Veem Ltd (VEE) AI Stock Analysis

• Market Cap: AU$135.98M
• Dividend Yield: 0.46%
• Average Volume (3M): 92.03K
• Price to Earnings (P/E): 30.1
• Beta (1Y): 0.77
• Revenue Growth: 9.97%
• EPS Growth: -22.07%
• Country: AU
• Employees: 180
• Sector: Industrials
• Sector Strength: 90
• Industry: Aerospace & Defense
• EPS (TTM): <0.01
• Shares Outstanding: 135,980,150
• 10 Day Avg. Volume: 68,898
• 30 Day Avg. Volume: 92,033
• PEG Ratio: -0.70
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.24
• 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$1.00
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: AU$1.00 ▲(0.00%Upside)

Veem Ltd's overall score is driven primarily by robust financial performance, with strong revenue growth and profitability. However, high valuation and technical indicators pointing towards potential short-term pressures slightly offset these strengths. Investors should weigh these factors when considering investment.

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 high-performance propulsion systems and gyrostabilizers to clients in the marine, defense, and aerospace industries. The company capitalizes on its reputation for producing technologically advanced and reliable equipment, attracting a steady stream of orders from commercial and government clients. Key revenue streams include direct sales, long-term supply contracts, and maintenance services. Veem Ltd also benefits from strategic partnerships and collaborations with industry leaders, enhancing its product offerings and expanding its market reach, which in turn contributes significantly to its earnings.

Veem Ltd Financial Statement Overview

Summary

Veem Ltd has shown solid financial performance with strong revenue growth and improved profitability margins. The balance sheet is robust with a manageable debt level, while cash flow generation is strong. However, 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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	80.53M	59.54M	54.20M	59.45M	44.36M
Gross Profit	44.75M	10.26M	6.55M	9.92M	6.96M
EBITDA	14.87M	10.02M	6.14M	10.32M	5.97M
Net Income	6.99M	4.11M	1.27M	4.91M	2.47M
Balance Sheet
Total Assets	93.97M	91.50M	80.80M	70.28M	65.81M
Cash, Cash Equivalents and Short-Term Investments	170.56K	2.42M	2.63M	2.23M	3.62M
Total Debt	21.98M	26.17M	21.67M	20.04M	23.04M
Total Liabilities	41.68M	44.68M	37.20M	33.66M	33.25M
Stockholders Equity	52.28M	46.82M	43.60M	36.62M	32.56M
Cash Flow
Free Cash Flow	5.13M	933.08K	-2.43M	2.74M	3.39M
Operating Cash Flow	8.36M	6.12M	2.52M	6.29M	5.96M
Investing Cash Flow	-3.23M	-5.19M	-4.82M	-3.55M	-2.57M
Financing Cash Flow	-7.38M	-1.17M	2.59M	-4.05M	-2.67M

Veem Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.00
• 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 1 is above the 20-day moving average (MA) of 0.86, above the 50-day MA of 0.86, and below the 200-day MA of 1.06, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 66.04 is Neutral, neither overbought nor oversold. The STOCH value of 78.56 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
Sector *	67 Neutral	€2.75B	22.58	7.73%	3.00%	-1.29%	-31.61%
VEE	66 Neutral	AU$135.98M	30.12	8.82%	0.46%	9.97%	-22.07%
AUTLF	―	$1.65B	74.36	2.82%	―	―	―
EOPSF	―	$446.97M	―	-16.26%	―	―	―
OBTEF	―	$12.87M	11.11	7.02%	―	―	―
WWG	58 Neutral	AU$25.94M	25.41	5.21%	2.58%	37.72%	-4.69%
AVA	46 Neutral	AU$26.14M	―	-10.45%	―	13.25%	13.71%

Veem Ltd Corporate Events

VEEM Limited Announces Resignation of Joint Company Secretary

VEEM Limited, listed on the Australian Securities Exchange under the ticker VEE, has announced the resignation of Mr. David Rich from his position as Joint Company Secretary, effective June 30, 2025. Mr. Tino Kapfumo will continue as the sole Company Secretary, maintaining his role as the primary contact for ASX communications. This change in the company’s executive team may influence its administrative operations, but the continuation of Mr. Kapfumo ensures stability in ASX-related communications.

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 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.