Veem Ltd (VEE) AI Stock Analysis

• Market Cap: AU$108.78M
• Dividend Yield: 0.52%
• Average Volume (3M): 74.31K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.68
• Revenue Growth: 9.97%
• EPS Growth: -22.07%
• Country: AU
• Employees: 180
• Sector: Industrials
• Sector Strength: 83
• Industry: Aerospace & Defense
• EPS (TTM): 0.03
• Shares Outstanding: 135,980,150
• 10 Day Avg. Volume: 137,070
• 30 Day Avg. Volume: 74,315
• 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: 68.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: AU$1.00 ▲(12.36%Upside)

Veem Ltd has a solid financial performance with strong revenue growth and profitability. However, technical analysis presents mixed signals with a bearish momentum and potential overbought conditions. The valuation suggests a slightly high P/E ratio. There are no notable earnings call highlights or corporate events influencing the score.

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
EBITDA	11.18M	14.87M	10.02M	6.14M	10.32M	5.97M
Net Income	4.49M	6.99M	4.11M	1.27M	4.91M	2.47M
Balance Sheet
Total Assets	94.10M	93.97M	91.50M	80.80M	70.28M	65.81M
Cash, Cash Equivalents and Short-Term Investments	0.00	170.56K	2.42M	2.63M	2.23M	3.62M
Total Debt	0.00	21.98M	26.17M	21.67M	20.04M	23.04M
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: Positive
• Last Price: 0.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:VEE, the sentiment is Positive. The current price of 0.89 is above the 20-day moving average (MA) of 0.80, above the 50-day MA of 0.87, and below the 200-day MA of 1.11, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 61.08 is Neutral, neither overbought nor oversold. The STOCH value of 79.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:VEE.

Veem Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VEE	65 Neutral	AU$108.78M	24.10	8.82%	0.52%	9.97%	-22.07%
Sector *	65 Neutral	$10.56B	15.49	5.57%	1.96%	2.71%	-26.29%
AUSTF		$130.19M	9.43	19.99%	1.93%	―	―
CODAF		$2.36B	32.56	19.85%	1.46%	―	―
EOHDF		$276.41M	6.38	10.65%	―	―	―
3NR		€748.40M	10.59	18.01%	4.79%	―	―
RUL	73 Outperform	AU$637.88M	98.98	11.59%	―	9.76%	-28.92%

Veem Ltd Corporate Events

Veem Ltd Issues Investor Presentation with Important Disclaimers

Veem Ltd has released a document that serves as an investor presentation, highlighting that it is not an offer or advertisement for securities. The document emphasizes that it should not be used as a basis for investment decisions and does not constitute financial advice. It also clarifies that the information provided is general in nature and advises potential investors to conduct their own investigations and seek appropriate advice. The document includes disclaimers about the accuracy of forward-looking statements and the company’s liability for the information provided.

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 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.