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. While VECO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. VECO is valued quite cheap, but it does not seem to be growing.
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.
The reported net income has been mixed in the past 5 years: VECO reported negative net income in multiple years.
Each year in the past 5 years VECO had a positive operating cash flow.
1.2 Ratios
VECO has a Return On Assets of 5.89%. This is in the better half of the industry: VECO outperforms 67.27% of its industry peers.
VECO has a Return On Equity of 9.56%. This is in the better half of the industry: VECO outperforms 66.36% of its industry peers.
The Return On Invested Capital of VECO (7.09%) is better than 74.55% of its industry peers.
VECO had an Average Return On Invested Capital over the past 3 years of 6.04%. This is significantly below the industry average of 11.20%.
The last Return On Invested Capital (7.09%) for VECO is above the 3 year average (6.04%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.89% | ||
| ROE | 9.56% | ||
| ROIC | 7.09% |
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
The Profit Margin of VECO (10.28%) is better than 65.45% of its industry peers.
VECO's Profit Margin has improved in the last couple of years.
VECO has a better Operating Margin (13.26%) than 69.09% of its industry peers.
VECO's Operating Margin has improved in the last couple of years.
VECO's Gross Margin of 42.38% is in line compared to the rest of the industry. VECO outperforms 45.45% of its industry peers.
In the last couple of years the Gross Margin of VECO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.26% | ||
| PM (TTM) | 10.28% | ||
| GM | 42.38% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VECO is destroying value.
The number of shares outstanding for VECO has been increased compared to 1 year ago.
VECO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for VECO has been reduced compared to a year ago.
2.2 Solvency
VECO has an Altman-Z score of 2.23. 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.
With a Altman-Z score value of 2.23, VECO is not doing good in the industry: 64.55% of the companies in the same industry are doing better.
VECO has a debt to FCF ratio of 6.04. This is a slightly negative value and a sign of low solvency as VECO would need 6.04 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.04, VECO is in line with its industry, outperforming 58.18% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that VECO is not too dependend on debt financing.
VECO has a Debt to Equity ratio of 0.32. This is in the lower half of the industry: VECO underperforms 62.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 6.04 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.79
WACC8.94%
2.3 Liquidity
VECO has a Current Ratio of 3.98. This indicates that VECO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of VECO (3.98) is better than 61.82% of its industry peers.
A Quick Ratio of 2.69 indicates that VECO has no problem at all paying its short term obligations.
VECO has a Quick ratio of 2.69. This is comparable to the rest of the industry: VECO outperforms 57.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.98 | ||
| Quick Ratio | 2.69 |
3. Growth
3.1 Past
VECO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.27%.
VECO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.76% yearly.
VECO shows a small growth in Revenue. In the last year, the Revenue has grown by 7.63%.
VECO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.34% yearly.
EPS 1Y (TTM)-10.27%
EPS 3Y6.76%
EPS 5YN/A
EPS Q2Q%-17.78%
Revenue 1Y (TTM)7.63%
Revenue growth 3Y7.14%
Revenue growth 5Y11.34%
Sales Q2Q%-4.12%
3.2 Future
VECO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.92% yearly.
VECO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.42% yearly.
EPS Next Y-17.08%
EPS Next 2Y-0.07%
EPS Next 3Y4.92%
EPS Next 5YN/A
Revenue Next Year-3.72%
Revenue Next 2Y2.27%
Revenue Next 3Y4.42%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
VECO is valuated reasonably with a Price/Earnings ratio of 11.99.
Based on the Price/Earnings ratio, VECO is valued cheaper than 90.00% of the companies in the same industry.
VECO is valuated cheaply when we compare the Price/Earnings ratio to 24.12, which is the current average of the S&P500 Index.
VECO is valuated reasonably with a Price/Forward Earnings ratio of 11.45.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VECO indicates a rather cheap valuation: VECO is cheaper than 89.09% of the companies listed in the same industry.
VECO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.99 | ||
| Fwd PE | 11.45 |
4.2 Price Multiples
90.00% of the companies in the same industry are more expensive than VECO, based on the Enterprise Value to EBITDA ratio.
VECO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VECO is cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.23 | ||
| EV/EBITDA | 6.88 |
4.3 Compensation for Growth
The decent profitability rating of VECO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.07%
EPS Next 3Y4.92%
5. Dividend
5.1 Amount
No dividends for VECO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.9
+1.01 (+5.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners106.66%
Inst Owner Change-2.02%
Ins Owners2.36%
Ins Owner Change4.62%
Market Cap1.15B
Analysts81.54
Price Target29 (45.73%)
Short Float %8.29%
Short Ratio5.98
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)0.02%
Min EPS beat(2)-0.12%
Max EPS beat(2)0.15%
EPS beat(4)2
Avg EPS beat(4)1.04%
Min EPS beat(4)-4.21%
Max EPS beat(4)8.32%
EPS beat(8)6
Avg EPS beat(8)16.01%
EPS beat(12)10
Avg EPS beat(12)14.53%
EPS beat(16)14
Avg EPS beat(16)14.92%
Revenue beat(2)2
Avg Revenue beat(2)0.51%
Min Revenue beat(2)0.36%
Max Revenue beat(2)0.66%
Revenue beat(4)3
Avg Revenue beat(4)-0.16%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)0.66%
Revenue beat(8)7
Avg Revenue beat(8)1.3%
Revenue beat(12)7
Avg Revenue beat(12)0.09%
Revenue beat(16)10
Avg Revenue beat(16)0.67%
PT rev (1m)-3.86%
PT rev (3m)-18.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.99%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.99 | ||
| Fwd PE | 11.45 | ||
| P/S | 1.61 | ||
| P/FCF | 25.23 | ||
| P/OCF | 18.07 | ||
| P/B | 1.5 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 6.88 |
EPS(TTM)1.66
EY8.34%
EPS(NY)1.74
Fwd EY8.73%
FCF(TTM)0.79
FCFY3.96%
OCF(TTM)1.1
OCFY5.53%
SpS12.38
BVpS13.3
TBVpS9.44
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.89% | ||
| ROE | 9.56% | ||
| ROCE | 8.98% | ||
| ROIC | 7.09% | ||
| ROICexc | 10.51% | ||
| ROICexgc | 15.3% | ||
| OM | 13.26% | ||
| PM (TTM) | 10.28% | ||
| GM | 42.38% | ||
| FCFM | 6.37% |
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 Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 6.04 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 72.04% | ||
| Cap/Sales | 2.53% | ||
| Interest Coverage | 10.01 | ||
| Cash Conversion | 53.07% | ||
| Profit Quality | 62% | ||
| Current Ratio | 3.98 | ||
| Quick Ratio | 2.69 | ||
| Altman-Z | 2.23 |
F-Score6
WACC8.94%
ROIC/WACC0.79
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-17.08%
EPS Next 2Y-0.07%
EPS Next 3Y4.92%
EPS Next 5YN/A
Revenue 1Y (TTM)7.63%
Revenue growth 3Y7.14%
Revenue growth 5Y11.34%
Sales Q2Q%-4.12%
Revenue Next Year-3.72%
Revenue Next 2Y2.27%
Revenue Next 3Y4.42%
Revenue Next 5YN/A
EBIT growth 1Y33.43%
EBIT growth 3Y18.82%
EBIT growth 5YN/A
EBIT Next Year-10.69%
EBIT Next 3Y6.42%
EBIT Next 5YN/A
FCF growth 1Y35.44%
FCF growth 3Y19.03%
FCF growth 5YN/A
OCF growth 1Y3.47%
OCF growth 3Y-1.95%
OCF growth 5YN/A