NasdaqGS:VECO

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Executive Summary

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

Rewards

Trading at 63.5% below our estimate of its fair value

Earnings are forecast to grow 107.9% per year

Risk Analysis

No risks detected for VECO from our risk checks.


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Veeco Instruments's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VECO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

9.8%

VECO

-1.5%

US Semiconductor

-1.5%

US Market


1 Year Return

-0.2%

VECO

35.4%

US Semiconductor

12.9%

US Market

Return vs Industry: VECO underperformed the US Semiconductor industry which returned 35.4% over the past year.

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


Shareholder returns

VECOIndustryMarket
7 Day9.8%-1.5%-1.5%
30 Day-1.7%-2.0%-1.8%
90 Day-4.7%7.7%6.6%
1 Year-0.2%-0.2%37.8%35.4%15.4%12.9%
3 Year-38.7%-38.7%84.8%75.2%39.6%30.2%
5 Year-39.8%-39.8%251.5%217.0%93.4%71.7%

Price Volatility Vs. Market

How volatile is Veeco Instruments's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VECO ($12.08) is trading below our estimate of fair value ($33.05)

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


Price To Earnings Ratio

PE vs Industry: VECO is unprofitable, so we can't compare its PE Ratio to the US Semiconductor industry average.

PE vs Market: VECO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VECO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VECO is good value based on its PB Ratio (1.5x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

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

107.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VECO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: VECO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VECO's is expected to become profitable in the next 3 years.

Revenue vs Market: VECO's revenue (12.1% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: VECO's revenue (12.1% 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


Next Steps

Past Performance

How has Veeco Instruments performed over the past 5 years?

-19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VECO is currently unprofitable.

Growing Profit Margin: VECO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VECO is unprofitable, and losses have increased over the past 5 years at a rate of 19.8% per year.

Accelerating Growth: Unable to compare VECO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VECO is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (7.5%).


Return on Equity

High ROE: VECO has a negative Return on Equity (-13.53%), as it is currently unprofitable.


Next Steps

Financial Health

How is Veeco Instruments's financial position?


Financial Position Analysis

Short Term Liabilities: VECO's short term assets ($538.4M) exceed its short term liabilities ($127.5M).

Long Term Liabilities: VECO's short term assets ($538.4M) exceed its long term liabilities ($342.3M).


Debt to Equity History and Analysis

Debt Level: VECO's debt to equity ratio (80.3%) is considered high.

Reducing Debt: VECO's debt to equity ratio has increased from 0.2% to 80.3% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable VECO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: VECO is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 19.3% per year.


Next Steps

Dividend

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


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VECO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Bill Miller (52 yo)

1.92yrs

Tenure

US$3,769,846

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 ($USD3.77M) is above average for companies of similar size in the US market ($USD1.98M).

Compensation vs Earnings: Bill's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
William Miller
CEO & Director1.92yrsUS$3.77m0.47%
$ 2.8m
John Kiernan
Senior VP & CFO0.67yrUS$504.20k0.11%
$ 665.7k
Mark Harris
Senior Vice President of Global Operationsno datano datano data
Ajit Paranjpe
Chief Technology Officer2.75yrsno datano data
Robert Bradshaw
Chief Administrative Officerno datano datano data
Anthony Bencivenga
Head of Investor Relationsno datano datano data
Kirk Mackey
VP, Head of Legal & Secretaryno datano datano data
Scott Kroeger
Chief Marketing Officer1.67yrsno datano data
William McCarthy
Vice President of Global Sales1.67yrsno datano data
Susan Wilkerson
Senior Vice President of Global Sales & Services0.42yrno data0.13%
$ 805.4k
Gerry Blumenstock
Senior Vice President of Product Line Management1.67yrsno datano data
Peter Porshnev
Senior Vice President of Unified Engineering3yrsno data0.15%
$ 875.4k

1.7yrs

Average Tenure

56.5yo

Average Age

Experienced Management: VECO's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
William Miller
CEO & Director1.92yrsUS$3.77m0.47%
$ 2.8m
Richard D'Amore
Independent Chairman0.33yrUS$218.00k0.25%
$ 1.5m
Kathleen Bayless
Independent Director4.17yrsUS$205.00k0.076%
$ 458.4k
Thomas Dennis
Independent Director4.33yrsUS$197.50k0.076%
$ 458.5k
Keith Jackson
Independent Director8.58yrsUS$210.00k0.11%
$ 634.3k
Peter Simone
Independent Director16.17yrsUS$210.00k0.095%
$ 569.5k
Gordon Hunter
Independent Director10.25yrsUS$210.00k0.11%
$ 680.3k
Mary Raymond
Independent Director0.83yrUS$129.53k0.027%
$ 160.6k

4.3yrs

Average Tenure

65.5yo

Average Age

Experienced Board: VECO's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Veeco Instruments Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Veeco Instruments Inc.
  • Ticker: VECO
  • Exchange: NasdaqGS
  • Founded: 1945
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$599.398m
  • Shares outstanding: 49.62m
  • Website: https://www.veeco.com

Number of Employees


Location

  • Veeco Instruments Inc.
  • 1 Terminal Drive
  • Plainview
  • New York
  • 11803
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VECONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1994
VEODB (Deutsche Boerse AG)YesCommon StockDEEURNov 1994

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/22 06:27
End of Day Share Price2020/09/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.