Veeco (VECO) AI Stock Analysis

• Market Cap: $1.76B
• Dividend Yield: N/A
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 35.2
• Beta (1Y): 1.76
• Revenue Growth: -3.90%
• EPS Growth: -41.66%
• Country: US
• Employees: 1,231
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.36
• Shares Outstanding: 60,162,510
• 10 Day Avg. Volume: 1,087,515
• 30 Day Avg. Volume: 1,015,218
• PEG Ratio: -0.06
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 2.11
• P/FCF Ratio: 33.09
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 2.56
• Enterprise Value/Gross Profit: 6.28
• Enterprise Value/Ebitda: 23.44
• 1Y Price Target: $32.75
• Price Target Upside: 12.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.4
• Revenue Forecast (FY): $662.46M

• Rating: 70 Neutral
• Price Target: $32.00 ▲(9.66% Upside)

Veeco's overall stock score is driven by a strong earnings call performance and positive technical indicators. However, financial performance concerns and a high P/E ratio weigh down the score. The pending merger with Axcelis Technologies presents potential growth opportunities, but challenges in certain market segments and cash flow management remain.

Positive Factors

Strategic Focus on Growth Areas

Veeco's focus on AI and high-performance computing aligns with industry trends, positioning it well for sustained demand in these expanding markets.

Strong Semiconductor Segment Growth

The robust growth in the semiconductor segment underscores Veeco's competitive position and ability to capitalize on increasing demand for advanced technologies.

Order for Propel300 System

This order strengthens Veeco's leadership in 300mm MOCVD technology, enhancing its market position and supporting long-term growth in semiconductor manufacturing.

Negative Factors

Revenue Decline

A decline in revenue suggests potential challenges in maintaining growth momentum, which could impact financial performance if not addressed.

Decreased Revenue from China

Reduced revenue from China indicates geopolitical and market risks, potentially affecting Veeco's ability to capitalize on growth opportunities in a key market.

Negative Free Cash Flow Growth

Significant decline in free cash flow growth could limit Veeco's ability to invest in new opportunities and manage financial obligations, impacting long-term sustainability.

Veeco Business Overview & Revenue Model

Company Description

Veeco Instruments Inc. (VECO) is a leading provider of process equipment and solutions for the semiconductor, LED, and data storage industries. The company specializes in advanced manufacturing technologies, including molecular beam epitaxy (MBE), atomic layer deposition (ALD), and etch systems, which are essential for producing high-performance electronic components. Veeco's products are utilized in the fabrication of devices such as power amplifiers, lasers, and memory chips, making it a critical player in the high-tech manufacturing sector.

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's financial performance shows a mix of strengths and weaknesses. The company maintains healthy profit margins, but recent declines in revenue growth and profitability metrics suggest potential challenges. The balance sheet is stable with improved leverage, but cash flow metrics indicate areas of concern.

Income Statement

Veeco's income statement shows a mixed performance. The company has maintained a healthy gross profit margin of 41.5% TTM, but the net profit margin has decreased to 8.7% TTM from 10.3% in the previous year. Revenue growth has turned negative at -2.7% TTM, indicating a potential slowdown. The EBIT and EBITDA margins have also declined slightly, suggesting pressure on operating efficiency.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio has improved to 0.31 TTM, indicating reduced leverage compared to previous years. Return on equity has decreased to 7.6% TTM, showing a decline in profitability. The equity ratio remains stable, suggesting a balanced capital structure.

Cash Flow

Cash flow analysis reveals some challenges. Free cash flow growth is negative at -120.3% TTM, indicating a significant decline. The operating cash flow to net income ratio is 0.48 TTM, reflecting moderate cash generation relative to earnings. The free cash flow to net income ratio is 0.74 TTM, showing a reasonable conversion of earnings to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	681.41M	717.30M	666.43M	646.14M	583.28M	454.16M
Gross Profit	278.11M	304.00M	285.06M	263.15M	242.27M	194.30M
EBITDA	74.56M	105.02M	8.40M	88.14M	82.77M	46.97M
Net Income	49.24M	73.71M	-30.37M	166.94M	26.04M	-8.39M
Balance Sheet
Total Assets	1.29B	1.25B	1.23B	1.13B	898.98M	898.06M
Cash, Cash Equivalents and Short-Term Investments	369.35M	344.31M	305.44M	302.41M	223.93M	319.40M
Total Debt	262.43M	314.27M	310.50M	311.57M	266.71M	331.57M
Total Liabilities	413.94M	480.81M	556.60M	550.36M	461.35M	489.69M
Stockholders Equity	875.97M	770.77M	672.44M	577.82M	437.63M	408.37M
Cash Flow
Free Cash Flow	54.84M	45.70M	33.74M	83.88M	27.10M	36.22M
Operating Cash Flow	72.95M	63.81M	61.67M	108.48M	67.74M	43.02M
Investing Cash Flow	-33.78M	-64.55M	-53.33M	-68.88M	44.53M	-71.79M
Financing Cash Flow	-9.42M	-12.58M	-4.68M	-4.55M	-122.03M	29.10M

