VEECO INSTRUMENTS INC (VECO) Stock Fundamental Analysis
NASDAQ:VECO - Nasdaq - US9224171002 - Common Stock - Currency: USD
Taking everything into account, VECO scores 5 out of 10 in our fundamental rating. 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 bad growth rate and is valued cheaply. These ratings could make VECO a good candidate for value investing.
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 65.45% of its industry peers.
VECO has a better Return On Equity (7.86%) than 64.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.26%, VECO is in the better half of 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 has a better Profit Margin (8.99%) than 62.73% of its industry peers.
VECO's Profit Margin has improved in the last couple of years.
The Operating Margin of VECO (12.28%) is better than 68.18% of its industry peers.
In the last couple of years the Operating Margin of VECO has grown nicely.
VECO's Gross Margin of 41.83% is in line compared to the rest of the industry. VECO outperforms 42.73% of its industry peers.
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.
The number of shares outstanding for VECO has been increased compared to 1 year ago.
The number of shares outstanding for VECO has been increased compared to 5 years ago.
The debt/assets ratio for VECO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.46 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 2.46, VECO is not doing good in the industry: 61.82% of the companies in the same industry are doing better.
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.
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.
A Debt/Equity ratio of 0.31 indicates that VECO is not too dependend on debt financing.
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 | 2.46 |
ROIC/WACC0.57
WACC11.01%
2.3 Liquidity
VECO has a Current Ratio of 4.44. This indicates that VECO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of VECO (4.44) is better than 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
VECO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.27%.
The Earnings Per Share has been growing slightly by 6.76% on average over the past years.
Looking at the last year, VECO shows a small growth in Revenue. The Revenue has grown by 3.30% in the last year.
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)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.
The Revenue is expected to grow by 3.09% on average over the next years.
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
A Price/Earnings ratio of 12.54 indicates a correct valuation of VECO.
Based on the Price/Earnings ratio, VECO is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.04. VECO is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 13.35, which indicates a correct valuation of VECO.
Based on the Price/Forward Earnings ratio, VECO is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
VECO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.64.
| 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 cheaply inside the industry as 90.91% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VECO indicates a rather cheap valuation: VECO is cheaper than 81.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.46 | ||
| EV/EBITDA | 8.58 |
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
No dividends for VECO!.
| 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-0.25%
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)-8.21%
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 | 8.58 |
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 | 2.46 |
F-Score6
WACC11.01%
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