BN · rank #10 · 2026-07-27
ONTO
NYSE · $13.56B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.30 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +21.7% |
| Forward net margin Consensus forward net margin. | +11.7% |
| Net margin TTM Trailing twelve month net margin. | +10.3% |
| Margin expansion Forward minus trailing net margin (percentage points). | +1.4% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 1.27 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.07× |
| Analyst upside Spread between the consensus 12m target and the current price. | +35.6% |
| Last EPS surprise Most recent reported EPS versus consensus. | +0% |
| Market cap (USD) | $13.56B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
ONTO Innovation makes semiconductor inspection, metrology, lithography and analytics tools, with Dragonfly, Atlas and related platforms aimed at AI, HBM and advanced packaging bottlenecks.
Rationale
The latest guidance shows accelerating growth and margins, while the model’s high forward revenue growth, expanding profitability, low debt-to-FCF and ~35.6% analyst upside fit a bottleneck-solver setup tied to advanced AI chip packaging and memory.
Material risks
- 1KLA and Applied Materials can win tool slots in advanced packaging, which could erode Onto’s “must-have” position at key customers.
- 2The thesis remains dependent on AI/HBM and packaging capex cycles, with no backlog/long-term contract moat to fully de-risk demand.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.