Recent News
Onto Innovation announced participation in investor conferences in late February and March 2026, increasing management access to investors; the company also received analyst attention and recorded new short-term highs after reports of product qualifications and expected shipments for its Dragonfly advanced packaging platforms. The stock reached intraday/all-time highs in late April, with coverage noting qualification milestones for the Dragonfly G5 and shipment timing into customer evaluations.
Technical Analysis
Directional indicators (ADX / DI+ / DI-): ADX at 32.85 indicates a strong trend environment. DI+ sits at 32.24 but shows a peak-and-reversal, which signals waning upward directional strength; DI- registers 14.62 with a dip-and-reversal, indicating renewed downside pressure. Together, the directional indicators point to a strong trend that has shifted toward increased downside risk, reducing the near-term upward momentum implied by recent price gains.
MACD: MACD reads 19.67 with a signal line at 18.59; although the MACD currently sits above the signal line, its documented peak-and-reversal denotes a transition to bearish momentum. That dynamic suggests prior momentum has topped and short-term momentum may weaken despite the continued positive MACD spread.
MRO (Momentum/Regression Oscillator): MRO at 13.94 sits positive, indicating the current price sits above internal target levels and creates a tilt toward mean reversion pressure. The MRO direction increased, reinforcing the view that short-term upside faces resistance from valuation-relative targets.
RSI and momentum breadth: RSI at 61.87 with a peak-and-reversal signals momentum exhaustion near recent highs; the reading still implies mild bullishness but favors consolidation or pullback rather than a sustained breakout. High short-term volatility and elevated betas (42-day beta 3.04; 52-week beta 2.66) increase the probability of sharp intraperiod moves around this consolidation.
Price vs. moving averages and support levels: Last close $295.06 sits above the 12-day EMA ($283.32) and the 20-day average ($283.84), showing short-term price strength, while the 50-day average ($230.88) and 200-day average ($164.99) lie well below, reflecting strong multi-month appreciation. Short-term technical support aligns near the super trend lower at $273.67 and the Ichimoku Kijun-sen at $252.14, providing reference points for potential consolidation.
Fundamental Analysis
Profitability and margins: Operating (EBIT) margin equals 7.82%; EBIT equals $20,861,000 and EBITDA equals $40,790,000. Quarter-over-quarter operating margin contracted by 38.57% and year-over-year contracted by 51.41%, indicating material margin compression versus recent periods. Industry peer mean operating margin sits near 35.07%, making Onto Innovation’s margin below the industry peer mean and median.
Revenue and growth: Total revenue reached $266,866,000. Reported revenue growth measures 22.31%, while the YoY growth field shows 379.72% within the provided data; revenue trends require reconciliation with segment disclosures, but top-line dollars remain sub-$1B scale with 2026 forward revenue guided at $721,312,187 in forward estimates.
Earnings and cash flow: Reported EPS matched the estimate at $1.26 with an EPS surprise of -0.23%. Net income equals $10,529,000. Operating cash flow reached $94,996,000 and free cash flow totaled $89,867,000, producing a free cash flow yield near 0.99%. The cash conversion ratio at 0.254 and cashFlowToEarnings at 357.00% indicate strong cash conversion relative to accounting earnings.
Balance sheet and leverage: Cash and short-term investments total $639,622,000 with a cash ratio of 2.92 and a current ratio of 5.79, signaling a liquid balance sheet. Total debt remains very low at $17,475,000 (debt-to-assets 0.74%), and debt-to-EBITDA approximates 0.43x. Working capital stands at $1,049,089,000, and the company shows substantial net tangible assets of roughly $1.16B.
