Veeco (VECO) AI Stock Analysis

• Market Cap: $1.24B
• Dividend Yield: N/A
• Average Volume (3M): 633.72K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 1.64
• Revenue Growth: 3.30%
• EPS Growth: N/A
• Country: US
• Employees: 1,231
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.37
• Shares Outstanding: 59,935,238
• 10 Day Avg. Volume: 689,718
• 30 Day Avg. Volume: 633,716
• PEG Ratio: 0.01
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.05
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 3.66
• Enterprise Value/Ebitda: 2.50
• 1Y Price Target: $26.83
• Price Target Upside: 25.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 72 Outperform
• Price Target: $23.50 ▲(10.17%Upside)

Veeco scores a moderate 72, driven by strong financial performance and positive earnings call outcomes. Technical analysis and valuation provide a balanced view, though tariff challenges and operational cost increases pose risks. The company's strategic actions, like credit facility expansion, enhance financial flexibility but are considered within the earnings analysis context.

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.

Future Revenue Growth

AP sales are expected to double in 2025 to $150 M in sales.

Order Growth

A pick-up in AP/litho orders from OSATS and mobile customers has been seen.

Negative Factors

Asset Impairment

Veeco recorded a $28.1 million asset impairment charge during the quarter.

Shipment Delays

Delays by Chinese customers taking tool shipments resulted in a $15 million hit, leading Veeco to guide lower for the June quarter.

Tariff Impact

Tariffs are also expected to negatively impact margins by 100 bps 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's financial statements depict a company with substantial growth and strong financial health. The Income Statement reflects consistent revenue increases and profitability, though rising operational costs pose a challenge. The Balance Sheet shows a solid equity base and effective debt management, while the Cash Flow statement highlights improved cash generation. Despite minor areas for improvement, particularly in operational cost management and cash conversion, Veeco appears well-positioned for future growth and stability.

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	710.11M	717.30M	666.43M	646.14M	583.28M	454.16M
Gross Profit	295.23M	304.00M	285.06M	263.15M	242.27M	194.30M
EBITDA	87.38M	105.02M	8.40M	85.94M	82.77M	54.64M
Net Income	63.81M	73.71M	-30.37M	166.94M	26.04M	-8.39M
Balance Sheet
Total Assets	1.28B	1.25B	1.23B	1.13B	898.98M	898.06M
Cash, Cash Equivalents and Short-Term Investments	353.29M	344.31M	305.44M	302.41M	223.93M	319.40M
Total Debt	283.65M	314.27M	310.50M	308.24M	262.27M	327.42M
Total Liabilities	466.97M	480.81M	556.60M	550.36M	461.35M	489.69M
Stockholders Equity	811.86M	770.77M	672.44M	577.82M	437.63M	408.37M
Cash Flow
Free Cash Flow	55.57M	45.70M	33.74M	83.88M	27.10M	36.22M
Operating Cash Flow	74.45M	63.81M	61.67M	108.48M	67.74M	43.02M
Investing Cash Flow	-70.75M	-64.55M	-53.33M	-68.88M	44.53M	-71.79M
Financing Cash Flow	-3.02M	-12.58M	-4.68M	-4.55M	-122.03M	29.10M

Veeco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.33
• 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 21.33 is above the 20-day moving average (MA) of 20.84, above the 50-day MA of 20.23, and below the 200-day MA of 24.57, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 55.71 is Neutral, neither overbought nor oversold. The STOCH value of 64.53 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	82 Outperform	$2.35B	13.38	18.45%	―	-15.14%	-28.30%
ACMR	76 Outperform	$1.79B	17.89	12.21%	―	26.21%	17.34%
PLAB	74 Outperform	$1.16B	10.35	11.23%	―	-3.19%	-11.06%
VECO	72 Outperform	$1.24B	20.05	8.68%	―	3.30%	―
UCTT	68 Neutral	$1.14B	40.89	3.30%	―	20.20%	―
ICHR	57 Neutral	$745.52M	―	-2.35%	―	13.41%	72.56%
Sector *	50 Neutral	C$2.97B	1.65	-61.70%	2.76%	11.24%	-12.42%

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.