Veeco (VECO) AI Stock Analysis

• Market Cap: $1.76B
• Dividend Yield: N/A
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 28.8
• Beta (1Y): 1.75
• Revenue Growth: -0.19%
• EPS Growth: -28.72%
• Country: US
• Employees: 1,231
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.36
• Shares Outstanding: 60,159,115
• 10 Day Avg. Volume: 938,336
• 30 Day Avg. Volume: 1,147,739
• 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: 0.64
• Enterprise Value/Revenue: 1.62
• Enterprise Value/Gross Profit: 3.90
• Enterprise Value/Ebitda: 12.67
• 1Y Price Target: $29.33
• Price Target Upside: 0.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 68 Neutral
• Price Target: $32.00 ▲(9.48% Upside)

Veeco's overall stock score is driven by a balanced financial performance and positive technical indicators. The earnings call provided optimistic guidance, particularly in the semiconductor segment, despite some challenges. The valuation suggests the stock might be overvalued, impacting the overall score.

Positive Factors

Strong Market Position

Veeco's leadership in critical high-tech manufacturing sectors like semiconductors and LEDs positions it well to capitalize on industry growth, driven by trends such as 5G and AI.

Strategic Partnerships

These partnerships enhance Veeco's market reach and foster collaborative innovations, supporting long-term revenue growth and competitive advantage.

New Product Launch

The introduction of the Lumina+ system and its adoption by Rocket Lab underlines Veeco's innovation capabilities and potential for expanding its market share in semiconductor manufacturing.

Negative Factors

Revenue Decline

A decline in revenue indicates potential challenges in maintaining growth momentum, which could impact Veeco's long-term financial performance if not addressed.

Free Cash Flow Decline

Declining free cash flow growth can limit Veeco's ability to invest in new projects and technologies, potentially affecting future growth and financial flexibility.

Tariff Impacts

Tariff-related cost increases can pressure margins and profitability, posing a risk to Veeco's cost management and competitive pricing strategy.

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 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: 29.23
• 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 Positive. The current price of 29.23 is below the 20-day moving average (MA) of 29.76, above the 50-day MA of 27.52, and above the 200-day MA of 23.05, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 52.53 is Neutral, neither overbought nor oversold. The STOCH value of 71.69 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
PLAB	―	$1.41B	13.61	9.89%	―	-1.79%	-22.58%
HIMX	―	$1.62B	21.68	8.64%	3.98%	-2.16%	-2.77%
VECO	―	$1.76B	28.83	7.83%	―	-0.19%	-28.72%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LASR	―	$1.63B	-34.71	-20.63%	―	9.79%	10.28%
NVTS	―	$3.00B	―	-32.05%	―	-25.65%	-130.95%
MXL	―	$1.36B	―	-35.16%	―	7.53%	22.97%

Veeco Corporate Events

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.