Valuation multiples: Trailing P/E near 145.69 sits slightly above the industry peer mean P/E of about 139.42 and near the industry peer median; forward P/E at 69.64 offers a lower multiple on expected earnings. Price-to-book at 4.34 sits below the industry peer mean P/B of 18.36. Enterprise multiple measures 208.42, above the industry peer mean enterprise multiple of roughly 106.53. WMDST values the stock as under-valued, but elevated trailing multiples and a high enterprise multiple signal that expectations embed substantial future performance.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-19 |
| NEXT REPORT DATE: | 2026-05-21 |
| CASH FLOW | Begin Period Cash Flow | $ 603.1 M |
| Operating Cash Flow | $ 95.0 M | |
| Capital Expenditures | $ -5.13 M | |
| Change In Working Capital | $ 20.1 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -256.97 M | |
| End Period Cash Flow | $ 346.1 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 266.9 M | |
| Forward Revenue | $ 721.3 M | |
| COSTS | ||
| Cost Of Revenue | $ 143.1 M | |
| Depreciation | $ 5.9 M | |
| Depreciation and Amortization | $ 19.9 M | |
| Research and Development | $ 36.2 M | |
| Total Operating Expenses | $ 246.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 123.8 M | |
| EBITDA | $ 40.8 M | |
| EBIT | $ 20.9 M | |
| Operating Income | $ 20.9 M | |
| Interest Income | $ 7.8 M | |
| Interest Expense | — | |
| Net Interest Income | $ 7.8 M | |
| Income Before Tax | $ 19.5 M | |
| Tax Provision | $ 9.0 M | |
| Tax Rate | 40.0 % | |
| Net Income | $ 10.5 M | |
| Net Income From Continuing Operations | $ 10.5 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.26 | |
| EPS Actual | $ 1.26 | |
| EPS Difference | $ 0.00 | |
| EPS Surprise | -0.23 % | |
| Forward EPS | $ 2.29 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.4 B | |
| Intangible Assets | $ 942.1 M | |
| Net Tangible Assets | $ 1.2 B | |
| Total Current Assets | $ 1.3 B | |
| Cash and Short-Term Investments | $ 639.6 M | |
| Cash | $ 346.1 M | |
| Net Receivables | $ 268.9 M | |
| Inventory | $ 298.3 M | |
| Long-Term Investments | $ 10.3 M | |
| LIABILITIES | ||
| Accounts Payable | $ 107.7 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 218.9 M | |
| Net Debt | — | |
| Total Debt | $ 17.5 M | |
| Total Liabilities | $ 267.1 M | |
| EQUITY | ||
| Total Equity | $ 2.1 B | |
| Retained Earnings | $ 743.8 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 42.26 | |
| Shares Outstanding | 49.702 M | |
| Revenue Per-Share | $ 5.37 | |
| VALUATION | Market Capitalization | $ 9.1 B |
| Enterprise Value | $ 8.5 B | |
| Enterprise Multiple | 208.423 | |
| Enterprise Multiple QoQ | 67.748 % | |
| Enterprise Multiple YoY | 33.595 % | |
| Enterprise Multiple IPRWA | high: 244.045 ONTO: 208.423 median: 114.544 mean: 106.531 low: -216.655 |
|
| EV/R | 31.857 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.127 | |
| Asset To Liability | 8.865 | |
| Debt To Capital | 0.008 | |
| Debt To Assets | 0.007 | |
| Debt To Assets QoQ | 14.774 % | |
| Debt To Assets YoY | 3.073 % | |
| Debt To Assets IPRWA | high: 0.455 median: 0.194 mean: 0.166 ONTO: 0.007 low: 0.003 |
|
| Debt To Equity | 0.008 | |
| Debt To Equity QoQ | 18.35 % | |
| Debt To Equity YoY | 5.718 % | |
| Debt To Equity IPRWA | high: 0.96 mean: 0.267 median: 0.138 ONTO: 0.008 low: -0.408 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 4.343 | |
| Price To Book QoQ | 42.974 % | |
| Price To Book YoY | -10.611 % | |
| Price To Book IPRWA | high: 22.471 median: 22.16 mean: 18.357 ONTO: 4.343 low: 1.081 |
|
| Price To Earnings (P/E) | 145.689 | |
| Price To Earnings QoQ | 7.847 % | |
| Price To Earnings YoY | 15.755 % | |
| Price To Earnings IPRWA | high: 422.129 median: 146.908 ONTO: 145.689 mean: 139.419 low: -305.594 |
|
| PE/G Ratio | 3.942 | |
| Price To Sales (P/S) | 34.188 | |
| Price To Sales QoQ | 22.653 % | |
| Price To Sales YoY | -3.568 % | |
| Price To Sales IPRWA | high: 71.828 median: 45.349 mean: 41.119 ONTO: 34.188 low: 3.414 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 69.636 | |
| Forward PE/G | 1.884 | |
| Forward P/S | 14.161 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -1.114 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.117 | |
| Asset Turnover Ratio QoQ | 16.202 % | |
| Asset Turnover Ratio YoY | -6.97 % | |
| Asset Turnover Ratio IPRWA | high: 0.471 mean: 0.208 median: 0.203 ONTO: 0.117 low: 0.002 |
|
