IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
© 2026 Blank Capital Research. All rights reserved. System Version: Aegis V8 (God Mode).
Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#1975
Positioning
Market Dominance
Manufacturing
Machinery
$1.8B
William J. Miller
Veeco Instruments develops, manufactures, sells, and supports semiconductor and thin film process equipment. The company offers laser annealing, ion beam deposition and etch, metal organic chemical vapor deposition, single wafer wet processing and surface preparation, molecular beam epitaxy, and atomic layer deposition and other deposition systems.
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = VECO ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | 28.5% | 8.0% | 100.0% | 100.0% | 10.4% | -4.6% | 3.3% | 0.0x | $141.8B | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | 46.1% | 16.6% | 51.3% | 31.9% | 26.8% | -4.0% | 1.0% | 25.0x | $272.1B | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | 10.3% | 3.1% | 24.1% | 7.2% | 4.7% | 14.3% | 0.8% | 25.0x | $11.4B | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | 2.2% | 1.5% | 9.3% | 5.3% | 2.2% | -8.5% | 2.2% | 16.0x | $18.9B | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 35.5% | 19.8% | 48.7% | 29.2% | 24.7% | 4.4% | 0.8% | 32.0x | $181.9B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | 11.8% | 8.8% | 45.9% | 11.3% | 11.1% | 25.7% | 3.7% | 0.0x | $1.8B | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.6% | 7.0% | 66.5% | 17.1% | 15.6% | 39.0% | 0.0% | 0.0x | $115M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | 22.6% | 4.9% | 71.2% | 12.8% | 9.4% | 1.7% | 5.9% | 124.0x | $72.1B | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | 3.0% | 1.1% | 20.9% | 7.3% | 1.3% | 3.0% | 0.9% | 67.0x | $1.2B | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | 8.2% | 3.5% | 55.3% | 25.9% | 12.4% | 0.7% | 1.7% | 0.0x | $87.0B | VS | |
$VECO VEECO INSTRUMENTS INC | 50 | 51 | 57 | 60 | 31.4x | 32.5x | 6.4% | 4.4% | 41.5% | 8.9% | 8.1% | -5.7% | 0.0% | 26.0x | $1.8B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
VEECO INSTRUMENTS INC (VECO) receives a "Hold" rating with a composite score of 50.2/100. It ranks #1975 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
Sign in to join the discussion.
YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
William J. Miller
Chief Executive Officer
Labor Force
1,220
51
47
54
Audit Verdict: Average governance indicators based on financial metrics.
No recent insider transactions available for VECO
In-line with peers — no strong momentum signal
Fair valuation relative to peers
Average quality profile
Average volatility — neutral timing signal
Moderate investment profile
Mid-range overall rating
Get full access to institutional-quality research tools with Blank Capital Pro.
Upgrade to ProStarting at $19.99/mo
Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for VECO.
