Onto InnovationONTO +6.83%85 Pretax Margin % is 13.03% as of Mar. 2026, which is 34% below its 10-year median of 19.61. 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 67.45% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Onto Innovation Pretax Margin % Related Terms
Onto Innovation Pretax Margin % Historical Data
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The historical data trend for Onto Innovation's Pretax 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: Pretax Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Onto Innovation's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Onto Innovation's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Onto Innovation's Pretax 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 Pretax Margin % of 13.03% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Onto Innovation and its competitors. This is 34% below median its historical median of 19.61. According to the industry distribution chart, Onto Innovation ranks #333 out of 1023 companies in the Semiconductors industry, placing it in the top 32.6%.
Is Onto Innovation's Pretax Margin % too high?
Onto Innovation's current Pretax Margin % of 13.03% is 34% below median its 10-year median of 19.61. The Semiconductors industry median Pretax Margin % is 5.08. Onto Innovation's value of 13.03% is 156.5% above this industry median. Based on the distribution chart, Onto Innovation ranks #333 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 Pretax Margin % compare to NVMI and FORM?
According to the Semiconductors industry distribution chart, Onto Innovation ranks #333 out of 1023 companies for Pretax Margin %. This puts Onto Innovation in the upper half of its industry. The industry median Pretax Margin % is 5.08. Onto Innovation's value of 13.03% is 156.5% above this benchmark. While the company's 10-year median is 19.61 vs. the industry median of 5.08, 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 Pretax Margin % for a Semiconductors company?
The median Pretax Margin % among Semiconductors companies is 5.08, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Onto Innovation's current Pretax Margin % of 13.03% is 156.5% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Onto Innovation and its competitors. For the Semiconductors industry, the median Pretax Margin % is 5.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Onto Innovation's current Pretax Margin % is 13.03%, which is 34% below median its own 10-year median of 19.61. 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 $344.26 — trading 81.9% above its estimated fair value. The current Pretax Margin % is 13.03%, which is 34% below median its 10-year median of 19.61 and 156.5% above the Semiconductors industry median of 5.08. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Onto Innovation (ONTO), the current Pretax Margin % is 13.03% 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 $344.26 is trading 81.9% above its estimated GF Value™ of $189.26.
GuruFocus considers Onto Innovation to be Significantly Overvalued.
Key valuation signals for ONTO:
Pretax Margin %: 13.03% (34% below median its 10-year median of 19.61)
GF Value™: $189.26 vs. price of $344.26 (81.9% above fair value)
Industry Position: 156.5% above the Semiconductors median (#333 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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