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Onto Innovation is a worldwide leader in the design, development, manufacture and support of metrology and inspection tools for the semiconductor industry, including process control tools that perform optical metrology and inspection on patterned and unpatterned wafers, including macro defect inspection of both 2D and 3D wafer features, wafer substrate and panel substrate lithography systems, a…
13.22% operating margin is respectable but not wide. ROIC at 5.26%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue growth slowed to 1.8%, essentially flat. Margins also contracted 5.7pp. This is a business that needs a catalyst.
ROIC dropped from 9.11% to 5.26%, capital efficiency is deteriorating. Operating margin contracted 5.7pp YoY, cost discipline may be slipping.
Profitability & Returns
Revenue (TTM)
$1.03B
▲ +1.8% YoY
Net Income (TTM)
$106M
▼ -32.2% YoY
Op. Margin
10.02%
▼ -5.7pp YoY
ROIC
3.90%
▼ -3.8pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$239M
▲ +40.2% YoY
Op. Cash Flow (TTM)
$263M
▲ +33.6% YoY
Net Debt
-$654M
Net Cash Position
Cash & Equiv.
$654M
5Y CAGR: +12.6%
5Y CAGR: +24.0%
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