Veem Ltd (VEE) AI Stock Analysis

• Market Cap: AU$115.58M
• Dividend Yield: 1.18%
• Average Volume (3M): 30.20K
• Price to Earnings (P/E): 25.6
• Beta (1Y): 0.70
• Revenue Growth: 9.97%
• EPS Growth: -22.07%
• Country: AU
• Employees: 180
• Sector: Industrials
• Sector Strength: 92
• Industry: Aerospace & Defense
• EPS (TTM): 0.03
• Shares Outstanding: 135,980,150
• 10 Day Avg. Volume: 48,310
• 30 Day Avg. Volume: 30,195
• PEG Ratio: -0.77
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$1.50
• Price Target Upside: 76.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: AU$1.00 ▲(17.65%Upside)

Veem Ltd shows strong financial performance with significant revenue and profit margin improvements. However, the technical indicators suggest potential short-term weakness, and the valuation appears high, which may limit upside potential. The focus on maintaining financial stability and prudent capital allocation will be key for future growth.

Veem Ltd Business Overview & Revenue Model

Company Description

VEEM Ltd manufactures and sells propulsion and stabilization systems. The company offers gyrostabilizers, CNC machined monobloc propellers shaft lines, and marine ride control fins; forever pipe, a bimetal centrifugally cast hollow bars; and engineering services. It also manufactures bespoke components for defense, mining, and processing industries. The company was founded in 1968 and is headquartered in Canning Vale, Australia. VEEM Ltd is a subsidiary of Veem Corporation Pty Ltd.

How the Company Makes Money

Veem Ltd generates revenue primarily through the sale of its precision-engineered products, including marine propellers, gyrostabilizers, and associated components. The company serves a diverse client base consisting of commercial shipping companies, naval defense agencies, and industrial clients who require customized engineering solutions. Additionally, Veem Ltd engages in long-term contracts and partnerships with various defense and maritime organizations, which provide steady revenue streams. The company's ability to innovate and offer bespoke solutions also contributes to its competitive edge and financial performance.

Veem Ltd Financial Statement Overview

Summary

Veem Ltd has demonstrated strong revenue growth and improved profitability margins, with a solid balance sheet. The income statement shows notable increases in revenue and net profit margin, while the balance sheet reflects a solid equity position and manageable debt levels. Cash flow generation is strong, although ongoing attention to debt management and capital allocation is necessary.

Income Statement

Veem Ltd has demonstrated strong revenue growth, with a notable 35.3% increase from 2023 to 2024. The gross profit margin improved significantly to 53.5%, and the net profit margin increased to 8.7%, indicating enhanced profitability. EBIT and EBITDA margins also improved, reflecting operational efficiency. However, the company should continue to monitor cost structures and maintain profitability levels.

Balance Sheet

The company's balance sheet shows a solid equity position, with the equity ratio improving to 55.6%. The debt-to-equity ratio is manageable at 0.42, showing prudent leverage. Return on equity increased to 13.4%, highlighting effective use of equity capital. However, the company should be cautious of its total debt levels, ensuring they remain sustainable.

Cash Flow

Veem Ltd's free cash flow grew substantially by 450.4% from 2023 to 2024, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 1.20, while the free cash flow to net income ratio stands at 0.73. Despite the positive cash flow trends, the company should continue to manage capital expenditures and maintain cash reserves to support future growth.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
76.62M	80.53M	59.54M	54.20M	59.45M	44.36M
	Gross Profit
23.55M	44.75M	10.26M	6.55M	9.92M	6.96M
	EBIT
41.17M	9.34M	5.15M	1.95M	5.39M	2.65M
	EBITDA
11.18M	14.87M	10.02M	6.14M	10.32M	5.97M
	Net Income Common Stockholders
4.49M	6.99M	4.11M	1.27M	4.91M	2.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	170.56K	2.42M	2.63M	2.23M	3.62M
	Total Assets
94.10M	93.97M	91.50M	80.80M	70.28M	65.81M
	Total Debt
0.00	21.98M	26.17M	21.67M	20.04M	23.04M
	Net Debt
0.00	21.81M	23.75M	19.03M	17.81M	19.42M
	Total Liabilities
42.00M	41.68M	44.68M	37.20M	33.66M	33.25M
	Stockholders Equity
52.10M	52.28M	46.82M	43.60M	36.62M	32.56M
Cash Flow		Free Cash Flow
5.14M	5.13M	933.08K	-2.43M	2.74M	3.39M
	Operating Cash Flow
5.79M	8.36M	6.12M	2.52M	6.29M	5.96M
	Investing Cash Flow
-2.28M	-3.23M	-5.19M	-4.82M	-3.55M	-2.57M
	Financing Cash Flow
-5.79M	-7.38M	-1.17M	2.59M	-4.05M	-2.67M

Veem Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:VEE, the sentiment is Negative. The current price of 0.85 is below the 20-day moving average (MA) of 0.90, below the 50-day MA of 0.91, and below the 200-day MA of 1.17, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.00 is Neutral, neither overbought nor oversold. The STOCH value of 11.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:VEE.

Veem Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.50B	12.28	5.32%	248.52%	4.13%	-12.36%
VEE	62 Neutral	AU$115.58M	25.60	8.82%	1.18%	9.97%	-22.07%
AUSTF		$147.15M	9.43	19.99%	―	―	―
CODAF		$2.15B	32.56	19.85%	1.53%	―	―
EOHDF		$255.54M	5.82	10.65%	―	―	―
3NR		€734.76M	10.59	18.01%	5.98%	―	―
RUL	73 Outperform	AU$663.44M	101.69	11.59%	―	9.76%	-28.92%

Veem Ltd Corporate Events

VEEM Secures $2 Million in Defense Grants to Boost Manufacturing Capacity

VEEM Limited has been awarded $2 million in grants under the Defence Industry Development Grants Program to enhance its manufacturing capabilities for the defense sector. The funding will be used to purchase and install a 3D sand printer and a multi-axis CNC machine, which will aid in the production of critical components for naval vessels, including nuclear-powered submarines. This expansion is part of VEEM’s strategic efforts to increase its capacity and capability in the defense industry, aligning with opportunities from the AUKUS agreement and other naval shipbuilding programs.

The most recent analyst rating on (AU:VEE) stock is a Buy with a A$2.25 price target. To see the full list of analyst forecasts on Veem Ltd stock, see the AU:VEE Stock Forecast page.

Veem Ltd Investor Presentation Disclaimer

Veem Ltd has released a document for an investor presentation, emphasizing that it is not an offer or advertisement for the sale of shares. The document highlights that it does not constitute financial advice and stresses the importance of independent assessment by potential investors. It also includes disclaimers about the reliability of forward-looking statements and the lack of liability for the document’s contents.