ASX:VEE

Stock Analysis Report

Executive Summary

VEEM Ltd manufactures and sells propulsion and stabilization systems.

Snowflake

Fundamentals

Excellent balance sheet and slightly overvalued.

Risks

  • VEEM is not covered by any analysts.

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


Market Performance


7 Day Return

-16.7%

VEE

0.02%

AU Machinery

0.7%

AU Market


1 Year Return

-13.8%

VEE

2.5%

AU Machinery

6.2%

AU Market

VEE underperformed the Machinery industry which returned 2.5% over the past year.

VEE underperformed the Market in Australia which returned 6.2% over the past year.


Share holder returns

VEEIndustryMarket
7 Day-16.7%0.02%0.7%
30 Day4.2%7.1%3.8%
90 Day-12.3%16.3%0.4%
1 Year-13.0%-13.8%3.5%2.5%12.4%6.2%
3 Yearn/a-27.6%-28.9%40.9%21.9%
5 Yearn/a-0.4%-19.4%49.8%16.3%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

VEEM's share price is below the future cash flow value, and at a moderate discount (> 20%).

VEEM's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

VEEM is overvalued based on earnings compared to the AU Machinery industry average.

VEEM is overvalued based on earnings compared to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for VEEM, we can't assess if its growth is good value.


Price Based on Value of Assets

VEEM is overvalued based on assets compared to the AU Machinery industry average.


Next Steps

Future Growth

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

0.03%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if VEEM is high growth as no revenue estimate data is available.

VEEM's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare VEEM's revenue growth to the Australia market average as no estimate data is available.

VEEM's earnings growth is positive but not above the Australia market average.

VEEM's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if VEEM will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has VEEM performed over the past 5 years?

-19.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

VEEM's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

VEEM's 1-year earnings growth is negative, it can't be compared to the 5-year average.

VEEM's 1-year earnings growth is negative, it can't be compared to the AU Machinery industry average.


Return on Equity

VEEM has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

VEEM used its assets more efficiently than the AU Machinery industry average last year based on Return on Assets.


Return on Capital Employed

VEEM's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is VEEM's financial position?


Financial Position Analysis

VEEM is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

VEEM's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

VEEM's level of debt (22.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (8.3% vs 22.5% today).

Debt is well covered by operating cash flow (120.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.2x debt.


Next Steps

Dividend

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

1.03%

Current Dividend Yield


Dividend Yield and Payments Analysis

VEEM's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.47%).

VEEM's dividend is below the markets top 25% of dividend payers in Australia (5.58%).

VEEM is not paying a notable dividend for Australia, therefore no need to check if the payments are stable.

VEEM is not paying a notable dividend for Australia, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of VEEM's dividends as it is not paying a notable one for Australia.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of VEEM's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average board tenure


CEO

Mark Miocevich 0

24.7yrs

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

Mark's remuneration is about average for companies of similar size in Australia.

Mark's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

1.4yrs

Average Tenure

The average tenure for the VEEM board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyAU$1,305,71907 Feb 19
Perennial Value Management Limited
EntityCompany
Shares2,366,630
Max PriceAU$0.55

Ownership Breakdown


Management Team

  • Peter Torre (47yo)

    Joint Company Secretary & Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: AU$60.00k
  • Mark Miocevich

    MD & Director

    • Tenure: 24.7yrs
    • Compensation: AU$422.41k
  • Tracy Caudwell

    Manager of Finance & Administration and Joint Company Secretary

    • Tenure: 0yrs

Board Members

  • Peter Torre (47yo)

    Joint Company Secretary & Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: AU$60.00k
  • Brad Miocevich

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: AU$127.94k
  • Mark Miocevich

    MD & Director

    • Tenure: 24.7yrs
    • Compensation: AU$422.41k
  • Ian Barsden

    Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: AU$61.15k
  • Mike Bailey

    Independent Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: AU$60.00k

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$71.500m
  • 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 Analysis2019/09/19 10:39
End of Day Share Price2019/09/19 00:00
Earnings2019/06/30
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.