Onto InnovationONTO +8.03%85 Gross Margin % is 50.14% as of Mar. 2026, which is 4% below its 10-year median of 52.48. GuruFocus rates ONTO with a GF Score™ of 85/100 and a GF Value™ of $189.26 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,011 Semiconductors companies, Onto Innovation ranks better than 81.7% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Onto Innovation had a gross margin of 50.14% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Onto Innovation Gross Margin % Related Terms
Onto Innovation Gross Margin % Historical Data
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The historical data trend for Onto Innovation's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ONTO vs NVMI, FORM, AMKR: Gross Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Onto Innovation's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Onto Innovation Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Onto Innovation's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Onto Innovation's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Onto Innovation (ONTO) has a Gross Margin % of 50.14% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Onto Innovation and its competitors. This is near median its historical median of 52.48. Over the past decade, Onto Innovation's Gross Margin % has ranged from 44.14 to 54.39. According to the industry distribution chart, Onto Innovation ranks #185 out of 1011 companies in the Semiconductors industry, placing it in the top 18.3%.
Is Onto Innovation's Gross Margin % too high?
Onto Innovation's current Gross Margin % of 50.14% is near median its 10-year median of 52.48. Over the past 10 years, this metric has ranged from a low of 44.14 to a high of 54.39. The Semiconductors industry median Gross Margin % is 29.61. Onto Innovation's value of 50.14% is 69.3% above this industry median. Based on the distribution chart, Onto Innovation ranks #185 out of 1011 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Onto Innovation has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Onto Innovation's Gross Margin % compare to NVMI and FORM?
According to the Semiconductors industry distribution chart, Onto Innovation ranks #185 out of 1011 companies for Gross Margin %. This places Onto Innovation in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. Onto Innovation's value of 50.14% is 69.3% above this benchmark. Historically, Onto Innovation's own Gross Margin % has ranged from 44.14 to 54.39 over the past decade. While the company's 10-year median is 52.48 vs. the industry median of 29.61, Onto Innovation has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,011 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Onto Innovation's current Gross Margin % of 50.14% is 69.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Onto Innovation and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Onto Innovation's current Gross Margin % is 50.14%, which is near median its own 10-year median of 52.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Onto Innovation stock overvalued right now?
Based on GuruFocus' analysis, Onto Innovation (ONTO) is currently considered Significantly Overvalued. The stock's GF Value™ is $189.26, compared to a current price of $348.10 — trading 83.9% above its estimated fair value. The current Gross Margin % is 50.14%, which is near median its 10-year median of 52.48 and 69.3% above the Semiconductors industry median of 29.61. Onto Innovation's overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Onto Innovation (ONTO), the current Gross Margin % is 50.14% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Onto Innovation (ONTO) Overvalued in 2026?
Based on GuruFocus' analysis, Onto Innovation stock appears to be overvalued.
The current stock price of $348.10 is trading 83.9% above its estimated GF Value™ of $189.26.
GuruFocus considers Onto Innovation to be Significantly Overvalued.
Key valuation signals for ONTO:
Gross Margin %: 50.14% (near median its 10-year median of 52.48)
GF Value™: $189.26 vs. price of $348.10 (83.9% above fair value)
Industry Position: 69.3% above the Semiconductors median (#185 of 1011)
No single metric tells the full story. See the ONTO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Onto Innovation Inc is engaged in the design, development, manufacture, and support of high-performance control metrology, defect inspection, lithography, and data analysis systems used by microelectronics device manufacturers. The Company and its subsidiaries currently operate in a single operating segment. The company mainly operates in the United States, Southeast Asia, China, Japan, and Europe, with Taiwan and South Korea the sources of total revenue.
85GF Score
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