NasdaqGS:VECO

Stock Analysis Report

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.

Snowflake

Fundamentals

Adequate balance sheet and overvalued.


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


Market Performance


7 Day Return

3.2%

VECO

3.0%

US Semiconductor

1.8%

US Market


1 Year Return

28.4%

VECO

20.6%

US Semiconductor

7.3%

US Market

Return vs Industry: VECO exceeded the US Semiconductor industry which returned 20.6% over the past year.

Return vs Market: VECO exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

VECOIndustryMarket
7 Day3.2%3.0%1.8%
30 Day2.0%-0.02%-0.7%
90 Day1.4%4.7%0.06%
1 Year28.4%28.4%22.9%20.6%9.7%7.3%
3 Year-43.7%-43.7%82.2%71.5%46.3%36.9%
5 Year-63.2%-63.2%137.4%112.9%64.5%46.5%

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?

1.43x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate VECO's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate VECO's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: VECO is unprofitable, so we can't compare its PE Ratio to the 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

Low 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 (1.4x) compared to the US Semiconductor industry average (2.8x).


Next Steps

Future Growth

How is Veeco Instruments forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

84.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VECO is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: VECO is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: VECO is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: VECO's revenue (10.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: VECO's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

-41.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VECO is unprofitable, and losses have increased over the past 5 years at a rate of -41.1% 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 (-6.2%).


Return on Equity

High ROE: VECO has a negative Return on Equity (-45.67%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: VECO is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: VECO is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Veeco Instruments's financial position?


Financial Position Analysis

Short Term Liabilities: VECO's short term assets ($491.5M) exceeds its short term liabilities ($149.2M)

Long Term Liabilities: VECO's short term assets (491.5M) exceeds its long term liabilities (315.6M)


Debt to Equity History and Analysis

Debt Level: VECO's debt to equity ratio (71.4%) is considered high

Reducing Debt: VECO's debt to equity ratio has increased from 0.2% to 71.4% over the past 5 years.


Balance Sheet

Inventory Level: VECO has a high level of physical assets or inventory.

Debt Coverage by Assets: VECO's debt is covered by short term assets (assets are 1.674040x debt).


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: VECO has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: VECO has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -1.2% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage2.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of Veeco Instruments's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Bill Miller (51yo)

1yrs

Tenure

US$3,568,558

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

2.3yrs

Average Tenure

56yo

Average Age

Experienced Management: VECO's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

64.5yo

Average Age

Experienced Board: VECO's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • John Peeler (64yo)

    Executive Chairman

    • Tenure: 7.4yrs
    • Compensation: US$1.71m
  • John Kiernan (57yo)

    Senior VP of Finance

    • Tenure: 14.3yrs
    • Compensation: US$526.37k
  • Ajit Paranjpe (56yo)

    Chief Technology Officer

    • Tenure: 1.8yrs
  • Sam Maheshwari (47yo)

    Executive VP

    • Tenure: 5.4yrs
    • Compensation: US$2.47m
  • Scott Kroeger

    Chief Marketing Officer

    • Tenure: 0.8yrs
  • Robert Bradshaw

    Senior Vice President of Human Resources

    • Tenure: 14.2yrs
  • Bill Miller (51yo)

    CEO & Director

    • Tenure: 1yrs
    • Compensation: US$3.57m
  • Greg Robbins

    Senior VP

    • Tenure: 19.9yrs
  • Paul Antolli

    Senior Vice President of Global Sales

    • Tenure: 2.3yrs
  • Anthony Bencivenga

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Rich D’Amore (66yo)

    Lead Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$218.00k
  • John Peeler (64yo)

    Executive Chairman

    • Tenure: 7.4yrs
    • Compensation: US$1.71m
  • Kathy Bayless (63yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$200.00k
  • Tom Dennis (65yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$197.50k
  • Keith Jackson (64yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$210.00k
  • Pete Simone (72yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$215.00k
  • Gordon Hunter (67yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$210.00k
  • Bill Miller (51yo)

    CEO & Director

    • Tenure: 1yrs
    • Compensation: US$3.57m

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: 1989
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$586.187m
  • Shares outstanding: 48.97m
  • 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 m ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 23:44
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.