Veeco (VECO) AI Stock Analysis

• Market Cap: $1.30B
• Dividend Yield: N/A
• Average Volume (3M): 615.90K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 1.61
• Revenue Growth: 3.30%
• EPS Growth: N/A
• Country: US
• Employees: 1,231
• Sector: Technology
• Sector Strength: 95
• Industry: Semiconductors
• EPS (TTM): 0.37
• Shares Outstanding: 59,935,238
• 10 Day Avg. Volume: 588,495
• 30 Day Avg. Volume: 615,900
• PEG Ratio: -1.45
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.45
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 8.01
• Enterprise Value/Ebitda: 350.57
• 1Y Price Target: $26.83
• Price Target Upside: 23.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: $24.00 ▲(10.34%Upside)

Veeco's overall stock score of 71 reflects its solid financial performance, strategic corporate actions, and moderate bullish technical indicators. The company's strengths include consistent revenue growth, effective debt management, and positive earnings call highlights. However, rising operational costs and external challenges like tariffs pose risks. While the stock is fairly valued, the absence of a dividend yield slightly limits its appeal.

Positive Factors

Earnings

Veeco’s reported 1Q25 non-GAAP earnings of $0.37 per diluted share were above company guidance and $0.05 above investors’ expectations.

Order Growth

A pick-up in AP/litho orders from OSATS and mobile customers has been seen, with the firm receiving $35 M in orders in April.

Negative Factors

Shipment Delays

Veeco faced a $15 million hit due to delays by Chinese customers in taking tool shipments, leading to a lower guidance for the June quarter.

Tariffs

Tariffs are expected to negatively impact margins by 100 basis points in 2025.

Veeco Business Overview & Revenue Model

Company Description

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. In addition, the company markets and sells its products to integrated device manufacturers and foundries; outsourced semiconductor assembly and test, hard disk drive, and photonics manufacturers; and research centers and universities. Veeco Instruments Inc. was founded in 1945 and is headquartered in Plainview, New York.

How the Company Makes Money

Veeco makes money primarily by selling its advanced thin film process equipment to semiconductor manufacturers, data storage companies, and other high-tech industries. Its revenue model is based on direct sales of equipment, as well as after-sales services including maintenance, spare parts, and software upgrades. Key revenue streams include sales of deposition and etch systems, which are critical in semiconductor fabrication. Veeco also benefits from strategic partnerships and collaborations that enhance its product offerings and market reach, contributing to its earnings. The company's financial performance is influenced by technological advancements and the cyclical nature of the semiconductor industry.

Veeco Financial Statement Overview

Summary

Veeco demonstrates strong financial health with consistent revenue growth and profitability. The income statement shows an improving net profit margin of 8.98% and a robust gross profit margin of 41.6%. However, rising operational costs, indicated by a declining EBIT margin, pose challenges. The balance sheet reflects a stable financial position with effective debt management and a strong equity base. Cash flow performance is solid, with a positive trend in free cash flow, although there is room for improvement in cash conversion efficiency.

Income Statement

Veeco demonstrates a solid financial performance with a consistent growth trajectory, evident from its increasing Total Revenue over recent years. The Gross Profit Margin has remained robust at around 41.6% for TTM, while the Net Profit Margin improved significantly to 8.98% for TTM. Revenue growth has been positive throughout the years, indicating strong demand and effective market strategies. However, the decline in EBIT Margin from 9.34% in 2024 to 8.4% in TTM suggests increased operational costs. Overall, the Income Statement reflects a company with good revenue growth and profitability, although there are some concerns over rising operational expenses.

Balance Sheet

Veeco's balance sheet shows a stable financial position with an improving Debt-to-Equity Ratio, now at 0.35, indicating effective debt management. The Equity Ratio improved to 63.5% in TTM, reflecting a strong equity base and financial stability. Return on Equity (ROE) also improved to 7.86% for TTM, indicating efficient use of equity capital. While the company has managed to strengthen its equity position and reduce relative debt, maintaining these improvements will be crucial for future financial resilience.

