ASX:VEE

Stock Analysis Report

Executive Summary

VEEM Ltd manufactures and sells propulsion and stabilization systems.

Snowflake

Fundamentals

Excellent balance sheet and slightly overvalued.


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

0%

VEE

4.3%

AU Machinery

1.7%

AU Market


1 Year Return

-1.8%

VEE

15.3%

AU Machinery

10.3%

AU Market

Return vs Industry: VEE underperformed the Australian Machinery industry which returned 15.3% over the past year.

Return vs Market: VEE underperformed the Australian Market which returned 10.3% over the past year.


Shareholder returns

VEEIndustryMarket
7 Day0%4.3%1.7%
30 Day0%11.0%-0.4%
90 Day5.8%25.4%-0.1%
1 Year-0.9%-1.8%16.2%15.3%16.7%10.3%
3 Yearn/a-30.5%-31.6%36.7%18.4%
5 Yearn/a20.3%-2.9%50.9%16.9%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: VEE (A$0.55) is trading below our estimate of fair value (A$2.73)

Significantly Undervalued: 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 (32.1x) compared to the Machinery industry average (13.7x).

PE vs Market: VEE is poor value based on its PE Ratio (32.1x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

Low 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 is overvalued based on its PB Ratio (2.3x) compared to the AU Machinery industry average (1.2x).


Next Steps

Future Growth

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

1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VEE's forecast earnings growth (1.2% per year) is below the savings rate (2.3%).

Earnings vs Market: VEE's earnings (1.2% per year) are forecast to grow slower than the Australian market (10.2% per year).

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

Revenue vs Market: Insufficient data to determine if VEE's revenue is forecast to grow faster than the Australian market.

High Growth Revenue: Insufficient data to determine if VEE's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if VEE's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: VEE's earnings have declined by -19.5% per year over the past 5 years.

Accelerating Growth: VEE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VEE had negative earnings growth (-19.1%) over the past year, making it difficult to compare to the Machinery industry average (-19.1%).


Return on Equity

High ROE: VEE's Return on Equity (7.2%) is considered low.


Return on Assets

ROA vs Industry: VEE has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: VEE's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is VEEM's financial position?


Financial Position Analysis

Short Term Liabilities: VEE's short term assets (A$22.3M) exceeds its short term liabilities (A$9.6M)

Long Term Liabilities: VEE's short term assets (22.3M) exceeds its long term liabilities (8.8M)


Debt to Equity History and Analysis

Debt Level: VEE's debt to equity ratio (22.5%) is considered satisfactory

Reducing Debt: VEE's debt to equity ratio has increased from 8.3% to 22.5% over the past 5 years.

Debt Coverage: VEE's debt is well covered by operating cash flow (120.8%).

Interest Coverage: VEE's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet

Inventory Level: VEE has a high level of physical assets or inventory.

Debt Coverage by Assets: VEE's debt is covered by short term assets (assets are 3.187610x debt).


Next Steps

Dividend

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

0.94%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%2.5%markettop25%5.6%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VEE's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.45%).

High Dividend: VEE's dividend (0.94%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).

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

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

1.5yrs

Average board tenure


CEO

Mark Miocevich 0

24.8yrs

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: Insufficient data to establish whether Mark's total compensation is reasonable compared to companies of similar size in the Australian market.

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


Board Age and Tenure

1.5yrs

Average Tenure

Experienced Board: VEE's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

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


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: 1.5yrs
    • Compensation: AU$60.00k
  • Mark Miocevich

    MD & Director

    • Tenure: 24.8yrs
    • 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: 1.5yrs
    • Compensation: AU$60.00k
  • Brad Miocevich

    Non-Executive Chairman

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

    MD & Director

    • Tenure: 24.8yrs
    • Compensation: AU$422.41k
  • Ian Barsden

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: AU$61.15k
  • Mike Bailey

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • 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 Analysis2019/10/18 10:41
End of Day Share Price2019/10/15 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.