VEECO INSTRUMENTS INC (VECO) Stock Fundamental Analysis
NASDAQ:VECO - Nasdaq - US9224171002 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to VECO. VECO was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. VECO has an excellent profitability rating, but there are some minor concerns on its financial health. VECO has a bad growth rate and is valued cheaply. These ratings could make VECO a good candidate for value investing.
1. Profitability
1.1 Basic Checks
VECO had positive earnings in the past year.
VECO had a positive operating cash flow in the past year.
In multiple years VECO reported negative net income over the last 5 years.
In the past 5 years VECO always reported a positive cash flow from operatings.
1.2 Ratios
VECO's Return On Assets of 4.99% is fine compared to the rest of the industry. VECO outperforms 65.45% of its industry peers.
The Return On Equity of VECO (7.86%) is better than 64.55% of its industry peers.
With a decent Return On Invested Capital value of 6.26%, VECO is doing good in the industry, outperforming 70.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VECO is below the industry average of 10.68%.
The last Return On Invested Capital (6.26%) for VECO is above the 3 year average (6.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.99% | ||
| ROE | 7.86% | ||
| ROIC | 6.26% |
ROA(3y)6.07%
ROA(5y)4.03%
ROE(3y)11.31%
ROE(5y)7.56%
ROIC(3y)6.04%
ROIC(5y)5.39%
1.3 Margins
VECO's Profit Margin of 8.99% is fine compared to the rest of the industry. VECO outperforms 62.73% of its industry peers.
In the last couple of years the Profit Margin of VECO has grown nicely.
With a decent Operating Margin value of 12.28%, VECO is doing good in the industry, outperforming 68.18% of the companies in the same industry.
In the last couple of years the Operating Margin of VECO has grown nicely.
VECO has a Gross Margin (41.83%) which is in line with its industry peers.
VECO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.28% | ||
| PM (TTM) | 8.99% | ||
| GM | 41.83% |
OM growth 3Y10.9%
OM growth 5YN/A
PM growth 3Y32.11%
PM growth 5YN/A
GM growth 3Y0.67%
GM growth 5Y2.35%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VECO is destroying value.
Compared to 1 year ago, VECO has more shares outstanding
Compared to 5 years ago, VECO has more shares outstanding
VECO has a better debt/assets ratio than last year.
2.2 Solvency
VECO has an Altman-Z score of 2.47. This is not the best score and indicates that VECO is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.47, VECO is doing worse than 62.73% of the companies in the same industry.
The Debt to FCF ratio of VECO is 4.50, which is a neutral value as it means it would take VECO, 4.50 years of fcf income to pay off all of its debts.
VECO's Debt to FCF ratio of 4.50 is in line compared to the rest of the industry. VECO outperforms 56.36% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that VECO is not too dependend on debt financing.
VECO has a Debt to Equity ratio of 0.31. This is in the lower half of the industry: VECO underperforms 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 2.47 |
ROIC/WACC0.57
WACC10.97%
2.3 Liquidity
A Current Ratio of 4.44 indicates that VECO has no problem at all paying its short term obligations.
VECO has a Current ratio of 4.44. This is in the better half of the industry: VECO outperforms 63.64% of its industry peers.
VECO has a Quick Ratio of 3.02. This indicates that VECO is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of VECO (3.02) is better than 60.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.44 | ||
| Quick Ratio | 3.02 |
3. Growth
3.1 Past
The earnings per share for VECO have decreased strongly by -10.27% in the last year.
The Earnings Per Share has been growing slightly by 6.76% on average over the past years.
VECO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.30%.
Measured over the past years, VECO shows a quite strong growth in Revenue. The Revenue has been growing by 11.34% on average per year.
EPS 1Y (TTM)-10.27%
EPS 3Y6.76%
EPS 5YN/A
EPS Q2Q%-17.78%
Revenue 1Y (TTM)3.3%
Revenue growth 3Y7.14%
Revenue growth 5Y11.34%
Sales Q2Q%-4.12%
3.2 Future
The Earnings Per Share is expected to grow by 2.37% on average over the next years.
VECO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.09% yearly.
EPS Next Y-29.64%
EPS Next 2Y-5.32%
EPS Next 3Y2.37%
EPS Next 5YN/A
Revenue Next Year-9.12%
Revenue Next 2Y0.02%
Revenue Next 3Y3.09%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.54, VECO is valued correctly.
Based on the Price/Earnings ratio, VECO is valued cheaper than 95.45% of the companies in the same industry.
VECO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.05.
With a Price/Forward Earnings ratio of 13.35, VECO is valued correctly.
