Onto Innovation (ONTO) looking great here working out of a nice base off uptrend support following a modest pullback off new highs. Onto Innovation is a worldwide leader in the design, development, manufacture and support of process control tools that perform macro defect inspection and metrology, lithography systems, and process control analytical software used by semiconductor wafer and advanced packaging device manufacturers. ONTO has a market cap of $3.65B and trades 18.2X Earnings, 5.65X Sales and 29.2X FCF with a strong balance sheet flush with cash. ONTO grew revenues 82% on 2020 and seen growing 37% in 2021 with EPS growing 39.8% and 84.5% respectively. ONTO has little competitions and is levered to strong secular trends in advanced packaging, CMOS image sensing and radio frequency.

From the last earnings call:

“Across the semiconductor value chain from silicon wafers to wafer fabrication and advanced packaging Onto Innovation’s products are contributing to the faster ramps and higher yields necessary to support the unprecedented global demand for semiconductors. Onto Innovation is broadly participating in this growth from logic at 7-nanometer down to the 3-nanometer design nodes to the latest DRAM and 5G communication devices and out to the rapidly evolving advanced packaging markets where accelerating design shrinks are creating strong demand for more sophisticated and versatile inspection solutions.”

“Another segment we see expanding our served markets as panel level packaging. We believe this market represents an important inflection point for the industry, particularly for high-performance compute engines and large heterogeneous packages. Our newest lithography tools deliver high-resolution imaging across a very wide field of view, which is proving to be a key enabler for next-generation packaging technology for larger advanced packages.”