View All RatingsMaterial decline in asset turnover efficiency detected
High margin volatility — erratic forensic earnings quality
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 51 | 36 | +15ALPHA |
| MOMENTUM | 60 | 53 | +7ALPHA |
| VALUATION | 57 | 38 | +19ALPHA |
| INVESTMENT | 47 | 86 | -39DRAG |
| STABILITY | 54 | 40 | +14ALPHA |
| SHORT INT | 32 | 19 | +13ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 27.5% vs WACC 8.7% (spread +18.8%)
GM 41% vs sector 43%, OM 9% vs sector 1%
Capital turnover 5.10x, R&D intensity 17.8%
Rev growth -6%, 10yr history
Interest coverage 4.9x, Net debt/EBITDA 3.1x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
Our model assigns VEECO INSTRUMENTS INC a Hold rating, with a composite score of 50.2/100 and 3 out of 5 stars. Ranked #1975 of 7,333 stocks, VECO presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
With a quality score of 51/100, VECO shows adequate but unremarkable business quality. The company reports a return on equity of 6.4% (sector avg: -2.5%), gross margins of 41.5% (sector avg: 42.5%), net margins of 8.1% (sector avg: -0.2%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
VECO's value score of 57/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 31.44x, an EV/EBITDA of 32.47x, a P/B ratio of 2.02x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
With an investment score of 47/100, VECO exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of -5.7% vs. a sector average of 5.9% and a return on assets of 4.4% (sector: -0.1%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
VECO demonstrates moderate momentum with a score of 60/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at -5.7% year-over-year, while a beta of 1.53 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
With a stability score of 54/100, VECO exhibits average financial resilience. Key stability metrics include a beta of 1.53 and a debt-to-equity ratio of 26.00x (sector avg: 0.2x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
VEECO INSTRUMENTS INC's short interest score of 32/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include high market sensitivity (beta: 1.53), elevated leverage (D/E: 26.00x), small-cap liquidity risk. At $1.8B (small-cap), VECO carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
VEECO INSTRUMENTS INC is a small-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #1975 of 7,333 overall (73rd percentile). Key comparisons include ROE of 6.4% exceeding the -2.5% sector median and operating margins of 8.9% above the 1.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While VECO currently exhibits a HOLD profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
Upgrade catalyst
Short Int. (32) is the limiting factor — improvement here would lift the composite score most.
EV/EBITDA 183% ABOVE SECTOR MEDIAN
ROE 359% BELOW SECTOR MEDIAN
Gross Margin IN LINE WITH SECTOR BENCHMARKS
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate VEECO INSTRUMENTS INC (VECO) as a Hold with a composite score of 50.2/100 at a current price of $29.37. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.
The rating is primarily driven by strength in momentum (60th percentile) and value (57th percentile), which together account for the majority of the composite score. All factors score above the 40th percentile, indicating no material weakness in the quantitative profile. We assign a Narrow Moat rating (62/100), Medium uncertainty, and Standard capital allocation.
Key items to watch: quarterly earnings execution and sector-level competitive dynamics. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
VEECO INSTRUMENTS INC holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 50.2/100 places it at rank #1975 in our full 7,333-stock universe. At $1.8B in market capitalization, VEECO INSTRUMENTS INC is a small-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.
Revenue contraction of -6% combined with momentum at the 60th percentile paints a cautious picture of the near-term business outlook. The market appears to be pricing in continued challenges, and a catalyst for reversal is not clearly visible from current data.
The margin cascade tells an important story: gross margins of 41% (-1.0pp vs sector) narrow to operating margins of 9% (+7.6pp vs sector) and net margins of 8.1%, yielding a gross-to-net conversion rate of 20%. This conversion rate is typical for the sector, suggesting a standard cost structure without notable efficiency advantages or disadvantages.
At a current price of $29.37, VEECO INSTRUMENTS INC is trading near fair value based on current fundamentals. Our value factor score of 57/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at a P/E of 31.4x (a 41% premium to the sector median of 22.3x), EV/EBITDA of 32.5x (at a premium), P/B of 2.0x, P/S of 2.6x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis finds only partially justified by current fundamentals.
Gross margins of 41% signal strong pricing power and brand/IP advantages — businesses with margins above 40% have historically demonstrated more resilient earnings through economic cycles.
A conservative balance sheet (26% D/E) provides financial flexibility for acquisitions, buybacks, or weathering economic downturns without dilution.
Revenue decline of -6% signals business deterioration — declining revenues make it difficult to grow into the current valuation and often precede further negative revisions.
High beta of 1.53 means amplified losses in market selloffs — in a broad market correction, this stock would likely decline more than the index.
We assign a Medium uncertainty rating to VEECO INSTRUMENTS INC. The stock presents a balanced risk profile: elevated market sensitivity (beta of 1.53). While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.
Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 1.53). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 54th percentile and quality factor at the 51th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: healthy gross margins of 41% provide a buffer against cost pressures; conservative leverage (26% D/E) limits balance sheet risk. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.