90.91% of the companies in the same industry are more expensive than VECO, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of VECO to the average of the S&P500 Index (37.67), we can say VECO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 13.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VECO is valued cheaper than 90.91% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VECO is valued cheaply inside the industry as 80.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.46 | ||
| EV/EBITDA | 8.71 |
4.3 Compensation for Growth
VECO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.32%
EPS Next 3Y2.37%
5. Dividend
5.1 Amount
VECO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.82
+0.23 (+1.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.42%
Inst Owner Change-0.34%
Ins Owners2.53%
Ins Owner Change7.23%
Market Cap1.25B
Analysts81.54
Price Target27.69 (33%)
Short Float %8.1%
Short Ratio7.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.44%
Min EPS beat(2)-0.12%
Max EPS beat(2)13%
EPS beat(4)2
Avg EPS beat(4)2.21%
Min EPS beat(4)-4.21%
Max EPS beat(4)13%
EPS beat(8)6
Avg EPS beat(8)11.94%
EPS beat(12)10
Avg EPS beat(12)15.16%
EPS beat(16)14
Avg EPS beat(16)15.22%
Revenue beat(2)1
Avg Revenue beat(2)-0.34%
Min Revenue beat(2)-1.34%
Max Revenue beat(2)0.66%
Revenue beat(4)2
Avg Revenue beat(4)-0.58%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)0.66%
Revenue beat(8)6
Avg Revenue beat(8)0.37%
Revenue beat(12)7
Avg Revenue beat(12)0.1%
Revenue beat(16)9
Avg Revenue beat(16)0.31%
PT rev (1m)0%
PT rev (3m)-4.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-32.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.54 | ||
| Fwd PE | 13.35 | ||
| P/S | 1.76 | ||
| P/FCF | 22.46 | ||
| P/OCF | 16.76 | ||
| P/B | 1.54 | ||
| P/tB | 2.12 | ||
| EV/EBITDA | 8.71 |
EPS(TTM)1.66
EY7.97%
EPS(NY)1.56
Fwd EY7.49%
FCF(TTM)0.93
FCFY4.45%
OCF(TTM)1.24
OCFY5.97%
SpS11.85
BVpS13.54
TBVpS9.82
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.99% | ||
| ROE | 7.86% | ||
| ROCE | 7.93% | ||
| ROIC | 6.26% | ||
| ROICexc | 9.23% | ||
| ROICexgc | 13.16% | ||
| OM | 12.28% | ||
| PM (TTM) | 8.99% | ||
| GM | 41.83% | ||
| FCFM | 7.83% |
ROA(3y)6.07%
ROA(5y)4.03%
ROE(3y)11.31%
ROE(5y)7.56%
ROIC(3y)6.04%
ROIC(5y)5.39%
ROICexc(3y)8.95%
ROICexc(5y)8.09%
ROICexgc(3y)13.67%
ROICexgc(5y)13.37%
ROCE(3y)7.64%
ROCE(5y)6.82%
ROICexcg growth 3Y-2.66%
ROICexcg growth 5YN/A
ROICexc growth 3Y4.46%
ROICexc growth 5YN/A
OM growth 3Y10.9%
OM growth 5YN/A
PM growth 3Y32.11%
PM growth 5YN/A
GM growth 3Y0.67%
GM growth 5Y2.35%
F-Score6
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.5 | ||
| Debt/EBITDA | 2.25 | ||
| Cap/Depr | 79.41% | ||
| Cap/Sales | 2.66% | ||
| Interest Coverage | 9.09 | ||
| Cash Conversion | 67.08% | ||
| Profit Quality | 87.09% | ||
| Current Ratio | 4.44 | ||
| Quick Ratio | 3.02 | ||
| Altman-Z | 2.47 |
F-Score6
WACC10.97%
ROIC/WACC0.57
Cap/Depr(3y)93.34%
Cap/Depr(5y)91.54%
Cap/Sales(3y)3.51%
Cap/Sales(5y)3.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.27%
EPS 3Y6.76%
EPS 5YN/A
EPS Q2Q%-17.78%
EPS Next Y-29.64%
EPS Next 2Y-5.32%
EPS Next 3Y2.37%
EPS Next 5YN/A
Revenue 1Y (TTM)3.3%
Revenue growth 3Y7.14%
Revenue growth 5Y11.34%
Sales Q2Q%-4.12%
Revenue Next Year-9.12%
Revenue Next 2Y0.02%
Revenue Next 3Y3.09%
Revenue Next 5YN/A
EBIT growth 1Y4.41%
EBIT growth 3Y18.82%
EBIT growth 5YN/A
EBIT Next Year-23.19%
EBIT Next 3Y4.8%
EBIT Next 5YN/A
FCF growth 1Y-27.83%
FCF growth 3Y19.03%
FCF growth 5YN/A
OCF growth 1Y-23.72%
OCF growth 3Y-1.95%
OCF growth 5YN/A