Veeco Instruments Inc.
Veeco Instruments Inc. Fundamental Analysis
Veeco Instruments Inc. (VECO) shows weak financial fundamentals with a PE ratio of 35.50, profit margin of 7.23%, and ROE of 5.94%. The company generates $0.7B in annual revenue with moderate year-over-year growth of 7.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VECO's fundamental strength across five key dimensions:
Efficiency Score
WeakVECO struggles to generate sufficient returns from assets.
Valuation Score
ModerateVECO shows balanced valuation metrics.
Growth Score
ModerateVECO shows steady but slowing expansion.
Financial Health Score
ExcellentVECO maintains a strong and stable balance sheet.
Profitability Score
WeakVECO struggles to sustain strong margins.
Key Financial Metrics
Is VECO Expensive or Cheap?
P/E Ratio
VECO trades at 35.50 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, VECO's PEG of -1.74 indicates potential undervaluation.
Price to Book
The market values Veeco Instruments Inc. at 2.00 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 22.60 times EBITDA. This signals the market has high growth expectations.
How Well Does VECO Make Money?
Net Profit Margin
For every $100 in sales, Veeco Instruments Inc. keeps $7.23 as profit after all expenses.
Operating Margin
Core operations generate 6.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.94 in profit for every $100 of shareholder equity.
ROA
Veeco Instruments Inc. generates $3.82 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Veeco Instruments Inc. produces operating cash flow of $73.22M, showing steady but balanced cash generation.
Free Cash Flow
Veeco Instruments Inc. produces free cash flow of $55.05M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.91 in free cash annually.
FCF Yield
VECO converts 3.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.74
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.00
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.30
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How VECO Stacks Against Its Sector Peers
| Metric | VECO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.50 | 35.19 | Neutral |
| ROE | 5.94% | 1155.00% | Weak |
| Net Margin | 7.23% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.30 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 5.36 | 4.71 | Strong Liquidity |
| ROA | 3.82% | -314918.00% (disorted) | Weak |
VECO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Veeco Instruments Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.94%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
178.78%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
824.11%
Industry Style: Growth, Innovation, High Beta
High Growth