Veeco Instruments Inc (VECO) stock analysis

P/E above its 5-year median

Veeco Instruments's P/E of 102.3 is above its own 5-year median of 29.8.

P/E above the industry

Veeco Instruments's P/E of 102.3 is above the Special Industry Machinery, except Metalworking median of 32.8.

EV/EBITDA above its 5-year median

Veeco Instruments's EV/EBITDA of 53.8 is above its 5-year median of 17.5.

P/B above the industry

Veeco Instruments's price-to-book of 2.71 is above the Special Industry Machinery, except Metalworking median of 2.10.

Trading above fair value

The share price of $40.93 is above our fair value estimate of $15.22.

Margin of safety under 20%

The price is 169% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 0.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -39.8% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 6.6% over the last twelve months; the Special Industry Machinery, except Metalworking median is 5.7%.

Guidance raised

Veeco Instruments raised its fiscal year 2026 Revenue outlook on Aug 5, 2026.

Gross margin slipping

Gross margin was 37.4% over the last twelve months, against 40.9% a year earlier.

Return on equity under 15%

Return on equity was 2.9% over the last twelve months and averaged 9.7% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 3.0%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Veeco Instruments's return on equity of 2.9% is below the Special Industry Machinery, except Metalworking median of 4.6%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 3.6% over the last twelve months, against a 5-year average of 8.3%.

Net margin below the industry

Veeco Instruments's net margin of 3.6% is below the Special Industry Machinery, except Metalworking median of 5.1%.

Low debt

Debt is 24.6% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 78.6% five years ago to 24.6%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 62.7% of total debt.

Interest not well covered

Operating income covers interest expense 2.5 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 3.87 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.34; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Veeco Instruments has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.