Recent News
On September 23, 2025 Jefferies upgraded Onto Innovation from Hold to Buy. On October 6, 2025 several analyst outlets consolidated ratings into a “moderate buy” consensus with an average 12‑month target near the mid‑$140s. Investor’s Business Daily noted a recent rise in Relative Strength rating, pointing to improved price performance versus peers and a near‑term consolidation pattern with watchful volume conditions.
Technical Analysis
ADX at 18.9 indicates no established trend; price momentum therefore depends more on directional indicators than on a dominant market trend.
DI+ at 25.16 trending higher while DI‑ at 25.47 trends lower signals a bullish directional shift; directional indicators favor upward pressure on price even though DI+ and DI‑ sit at similar levels.
MACD sits at 3.09 and trends higher, with the MACD line above the signal line (1.26), which represents a bullish momentum cross and supports further near‑term strength in price action.
MRO at -17.18 with an increasing MRO trend indicates the stock trades below the model target and carries scope to climb toward that target as momentum improves.
RSI at 56.63 and rising remains in a constructive range that supports additional upside without signaling immediate overbought conditions.
Price trades above the 12‑day and 26‑day EMAs and above the 20‑ and 50‑day averages (20‑day = $134.42; 50‑day = $134.07), with the 200‑day average at $118.10 acting as a longer‑term support reference. Price at $154.01 sits just below the 2x Bollinger upper band ($154.42), showing strength but limited immediate extension room before a short consolidation becomes likely.
SuperTrend lower support sits near $136.32, which aligns with the rising short‑term EMAs and offers a visible technical support area for swing horizons.
Fundamental Analysis
Revenue totaled $218,193,000; reported revenue growth stands at -13.96% while quarter‑over‑quarter revenue growth reads 186.09% and reported year‑over‑year revenue change registers -4.42% (all values per company reporting). Free cash flow reached $82,017,000 and free cash flow yield equals about 1.35%, with free cash flow growth strong year‑over‑year and free cash to net income roughly 290.6%, demonstrating healthy cash conversion versus the bottom line.
Gross margin reached 50.7%, while operating (EBIT) margin sits at 12.72%; operating margin contracted by about 16.12% quarter‑over‑quarter and by roughly 39.53% year‑over‑year. That operating margin remains below the industry peer mean of 34.66% and below the industry peer median of 35.72%, signaling a gap versus typical peer profitability levels despite positive gross margins.
EPS for the most recent period landed at $0.92 versus an estimate of $0.87, producing an EPS surprise near +5.75% and supporting near‑term earnings credibility. Forward EPS stands at $1.6775 with a forward P/E around 66.35x; trailing P/E sits near 135.09x, reflecting a multi‑period earnings profile and elevated trailing multiple awaiting normalization through earnings growth.
Balance sheet and liquidity metrics remain a key strength: cash equals $603,085,000 and cash plus short‑term investments total $983,928,000; current ratio approaches 9.49x, quick ratio near 7.89x, and cash ratio about 6.04x. Debt stays minimal (total debt $14,067,000, debt to assets ~0.64%, debt to equity ~0.70%), and interest coverage approximates 8.77x, providing ample capacity to fund operations and deployment without leverage pressure.
Return metrics show room for improvement: return on equity near 1.41% and return on assets near 1.30%, both down year‑over‑year. Research and development investment stands at $32,493,000, supporting product qualification wins highlighted in company disclosures. WMDST values the stock as under‑valued, with the MRO reading and strong cash generation aligning with that valuation view.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-06 |
| NEXT REPORT DATE: | 2026-02-05 |
| CASH FLOW | Begin Period Cash Flow | $ 217.5 M |
| Operating Cash Flow | $ 83.4 M | |
