Recent News
On August 10, 2026 the company disclosed completion of a strategic investment and partnership with Rigaku Holdings Corporation. In early September 2026 Onto presented at Citi’s 2026 Global TMT Conference, outlining market positioning and end-market exposure. Separately, a shareholder alert alleging possible breaches of fiduciary duty surfaced in early September 2026.
Technical Analysis
ADX at 12.35 indicates no established trend, implying breakout moves require confirmation before extending. This low trend strength constrains conviction for directional trades despite mixed momentum signals.
Directional indicators show directional improvement: DI+ at 25.51 registered a dip-and-reverse, a bullish shift, while DI- at 31.38 recorded a peak-and-reversal, which also reads bullish because DI- has turned lower. Together these directional reversals point to buying pressure attempts, but the higher DI- level and low ADX imply that bullish follow-through remains tentative.
MACD sits negative at -5.92 but shows a dip-and-reversal, signaling bullish momentum improvement; MACD remains below its signal line (-5.04), so momentum has begun to recover without completing a bullish cross. That pattern favors measured upside if a MACD crossover occurs.
MRO at 11.68 and rising indicates the market price currently sits above the model target and therefore carries pressure toward a pullback; an increasing MRO strengthens that mean-reversion bias versus momentum signals.
RSI at 48.1 with a dip-and-reversal places momentum near neutral with a short-term lift; RSI behavior supports modest upward movement rather than extended overbought conditions.
Price structure shows the close at $281.26 above the 20-day average ($274.15) and the 200-day average ($244.05), but below the 50-day average ($288.06) and slightly below the 26-day EMA ($282.43). The 12-day EMA exhibits a dip-and-reversal, consistent with the MACD and RSI signals that suggest a recovery attempt. Narrow Bollinger bands (±1x: $258.78–$289.52) imply contained volatility; however, high short-term beta (42-day beta 4.02) signals that any directional move may amplify intraday swings.
Fundamental Analysis
Revenue totaled $343,129,000 with YoY revenue growth at -4.59% and an unusually strong QoQ jump of 86.51%, indicating recent sequential acceleration despite annual contraction. Gross margin reached 53.407%, slightly below the industry peer mean of 53.508% but essentially in-line with peer performance.
Operating (EBIT) margin stands at 19.617%, improving QoQ by 47.897% and YoY by 29.314%. That EBIT margin remains below the industry peer mean (38.11%) and median (38.519%), leaving room for further margin convergence if higher-margin businesses and integrations scale.
EPS came in at $1.93 versus an estimate of $1.69, producing an EPS surprise of $0.24 or +14.2%, which reflects upside to near-term profitability expectations and supports the operating leverage read in margins.
Balance sheet liquidity remains a standout: cash and short-term investments total $1,882,150,000 with a cash ratio of 6.93x and a current ratio of 9.73x. Net debt measures $218,526,000 and total debt equals $1,471,731,000, producing debt-to-equity of 0.765 and debt-to-EBITDA of 15.85x—the latter signals leverage relative to earnings that merits monitoring if earnings soften.
Free cash flow totaled $57,850,000 and yields 0.41%; free cash flow growth shows a strong multi-period lift QoQ but declined YoY. Return metrics remain modest: return on equity 3.126% and return on assets 1.972%, with recent QoQ improvements indicative of operating leverage beginning to translate to returns.
Asset efficiency shows an asset turnover ratio of 0.1126, below the industry peer mean of 0.2219, reflecting capital intensity and a potential path to revenue-per-asset improvement as integration and software licensing scale. WMDST values the stock as under-valued given the combination of cash strength, margin expansion, and recent earnings upside.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-06-30 |
| REPORT DATE: | 2026-08-06 |
