Veem Ltd (VEE) AI Stock Analysis

• Market Cap: AU$92.45M
• Dividend Yield: 1.28%
• Average Volume (3M): 394.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: -14.88%
• EPS Growth: -56.89%
• Country: AU
• Employees: 180
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): -0.14
• Shares Outstanding: 146,749,370
• 10 Day Avg. Volume: 405,436
• 30 Day Avg. Volume: 394,175
• PEG Ratio: -0.65
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 1.63
• P/FCF Ratio: 33.64
• 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$0.80
• Price Target Upside: 26.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): >-0.01
• Revenue Forecast (FY): AU$61.00M

• Rating: 54 Neutral
• Price Target: AU$0.66 ▲(5.24% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is held back mainly by weakening financial performance (negative revenue growth and declining free cash flow) and bearish technicals (price below major moving averages with negative MACD). Valuation is only average, with a modest dividend offering limited support.

Positive Factors

High Gross Margin

A 59.45% gross margin provides durable operating leverage and pricing flexibility. High gross margins create a structural buffer to absorb rising overhead or R&D spend, support profitable product development, and give management time to address revenue weakness without immediate margin collapse.

Manageable Leverage

Low-to-moderate leverage (D/E 0.41) gives the company financial flexibility to invest, refinance, or withstand cyclical downturns. A conservative balance sheet reduces refinancing risk and supports strategic initiatives over a 2-6 month horizon, preserving optionality for management.

Some Cash Profitability

A FCF-to-net-income ratio near 0.78 indicates the business translates a substantial portion of accounting profit into cash. Despite recent declines, this underlying cash generation capacity supports reinvestment, working capital needs or modest shareholder distributions if operational trends stabilize.

Negative Factors

Declining Revenue

Sustained negative top-line growth undermines scale economics and market positioning. Falling revenue pressures pricing power, makes it harder to cover fixed costs and fund growth initiatives, and can lead to structural margin erosion if the company must increase sales incentives or cut prices to regain share.

Sharply Falling Free Cash Flow

A steep drop in free cash flow and weak operating cash conversion (0.21) reduce the firm’s ability to self-fund capex, repay debt, or invest in growth. If persistent, this constrains strategic choices, raises refinancing needs, and increases reliance on external financing under adverse conditions.

Low Profitability & Returns

Subdued net margins and low ROE indicate limited efficiency in converting sales into shareholder value. Structurally weak returns make reinvestment less effective, hamper ability to accumulate retained earnings for growth, and signal competitive pressures that could persist absent strategic change.

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 generates revenue through transaction fees charged on cross-border payments made using its platform. The company typically earns a percentage of the transaction amount, which varies depending on the currency and payment method used. Additionally, Veem may monetize its services through value-added features such as premium account services and advanced reporting tools for businesses that require more comprehensive payment solutions. Key revenue streams also come from partnerships with financial institutions and payment networks that enhance its service offerings and expand its customer base. The company’s focus on SMEs, along with its innovative use of technology, positions it favorably in the competitive fintech landscape.

Veem Ltd Financial Statement Overview

Summary

Mixed fundamentals: strong gross margin (59.45%) and manageable leverage (debt-to-equity 0.41), but negative revenue growth (-10.43%), weaker net margin (4.40%), low ROE (5.56%), and declining free cash flow growth (-35.06%) with weak cash conversion (operating cash flow to net income 0.21).

Income Statement

Veem Ltd's income statement shows a mixed performance. The company has maintained a decent gross profit margin of 59.45% in the latest year, indicating effective cost management. However, the net profit margin has decreased to 4.40%, reflecting challenges in converting revenue into profit. The revenue growth rate has turned negative at -10.43%, suggesting a decline in sales. EBIT and EBITDA margins have also decreased, indicating pressure on operating efficiency.

Balance Sheet

The balance sheet of Veem Ltd reflects moderate financial stability. The debt-to-equity ratio stands at 0.41, showing a manageable level of leverage. Return on equity is relatively low at 5.56%, indicating limited profitability from shareholders' investments. The equity ratio is not explicitly provided, but the company's equity position appears stable given the total assets and stockholders' equity figures.