| Capital Expenditures | $ -1.38 M | |
| Change In Working Capital | $ 41.2 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 385.6 M | |
| End Period Cash Flow | $ 603.1 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 218.2 M | |
| Forward Revenue | $ 158.9 M | |
| COSTS | ||
| Cost Of Revenue | $ 107.6 M | |
| Depreciation | $ 4.9 M | |
| Depreciation and Amortization | $ 13.4 M | |
| Research and Development | $ 32.5 M | |
| Total Operating Expenses | $ 190.4 M | |
| PROFITABILITY | ||
| Gross Profit | $ 110.6 M | |
| EBITDA | $ 41.1 M | |
| EBIT | $ 27.8 M | |
| Operating Income | $ 27.8 M | |
| Interest Income | $ 9.3 M | |
| Interest Expense | — | |
| Net Interest Income | $ 9.3 M | |
| Income Before Tax | $ 32.0 M | |
| Tax Provision | $ 3.8 M | |
| Tax Rate | 12.0 % | |
| Net Income | $ 28.2 M | |
| Net Income From Continuing Operations | $ 28.2 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.87 | |
| EPS Actual | $ 0.92 | |
| EPS Difference | $ 0.05 | |
| EPS Surprise | 5.747 % | |
| Forward EPS | $ 1.68 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.2 B | |
| Intangible Assets | $ 432.2 M | |
| Net Tangible Assets | $ 1.6 B | |
| Total Current Assets | $ 1.5 B | |
| Cash and Short-Term Investments | $ 983.9 M | |
| Cash | $ 603.1 M | |
| Net Receivables | $ 260.2 M | |
| Inventory | $ 259.4 M | |
| Long-Term Investments | $ 2.2 M | |
| LIABILITIES | ||
| Accounts Payable | $ 52.9 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 162.9 M | |
| Net Debt | — | |
| Total Debt | $ 14.1 M | |
| Total Liabilities | $ 184.5 M | |
| EQUITY | ||
| Total Equity | $ 2.0 B | |
| Retained Earnings | $ 733.3 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 40.91 | |
| Shares Outstanding | 49.009 M | |
| Revenue Per-Share | $ 4.46 | |
| VALUATION | Market Capitalization | $ 6.1 B |
| Enterprise Value | $ 5.1 B | |
| Enterprise Multiple | 124.248 | |
| Enterprise Multiple QoQ | 54.035 % | |
| Enterprise Multiple YoY | -5.843 % | |
| Enterprise Multiple IPRWA | high: 178.043 ONTO: 124.248 mean: 93.757 median: 91.699 low: -238.397 |
|
| EV/R | 23.429 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.092 | |
| Asset To Liability | 11.849 | |
| Debt To Capital | 0.007 | |
| Debt To Assets | 0.006 | |
| Debt To Assets QoQ | 2.552 % | |
| Debt To Assets YoY | 144.487 % | |
| Debt To Assets IPRWA | high: 0.464 median: 0.198 mean: 0.165 low: 0.01 ONTO: 0.006 |
|
| Debt To Equity | 0.007 | |
| Debt To Equity QoQ | 2.928 % | |
| Debt To Equity YoY | 144.948 % | |
| Debt To Equity IPRWA | high: 0.755 mean: 0.254 median: 0.142 ONTO: 0.007 low: -0.024 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.038 | |
| Price To Book QoQ | 16.096 % | |
| Price To Book YoY | -42.735 % | |
| Price To Book IPRWA | high: 17.585 median: 14.913 mean: 13.897 ONTO: 3.038 low: -3.904 |
|
| Price To Earnings (P/E) | 135.089 | |
| Price To Earnings QoQ | 63.091 % | |
| Price To Earnings YoY | -11.462 % | |
| Price To Earnings IPRWA | high: 286.125 ONTO: 135.089 mean: 122.01 median: 115.727 low: -396.798 |
|
| PE/G Ratio | -5.117 | |
| Price To Sales (P/S) | 27.874 | |
| Price To Sales QoQ | 37.6 % | |
| Price To Sales YoY | -30.381 % | |
| Price To Sales IPRWA | high: 64.674 median: 41.776 mean: 35.574 ONTO: 27.874 low: 1.791 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 66.346 | |
| Forward PE/G | -2.513 | |
| Forward P/S | 38.334 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.994 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.101 | |
| Asset Turnover Ratio QoQ | -15.387 % | |
| Asset Turnover Ratio YoY | -18.452 % | |
| Asset Turnover Ratio IPRWA | high: 0.351 median: 0.198 mean: 0.194 ONTO: 0.101 low: 0.0 |
|
| Receivables Turnover | 0.8 | |
| Receivables Turnover Ratio QoQ | -9.01 % | |
| Receivables Turnover Ratio YoY | -22.048 % | |
| Receivables Turnover Ratio IPRWA | high: 2.339 median: 1.451 mean: 1.414 ONTO: 0.8 low: 0.591 |
|
| Inventory Turnover | 0.406 | |
| Inventory Turnover Ratio QoQ | -13.039 % | |
| Inventory Turnover Ratio YoY | 10.128 % | |