| NEXT REPORT DATE: | 2026-11-05 |
| CASH FLOW | Begin Period Cash Flow | $ 252.2 M |
| Operating Cash Flow | $ 61.5 M | |
| Capital Expenditures | $ -3.66 M | |
| Change In Working Capital | $ -34.85 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 1.0 B | |
| End Period Cash Flow | $ 1.3 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 343.1 M | |
| Forward Revenue | $ 205.7 M | |
| COSTS | ||
| Cost Of Revenue | $ 159.9 M | |
| Depreciation | $ 5.8 M | |
| Depreciation and Amortization | $ 25.5 M | |
| Research and Development | $ 38.9 M | |
| Total Operating Expenses | $ 275.8 M | |
| PROFITABILITY | ||
| Gross Profit | $ 183.3 M | |
| EBITDA | $ 92.8 M | |
| EBIT | $ 67.3 M | |
| Operating Income | $ 67.3 M | |
| Interest Income | $ 5.2 M | |
| Interest Expense | — | |
| Net Interest Income | $ 5.2 M | |
| Income Before Tax | $ 68.5 M | |
| Tax Provision | $ 8.4 M | |
| Tax Rate | 12.3 % | |
| Net Income | $ 60.1 M | |
| Net Income From Continuing Operations | $ 60.1 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.69 | |
| EPS Actual | $ 1.93 | |
| EPS Difference | $ 0.24 | |
| EPS Surprise | 14.201 % | |
| Forward EPS | $ 2.94 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.7 B | |
| Intangible Assets | $ 902.2 M | |
| Net Tangible Assets | $ 1.0 B | |
| Total Current Assets | $ 2.6 B | |
| Cash and Short-Term Investments | $ 1.9 B | |
| Cash | $ 1.3 B | |
| Net Receivables | $ 337.4 M | |
| Inventory | $ 379.2 M | |
| Long-Term Investments | $ 26.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 139.4 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 271.6 M | |
| Net Debt | $ 218.5 M | |
| Total Debt | $ 1.5 B | |
| Total Liabilities | $ 1.8 B | |
| EQUITY | ||
| Total Equity | $ 1.9 B | |
| Retained Earnings | $ 837.6 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 38.65 | |
| Shares Outstanding | 49.033 M | |
| Revenue Per-Share | $ 6.90 | |
| VALUATION | Market Capitalization | $ 14.0 B |
| Enterprise Value | $ 13.6 B | |
| Enterprise Multiple | 146.651 | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | 81.809 % | |
| Enterprise Multiple IPRWA | high: 204.721 median: 161.974 mean: 148.58 ONTO: 146.651 low: -293.876 |
|
| EV/R | 39.678 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.924 | |
| Asset To Liability | 2.082 | |
| Debt To Capital | 0.434 | |
| Debt To Assets | 0.398 | |
| Debt To Assets QoQ | — | |
| Debt To Assets YoY | 6245.614 % | |
| Debt To Assets IPRWA | high: 0.423 ONTO: 0.398 median: 0.159 mean: 0.147 low: 0.002 |
|
| Debt To Equity | 0.765 | |
| Debt To Equity QoQ | — | |
| Debt To Equity YoY | 11107.467 % | |
| Debt To Equity IPRWA | high: 1.213 ONTO: 0.765 mean: 0.329 median: 0.299 low: -0.075 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 7.295 | |
| Price To Book QoQ | 32.205 % | |
| Price To Book YoY | 178.777 % | |
| Price To Book IPRWA | high: 31.988 median: 29.291 mean: 24.588 ONTO: 7.295 low: -9.2 |
|
| Price To Earnings (P/E) | 146.086 | |
| Price To Earnings QoQ | -12.289 % | |
| Price To Earnings YoY | 76.368 % | |
| Price To Earnings IPRWA | high: 234.604 median: 202.248 mean: 185.217 ONTO: 146.086 low: -129.292 |
|
| PE/G Ratio | 4.068 | |
| Price To Sales (P/S) | 40.874 | |
| Price To Sales QoQ | 1.432 % | |
| Price To Sales YoY | 101.774 % | |
| Price To Sales IPRWA | high: 145.73 median: 68.545 mean: 59.354 ONTO: 40.874 low: 5.453 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 96.321 | |
| Forward PE/G | 2.682 | |
| Forward P/S | 68.293 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 4.211 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.113 | |
| Asset Turnover Ratio QoQ | -8.135 % | |
| Asset Turnover Ratio YoY | -5.537 % | |
| Asset Turnover Ratio IPRWA | high: 0.342 mean: 0.222 median: 0.203 ONTO: 0.113 low: 0.004 |
|
| Receivables Turnover | 1.066 | |
| Receivables Turnover Ratio QoQ | 5.036 % | |
| Receivables Turnover Ratio YoY | 21.219 % | |
| Receivables Turnover Ratio IPRWA | high: 1.831 mean: 1.47 median: 1.419 ONTO: 1.066 low: 0.55 |
|
| Inventory Turnover | 0.46 | |
| Inventory Turnover Ratio QoQ | -2.958 % | |
