Onto Innovation (Combination of Nanometrics and Rudolph Technologies) engages in design, development, manufacture and support of defect inspection, lithography, process control metrology, and data analysis systems and software used by semiconductor and advanced packaging device manufacturers worldwide. The company was founded in 1940 and is based in Flanders, New Jersey.
ONTO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ONTO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Onto Innovation Inc ranked in the 76th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for ONTO, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 100. Notably, its equity weight is greater than 96.24% of US equities in the Technology sector yielding a positive free cash flow.
The business' balance sheet suggests that 0% of the company's capital is sourced from debt; this is greater than merely 0.05% of the free cash flow producing stocks we're observing.
ONTO's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 55.86% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
EVTN, LYTS, WEX, ARW, and PLAB can be thought of as valuation peers to ONTO, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Onto Innovation Inc. (ONTO) Q2 2020 Earnings Conference Call August 4, 2020, 04:30 PM ET Company Participants Mike Sheaffer - IR Michael Plisinski - CEO Steven Roth - CFO Conference Call Participants Craig Ellis - B. Riley FBR Patrick Ho - Stifel Quinn Bolton - Needham Tom Diffely - D.A....
Brown Advisory recently released its Q2 2020 Investor Letter, a copy of which you can download here. The Small-Cap Fundamental Value Fund posted a return of 20.59% for the quarter, outperforming its benchmark, the Russell 2000 Value Index which returned 18.91% in the same quarter. You should check out Brown Advisory’s top 5 stock picks […]