Latest news with #VEEM
Forbes
3 days ago
- Business
- Forbes
SMBs Go Global: 3 Ways Bank Partnerships Can Transform The Small Business Payments Experience
By Jeff Koyen America's small and medium-sized businesses ('SMBs') employ almost half (46%) of the U.S. workforce, about 59 million people,[1] and account for 43.5% of the country's GDP.[2] They're also firmly on the rebound as quarterly small business employment growth returns to pre-Covid levels.[3] Meanwhile, SMBs are becoming more globalized and connected around the world. According to PCMI market research commissioned by Visa, nearly one-third of American SMBs make cross-border payments—international transactions that often help them manage suppliers, customers and operations.[4] getty Yet some major financial institutions fail to meet these clients' needs—especially when it comes to fast, efficient and cost-effective cross-border payments. Forzley co-founded VEEM (which stands for 'Very Easy Exchange of Money') to solve these problems. In 2022, the San Francisco-based payments platform joined a number of other digital financial services platforms that are partnering with Visa Direct to remove friction from global payments. So how can financial technology (fintech) innovators like VEEM close the gap between global payment expectations and real-world experiences? And how can that, in turn, help banks deliver new solutions for small businesses? Below, explore three ways financial institutions can use emerging fintech to create a better banking experience for their SMB customers. As every entrepreneur and executive knows, your business is only as strong as its balance sheet. For SMBs that rely on overseas suppliers and customers, managing cash flow can be a huge challenge. Due to the limitations of traditional banking, the process of getting paid and paying suppliers can take several days, even weeks. That's not a problem for Fintechs, like VEEM, that connect to the Visa Direct network. Without Visa Direct, payment platforms often rely on existing global banking infrastructure, such as SWIFT and correspondent banking, which do not meet the demands of most modern SMBs. Settling payments on traditional networks can take days. Visa, meanwhile, provides day-after settlement, which allows clients and partners, and their SMB customers, to send funds more quickly to payees and beneficiaries. Visa Direct also brings greater transparency to global payment processes, which was the case for VEEM. With Visa Direct, SMB customers can instead know exactly where their money is—helping them make more informed decisions. Visa Direct helps financial institutions to solidify account primacy by embedding real-time cross-border capabilities that keep SMBs transacting within their ecosystem—reducing outflows to other providers, improving future cross-sell opportunities. The digital economy may be global, but currency exchange rates remind us that borders still exist. When sending and receiving payments, SMBs can find themselves at the mercy of exchange rates. Imagine sending $1,000 to an overseas supplier on Monday morning, only to learn it's worth $950 when the payment finally clears. Real-time payments help solve this problem by reducing the settlement lifecycle. Visa Direct also offers its banking clients another tool: multi-currency accounts. Traditional banking institutions, on the other hand, convert foreign currencies according to their own schedule. Clients have no control or visibility into the process, potentially leaving a lot of money on the exchange rate table. For SMBs that regularly transact with the same overseas customers and suppliers, converting between currencies may not even be necessary. Using multi-currency accounts, they can hold funds in foreign currency and use these accounts to conduct their back-and-forth business. While foreign exchange fluctuations are unavoidable, these types of tools allow SMBs to have more control and visibility. Visa Direct enables financial institutions to offer multi-currency solutions that increase deposits and generate new revenue streams while giving SMBs more flexibility and control—all within the bank's branded environment. All too often, small and medium-sized organizations can feel ignored when their banks scale up to go after bigger enterprises. SMBs working across borders may feel this even more keenly with, for example, new fee schedules that benefit higher-volume clients. In Meszaros' view, ignoring those SMB pain points is a mistake. The issue may be one of perception: Modern small businesses extend far beyond the local grocery stores or mom-and-pop pharmacies that were once unlikely to expand beyond regional markets. Today's SMBs are comprised of startups, innovators, eager entrepreneurs and others seeking opportunities for growth. When banks stop paying attention to the changing SMB landscape, they may—inadvertently or not—remove the features, functions and favorable fees that help SMBs compete in global markets. When financial institutions overlook these evolving needs, they risk ceding ground to more agile fintechs that are actively courting SMBs with tailored, tech-forward offerings. The result? A gradual erosion of wallet share, weakened brand loyalty and a missed opportunity to grow long-term, high-value relationships with the next generation of business customers. Financial institutions that ignore small business needs may also find that their SMB customers start looking for other providers to fulfill them. In the case of VEEM, Forzley embraces the SMB market as an enormous opportunity. His company's partnership with Visa Direct, he adds, 'has been instrumental in making our vision a reality.' By leveraging Visa Direct, financial institutions can differentiate in a competitive market by launching SMB-first solutions that deepen engagement, build loyalty and position themselves as an innovation partner. *Actual funds availability depends on receiving financial institution and region. [1] U.S. Bureau of Labor Statistics, 'Small businesses contributed 55 percent of the total net job creation from 2013 to 2023', May 2024. [2] U.S. Small Business Administration, 'Frequently Asked Questions About Small Business, 2024', July 2024. [3] U.S. Small Business Administration, 'Economic Bulletin, Fourth Quarter 2024', January 2025. [4] Visa PCMI Payments & Commerce Market Intelligence, 'SMB Payments–Visa Direct Market Fit Analysis', July 2024.
