Veeco (VECO) AI Stock Analysis

• Market Cap: $1.44B
• Dividend Yield: N/A
• Average Volume (3M): 785.56K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 1.68
• Revenue Growth: -0.19%
• EPS Growth: -28.72%
• Country: US
• Employees: 1,231
• Sector: Technology
• Sector Strength: 83
• Industry: Semiconductors
• EPS (TTM): 0.36
• Shares Outstanding: 60,161,823
• 10 Day Avg. Volume: 829,457
• 30 Day Avg. Volume: 785,564
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 1.62
• Enterprise Value/Gross Profit: 3.90
• Enterprise Value/Ebitda: 12.67
• 1Y Price Target: $27.25
• Price Target Upside: 7.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 70 Neutral
• Price Target: $27.00 ▲(6.93% Upside)

Veeco's overall stock score reflects its strong earnings performance and positive technical indicators, which are somewhat offset by valuation concerns and challenges in revenue growth. The company's strategic initiatives in the semiconductor sector and expanded credit facility provide a solid foundation for future growth.

Positive Factors

Customer Engagement

VECO indicated increased engagement from its hard drive customers.

Data Storage Sales

Driven by the cloud/data center, Nearline hard drive sales are booming.

Negative Factors

Sales Forecast

The firm does not expect orders for these tools this year, which costs them $70 M in sales.

Tariff Impact

Tariffs are impacting Veeco's margins by about 100 basis points.

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 generates revenue primarily through the sale of its semiconductor equipment and services. The company has a diverse revenue model that includes the sale of new equipment, recurring revenue from spare parts, and service contracts. Key revenue streams include systems for MBE, ALD, and etch processes, which are sold to manufacturers in the semiconductor and LED markets. Additionally, Veeco has established significant partnerships with leading technology companies and research institutions, enhancing its market reach and enabling collaborative innovations. The company also benefits from increasing demand for advanced semiconductor solutions, driven by trends such as 5G, artificial intelligence, and electric vehicles, which further supports its revenue growth.

Veeco Financial Statement Overview

Summary

Veeco demonstrates solid financial performance with consistent revenue growth and profitability. The Income Statement shows robust gross and net profit margins, though rising operational costs are a concern. The Balance Sheet reflects effective debt management and a strong equity base. Cash Flow indicates improved cash generation, though there's room for better 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	700.33M	717.30M	666.43M	646.14M	583.28M	454.16M
Gross Profit	290.39M	304.00M	285.06M	263.15M	242.27M	194.30M
EBITDA	89.30M	105.02M	8.40M	85.94M	82.77M	54.64M
Net Income	60.60M	73.71M	-30.37M	166.94M	26.04M	-8.39M
Balance Sheet
Total Assets	1.27B	1.25B	1.23B	1.13B	898.98M	898.06M
Cash, Cash Equivalents and Short-Term Investments	354.79M	344.31M	305.44M	302.41M	223.93M	319.40M
Total Debt	262.77M	314.27M	310.50M	308.24M	262.27M	327.42M
Total Liabilities	418.51M	480.81M	556.60M	550.36M	461.35M	489.69M
Stockholders Equity	856.20M	770.77M	672.44M	577.82M	437.63M	408.37M
Cash Flow
Free Cash Flow	55.51M	45.70M	33.74M	83.88M	27.10M	36.22M
Operating Cash Flow	75.03M	63.81M	61.67M	108.48M	67.74M	43.02M
Investing Cash Flow	-51.27M	-64.55M	-53.33M	-68.88M	44.53M	-71.79M
Financing Cash Flow	-9.34M	-12.58M	-4.68M	-4.55M	-122.03M	29.10M

Veeco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 25.25 is above the 20-day moving average (MA) of 22.59, above the 50-day MA of 21.56, and above the 200-day MA of 23.06, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 61.48 is Neutral, neither overbought nor oversold. The STOCH value of 60.63 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	78 Outperform	$2.47B	16.62	16.19%	―	-19.38%	-33.03%
ACMR	76 Outperform	$1.64B	18.52	12.32%	―	17.53%	27.74%
PLAB	74 Outperform	$1.26B	11.49	11.23%	―	-3.19%	-11.06%
VECO	70 Neutral	$1.44B	24.91	7.83%	―	-0.19%	-28.72%
Sector *	61 Neutral	$34.98B	7.37	-10.82%	1.91%	8.82%	-8.66%
UCTT	53 Neutral	$1.04B	38.78	-19.47%	―	14.28%	-1644.64%
ICHR	46 Neutral	$610.68M	―	-2.98%	―	15.45%	49.82%

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.