ASX:VEE

Stock Analysis Report

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Market Cap

AU$167.7m

Last Updated

2021/07/30 17:26 UTC

Data Sources

Company Financials +

Executive Summary

VEEM Ltd manufactures and sells propulsion and stabilization systems. More Details


Snowflake Analysis

Excellent balance sheet with acceptable track record.


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Share Price & News

How has VEEM's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VEE is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: VEE's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

9.3%

VEE

-0.04%

AU Machinery

0.4%

AU Market


1 Year Return

186.7%

VEE

122.7%

AU Machinery

28.3%

AU Market

Return vs Industry: VEE exceeded the Australian Machinery industry which returned 122.7% over the past year.

Return vs Market: VEE exceeded the Australian Market which returned 28.3% over the past year.


Shareholder returns

VEEIndustryMarket
7 Day9.3%-0.04%0.4%
30 Day0.8%-5.8%1.7%
90 Day22.9%31.2%5.1%
1 Year189.2%186.7%125.3%122.7%33.1%28.3%
3 Year132.4%126.3%51.2%48.1%34.9%18.5%
5 Yearn/a8.9%5.0%66.5%34.1%

Long-Term Price Volatility Vs. Market

How volatile is VEEM's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is VEEM undervalued compared to its fair value and its price relative to the market?

32.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VEE (A$1.29) is trading below our estimate of fair value (A$1.91)

Significantly Below Fair Value: VEE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VEE is poor value based on its PE Ratio (36.8x) compared to the Australian Machinery industry average (16.8x).

PE vs Market: VEE is poor value based on its PE Ratio (36.8x) compared to the Australian market (20.3x).


Price to Earnings Growth Ratio

PEG Ratio: VEE is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: VEE is overvalued based on its PB Ratio (4.8x) compared to the AU Machinery industry average (2x).


Future Growth

How is VEEM forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

18.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VEE's forecast earnings growth (18.4% per year) is above the savings rate (1.9%).

Earnings vs Market: VEE's earnings (18.4% per year) are forecast to grow faster than the Australian market (12.5% per year).

High Growth Earnings: VEE's earnings are forecast to grow, but not significantly.

Revenue vs Market: VEE's revenue (16.4% per year) is forecast to grow faster than the Australian market (4.9% per year).

High Growth Revenue: VEE's revenue (16.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VEE's Return on Equity is forecast to be low in 3 years time (14.9%).


Past Performance

How has VEEM performed over the past 5 years?

-11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VEE has a large one-off gain of A$1.6M impacting its December 31 2020 financial results.

Growing Profit Margin: VEE's current net profit margins (8.8%) are higher than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: VEE's earnings have declined by 11.5% per year over the past 5 years.

Accelerating Growth: VEE's earnings growth over the past year (64.4%) exceeds its 5-year average (-11.5% per year).

Earnings vs Industry: VEE earnings growth over the past year (64.4%) exceeded the Machinery industry 47.3%.


Return on Equity

High ROE: VEE's Return on Equity (13%) is considered low.


Financial Health

How is VEEM's financial position?


Financial Position Analysis

Short Term Liabilities: VEE's short term assets (A$27.6M) exceed its short term liabilities (A$11.3M).

Long Term Liabilities: VEE's short term assets (A$27.6M) exceed its long term liabilities (A$22.6M).


Debt to Equity History and Analysis

Debt Level: VEE's debt to equity ratio (20.1%) is considered satisfactory.

Reducing Debt: VEE's debt to equity ratio has increased from 13.6% to 20.1% over the past 5 years.

Debt Coverage: VEE's debt is well covered by operating cash flow (150.6%).

Interest Coverage: VEE's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet


Dividend

What is VEEM current dividend yield, its reliability and sustainability?

0.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VEE's dividend (0.33%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (1.99%).

High Dividend: VEE's dividend (0.33%) is low compared to the top 25% of dividend payers in the Australian market (4.91%).


Stability and Growth of Payments

Stable Dividend: VEE is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: VEE is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: VEE is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VEE's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average board tenure


CEO

Mark Miocevich

26.5yrs

Tenure

AU$415,331

Compensation

Mr. Mark David Miocevich, B. App.SC.(Mech Eng) FIE Aust serves as Managing Director at VEEM Ltd since 1995. Mr. Miocevich is responsible for the overall performance of VEEM and for the leadership of the ma...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD307.40K) is about average for companies of similar size in the Australian market ($USD270.91K).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: VEE's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

VEEM Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: VEEM Ltd
  • Ticker: VEE
  • Exchange: ASX
  • Founded: 1968
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: AU$167.700m
  • Shares outstanding: 130.00m
  • Website: https://www.veem.com.au

Location

  • VEEM Ltd
  • 22 Baile Road
  • Canning Vale
  • Western Australia
  • 6155
  • Australia

Listings


Biography

VEEM Ltd manufactures and sells propulsion and stabilization systems. It offers propellers, centrifugally cast hollow bars, and gyrostabilizers; and manufactures bespoke products and services to the marine...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/30 17:26
End of Day Share Price2021/07/30 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.