Cash Flow

Veem Ltd's cash flow statement highlights some concerns. The free cash flow growth rate is negative at -35.06%, indicating a significant decline in cash available for reinvestment or debt repayment. The operating cash flow to net income ratio is 0.21, suggesting that cash generation from operations is not fully supporting net income. However, the free cash flow to net income ratio of 0.78 indicates some level of cash profitability.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	58.46M	68.62M	80.53M	59.54M	54.20M	59.45M
Gross Profit	21.68M	40.80M	44.75M	10.26M	6.55M	9.92M
EBITDA	2.61M	6.64M	14.78M	9.95M	6.14M	10.32M
Net Income	-17.52M	3.02M	6.99M	4.11M	1.27M	4.91M
Balance Sheet
Total Assets	79.88M	97.22M	93.97M	91.50M	80.80M	70.28M
Cash, Cash Equivalents and Short-Term Investments	9.14M	813.36K	170.56K	2.42M	2.63M	2.23M
Total Debt	22.66M	22.32M	21.98M	26.17M	21.67M	20.04M
Total Liabilities	32.01M	42.93M	41.68M	44.68M	37.20M	33.66M
Stockholders Equity	47.88M	54.29M	52.28M	46.82M	43.60M	36.62M
Cash Flow
Free Cash Flow	5.32M	3.33M	5.13M	933.08K	-2.43M	2.74M
Operating Cash Flow	6.54M	4.27M	8.36M	6.12M	2.52M	6.29M
Investing Cash Flow	-1.99M	-1.74M	-3.23M	-5.19M	-4.82M	-3.55M
Financing Cash Flow	6.20M	-4.42M	-7.38M	-1.17M	2.59M	-4.05M

Veem Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.63 is above the 20-day moving average (MA) of 0.58, below the 50-day MA of 0.67, and below the 200-day MA of 0.98, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 51.75 is Neutral, neither overbought nor oversold. The STOCH value of 81.82 is Negative, 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
WWG	74 Outperform	AU$61.98M	11.08	20.77%	4.55%	66.80%	625.00%
ASB	65 Neutral	AU$2.17B	21.58	7.54%	―	24.13%	474.03%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VEE	54 Neutral	AU$92.45M	-5.08	5.66%	1.28%	-14.88%	-56.89%
EOS	51 Neutral	AU$1.73B	80.47	-30.81%	―	-72.88%	―
AVA	50 Neutral	AU$15.43M	-2.02	-25.77%	―	4.84%	-12.12%
OEC	42 Neutral	AU$18.80M	-2.87	-42.31%	―	-34.48%	-26000.00%

Veem Ltd Corporate Events

Veem Ltd Issues Cautious Disclaimer With FY26 Half-Year Investor Presentation

Veem Ltd has released an investor presentation outlining its half-year FY26 results, framed strictly as an informational document rather than an offer or solicitation to buy securities. The company emphasizes that the presentation is not a prospectus or disclosure document, and it cannot be relied upon as the basis for any investment contract or commitment.

The release underscores that distribution outside Australia may be legally restricted and that the document is not a U.S. securities offering, as the shares are not registered under U.S. law. Veem and related parties disclaim liability for the completeness or accuracy of the information, highlight that past performance is not indicative of future results, and urge investors to conduct independent due diligence rather than treat the material as financial advice.

The most recent analyst rating on (AU:VEE) stock is a Hold with a A$0.53 price target. To see the full list of analyst forecasts on Veem Ltd stock, see the AU:VEE Stock Forecast page.

Veem posts soft half-year but strengthens balance sheet and bets on defence-led growth

Veem reported half-year revenue of $23.4 million, down 30% year on year, and an EBITDA loss of $0.2 million, but delivered strong operating cash flow of $4 million and cut net debt from $13.7 million in June to a small net cash position by January after a $13.1 million capital raising. A $24.8 million non-cash impairment on gyro development and inventory weighed on results, while management trimmed overheads by an annualised $3.5 million and highlighted FY26 as a transition year as new products and markets ramp up.

The company is rolling out its VEEM Extreme propulsion range, securing an initial contract with Manly Fast Ferries and targeting customers seeking efficiency and emissions reductions, and it launched the Mark III gyro with maintenance-free oiling and lower power use, which temporarily delayed purchases but is expected to support future demand. Defence revenue fell 49% on delayed ASC orders and the US government shutdown, but Veem has secured approved supplier status with HII, a long-term manufacturing licence with Northrop Grumman worth up to US$33 million, and is close to qualifying for the Hunter Class Frigate Program as it expands factory capacity ahead of an anticipated market recovery.

The most recent analyst rating on (AU:VEE) stock is a Hold with a A$0.53 price target. To see the full list of analyst forecasts on Veem Ltd stock, see the AU:VEE Stock Forecast page.

Veem Swings to Loss as Revenue Falls but Tangible Asset Backing Per Share Rises

Veem Ltd reported a 30% fall in revenue from ordinary activities to A$23.4 million for the half year ended 31 December 2025, alongside a sharp swing to a net loss of A$19.5 million attributable to members, representing a more than twentyfold deterioration in profit performance year-on-year. The company declared no interim dividend for the period, but despite weaker earnings, net tangible assets rose to A$44.2 million and tangible asset backing per share increased to 30.10 cents, suggesting an improved balance sheet position on a per-share basis that may underpin longer-term investor confidence even as near-term profitability weakens.

Veem’s net assets declined modestly to A$47.9 million from A$52.1 million, but the reduction in intangible assets boosted net tangible assets compared with the prior period, with right-of-use assets and lease liabilities remaining a notable component of the capital structure. The half-year financial report has been independently reviewed, providing an additional layer of assurance around the reported figures for shareholders assessing the trade-off between deteriorating earnings and strengthened tangible asset backing.

