Onto InnovationONTO +2.01%85 Net Margin % is 11.56% as of Mar. 2026, which is 25% below its 10-year median of 15.36. 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 1,023 Semiconductors companies, Onto Innovation ranks better than 66.37% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Onto Innovation's Net Income for the
three
months ended in Mar. 2026 was $34 Mil. Onto Innovation's Revenue for the
three
months ended in Mar. 2026 was $292 Mil. Therefore, Onto Innovation's net margin for the quarter that ended in Mar. 2026 was 11.56%.
The historical rank and industry rank for Onto Innovation's Net Margin % or its related term are showing as below:
ONTO'
s Net Margin % Range Over the Past 10 Years
Min: 0.62 Med: 15.36 Max: 22.22
Current: 10.33
ONTO's Net Margin % is ranked better than 66.37% of 1023
companies
in the Semiconductors industry
Industry Median: 4.17
vs ONTO: 10.33
Onto Innovation (NYSE:ONTO) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Onto Innovation Net Margin % Related Terms
Onto Innovation Net Margin % Historical Data
* Premium members only.
The historical data trend for Onto Innovation's Net 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.
For the Semiconductor Equipment & Materials subindustry, Onto Innovation's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Onto Innovation's Net Margin % distribution charts can be found below:
* The bar in red indicates where Onto Innovation's Net 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.
Onto Innovation (ONTO) has a Net Margin % of 11.56% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Onto Innovation and its competitors. This is 25% below median its historical median of 15.36. Over the past decade, Onto Innovation's Net Margin % has ranged from 0.62 to 22.22. According to the industry distribution chart, Onto Innovation ranks #344 out of 1023 companies in the Semiconductors industry, placing it in the top 33.6%.
Is Onto Innovation's Net Margin % too high?
Onto Innovation's current Net Margin % of 11.56% is 25% below median its 10-year median of 15.36. Over the past 10 years, this metric has ranged from a low of 0.62 to a high of 22.22. The Semiconductors industry median Net Margin % is 4.17. Onto Innovation's value of 11.56% is 177.2% above this industry median. Based on the distribution chart, Onto Innovation ranks #344 out of 1023 companies in the Semiconductors industry, which is above the industry midpoint. 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 Net Margin % compare to NVMI and FORM?
According to the Semiconductors industry distribution chart, Onto Innovation ranks #344 out of 1023 companies for Net Margin %. This puts Onto Innovation in the upper half of its industry. The industry median Net Margin % is 4.17. Onto Innovation's value of 11.56% is 177.2% above this benchmark. Historically, Onto Innovation's own Net Margin % has ranged from 0.62 to 22.22 over the past decade. While the company's 10-year median is 15.36 vs. the industry median of 4.17, 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 Net Margin % for a Semiconductors company?
The median Net Margin % among Semiconductors companies is 4.17, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Onto Innovation's current Net Margin % of 11.56% is 177.2% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Onto Innovation and its competitors. For the Semiconductors industry, the median Net Margin % is 4.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Onto Innovation's current Net Margin % is 11.56%, which is 25% below median its own 10-year median of 15.36. 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 $322.24 — trading 70.3% above its estimated fair value. The current Net Margin % is 11.56%, which is 25% below median its 10-year median of 15.36 and 177.2% above the Semiconductors industry median of 4.17. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Onto Innovation (ONTO), the current Net Margin % is 11.56% 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 $322.24 is trading 70.3% above its estimated GF Value™ of $189.26.
GuruFocus considers Onto Innovation to be Significantly Overvalued.
Key valuation signals for ONTO:
Net Margin %: 11.56% (25% below median its 10-year median of 15.36)
GF Value™: $189.26 vs. price of $322.24 (70.3% above fair value)
Industry Position: 177.2% above the Semiconductors median (#344 of 1023)
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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