
Previous Quarter
30.3 M
Current Value
46.9 M
Quarterly Volatility
27.3 M
Dot-com Bubble
Housing Crash
Credit Downgrade
Yuan Drop
At this time, Onto Innovation's Days Sales Outstanding is very stable compared to the past year. As of the 24th of May 2024, Sales General And Administrative To Revenue is likely to grow to 0.14, while Price To Sales Ratio is likely to drop 2.42. At this time, Onto Innovation's Net Income Applicable To Common Shares is very stable compared to the past year. As of the 24th of May 2024, Net Interest Income is likely to grow to about 17.2 M, though Accumulated Other Comprehensive Income is likely to grow to (7.5 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.390.48
Significantly Down
Slightly volatile
Net Profit Margin0.210.2
Sufficiently Up
Slightly volatile
Return On Assets0.120.11
Significantly Up
Slightly volatile
Return On Equity0.170.16
Notably Up
Slightly volatile
For Onto Innovation profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Onto Innovation to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Onto Innovation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Onto Innovation's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Onto Innovation over time as well as its relative position and ranking within its peers.

Onto Innovation's Revenue Breakdown by Earning Segment

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Is Onto Innovation's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Onto Innovation. If investors know Onto will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Onto Innovation listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
Earnings Share
Revenue Per Share
Quarterly Revenue Growth
Return On Assets
The market value of Onto Innovation is measured differently than its book value, which is the value of Onto that is recorded on the company's balance sheet. Investors also form their own opinion of Onto Innovation's value that differs from its market value or its book value, called intrinsic value, which is Onto Innovation's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Onto Innovation's market value can be influenced by many factors that don't directly affect Onto Innovation's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Onto Innovation's value and its price as these two are different measures arrived at by different means. Investors typically determine if Onto Innovation is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Onto Innovation's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Onto Innovation Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Onto Innovation's current stock value. Our valuation model uses many indicators to compare Onto Innovation value to that of its competitors to determine the firm's financial worth.
Onto Innovation is rated below average in return on equity category among related companies. It is rated below average in return on asset category among related companies reporting about  0.52  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Onto Innovation is roughly  1.94 . At this time, Onto Innovation's Return On Equity is very stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Onto Innovation by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Onto Innovation's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Onto Innovation's earnings, one of the primary drivers of an investment's value.

Onto Innovation's Earnings Breakdown by Geography

Onto Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Onto Innovation

Return On Equity


Net Income

Total Equity

For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Onto Innovation

Return On Asset


Net Income

Total Assets

Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Onto Return On Asset Comparison

Onto Innovation is currently under evaluation in return on asset category among related companies.

Onto Innovation Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Onto Innovation, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Onto Innovation will eventually generate negative long term returns. The profitability progress is the general direction of Onto Innovation's change in net profit over the period of time. It can combine multiple indicators of Onto Innovation, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-7.9 M-7.5 M
Operating Income126.7 M133 M
Income Before Tax132.6 M139.2 M
Total Other Income Expense Net5.9 M6.2 M
Net Income121.2 M127.2 M
Income Tax Expense11.4 M12 M
Net Income From Continuing Ops157.1 M164.9 M
Net Income Applicable To Common Shares256.8 M269.7 M
Net Interest Income16.4 M17.2 M
Interest Income16.4 M17.2 M
Non Operating Income Net Other-126.9 K-133.2 K
Change To Netincome-8.8 M-8.3 M
Net Income Per Share 4.07  4.27 
Income Quality 0.55  1.02 
Net Income Per E B T 1.06  0.95 

Onto Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Onto Innovation. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Onto Innovation position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Onto Innovation's important profitability drivers and their relationship over time.

Onto Innovation Profitability Trends

Onto Innovation profitability trend refers to the progression of profit or loss within a business. An upward trend means that Onto Innovation's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Onto Innovation's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Onto Innovation Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Onto Innovation different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Onto Innovation in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Onto Innovation's future profitability.

Use Onto Innovation in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Onto Innovation position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Onto Innovation will appreciate offsetting losses from the drop in the long position's value.

Onto Innovation Pair Trading

Onto Innovation Pair Trading Analysis

The ability to find closely correlated positions to Onto Innovation could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Onto Innovation when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Onto Innovation - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Onto Innovation to buy it.
The correlation of Onto Innovation is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Onto Innovation moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Onto Innovation moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Onto Innovation can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Onto Innovation position

In addition to having Onto Innovation in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Automobiles and Trucks Thematic Idea Now

Automobiles and Trucks
Automobiles and Trucks Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Automobiles and Trucks theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Automobiles and Trucks Theme or any other thematic opportunities.
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When determining whether Onto Innovation offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Onto Innovation's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Onto Innovation Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Onto Innovation Stock:
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To learn how to invest in Onto Stock, please use our How to Invest in Onto Innovation guide.
You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.

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When running Onto Innovation's price analysis, check to measure Onto Innovation's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Onto Innovation is operating at the current time. Most of Onto Innovation's value examination focuses on studying past and present price action to predict the probability of Onto Innovation's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Onto Innovation's price. Additionally, you may evaluate how the addition of Onto Innovation to your portfolios can decrease your overall portfolio volatility.
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To fully project Onto Innovation's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Onto Innovation at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Onto Innovation's income statement, its balance sheet, and the statement of cash flows.
Potential Onto Innovation investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Onto Innovation investors may work on each financial statement separately, they are all related. The changes in Onto Innovation's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Onto Innovation's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.