| Inventory Turnover Ratio IPRWA | high: 1.111 mean: 0.461 ONTO: 0.406 median: 0.382 low: 0.169 |
|
| Days Sales Outstanding (DSO) | 114.072 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 266.346 | |
| Cash Conversion Cycle Days QoQ | -4.01 % | |
| Cash Conversion Cycle Days YoY | -11.316 % | |
| Cash Conversion Cycle Days IPRWA | high: 563.683 median: 276.99 mean: 268.787 ONTO: 266.346 low: 49.763 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.158 | |
| CapEx To Revenue | -0.006 | |
| CapEx To Depreciation | -0.279 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.0 B | |
| Net Invested Capital | $ 2.0 B | |
| Invested Capital | $ 2.0 B | |
| Net Tangible Assets | $ 1.6 B | |
| Net Working Capital | $ 1.4 B | |
| LIQUIDITY | ||
| Cash Ratio | 6.041 | |
| Current Ratio | 9.486 | |
| Current Ratio QoQ | -1.118 % | |
| Current Ratio YoY | -5.832 % | |
| Current Ratio IPRWA | high: 9.548 ONTO: 9.486 median: 2.207 mean: 2.089 low: 0.914 |
|
| Quick Ratio | 7.893 | |
| Quick Ratio QoQ | 0.443 % | |
| Quick Ratio YoY | -0.627 % | |
| Quick Ratio IPRWA | ONTO: 7.893 high: 7.591 median: 1.597 mean: 1.406 low: 0.696 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.342 | |
| Cost Of Debt | 20.287 % | |
| Interest Coverage Ratio | 8.766 | |
| Interest Coverage Ratio QoQ | -27.837 % | |
| Interest Coverage Ratio YoY | -47.69 % | |
| Interest Coverage Ratio IPRWA | high: 172.821 median: 39.833 mean: 37.942 ONTO: 8.766 low: -164.857 |
|
| Operating Cash Flow Ratio | 0.569 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 31.506 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 2.165 % | |
| Revenue Growth | -13.961 % | |
| Revenue Growth QoQ | 186.086 % | |
| Revenue Growth YoY | -442.349 % | |
| Revenue Growth IPRWA | high: 45.385 % median: 1.101 % mean: 0.759 % ONTO: -13.961 % low: -45.156 % |
|
| Earnings Growth | -26.4 % | |
| Earnings Growth QoQ | 53.319 % | |
| Earnings Growth YoY | -1842.574 % | |
| Earnings Growth IPRWA | high: 236.842 % mean: -3.162 % median: -6.077 % ONTO: -26.4 % low: -200.0 % |
|
| MARGINS | ||
| Gross Margin | 50.7 % | |
| Gross Margin QoQ | 5.283 % | |
| Gross Margin YoY | -6.24 % | |
| Gross Margin IPRWA | high: 89.855 % mean: 52.745 % median: 51.627 % ONTO: 50.7 % low: 4.626 % |
|
| EBIT Margin | 12.724 % | |
| EBIT Margin QoQ | -16.124 % | |
| EBIT Margin YoY | -39.533 % | |
| EBIT Margin IPRWA | high: 43.012 % median: 35.717 % mean: 34.657 % ONTO: 12.724 % low: -46.404 % |
|
| Return On Sales (ROS) | 12.724 % | |
| Return On Sales QoQ | -16.124 % | |
| Return On Sales YoY | -39.533 % | |
| Return On Sales IPRWA | high: 41.661 % mean: 33.219 % median: 32.842 % ONTO: 12.724 % low: -50.057 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 82.0 M | |
| Free Cash Flow Yield | 1.349 % | |
| Free Cash Flow Yield QoQ | 56.86 % | |
| Free Cash Flow Yield YoY | 130.205 % | |
| Free Cash Flow Yield IPRWA | high: 3.193 % ONTO: 1.349 % median: 0.795 % mean: 0.639 % low: -2.559 % |
|
| Free Cash Growth | 85.681 % | |
| Free Cash Growth QoQ | -281.309 % | |
| Free Cash Growth YoY | 638.82 % | |
| Free Cash Growth IPRWA | high: 137.837 % ONTO: 85.681 % mean: -5.49 % median: -31.87 % low: -368.087 % |
|
| Free Cash To Net Income | 2.906 | |
| Cash Flow Margin | 42.462 % | |
| Cash Flow To Earnings | 3.283 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.305 % | |
| Return On Assets QoQ | -18.13 % | |
| Return On Assets YoY | -49.827 % | |
| Return On Assets IPRWA | high: 7.255 % mean: 5.487 % median: 5.244 % ONTO: 1.305 % low: -8.379 % |
|
| Return On Capital Employed (ROCE) | 1.372 % | |
| Return On Equity (ROE) | 0.014 | |
| Return On Equity QoQ | -18.356 % | |
| Return On Equity YoY | -49.408 % | |
| Return On Equity IPRWA | high: 0.225 mean: 0.13 median: 0.112 ONTO: 0.014 low: -0.18 |
|
| DuPont ROE | 1.423 % | |
| Return On Invested Capital (ROIC) | 1.22 % | |
| Return On Invested Capital QoQ | -27.033 % | |
| Return On Invested Capital YoY | -122.459 % | |
| Return On Invested Capital IPRWA | high: 10.936 % median: 10.871 % mean: 8.996 % ONTO: 1.22 % low: -2.31 % |
|