Onto Innovation Intrinsic Stock Value – Onto Innovation sees decrease in stake as Impax Asset Management Group plc reduces ownership by 14% in third quarter.
November 12, 2024
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Onto Innovation ($NYSE:ONTO) Inc. is a leading provider of process control solutions and advanced inspection systems for the semiconductor and related industries. With a global presence and a diverse portfolio of products, Onto Innovation is at the forefront of technological advancements in the semiconductor industry.
However, recent news reveals that Impax Asset Management Group plc has reduced its stake in Onto Innovation by 14% in the third quarter, according to the 13F filing. This decrease in ownership amounts to over 1 million shares, which could be a cause for concern for investors. The reason behind this reduction in stake is unclear. It could be due to various reasons such as a change in investment strategy or profit-taking. However, it is worth noting that Onto Innovation’s stock has been on a downward trend since its peak in July, which could have influenced Impax Asset Management Group’s decision to reduce their stake. This news may cause some uncertainty among investors, especially those who have been following Onto Innovation closely. However, it is essential to keep in mind that Impax Asset Management Group still holds a substantial position in the company. This reduction in ownership does not necessarily reflect a lack of confidence in Onto Innovation’s performance or potential. Moreover, Onto Innovation has recently announced strong financial results for the third quarter, with an increase in revenue and net income compared to the previous year. This indicates that the company is on track for growth and continues to be a promising player in the semiconductor industry. The company’s solid financial performance and promising future prospects make it an attractive investment opportunity for those looking to invest in the semiconductor industry. It will be interesting to see how Onto Innovation continues to evolve and grow in the coming months.
Analysis – Onto Innovation Intrinsic Stock Value
As an analytical firm, GoodWhale has thoroughly examined ONTO INNOVATION‘s underlying principles and we have found some key points worth noting. We believe that understanding these principles is crucial for investors looking to make informed decisions about the company’s stock. First and foremost, our proprietary Valuation Line indicates that the intrinsic value of ONTO INNOVATION’s share is approximately $88.7. This calculation takes into account various factors such as the company’s financial performance, industry trends, and overall market conditions. This value serves as a benchmark for investors to determine whether the stock is undervalued or overvalued. At the current market price of $176.04, ONTO INNOVATION’s stock is significantly overvalued, with an overvaluation of 98.5%. This means that investors are currently paying almost double the intrinsic value for the stock. This may be a cause for concern as it suggests that the stock may be overpriced and could potentially see a correction in the future. Therefore, it is important for investors to carefully consider the underlying principles and valuations of ONTO INNOVATION before making any investment decisions. It is also advisable to keep a close eye on any developments or changes within the company and the market to keep informed about potential risks or opportunities. As always, thorough research and due diligence are crucial for making sound investment choices. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Onto Innovation. More…
| Total Revenues | Net Income | Net Margin |
| 815.87 | 121.16 | 14.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Onto Innovation. More…
| Operations | Investing | Financing |
| 159.88 | -55.69 | -68.35 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Onto Innovation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.91k | 173.18 | 34.56 |
Key Ratios Snapshot
Some of the financial key ratios for Onto Innovation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.6% | 63.3% | 14.2% |
| FCF Margin | ROE | ROA |
| 16.1% | 4.3% | 3.8% |
Peers
The company’s products are used in the manufacture of integrated circuits (ICs), and its customers include major semiconductor manufacturers and foundries. Onto Innovation Inc’s competitors include Spectra7 Microsystems Inc, Alchip Technologies Ltd, and AXT Inc.
– Spectra7 Microsystems Inc ($TSXV:SEV)
Spectra7 Microsystems Inc is a Canadian technology company that designs, develops and markets high-speed semiconductor products for the consumer electronics and cable television industries. The company’s products are used in a variety of applications, including cable modems, set-top boxes, digital video recorders, video game consoles and high-definition televisions. Spectra7’s products are based on its proprietary technology that enables the transmission of data over long distances at high speeds.
Spectra7’s market cap is 18.51M as of 2022. The company’s return on equity is -345.75%.
Spectra7 Microsystems Inc is a technology company that designs, develops, and markets high-speed semiconductor products. The company’s products are used in cable modems, set-top boxes, digital video recorders, video game consoles, and high-definition televisions.
– Alchip Technologies Ltd ($TWSE:3661)
Alchip Technologies Ltd is a global leader in the design and manufacture of advanced silicon chips. The company has a market cap of 44.3B and a ROE of 11.05%. Alchip provides a full range of services to its customers, from initial design and development to volume production and packaging. The company’s products are used in a variety of applications, including communication, computing, consumer, industrial, and automotive.
– AXT Inc ($NASDAQ:AXTI)
AXT Inc is a company that manufactures and sells semiconductor wafers. The company has a market cap of 189.46M as of 2022 and a Return on Equity of 4.5%. AXT Inc’s products are used in a variety of applications, including mobile phones, laptops, and other electronic devices. The company has a strong presence in the Asia-Pacific region and is expanding its operations into other markets.
Summary
Impax Asset Management Group plc decreased its ownership in Onto Innovation Inc. by 14.0% during the third quarter. This suggests that the company may not be performing as well as expected, leading to a decrease in investor confidence. It is unclear why Impax decided to reduce its stake in Onto Innovation, but it could be due to a variety of factors such as financial performance, market conditions, or changes in the company’s strategy. Investors should closely monitor the company’s future earnings and market trends to determine if Onto Innovation is a viable investment opportunity.
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