Cash Flow

The cash flow analysis reveals a positive trend in Free Cash Flow, which grew by 21.6% from 2024 to TTM, indicating better cash management and operational efficiency. The Operating Cash Flow to Net Income Ratio remains healthy, suggesting effective conversion of profits into cash. However, the Free Cash Flow to Net Income Ratio, while positive, indicates room for improvement in translating net income into free cash. Overall, the cash flow performance appears robust, although there are opportunities to enhance cash conversion efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	717.30M	666.43M	646.14M	583.28M	454.16M
Gross Profit	304.00M	285.06M	263.15M	242.27M	194.30M
EBITDA	105.02M	8.40M	85.94M	82.77M	54.64M
Net Income	73.71M	-30.37M	166.94M	26.04M	-8.39M
Balance Sheet
Total Assets	1.25B	1.23B	1.13B	898.98M	898.06M
Cash, Cash Equivalents and Short-Term Investments	344.31M	305.44M	302.41M	223.93M	319.40M
Total Debt	314.27M	310.50M	308.24M	262.27M	327.42M
Total Liabilities	480.81M	556.60M	550.36M	461.35M	489.69M
Stockholders Equity	770.77M	672.44M	577.82M	437.63M	408.37M
Cash Flow
Free Cash Flow	45.70M	33.74M	83.88M	27.10M	36.22M
Operating Cash Flow	63.81M	61.67M	108.48M	67.74M	43.02M
Investing Cash Flow	-64.55M	-53.33M	-68.88M	44.53M	-71.79M
Financing Cash Flow	-12.58M	-4.68M	-4.55M	-122.03M	29.10M

Veeco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VECO, the sentiment is Positive. The current price of 21.75 is above the 20-day moving average (MA) of 21.16, above the 50-day MA of 20.67, and below the 200-day MA of 23.67, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 58.05 is Neutral, neither overbought nor oversold. The STOCH value of 79.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VECO.

Veeco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACLS	84 Outperform	$2.35B	13.35	18.45%	―	-15.14%	-28.30%
ACMR	80 Outperform	$2.02B	20.50	12.21%	―	26.21%	17.34%
PLAB	73 Outperform	$1.29B	11.05	11.23%	―	-3.19%	-11.06%
VECO	71 Outperform	$1.30B	20.44	8.68%	―	3.30%	―
Sector *	62 Neutral	$34.85B	5.63	-12.19%	2.01%	5.91%	-17.91%
ICHR	59 Neutral	$716.18M	―	-2.35%	―	13.41%	72.56%
UCTT	57 Neutral	$1.11B	38.78	-19.47%	―	14.28%	-1644.64%

Veeco Corporate Events

Veeco Expands Credit Facility with Fourth Amendment

On June 16, 2025, Veeco Instruments Inc. entered into a Fourth Amendment to its Loan and Security Agreement, originally dated December 16, 2021. This amendment increases the senior secured revolving credit facility by $25 million to $250 million, extends the termination date to June 16, 2030, and adjusts the applicable margin rates. It also raises the maximum aggregate amount of incremental revolving loans to $100 million and increases the maximum Secured Net Leverage Ratio covenant, providing Veeco with greater operational flexibility.

The most recent analyst rating on (VECO) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Veeco stock, see the VECO Stock Forecast page.

Veeco Completes Convertible Notes Exchange for Shares

On May 15, 2025, Veeco Instruments Inc. completed privately-negotiated transactions with holders of its $25 million 3.75% Convertible Senior Notes due 2027, exchanging them for approximately 1.6 million shares of common stock and $5.4 million in cash. This strategic move, following the settlement of 2025 Notes, aims to strengthen Veeco’s balance sheet by reducing debt and interest expenses, thereby enhancing financial flexibility.

The most recent analyst rating on (VECO) stock is a Buy with a $33.00 price target. To see the full list of analyst forecasts on Veeco stock, see the VECO Stock Forecast page.

Veeco’s 2025 Annual Meeting Approves Key Proposals

On May 8, 2025, Veeco held its 2025 Annual Meeting where shareholders voted on various matters, including the election of directors and amendments to the company’s stock purchase plan. All directors up for election were successfully elected, and other proposals, such as the amendment to the 2016 Employee Stock Purchase Plan and the advisory vote on executive compensation, were approved by the required number of votes. Additionally, the appointment of KPMG LLP was ratified.