The most recent analyst rating on (AU:VEE) stock is a Hold with a A$0.53 price target. To see the full list of analyst forecasts on Veem Ltd stock, see the AU:VEE Stock Forecast page.

Veem flags major gyro write-down as it readies Mark III, core operations stay cash-generative

Veem reported preliminary unaudited first-half FY26 results showing revenue of about $23.4 million, slightly below prior guidance, with EBITDA near the guided range and operating cash flow up 128% to $4 million, underscoring resilience in its core business despite a challenging period. The company expects to book a sizeable non-cash impairment of $24.2 million on capitalised gyro development costs and $0.6 million of obsolete inventory as it transitions to its upgraded Mark III gyrostabilizer, a move that temporarily slowed orders but is intended to enhance product performance, reduce maintenance, and strengthen its balance sheet and competitive positioning in marine stabilization ahead of anticipated wider adoption.

Veem completed a major upgrade of its core gyro design in Q2 FY26, and with customers delaying purchases until Mark III units become available from late Q3 FY26, current orders have lapsed even as market interest remains strong. Management says R&D costs have likely peaked and will be expensed through the profit and loss going forward, while the recent impairment and capital raising are presented as balance sheet rationalisation that prepares the company to pursue several significant sales leads and future growth opportunities in its specialist marine segment.

The most recent analyst rating on (AU:VEE) stock is a Hold with a A$0.53 price target. To see the full list of analyst forecasts on Veem Ltd stock, see the AU:VEE Stock Forecast page.

VEEM Sets Date for Half-Year 2025 Results and Investor Webinar

VEEM Limited will release its financial results for the half-year ended 31 December 2025 on 25 February 2026 and present them in an investor webinar hosted by Managing Director Mark Miocevich and Chief Financial Officer Tino Kapfumo. The scheduled briefing underscores the company’s ongoing engagement with shareholders and the market, providing investors with an opportunity to gain insight into VEEM’s recent financial performance and operational progress in its marine and defence-focused businesses.

The most recent analyst rating on (AU:VEE) stock is a Hold with a A$0.60 price target. To see the full list of analyst forecasts on Veem Ltd stock, see the AU:VEE Stock Forecast page.

Veem Ltd Announces Director’s Share Acquisition

Veem Ltd has announced a change in the director’s interest, specifically involving John Bradley Miocevich. The notice details an acquisition of 769,231 ordinary fully paid shares at $1.30 per share, increasing the total number of shares held to 68,904,824. This change is a result of participation in a placement, reflecting a strategic move in the company’s governance structure.

The most recent analyst rating on (AU:VEE) stock is a Buy with a A$1.10 price target. To see the full list of analyst forecasts on Veem Ltd stock, see the AU:VEE Stock Forecast page.

Veem Ltd Director Increases Stake Through Share Placement

Veem Ltd has announced a change in the director’s interest, with Mark David Miocevich acquiring an additional 769,231 ordinary fully paid shares through participation in a placement. This acquisition increases his total holding to 68,904,824 shares, reflecting a strategic move that could strengthen his influence within the company. The transaction, valued at $1.30 per share, underscores confidence in the company’s future prospects and may have implications for its market positioning and stakeholder relations.

The most recent analyst rating on (AU:VEE) stock is a Buy with a A$1.10 price target. To see the full list of analyst forecasts on Veem Ltd stock, see the AU:VEE Stock Forecast page.

Veem Ltd Announces Quotation of New Securities on ASX

Veem Ltd has announced the application for quotation of 769,231 ordinary fully paid securities on the Australian Securities Exchange (ASX), under the code VEE. This issuance is part of previously announced transactions, and the listing is expected to enhance the company’s liquidity and market presence, potentially benefiting stakeholders by increasing the visibility and accessibility of its shares.

The most recent analyst rating on (AU:VEE) stock is a Buy with a A$1.10 price target. To see the full list of analyst forecasts on Veem Ltd stock, see the AU:VEE Stock Forecast page.

VEEM Limited Successfully Passes All AGM Resolutions

VEEM Limited announced the successful passing of all resolutions at its Annual General Meeting, indicating strong shareholder support. The resolutions included the adoption of the remuneration report, re-election and election of directors, and the ratification and approval of share issues, reflecting the company’s stable governance and strategic direction.

The most recent analyst rating on (AU:VEE) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Veem Ltd stock, see the AU:VEE Stock Forecast page.

Veem Ltd AGM Presentation Disclaimer

Veem Ltd has released a document related to its Annual General Meeting, emphasizing that it does not constitute an offer or advertisement for securities. The document includes disclaimers about the reliability of the information provided, highlighting that past performance is not indicative of future results and that forward-looking statements are subject to risks and uncertainties. Stakeholders are advised to conduct their own analysis and not rely solely on the document for investment decisions.

The most recent analyst rating on (AU:VEE) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Veem Ltd stock, see the AU:VEE Stock Forecast page.