Veeco Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 29.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VECO, the sentiment is Neutral. The current price of 29.18 is below the 20-day moving average (MA) of 29.49, above the 50-day MA of 29.00, and above the 200-day MA of 23.30, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 48.58 is Neutral, neither overbought nor oversold. The STOCH value of 41.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VECO.

Veeco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLAB	73 Outperform	$1.25B	11.96	9.89%	―	-1.79%	-22.58%
VECO	70 Neutral	$1.76B	35.19	6.12%	―	-3.90%	-41.66%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HIMX	60 Neutral	$1.29B	20.57	7.17%	5.00%	-3.62%	-20.33%
LASR	51 Neutral	$1.55B	―	-19.18%	―	12.05%	14.24%
MXL	45 Neutral	$1.21B	―	-35.16%	―	7.53%	22.97%
NVTS	45 Neutral	$1.74B	―	-33.25%	―	-38.06%	-50.14%

Veeco Corporate Events

Veeco Instruments Reports Q3 2025 Financial Results

Veeco Instruments Inc., a leading manufacturer of semiconductor process equipment, specializes in technologies like laser annealing and metal organic chemical vapor deposition, playing a crucial role in the semiconductor industry. In its third quarter of 2025, Veeco reported a revenue of $165.9 million, a decrease from $184.8 million in the same quarter last year. The company’s GAAP net income also saw a decline, coming in at $10.6 million compared to $22.0 million in the previous year. Non-GAAP net income followed a similar trend, decreasing to $21.8 million from $28.3 million.

Veeco Assesses Impact of New Export Rule

On September 29, 2025, the U.S. Department of Commerce’s Bureau of Industry and Security issued a new rule, known as the Affiliates Rule, which expands export restrictions for companies dealing with certain China-based customers. Veeco has conducted a preliminary review and does not anticipate a material impact on its China-based business operations as a result of this rule.

The most recent analyst rating on (VECO) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Veeco stock, see the VECO Stock Forecast page.

Veeco Announces Merger with Axcelis Technologies

On September 30, 2025, Veeco Instruments Inc. and Axcelis Technologies, Inc. entered into a definitive agreement for an all-stock merger, creating a leading semiconductor equipment company with an enterprise value of approximately $4.4 billion. The merger, expected to close in the second half of 2026, will see Veeco shareholders receive 0.3575 Axcelis shares per Veeco share, with Axcelis shareholders owning approximately 58% of the combined company. The merger aims to expand the addressable market to over $5 billion, diversify the technology portfolio, and enhance R&D capabilities, with anticipated annual cost synergies of $35 million within 24 months post-closing. The combined company will be headquartered in Beverly, Massachusetts, and is expected to deliver significant value to stakeholders by capitalizing on complementary technologies and market opportunities.

The most recent analyst rating on (VECO) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Veeco stock, see the VECO Stock Forecast page.

Veeco Instruments’ Earnings Call: Strong Semiconductor Gains Amid Challenges

Veeco Instruments Inc. recently held its earnings call, revealing a mixed sentiment with strong performance in the semiconductor segment and continued leadership in key technologies, yet facing challenges such as an overall revenue decline, tariff impacts, and decreased revenue from China. Despite these hurdles, the company remains optimistic about future growth, though certain market segments face uncertainties.

Veeco Instruments Reports Q2 2025 Financial Results

Veeco Instruments Inc., a leading manufacturer of semiconductor process equipment, specializes in technologies crucial for advanced semiconductor device fabrication and packaging. In its latest earnings report for the second quarter of 2025, Veeco announced a revenue of $166.1 million, a slight decrease from the previous year’s $175.9 million. The company reported a GAAP net income of $11.7 million, or $0.20 per diluted share, down from $14.9 million, or $0.25 per diluted share, in the same period last year.