VEECO INSTRUMENTS INC (VECO) Stock Fundamental Analysis
NASDAQ:VECO - Nasdaq - US9224171002 - Common Stock - Currency: USD
Overall VECO gets a fundamental rating of 5 out of 10. We evaluated VECO against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. VECO scores excellent on profitability, but 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
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.
Each year in the past 5 years VECO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VECO (4.99%) is better than 65.45% of its industry peers.
Looking at the Return On Equity, with a value of 7.86%, VECO is in the better half of the industry, outperforming 64.55% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.26%, VECO is in the better half of the industry, outperforming 70.91% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VECO is significantly below the industry average of 11.29%.
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 has a Profit Margin of 8.99%. This is in the better half of the industry: VECO outperforms 62.73% of its industry peers.
VECO's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.28%, VECO is in the better half of 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.
The Gross Margin of VECO (41.83%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of VECO has grown nicely.
| 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
VECO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, VECO has an improved debt to assets ratio.
2.2 Solvency
VECO has an Altman-Z score of 2.36. 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.
The Altman-Z score of VECO (2.36) is comparable to the rest of the 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.
The Debt to FCF ratio of VECO (4.50) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.31 indicates that VECO is not too dependend on debt financing.
VECO's Debt to Equity ratio of 0.31 is on the low side compared to the rest of the industry. VECO is outperformed by 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 4.5 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.59
WACC10.61%
2.3 Liquidity
A Current Ratio of 4.44 indicates that VECO has no problem at all paying its short term obligations.
VECO's Current ratio of 4.44 is fine compared to the rest 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.
VECO has a Quick ratio of 3.02. This is in the better half of the industry: VECO outperforms 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.
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 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
Based on estimates for the next years, VECO will show a small growth in Earnings Per Share. The EPS will grow by 2.37% on average per year.
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-26.36%
EPS Next 2Y-5.32%
EPS Next 3Y2.37%
EPS Next 5YN/A
Revenue Next Year-8.74%
Revenue Next 2Y0.07%
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.
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 11.63.
VECO's Price/Earnings ratio is rather cheap when compared to the industry. VECO is cheaper than 91.82% of the companies in the same industry.
VECO is valuated cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.38, VECO is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VECO indicates a rather cheap valuation: VECO is cheaper than 86.36% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.15. VECO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 12.38 |
4.2 Price Multiples
VECO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VECO is cheaper than 89.09% of the companies in the same industry.
78.18% of the companies in the same industry are more expensive than VECO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.83 | ||
| EV/EBITDA | 7.89 |
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-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 |
19.31
-0.48 (-2.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners106.66%
Inst Owner Change0.6%
Ins Owners2.36%
Ins Owner Change7.58%
Market Cap1.16B
Analysts81.54
Price Target29 (50.18%)
Short Float %8.26%
Short Ratio5.68
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)-3.86%
EPS NQ rev (1m)-32.78%
EPS NQ rev (3m)-32.78%
EPS NY rev (1m)-11.19%
EPS NY rev (3m)-11.19%
Revenue NQ rev (1m)-9.78%
Revenue NQ rev (3m)-9.78%
Revenue NY rev (1m)-5.22%
Revenue NY rev (3m)-5.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 12.38 | ||
| P/S | 1.63 | ||
| P/FCF | 20.83 | ||
| P/OCF | 15.55 | ||
| P/B | 1.43 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | 7.89 |
EPS(TTM)1.66
EY8.6%
EPS(NY)1.56
Fwd EY8.08%
FCF(TTM)0.93
FCFY4.8%
OCF(TTM)1.24
OCFY6.43%
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 | 2.36 |
F-Score6
WACC10.61%
ROIC/WACC0.59
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-26.36%
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-8.74%
Revenue Next 2Y0.07%
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