ONTO

Technology

Onto Innovation Inc. · Semiconductors · $13B

UQS Score — Balanced Preset
39.6
Below Average

Onto Innovation Inc. scores 39.6/100 using the Balanced preset.

UQS vs Technology Sector
ONTO
39.6
Sector avg
38.0
Quality
Weak
Moat
Weak
Growth
Weak
Risk
Strong
Valuation
Neutral

What is Onto Innovation Inc.?

Onto Innovation Inc. designs and manufactures process control tools for the global semiconductor industry. Headquartered in Wilmington, Massachusetts, the company serves chipmakers, packaging facilities, and advanced device manufacturers worldwide.

Onto Innovation generates revenue by selling process control equipment and software to semiconductor manufacturers. Its tools perform macro-defect inspection, optical metrology, and lithography — helping chipmakers detect flaws and measure thin films during production. The company also offers process control software that can operate at the tool, group, or factory-wide level, and earns recurring revenue through spare parts and software licensing services.

Onto Innovation was established in 2019 and is headquartered in Wilmington, Massachusetts.

  • Macro-defect inspection systems for wafer and packaging lines
  • 2D and 3D optical metrology tools
  • Packaging lithography systems
  • Probe card test and analysis equipment
  • Process control software for factory-wide yield management

Is ONTO a Good Stock to Buy?

UQS Score rates ONTO as Below Average overall.

Among the five pillars, Risk stands out as the clearest relative strength — suggesting the company carries a manageable financial risk profile compared to many peers in the semiconductor equipment space. That stability may appeal to investors who prioritize balance-sheet discipline.

Quality, Moat, and Growth all register as Weak, indicating limited competitive differentiation and subdued earnings power at this time. Valuation is rated Elevated, meaning the market price may not offer a wide margin of safety given the underlying fundamentals.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does ONTO pay dividends?

No — Onto Innovation Inc. does not currently pay a dividend.

Onto Innovation does not currently pay a dividend. Companies in capital-intensive semiconductor equipment segments often retain cash to fund research, product development, and capacity investments rather than distributing it to shareholders. Investors seeking income may want to weigh this alongside the company's overall UQS profile.

When does ONTO report earnings?

Onto Innovation reports earnings on a quarterly cadence, typical for US-listed equities.

The company's Growth pillar is currently rated Weak, reflecting a period where revenue and earnings expansion has lagged sector peers. Investors should monitor whether new product cycles or end-market recoveries shift that trajectory.

For the most recent quarter's results and guidance, visit Onto Innovation's investor relations page directly.

ONTO Price History

+304.1% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Onto Innovation Inc.?

$
Today it would be worth
$42,606
That's a +326% total return, or +33.6% annualized.

Based on Onto Innovation Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

ONTO Long-term Outlook

The UQS Growth pillar for ONTO is rated Weak, pointing to near-term headwinds in revenue expansion. The Risk pillar remains Good, which suggests the company is not in financial distress — but a Weak Moat rating raises questions about pricing power and long-term margin sustainability. An Elevated Valuation rating adds further caution, as the current market price appears to price in a recovery that the fundamental pillars have not yet confirmed.

Growth drivers

  • Advanced packaging demand as chipmakers adopt heterogeneous integration
  • Expansion of process control requirements in leading-edge semiconductor nodes
  • Software and services recurring revenue from installed tool base

Key risks

  • Weak competitive moat leaves pricing power vulnerable to larger equipment rivals
  • Elevated valuation creates downside risk if growth recovery is delayed
  • Cyclical semiconductor capex cuts can rapidly reduce equipment order volumes

ONTO vs Peers

Onto Innovation operates in a competitive technology landscape alongside companies that address adjacent semiconductor and chip-design markets.

RMBSONTO scores lower
Rambus Inc.

Rambus focuses on semiconductor interface IP and memory chip architectures, competing for wallet share in the broader chip ecosystem rather than process control hardware.

SITMONTO scores lower
SiTime Corporation

SiTime specializes in MEMS-based timing semiconductors, serving communications and industrial markets with a fabless model distinct from Onto's equipment-centric approach.

LSCCONTO scores higher
Lattice Semiconductor Corporation

Lattice designs low-power programmable logic devices, competing in the semiconductor value chain at the chip level rather than the inspection and metrology equipment layer.

Frequently Asked Questions

What does Onto Innovation do?

Onto Innovation designs and manufactures process control equipment used in semiconductor fabrication. Its tools inspect wafers for defects, measure thin films, and support lithography in advanced packaging. The company also sells process control software and earns recurring revenue through spare parts and licensing.

Does ONTO pay dividends?

