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 has a great profitability rating, there are some minor concerns on its financial health. VECO has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year VECO was profitable.
In the past year VECO had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: VECO reported negative net income in multiple years.
VECO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VECO's Return On Assets of 4.99% is fine compared to the rest of the industry. VECO outperforms 64.55% of its industry peers.
VECO's Return On Equity of 7.86% is fine compared to the rest of the industry. VECO outperforms 64.55% of its industry peers.
VECO has a Return On Invested Capital of 6.26%. This is in the better half of the industry: VECO outperforms 70.00% of its industry peers.
VECO had an Average Return On Invested Capital over the past 3 years of 6.04%. This is below the industry average of 10.74%.
The 3 year average ROIC (6.04%) for VECO is below the current ROIC(6.26%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 8.99%. This is in the better half 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.
VECO's Operating Margin of 12.28% is fine compared to the rest of the industry. VECO outperforms 67.27% of its industry peers.
VECO's Operating Margin has improved in the last couple of years.
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.
VECO has more shares outstanding than it did 1 year ago.
VECO has more shares outstanding than it did 5 years ago.
VECO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.47 indicates that VECO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.47, VECO is not doing good in the industry: 60.91% of the companies in the same industry are doing better.
VECO has a debt to FCF ratio of 4.50. This is a neutral value as VECO would need 4.50 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.50, VECO is in line with its industry, outperforming 56.36% of the companies in the same industry.
VECO has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.31, VECO is not doing good in the industry: 61.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 2.47 |
ROIC/WACC0.7
WACC8.98%
2.3 Liquidity
A Current Ratio of 4.44 indicates that VECO has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.44, VECO is doing good in the industry, outperforming 63.64% of the companies in the same industry.
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.
VECO has a better Quick ratio (3.02) 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.
Measured over the past 5 years, VECO shows a small growth in Earnings Per Share. The EPS has been growing by 6.76% on average per year.
VECO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.30%.
The Revenue has been growing by 11.34% on average over the past years. This is quite good.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 12.31, the valuation of VECO can be described as correct.
Based on the Price/Earnings ratio, VECO is valued cheaper than 93.64% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.82. VECO is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 13.10 indicates a correct valuation of VECO.
Based on the Price/Forward Earnings ratio, VECO is valued cheaper than 87.27% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VECO to the average of the S&P500 Index (36.21), we can say VECO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.31 | ||
| Fwd PE | 13.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VECO indicates a rather cheap valuation: VECO is cheaper than 90.91% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VECO indicates a somewhat cheap valuation: VECO is cheaper than 79.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.05 | ||
| EV/EBITDA | 8.68 |
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 |
20.44
-0.34 (-1.64%)
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 Cap1.23B
Analysts81.54
Price Target27.69 (35.47%)
Short Float %7.49%
Short Ratio7.14
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 | 12.31 | ||
| Fwd PE | 13.1 | ||
| P/S | 1.73 | ||
| P/FCF | 22.05 | ||
| P/OCF | 16.46 | ||
| P/B | 1.51 | ||
| P/tB | 2.08 | ||
| EV/EBITDA | 8.68 |
EPS(TTM)1.66
EY8.12%
EPS(NY)1.56
Fwd EY7.63%
FCF(TTM)0.93
FCFY4.54%
OCF(TTM)1.24
OCFY6.08%
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
WACC8.98%
ROIC/WACC0.7
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