| Inventory Turnover Ratio YoY | -1.554 % | |
| Inventory Turnover Ratio IPRWA | high: 1.395 mean: 0.56 ONTO: 0.46 median: 0.399 low: 0.148 |
|
| Days Sales Outstanding (DSO) | 85.624 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 226.774 | |
| Cash Conversion Cycle Days QoQ | 4.102 % | |
| Cash Conversion Cycle Days YoY | -18.272 % | |
| Cash Conversion Cycle Days IPRWA | high: 567.451 median: 269.15 mean: 232.164 ONTO: 226.774 low: 40.819 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.145 | |
| CapEx To Revenue | -0.011 | |
| CapEx To Depreciation | -0.628 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 3.4 B | |
| Net Invested Capital | $ 3.4 B | |
| Invested Capital | $ 3.4 B | |
| Net Tangible Assets | $ 1.0 B | |
| Net Working Capital | $ 2.4 B | |
| LIQUIDITY | ||
| Cash Ratio | 6.929 | |
| Current Ratio | 9.726 | |
| Current Ratio QoQ | 58.038 % | |
| Current Ratio YoY | 1.384 % | |
| Current Ratio IPRWA | high: 10.33 ONTO: 9.726 median: 2.508 mean: 2.21 low: 1.334 |
|
| Quick Ratio | 8.33 | |
| Quick Ratio QoQ | 77.97 % | |
| Quick Ratio YoY | 5.997 % | |
| Quick Ratio IPRWA | ONTO: 8.33 high: 8.014 median: 1.804 mean: 1.543 low: 0.804 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 15.853 | |
| Cost Of Debt | 0.373 % | |
| Interest Coverage Ratio | 21.254 | |
| Interest Coverage Ratio QoQ | 73.827 % | |
| Interest Coverage Ratio YoY | 74.966 % | |
| Interest Coverage Ratio IPRWA | high: 150.669 mean: 53.667 median: 47.739 ONTO: 21.254 low: -444.6 |
|
| Operating Cash Flow Ratio | 0.094 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 76.779 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 54.36 % | |
| Revenue Growth | 17.53 % | |
| Revenue Growth QoQ | 86.509 % | |
| Revenue Growth YoY | -459.221 % | |
| Revenue Growth IPRWA | high: 36.183 % ONTO: 17.53 % mean: 9.795 % median: 7.1 % low: -6.721 % |
|
| Earnings Growth | 35.915 % | |
| Earnings Growth QoQ | 182.84 % | |
| Earnings Growth YoY | -308.578 % | |
| Earnings Growth IPRWA | high: 126.667 % ONTO: 35.915 % mean: 15.26 % median: 11.702 % low: -43.75 % |
|
| MARGINS | ||
| Gross Margin | 53.407 % | |
| Gross Margin QoQ | 6.512 % | |
| Gross Margin YoY | 10.904 % | |
| Gross Margin IPRWA | high: 85.054 % median: 53.99 % mean: 53.508 % ONTO: 53.407 % low: 13.903 % |
|
| EBIT Margin | 19.617 % | |
| EBIT Margin QoQ | 47.897 % | |
| EBIT Margin YoY | 29.314 % | |
| EBIT Margin IPRWA | high: 47.037 % median: 38.519 % mean: 38.11 % ONTO: 19.617 % low: -55.266 % |
|
| Return On Sales (ROS) | 19.617 % | |
| Return On Sales QoQ | 47.897 % | |
| Return On Sales YoY | 29.314 % | |
| Return On Sales IPRWA | high: 42.486 % median: 37.057 % mean: 35.788 % ONTO: 19.617 % low: -48.45 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 57.9 M | |
| Free Cash Flow Yield | 0.412 % | |
| Free Cash Flow Yield QoQ | 113.472 % | |
| Free Cash Flow Yield YoY | -52.093 % | |
| Free Cash Flow Yield IPRWA | high: 0.775 % ONTO: 0.412 % median: 0.294 % mean: 0.229 % low: -1.49 % |
|
| Free Cash Growth | 154.431 % | |
| Free Cash Growth QoQ | -306.738 % | |
| Free Cash Growth YoY | -426.79 % | |
| Free Cash Growth IPRWA | high: 185.89 % ONTO: 154.431 % median: 31.318 % mean: 13.694 % low: -249.381 % |
|
| Free Cash To Net Income | 0.963 | |
| Cash Flow Margin | 7.431 % | |
| Cash Flow To Earnings | 0.424 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 1.972 % | |
| Return On Assets QoQ | 39.167 % | |
| Return On Assets YoY | 23.714 % | |
| Return On Assets IPRWA | high: 10.276 % mean: 7.262 % median: 7.201 % ONTO: 1.972 % low: -7.716 % |
|
| Return On Capital Employed (ROCE) | 1.964 % | |
| Return On Equity (ROE) | 0.031 | |
| Return On Equity QoQ | 97.473 % | |
| Return On Equity YoY | 81.008 % | |
| Return On Equity IPRWA | high: 0.279 mean: 0.148 median: 0.134 ONTO: 0.031 low: -0.171 |
|
| DuPont ROE | 2.965 % | |
| Return On Invested Capital (ROIC) | 1.74 % | |
| Return On Invested Capital QoQ | 8.007 % | |
| Return On Invested Capital YoY | 4.067 % | |
| Return On Invested Capital IPRWA | high: 14.252 % median: 11.665 % mean: 11.221 % ONTO: 1.74 % low: -11.245 % |
|