No, Onto Innovation does not currently pay a dividend. The company retains capital for product development and operational investment, which is common among semiconductor equipment makers. Income-focused investors should factor this into their assessment alongside the full UQS profile.

When does ONTO report earnings?

Onto Innovation follows a standard quarterly earnings cadence for US-listed companies. For confirmed dates and the most recent results, check the investor relations section of the company's official website.

Is ONTO a good stock to buy?

UQS Score rates ONTO as Below Average. The Risk pillar is Good, but Quality, Moat, and Growth are all Weak, and Valuation is Elevated. That combination suggests the stock carries meaningful fundamental challenges relative to its current market price. The full pillar breakdown is available to Pro members.

Is ONTO overvalued?

The UQS Valuation pillar for ONTO is rated Elevated, indicating the market price appears high relative to the company's current fundamental profile. With Weak Growth and Moat ratings, the valuation leaves limited room for error if business conditions do not improve.

How does ONTO compare to its competitors?

Onto Innovation's listed peers — Rambus, SiTime, and Lattice Semiconductor — operate in adjacent parts of the semiconductor ecosystem rather than direct process control competition. Each has a distinct business model, and their UQS scores can be compared side by side on this platform.

What is ONTO's market cap bracket?

Onto Innovation is classified as a large-cap stock. This places it among established companies with significant market presence, though size alone does not determine quality or investment suitability — the UQS pillar profile provides a more complete picture.

Who founded Onto Innovation?

Onto Innovation was formed in 2019 through the merger of Rudolph Technologies and Nanometrics. The combined entity brought together decades of semiconductor process control expertise. Founding context for the predecessor companies is widely available through public records.

Is ONTO a long-term quality stock?

As a long-term quality indicator, ONTO's current UQS profile raises caution. Weak scores across Quality, Moat, and Growth suggest the company has not yet demonstrated the durable competitive advantages typically associated with long-term compounders. The Risk pillar offers some reassurance on financial stability.

What is the main competitive advantage of Onto Innovation?

Onto Innovation's UQS Moat pillar is currently rated Weak, suggesting limited durable competitive advantages at this time. The company's installed base and specialized metrology expertise provide some switching-cost benefits, but these have not translated into a strong moat rating under the UQS framework.

What sector does ONTO belong to?

Onto Innovation belongs to the Technology sector, specifically within semiconductor capital equipment. Its tools are used across chipmaking, advanced packaging, LED, MEMS, and power device manufacturing — making it sensitive to broader semiconductor industry capital spending cycles.

Is ONTO a growth stock or value stock?

Based on UQS pillar labels, ONTO does not fit cleanly into either category right now. The Growth pillar is Weak and the Valuation pillar is Elevated, meaning it lacks the earnings momentum of a growth stock while also not offering the discount typically associated with a value stock.

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Pro Analysis

ONTO — Score History

3035404550Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 15 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 22, 202639.623.431.037.382.441.4+0.3
May 14, 202639.323.231.037.382.439.8+0.1
May 7, 202639.228.531.036.975.337.80.0
May 3, 202639.228.531.036.975.338.0+0.2
Apr 26, 202639.028.531.036.975.336.4-0.3
Apr 23, 202639.328.531.036.975.338.2+0.9
Apr 19, 202638.428.531.033.175.337.6-0.7
Apr 18, 202639.128.531.033.175.341.9-1.5
Apr 14, 202640.628.531.033.175.352.4+0.1
Apr 12, 202640.528.531.033.175.351.6-0.9

ONTO — Pillar Breakdown

Quality

23.4/100 (25%)

Onto Innovation Inc. currently shows below-average quality metrics, suggesting challenges with profitability.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsWeak

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

37.3/100 (20%)

Onto Innovation Inc. shows steady but unspectacular growth, typical for mature companies.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookModerate

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

82.4/100 (15%)

Onto Innovation Inc. carries minimal financial risk with conservative leverage and strong solvency.

Financial LeverageStrong

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioStrong

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

41.4/100 (15%)

Onto Innovation Inc. has a mixed valuation — some metrics suggest fair value while others appear stretched.

Earnings YieldWeak

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowWeak

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorWeak

Enterprise value multiple relative to sector median.

Moat

31/100 (25%)

Onto Innovation Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for ONTO.

Score Composition

Quality
23.4×25%5.8
Growth
37.3×20%7.5
Risk
82.4×15%12.4
Valuation
41.4×15%6.2
Moat
31.0×25%7.8
Total
39.6Below Average

Financial Data

More Stock Analysis

How is the ONTO UQS Score Calculated?

The UQS (Unified Quality Score) for Onto Innovation Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Onto Innovation Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Onto Innovation Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.