Veeco Instruments designs, manufactures, and markets thin film equipment to make light emitting diodes, power electronics, wireless devices, hard disk drives, and semiconductors worldwide. The company was founded in 1945 and is based in Plainview, New York.
VECO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Veeco Instruments Inc. To summarize, we found that Veeco Instruments Inc ranked in the 22th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 70.17%. In terms of the factors that were most noteworthy in this DCF analysis for VECO, they are:
The company's balance sheet shows it gets 71% of its capital from equity, and 29% of its capital from debt. Notably, its equity weight is greater than only 14.83% of US equities in the Technology sector yielding a positive free cash flow.
Veeco Instruments Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.7. This coverage rate is greater than that of merely 21.91% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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Veeco (VECO) will probably never be an easy stock to own, at least not relative to some of the larger, better-established semicon tool companies, but management has made some definite progress on margins and the data center business remains a strong near-term driver. Although lower sales to Chinese customers are...
Stephen Simpson, CFA on Seeking Alpha | August 5, 2020
Veeco Instruments (NASDAQ: VECO) unveils its next round of earnings this Monday, August 03. Get prepared with Benzinga's ultimate preview for Veeco Instruments's Q2 earnings.Earnings and Revenue Wall Street analysts see Veeco Instruments reporting earnings of $0.07 per share on revenue of $97.83 million. In the same quarter last year, Veeco Instruments reported EPS of $-0.06 on revenue of $97.82 million. The company's reported EPS has stacked up against analyst estimates in the past like this:Quarter Q1 2020 Q4 2020 Q3 2019 Q2 2019 EPS Estimate 0.06 0.08 -0.01 -0.09 EPS Actual 0.22 0.11 0.05 -0.06 Revenue Estimate 103.41 M 111.08 M 104.37 M 101.43 M Revenue Actual 104.50 M 113.20 M 108.95 M 97.82 M Stock Performance Over the last 52-week period, shares of Veeco Instrume...