VEECO INSTRUMENTS INC (VECO)
US9224171002 - Common Stock
We assign a fundamental rating of 4 out of 10 to VECO. VECO was compared to 107 industry peers in the Semiconductors & Semiconductor Equipment industry. VECO has only an average score on both its financial health and profitability. VECO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
VECO had positive earnings in the past year.
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.
Of the past 5 years VECO 4 years had a positive operating cash flow.
1.2 Ratios
VECO has a Return On Assets of -2.47%. This is comparable to the rest of the industry: VECO outperforms 41.51% of its industry peers.
With a Return On Equity value of -4.52%, VECO perfoms like the industry average, outperforming 40.57% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.57%, VECO is in the better half of the industry, outperforming 60.38% of the companies in the same industry.
VECO had an Average Return On Invested Capital over the past 3 years of 5.78%. This is below the industry average of 10.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.47% | ||
| ROE | -4.52% | ||
| ROIC | 5.57% |
ROA(3y)5.07%
ROA(5y)0.93%
ROE(3y)10.1%
ROE(5y)1.45%
ROIC(3y)5.78%
ROIC(5y)N/A
1.3 Margins
The Operating Margin of VECO (10.70%) is better than 61.32% of its industry peers.
VECO's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 42.77%, VECO perfoms like the industry average, outperforming 45.28% of the companies in the same industry.
In the last couple of years the Gross Margin of VECO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.7% | ||
| PM (TTM) | N/A | ||
| GM | 42.77% |
OM growth 3Y26.53%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0%
GM growth 5Y3.66%
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 2.74. 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 2.74, VECO perfoms like the industry average, outperforming 43.40% of the companies in the same industry.
The Debt to FCF ratio of VECO is 8.15, which is on the high side as it means it would take VECO, 8.15 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.15, VECO is in line with its industry, outperforming 51.89% of the companies in the same industry.
VECO has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.41, VECO is not doing good in the industry: 65.09% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 8.15 | ||
| Altman-Z | 2.74 |
ROIC/WACC0.49
WACC11.48%
2.3 Liquidity
VECO has a Current Ratio of 3.24. This indicates that VECO is financially healthy and has no problem in meeting its short term obligations.
VECO's Current ratio of 3.24 is in line compared to the rest of the industry. VECO outperforms 50.94% of its industry peers.
A Quick Ratio of 2.15 indicates that VECO has no problem at all paying its short term obligations.
VECO has a Quick ratio of 2.15. This is comparable to the rest of the industry: VECO outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.24 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.97% over the past year.
The Earnings Per Share has been growing by 41.47% on average over the past years. This is a very strong growth
VECO shows a small growth in Revenue. In the last year, the Revenue has grown by 3.15%.
Measured over the past years, VECO shows a small growth in Revenue. The Revenue has been growing by 4.22% on average per year.
EPS 1Y (TTM)8.97%
EPS 3Y25.99%
EPS 5Y41.47%
EPS growth Q2Q34.21%
Revenue 1Y (TTM)3.15%
Revenue growth 3Y13.63%
Revenue growth 5Y4.22%
Revenue growth Q2Q13.08%
3.2 Future
The Earnings Per Share is expected to grow by 5.37% on average over the next years.
The Revenue is expected to grow by 7.69% on average over the next years.
EPS Next Y6.56%
EPS Next 2Y12.35%
EPS Next 3Y5.37%
EPS Next 5YN/A
Revenue Next Year8.28%
Revenue Next 2Y9.36%
Revenue Next 3Y7.69%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.09, which indicates a rather expensive current valuation of VECO.
Based on the Price/Earnings ratio, VECO is valued a bit cheaper than 73.58% of the companies in the same industry.
When comparing the Price/Earnings ratio of VECO to the average of the S&P500 Index (24.84), we can say VECO is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 19.79, the valuation of VECO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, VECO is valued a bit cheaper than the industry average as 78.30% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.35. VECO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.09 | ||
| Fwd PE | 19.79 |
4.2 Price Multiples
VECO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VECO is cheaper than 70.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VECO is valued a bit cheaper than the industry average as 64.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.87 | ||
| EV/EBITDA | 18.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.21
PEG (5Y)0.51
EPS Next 2Y12.35%
EPS Next 3Y5.37%
5. Dividend
5.1 Amount
No dividends for VECO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VEECO INSTRUMENTS INC
NASDAQ:VECO (4/29/2024, 3:04:26 PM)
After market: 35.85 0 (0%)35.85
+0.69 (+1.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.02B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.09 | ||
| Fwd PE | 19.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.21
PEG (5Y)0.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.47% | ||
| ROE | -4.52% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.7% | ||
| PM (TTM) | N/A | ||
| GM | 42.77% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.24 | ||
| Quick Ratio | 2.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)8.97%
EPS 3Y25.99%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.15%
Revenue growth 3Y13.63%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y