| Receivables Turnover | 1.009 | |
| Receivables Turnover Ratio QoQ | 26.097 % | |
| Receivables Turnover Ratio YoY | 7.363 % | |
| Receivables Turnover Ratio IPRWA | high: 2.887 mean: 1.795 median: 1.515 ONTO: 1.009 low: 0.498 |
|
| Inventory Turnover | 0.513 | |
| Inventory Turnover Ratio QoQ | 26.317 % | |
| Inventory Turnover Ratio YoY | 16.121 % | |
| Inventory Turnover Ratio IPRWA | high: 1.243 mean: 0.516 ONTO: 0.513 median: 0.401 low: 0.174 |
|
| Days Sales Outstanding (DSO) | 90.463 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 258.858 | |
| Cash Conversion Cycle Days QoQ | -2.812 % | |
| Cash Conversion Cycle Days YoY | -10.904 % | |
| Cash Conversion Cycle Days IPRWA | high: 596.302 median: 270.338 ONTO: 258.858 mean: 251.447 low: -64.288 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.254 | |
| CapEx To Revenue | -0.019 | |
| CapEx To Depreciation | -0.876 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.1 B | |
| Net Invested Capital | $ 2.1 B | |
| Invested Capital | $ 2.1 B | |
| Net Tangible Assets | $ 1.2 B | |
| Net Working Capital | $ 1.0 B | |
| LIQUIDITY | ||
| Cash Ratio | 2.921 | |
| Current Ratio | 5.792 | |
| Current Ratio QoQ | -38.945 % | |
| Current Ratio YoY | -33.329 % | |
| Current Ratio IPRWA | high: 10.619 ONTO: 5.792 median: 2.256 mean: 2.13 low: 1.126 |
|
| Quick Ratio | 4.429 | |
| Quick Ratio QoQ | -43.885 % | |
| Quick Ratio YoY | -36.72 % | |
| Quick Ratio IPRWA | high: 7.834 ONTO: 4.429 median: 1.606 mean: 1.49 low: 0.689 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.428 | |
| Cost Of Debt | 12.049 % | |
| Interest Coverage Ratio | 6.587 | |
| Interest Coverage Ratio QoQ | -24.858 % | |
| Interest Coverage Ratio YoY | -50.87 % | |
| Interest Coverage Ratio IPRWA | high: 99.429 mean: 34.742 median: 32.93 ONTO: 6.587 low: -143.241 |
|
| Operating Cash Flow Ratio | 0.172 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 68.122 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 8.284 % | |
| Revenue Growth | 22.307 % | |
| Revenue Growth QoQ | -259.781 % | |
| Revenue Growth YoY | 379.72 % | |
| Revenue Growth IPRWA | high: 40.838 % ONTO: 22.307 % mean: 12.696 % median: 2.725 % low: -9.892 % |
|
| Earnings Growth | 36.957 % | |
| Earnings Growth QoQ | -239.989 % | |
| Earnings Growth YoY | 191.298 % | |
| Earnings Growth IPRWA | high: 266.667 % ONTO: 36.957 % mean: 17.214 % median: 0.794 % low: -85.714 % |
|
| MARGINS | ||
| Gross Margin | 46.387 % | |
| Gross Margin QoQ | -8.507 % | |
| Gross Margin YoY | -7.533 % | |
| Gross Margin IPRWA | high: 90.758 % mean: 52.503 % median: 52.156 % ONTO: 46.387 % low: 9.383 % |
|
| EBIT Margin | 7.817 % | |
| EBIT Margin QoQ | -38.565 % | |
| EBIT Margin YoY | -51.408 % | |
| EBIT Margin IPRWA | high: 46.775 % median: 35.306 % mean: 35.068 % ONTO: 7.817 % low: -49.18 % |
|
| Return On Sales (ROS) | 7.817 % | |
| Return On Sales QoQ | -38.565 % | |
| Return On Sales YoY | -51.408 % | |
| Return On Sales IPRWA | high: 69.122 % median: 35.306 % mean: 34.415 % ONTO: 7.817 % low: -49.18 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 89.9 M | |
| Free Cash Flow Yield | 0.985 % | |
| Free Cash Flow Yield QoQ | -26.983 % | |
| Free Cash Flow Yield YoY | 79.417 % | |
| Free Cash Flow Yield IPRWA | high: 2.925 % mean: 1.469 % median: 1.229 % ONTO: 0.985 % low: -1.389 % |
|
| Free Cash Growth | 9.571 % | |
| Free Cash Growth QoQ | -88.829 % | |
| Free Cash Growth YoY | -172.409 % | |
| Free Cash Growth IPRWA | high: 500.136 % ONTO: 9.571 % median: -0.341 % mean: -9.139 % low: -360.935 % |
|
| Free Cash To Net Income | 8.535 | |
| Cash Flow Margin | 14.085 % | |
| Cash Flow To Earnings | 3.57 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 0.462 % | |
| Return On Assets QoQ | -64.598 % | |
| Return On Assets YoY | -80.172 % | |
| Return On Assets IPRWA | high: 12.607 % mean: 6.086 % median: 5.937 % ONTO: 0.462 % low: -7.635 % |
|
| Return On Capital Employed (ROCE) | 0.971 % | |
| Return On Equity (ROE) | 0.005 | |
| Return On Equity QoQ | -64.468 % | |
| Return On Equity YoY | -80.237 % | |
| Return On Equity IPRWA | high: 0.21 median: 0.145 mean: 0.142 ONTO: 0.005 low: -0.241 |
|
| DuPont ROE | 0.513 % | |
| Return On Invested Capital (ROIC) | 0.596 % | |
| Return On Invested Capital QoQ | -51.148 % | |
| Return On Invested Capital YoY | -112.342 % | |
| Return On Invested Capital IPRWA | high: 11.139 % median: 10.618 % mean: 9.118 % ONTO: 0.596 % low: -2.702 % |
|