Yahoo
7 days ago
- Business
- Yahoo
VEEM (ASX:VEE) shareholders have earned a 18% CAGR over the last five years
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, you can make far more than 100% on a really good stock. For example, the VEEM Ltd (ASX:VEE) share price has soared 120% in the last half decade. Most would be very happy with that. Unfortunately, though, the stock has dropped 4.9% over a week. Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During five years of share price growth, VEEM achieved compound earnings per share (EPS) growth of 9.1% per year. This EPS growth is slower than the share price growth of 17% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth. You can see below how EPS has changed over time (discover the exact values by clicking on the image). It might be well worthwhile taking a look at our free report on VEEM's earnings, revenue and cash flow. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, VEEM's TSR for the last 5 years was 130%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. VEEM shareholders are down 51% for the year (even including dividends), but the market itself is up 12%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 18%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 1 warning sign for VEEM that you should be aware of before investing here. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
27-03-2025
- Business
- Yahoo
Are VEEM Ltd's (ASX:VEE) Fundamentals Good Enough to Warrant Buying Given The Stock's Recent Weakness?
It is hard to get excited after looking at VEEM's (ASX:VEE) recent performance, when its stock has declined 22% over the past three months. But if you pay close attention, you might find that its key financial indicators look quite decent, which could mean that the stock could potentially rise in the long-term given how markets usually reward more resilient long-term fundamentals. Particularly, we will be paying attention to VEEM's ROE today. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Simply put, it is used to assess the profitability of a company in relation to its equity capital. The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for VEEM is: 8.6% = AU$4.5m ÷ AU$52m (Based on the trailing twelve months to December 2024). The 'return' is the yearly profit. That means that for every A$1 worth of shareholders' equity, the company generated A$0.09 in profit. View our latest analysis for VEEM Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. On the face of it, VEEM's ROE is not much to talk about. Yet, a closer study shows that the company's ROE is similar to the industry average of 8.7%. Having said that, VEEM has shown a modest net income growth of 14% over the past five years. Taking into consideration that the ROE is not particularly high, we reckon that there could also be other factors at play which could be influencing the company's growth. For instance, the company has a low payout ratio or is being managed efficiently. We then compared VEEM's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 19% in the same 5-year period, which is a bit concerning. Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is VEEM fairly valued compared to other companies? These 3 valuation measures might help you decide. VEEM has a three-year median payout ratio of 30%, which implies that it retains the remaining 70% of its profits. This suggests that its dividend is well covered, and given the decent growth seen by the company, it looks like management is reinvesting its earnings efficiently. Additionally, VEEM has paid dividends over a period of eight years which means that the company is pretty serious about sharing its profits with shareholders. Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 30% of its profits over the next three years. However, VEEM's ROE is predicted to rise to 12% despite there being no anticipated change in its payout ratio. Overall, we feel that VEEM certainly does have some positive factors to consider. Namely, its respectable earnings growth, which it achieved due to it retaining most of its profits. However, given the low ROE, investors may not be benefitting from all that reinvestment after all. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
26-02-2025
- Business
- Yahoo
VEEM First Half 2025 Earnings: EPS: AU$0.008 (vs AU$0.026 in 1H 2024)
Revenue: AU$33.6m (down 11% from 1H 2024). Net income: AU$1.00m (down 71% from 1H 2024). Profit margin: 3.0% (down from 9.3% in 1H 2024). The decrease in margin was driven by lower revenue. EPS: AU$0.008 (down from AU$0.026 in 1H 2024). All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 13% decline forecast for the Machinery industry in Australia. Performance of the Australian Machinery industry. The company's shares are up 3.5% from a week ago. Don't forget that there may still be risks. For instance, we've identified 1 warning sign for VEEM that you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
25-02-2025
- Business
- Yahoo
VEEM (ASX:VEE) Is Paying Out Less In Dividends Than Last Year
VEEM Ltd (ASX:VEE) has announced it will be reducing its dividend payable on the 17th of April to A$0.0023, which is 70% lower than what investors received last year for the same period. This means that the annual payment is 1.7% of the current stock price, which is lower than what the rest of the industry is paying. While the dividend yield is important for income investors, it is also important to consider any large share price moves, as this will generally outweigh any gains from distributions. VEEM's stock price has reduced by 37% in the last 3 months, which is not ideal for investors and can explain a sharp increase in the dividend yield. See our latest analysis for VEEM If it is predictable over a long period, even low dividend yields can be attractive. But before making this announcement, VEEM's earnings quite easily covered the dividend. The business is returning a large chunk of its cash to shareholders, which means it is not being used to grow the business. Looking forward, earnings per share is forecast to rise by 85.1% over the next year. If the dividend continues along recent trends, we estimate the payout ratio will be 1.8%, which is in the range that makes us comfortable with the sustainability of the dividend. Looking back, VEEM's dividend hasn't been particularly consistent. This makes us cautious about the consistency of the dividend over a full economic cycle. Since 2018, the dividend has gone from A$0.0123 total annually to A$0.0154. This means that it has been growing its distributions at 3.3% per annum over that time. The dividend has seen some fluctuations in the past, so even though the dividend was raised this year, we should remember that it has been cut in the past. Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. It's encouraging to see that VEEM has been growing its earnings per share at 9.0% a year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting. Overall, it's not great to see that the dividend has been cut, but this might be explained by the payments being a bit high previously. While VEEM is earning enough to cover the dividend, we are generally unimpressed with its future prospects. We would probably look elsewhere for an income investment. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Taking the debate a bit further, we've identified 2 warning signs for VEEM that investors need to be conscious of moving forward. Is VEEM not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
