ASX:VEE

Stock Analysis Report

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Executive Summary

VEEM Ltd manufactures and sells propulsion and stabilization systems.


Snowflake Analysis

Adequate balance sheet with acceptable track record.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

VEE

0.4%

AU Machinery

1.9%

AU Market


1 Year Return

-12.4%

VEE

-19.1%

AU Machinery

-8.4%

AU Market

Return vs Industry: VEE exceeded the Australian Machinery industry which returned -19.1% over the past year.

Return vs Market: VEE underperformed the Australian Market which returned -8.4% over the past year.


Shareholder returns

VEEIndustryMarket
7 Day2.2%0.4%1.9%
30 Day4.5%-0.2%1.7%
90 Day12.2%4.4%13.2%
1 Year-11.4%-12.4%-18.1%-19.1%-4.6%-8.4%
3 Year-19.7%-23.3%-48.4%-49.4%19.4%3.7%
5 Yearn/a55.9%30.9%39.5%9.4%

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?

24.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VEE (A$0.46) is trading above our estimate of fair value (A$0.2)

Significantly Below Fair Value: VEE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VEE is poor value based on its PE Ratio (24.2x) compared to the AU Machinery industry average (14.2x).

PE vs Market: VEE is poor value based on its PE Ratio (24.2x) compared to the Australian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VEE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VEE's PB Ratio (1.9x) is in line with the AU Machinery industry average.


Next Steps

Future Growth

How is VEEM forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

60.0%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as VEEM has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has VEEM performed over the past 5 years?

-21.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VEE has high quality earnings.

Growing Profit Margin: VEE's current net profit margins (5.4%) are higher than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: VEE's earnings have declined by 21.1% per year over the past 5 years.

Accelerating Growth: VEE's earnings growth over the past year (36%) exceeds its 5-year average (-21.1% per year).

Earnings vs Industry: VEE earnings growth over the past year (36%) underperformed the Machinery industry 39.3%.


Return on Equity

High ROE: VEE's Return on Equity (7.8%) is considered low.


Next Steps

Financial Health

How is VEEM's financial position?


Financial Position Analysis

Short Term Liabilities: VEE's short term assets (A$21.0M) exceed its short term liabilities (A$10.3M).

Long Term Liabilities: VEE's short term assets (A$21.0M) do not cover its long term liabilities (A$21.3M).


Debt to Equity History and Analysis

Debt Level: VEE's debt to equity ratio (27.9%) is considered satisfactory.

Reducing Debt: VEE's debt to equity ratio has increased from 9.4% to 27.9% over the past 5 years.

Debt Coverage: VEE's debt is well covered by operating cash flow (50.6%).

Interest Coverage: VEE's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Next Steps

Dividend

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

1.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VEE's dividend (1.12%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.47%).

High Dividend: VEE's dividend (1.12%) is low compared to the top 25% of dividend payers in the Australian market (6.61%).


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?

2.3yrs

Average board tenure


CEO

Mark Miocevich

25.58yrs

Tenure

AU$422,406

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 ($USD303.10K) is about average for companies of similar size in the Australian market ($USD269.45K).

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


Board Members

NamePositionTenureCompensationOwnership
Mark Miocevich
MD & Director25.58yrsAU$422.41k61.54%
A$ 36.0m
Peter Torre
Independent Non-Executive Director2.33yrsAU$60.00k0.046%
A$ 27.0k
John Miocevich
Non-Executive Chairmanno dataAU$127.94kno data
Ian Barsden
Non-Executive Director4.08yrsAU$61.15k0.038%
A$ 22.5k
Michael Bailey
Independent Non-Executive Director2.08yrsAU$60.00k0.069%
A$ 40.5k

2.3yrs

Average Tenure

Experienced Board: VEE's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: VEE 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$58.500m
  • Shares outstanding: 130.00m
  • Website: https://www.veem.com.au

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VEEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDOct 2016
VEECHIA (Chi-X Australia)YesOrdinary SharesAUAUDOct 2016

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 10:36
End of Day Share Price2020/08/07 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.