Veeco Instruments (NasdaqGS:VECO) - Share price, News & Analysis

VECO fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	4/6
Past Performance	3/6
Financial Health	4/6
Dividends	0/6

VECO Stock Overview

Veeco Instruments Inc., together with its subsidiaries, develops, manufactures, sells, and supports semiconductor and thin film process equipment primarily to make electronic devices worldwide.

Rewards

Trading at 49.6% below our estimate of its fair value

Earnings are forecast to grow 32.57% per year

Became profitable this year

Risk Analysis

Shareholders have been diluted in the past year

Veeco Instruments Competitors

Entegris

NasdaqGS:ENTG

US$14.4b

CMC Materials

NasdaqGS:CCMP

US$4.9b

Amkor Technology

NasdaqGS:AMKR

US$4.7b

Nova

NasdaqGS:NVMI

US$2.8b

Price History & Performance

Summary of all time highs, changes and price drops for Veeco Instruments
Historical stock prices
Current Share Price	US$21.14
52 Week High	US$32.40
52 Week Low	US$18.68
Beta	1.35
1 Month Change	-9.97%
3 Month Change	-21.44%
1 Year Change	-6.54%
3 Year Change	80.68%
5 Year Change	-33.94%
Change since IPO	93.27%

Recent News & Updates

May 05

Veeco Instruments (NASDAQ:VECO) Could Easily Take On More Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

	VECO	US Semiconductor	US Market
7D	-3.6%	-3.2%	-2.7%
1Y	-6.5%	-1.9%	-12.9%

Return vs Industry: VECO underperformed the US Semiconductor industry which returned -1.9% over the past year.

Return vs Market: VECO exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is VECO's price volatile compared to industry and market?
VECO volatility
VECO Average Weekly Movement	6.9%
Semiconductor Industry Average Movement	8.8%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: VECO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: VECO's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1945	1,091	Bill Miller	https://www.veeco.com

Veeco Instruments Inc., together with its subsidiaries, develops, manufactures, sells, and supports semiconductor and thin film process equipment primarily to make electronic devices worldwide. The company offers laser annealing, ion beam deposition and etch, metal organic chemical vapor deposition, single wafer wet processing and surface preparation, molecular beam epitaxy, and atomic layer deposition and other deposition systems, as well as packaging lithography equipment. Its process equipment systems are used in the production of a range of microelectronic components, including logic, dynamic random-access memory, photonics devices, power electronics, radio frequency filters and amplifiers, magnetic heads for hard disk drives, and other semiconductor devices.

Veeco Instruments Fundamentals Summary

How do Veeco Instruments's earnings and revenue compare to its market cap?
VECO fundamental statistics
Market Cap	US$1.08b
Earnings (TTM)	US$36.87m
Revenue (TTM)	US$605.99m

29.4x

P/E Ratio

1.8x

P/S Ratio

Is VECO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
VECO income statement (TTM)
Revenue	US$605.99m
Cost of Revenue	US$352.62m
Gross Profit	US$253.37m
Other Expenses	US$216.50m
Earnings	US$36.87m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.72
Gross Margin	41.81%
Net Profit Margin	6.08%
Debt/Equity Ratio	67.9%

How did VECO perform over the long term?

See historical performance and comparison

Valuation

Is Veeco Instruments undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

49.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: VECO ($21.14) is trading below our estimate of fair value ($41.98)

Significantly Below Fair Value: VECO is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: VECO is poor value based on its PE Ratio (29.4x) compared to the US Semiconductor industry average (19.8x).

PE vs Market: VECO is poor value based on its PE Ratio (29.4x) compared to the US market (15.2x).

Price to Earnings Growth Ratio

PEG Ratio: VECO is good value based on its PEG Ratio (0.9x)

Price to Book Ratio

PB vs Industry: VECO is good value based on its PB Ratio (2.7x) compared to the US Semiconductor industry average (3.5x).

Future Growth

How is Veeco Instruments forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

32.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: VECO's forecast earnings growth (32.6% per year) is above the savings rate (1.9%).

Earnings vs Market: VECO's earnings (32.6% per year) are forecast to grow faster than the US market (12.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VECO's revenue (10.1% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: VECO's revenue (10.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if VECO's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Veeco Instruments performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

35.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VECO has high quality earnings.

Growing Profit Margin: VECO became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: VECO has become profitable over the past 5 years, growing earnings by 35.5% per year.

Accelerating Growth: VECO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: VECO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Semiconductor industry (70.4%).

Return on Equity

High ROE: VECO's Return on Equity (9.1%) is considered low.

Financial Health

How is Veeco Instruments's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: VECO's short term assets ($570.0M) exceed its short term liabilities ($220.7M).

Long Term Liabilities: VECO's short term assets ($570.0M) exceed its long term liabilities ($296.1M).

Debt to Equity History and Analysis

Debt Level: VECO's net debt to equity ratio (10.7%) is considered satisfactory.

Reducing Debt: VECO's debt to equity ratio has increased from 40.2% to 67.9% over the past 5 years.

Debt Coverage: VECO's debt is well covered by operating cash flow (30%).

Interest Coverage: VECO's interest payments on its debt are not well covered by EBIT (2.9x coverage).

Balance Sheet

Dividend

What is Veeco Instruments's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate VECO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate VECO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VECO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VECO's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as VECO has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure

CEO

Bill Miller (53 yo)

3.58yrs

Tenure

US$4,526,501

Compensation

Dr. William John Miller, also known as Bill, Ph D, has been Chief Executive Officer and Director of Veeco Instruments Inc. since October 1, 2018 and served as its President from January 4, 2016 to October...

CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD4.53M) is about average for companies of similar size in the US market ($USD3.94M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: VECO's management team is considered experienced (3 years average tenure).

Board Members

Experienced Board: VECO's board of directors are considered experienced (6 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: VECO insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/22 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31