Onto InnovationONTO +1.39%85 Return-on-Tangible-Asset is 9.31% as of Mar. 2026, which is 13% below its 10-year median of 10.66. GuruFocus rates ONTO with a GF Score™ of 85/100 and a GF Value™ of $192.71 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,025 Semiconductors companies, Onto Innovation ranks better than 70.05% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Onto Innovation's annualizedNet Income for the quarter that ended in Mar. 2026 was $135 Mil. Onto Innovation's average total tangible assets for the quarter that ended in Mar. 2026 was $1,450 Mil. Therefore, Onto Innovation's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 9.31%.
The historical rank and industry rank for Onto Innovation's Return-on-Tangible-Asset or its related term are showing as below:
ONTO'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 0.33 Med: 10.66 Max: 19.31
Current: 6.63
During the past 13 years, Onto Innovation's highest Return-on-Tangible-Asset was 19.31%. The lowest was 0.33%. And the median was 10.66%.
ONTO's Return-on-Tangible-Asset is ranked better than 70.05% of 1025
companies
in the Semiconductors industry
Industry Median: 2.63
vs ONTO: 6.63
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Onto Innovation Return-on-Tangible-Asset Related Terms
Onto Innovation Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Onto Innovation's Return-on-Tangible-Asset 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, AMKR, FORM: Return-on-Tangible-Asset Comparison
For the Semiconductor Equipment & Materials subindustry, Onto Innovation's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Onto Innovation's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Onto Innovation's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 9.31% mean?
Onto Innovation (ONTO) has a Return-on-Tangible-Asset of 9.31% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Onto Innovation and its competitors. This is 13% below median its historical median of 10.66. Over the past decade, Onto Innovation's Return-on-Tangible-Asset has ranged from 0.33 to 19.31. According to the industry distribution chart, Onto Innovation ranks #307 out of 1025 companies in the Semiconductors industry, placing it in the top 30%.
Is Onto Innovation's Return-on-Tangible-Asset too high?
Onto Innovation's current Return-on-Tangible-Asset of 9.31% is 13% below median its 10-year median of 10.66. Over the past 10 years, this metric has ranged from a low of 0.33 to a high of 19.31. The Semiconductors industry median Return-on-Tangible-Asset is 2.63. Onto Innovation's value of 9.31% is 254% above this industry median. Based on the distribution chart, Onto Innovation ranks #307 out of 1025 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 Return-on-Tangible-Asset compare to NVMI and AMKR?
According to the Semiconductors industry distribution chart, Onto Innovation ranks #307 out of 1025 companies for Return-on-Tangible-Asset. This puts Onto Innovation in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.63. Onto Innovation's value of 9.31% is 254% above this benchmark. Historically, Onto Innovation's own Return-on-Tangible-Asset has ranged from 0.33 to 19.31 over the past decade. While the company's 10-year median is 10.66 vs. the industry median of 2.63, 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 Return-on-Tangible-Asset for a Semiconductors company?
The median Return-on-Tangible-Asset among Semiconductors companies is 2.63, based on 1,025 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Onto Innovation's current Return-on-Tangible-Asset of 9.31% is 254% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Onto Innovation and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Asset is 2.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Onto Innovation's current Return-on-Tangible-Asset is 9.31%, which is 13% below median its own 10-year median of 10.66. 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 $192.71, compared to a current price of $321.44 — trading 66.8% above its estimated fair value. The current Return-on-Tangible-Asset is 9.31%, which is 13% below median its 10-year median of 10.66 and 254% above the Semiconductors industry median of 2.63. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Onto Innovation (ONTO), the current Return-on-Tangible-Asset is 9.31% 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 $321.44 is trading 66.8% above its estimated GF Value™ of $192.71.
GuruFocus considers Onto Innovation to be Significantly Overvalued.
Key valuation signals for ONTO:
Return-on-Tangible-Asset: 9.31% (13% below median its 10-year median of 10.66)
GF Value™: $192.71 vs. price of $321.44 (66.8% above fair value)
Industry Position: 254% above the Semiconductors median (#307 of 1025)
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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