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:
Below please find a table outlining a discounted cash flow forecast for VECO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Veeco Instruments Inc ranked in the 0th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Veeco Instruments Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is -1.69 -- which is good for besting only 18.29% of its peer stocks (US stocks in the Technology sector with positive cash flow).
The company's compound free cash flow growth rate over the past 5.2 years comes in at -0.35%; that's greater than only 3.75% of US stocks we're applying DCF forecasting to.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ARCE, AVID, CDAY, CVET, and HBB can be thought of as valuation peers to VECO, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Veeco management will be available to meet one-on-one with investors during the conference. Interested investors should contact their Cowen representative to secure a meeting time. Veeco management is scheduled to present at 8:40 AM ET.
Veeco also granted the initial purchasers of the notes a 30-day option to purchase up to an additional $18.75 million aggregate principal amount of the notes. Veeco estimates that the net proceeds from the offering will be approximately $121.9 million (or approximately $140.3 million if the initial purchasers exercise their option to purchase additional notes in full), after deducting fees and expenses payable by Veeco. Veeco intends to use approximately $10.3 million of the net proceeds to pay the cost of the capped call transactions described below, and $81.2 million of the net proceeds from the offering of the notes to repurchase and retire $88.3 million aggregate principal amount of its outstanding 2.70% convertible senior notes due 2023 (the “2023 Notes”) in separate, privately n...
Veeco Instruments Inc. (“Veeco”) (VECO) announced today that it intends to offer, subject to market and other conditions, $150 million aggregate principal amount of Convertible Senior Notes due 2027 (the “notes”) in a private offering. Veeco also expects to grant the initial purchasers of the notes a 30-day option to purchase up to an additional $22.5 million aggregate principal amount of the notes. Veeco intends to use a portion of the net proceeds from the offering to pay the cost of the capped call transactions described below, and the remaining net proceeds from the offering of the notes to repurchase and retire a portion of its outstanding 2.70% convertible senior notes due 2023 (the “2023 Notes”) in separate, privately negotiated transactions effected by one or more of the initi...
At this time, I'd like to turn the conference over to Mr. Anthony Bencivenga, Head of Investor Relations. Joining me on the call today are Bill Miller, Veeco's Chief Executive Officer; and John Kiernan, our Chief Financial Officer. Today's earnings release is available on the Veeco website.