We rate VEECO INSTRUMENTS INC's capital allocation as Standard. Management has shown adequate — though not exceptional — stewardship of shareholder capital. Returns on equity stand at 6.4%, and the balance sheet is managed within acceptable parameters (D/E: 26%). Exemplary allocators typically sustain ROE above 20% and D/E below 50%; VEECO INSTRUMENTS INC falls short on at least one dimension.
There is room for improvement in optimizing the capital structure or enhancing shareholder returns. Absent a dividend, the overall capital allocation framework would benefit from either higher reinvestment returns, improved balance sheet efficiency, or increased shareholder distributions. We will monitor for signs of strategic improvement that could warrant an upgrade.
In summary, VEECO INSTRUMENTS INC receives a Hold rating with a composite score of 50.2/100 (rank #1975 of 7,333). Our quantitative framework assigns a Narrow Moat (62/100, trend: stable), Medium uncertainty, and Standard capital allocation. The average factor score across quality, value, momentum, stability, and investment is 54/100.
Our analysis supports a neutral stance on VEECO INSTRUMENTS INC. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We assign VEECO INSTRUMENTS INC a Narrow Moat rating with a composite moat score of 62/100. The ROIC-WACC spread of +18.8% is the primary signal of economic value creation. The company possesses identifiable competitive advantages, though they are less entrenched than those of wide-moat peers. Our analysis indicates that VEECO INSTRUMENTS INC can sustain above-average returns on invested capital for at least 10 years, with the strongest contributor being economic value creation at 14.3/20.
The strongest moat sources are economic value creation (14.3/20) and margin superiority (13.9/20). ROIC 27.5% vs WACC 8.7% (spread +18.8%). GM 41% vs sector 43%, OM 9% vs sector 1%. These pillars form the core of VEECO INSTRUMENTS INC's competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include financial resilience (9.5/20) and growth durability (11.9/20). Interest coverage 4.9x, Net debt/EBITDA 3.1x. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect VEECO INSTRUMENTS INC's moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include gross margins of 41% providing a solid profitability foundation, declining revenues (-6%) that pressure the earnings outlook. The margin cascade from 41% gross to 9% operating to 8.1% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that profit quality is adequate though not exceptional, with the quality factor at the 51th percentile.
The margin profile shows gross margins of 41%, operating margins of 9%, net margins of 8.1%. Return metrics include ROE of 6.4% and ROA of 4.4%. Relative to the Manufacturing sector, gross margins are 1.0 percentage points below the sector median of 43%, and ROE of 6.4% compares to a sector median of -2.5%.
The balance sheet reflects a conservatively managed balance sheet with D/E of 26%, revenue growth of -6%. The sector median D/E is 0%, putting VEECO INSTRUMENTS INC at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Above 50MA
37.18%
Net New Highs
+51081
Axcelis (ACLS) Q4 2025 earnings call recap: record CS&I, Purion H6 launch, memory/DRAM rebound and 2026 outlook plus Veeco merger timing—read now.
Axcelis Technologies, Inc. (Nasdaq: ACLS) today announced financial results for the fourth quarter and full year ended December 31, 2025.
Axcelis Technologies (NASDAQ:ACLS) reported fourth-quarter and full-year 2025 results that topped its own outlook, citing stronger-than-expected aftermarket performance and an improving bookings trend. Management also provided initial thoughts for 2026, with a view that total revenue will be roughly
Veeco Instruments Inc. stockholders have voted to approve all proposals related to the company's pending merger with Axcelis Technologies Inc. The merger completion remains subject to regulatory approval from China's State Administration for Market Regulation, with both companies expecting the deal to close in the second half of 2026.
Ultra Clean (UCTT) delivered earnings and revenue surprises of -4.35% and -0.22%, respectively, for the quarter ended December 2025. Do the numbers hold clues to what lies ahead for the stock?