Investors should take note of NASDAQ:VECO, a growth stock that remains attractively priced.

Last update: Aug 27, 2024

VEECO INSTRUMENTS INC (NASDAQ:VECO) was identified as an affordable growth stock by our stock screener. NASDAQ:VECO is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

A Closer Look at Growth for NASDAQ:VECO

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:VECO has received a 7 out of 10:

VECO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.19%, which is quite impressive.
The Earnings Per Share has been growing by 41.47% on average over the past years. This is a very strong growth
The Revenue has grown by 9.50% in the past year. This is quite good.
VECO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.05% yearly.
VECO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.76% yearly.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

How do we evaluate the Valuation for NASDAQ:VECO?

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:VECO has received a 5 out of 10:

Based on the Price/Earnings ratio, VECO is valued cheaply inside the industry as 84.40% of the companies are valued more expensively.
VECO is valuated rather cheaply when we compare the Price/Earnings ratio to 29.99, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio, VECO is valued cheaper than 81.65% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.63. VECO is valued slightly cheaper when compared to this.
Based on the Enterprise Value to EBITDA ratio, VECO is valued a bit cheaper than 77.98% of the companies in the same industry.
VECO has a very decent profitability rating, which may justify a higher PE ratio.
VECO's earnings are expected to grow with 12.05% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for NASDAQ:VECO

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:VECO has earned a 5 out of 10:

An Altman-Z score of 3.11 indicates that VECO is not in any danger for bankruptcy at the moment.
A Debt/Equity ratio of 0.35 indicates that VECO is not too dependend on debt financing.
VECO has a Current Ratio of 3.52. This indicates that VECO is financially healthy and has no problem in meeting its short term obligations.
A Quick Ratio of 2.32 indicates that VECO has no problem at all paying its short term obligations.

Profitability Examination for NASDAQ:VECO

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:VECO, the assigned 6 is noteworthy for profitability:

The Return On Assets of VECO (6.72%) is better than 70.64% of its industry peers.
With a decent Return On Equity value of 11.61%, VECO is doing good in the industry, outperforming 67.89% of the companies in the same industry.
VECO has a Return On Invested Capital of 6.62%. This is in the better half of the industry: VECO outperforms 68.81% of its industry peers.
The 3 year average ROIC (5.78%) for VECO is below the current ROIC(6.62%), indicating increased profibility in the last year.
VECO has a better Profit Margin (11.83%) than 66.97% of its industry peers.
Looking at the Operating Margin, with a value of 12.31%, VECO is in the better half of the industry, outperforming 66.06% of the companies in the same industry.
In the last couple of years the Operating Margin of VECO has grown nicely.
In the last couple of years the Gross Margin of VECO has grown nicely.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of VECO for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.