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VEON LTD (VEON) Stock Fundamental Analysis

NASDAQ:VEON - Nasdaq - US91822M5022 - ADR

45.69  -0.31 (-0.67%)

Fundamental Rating

4

Overall VEON gets a fundamental rating of 4 out of 10. We evaluated VEON against 22 industry peers in the Wireless Telecommunication Services industry. VEON has a medium profitability rating, but doesn't score so well on its financial health evaluation. VEON has a bad growth rate and is valued cheaply.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

VEON had negative earnings in the past year.
In the past year VEON had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: VEON reported negative net income in multiple years.
VEON had a positive operating cash flow in each of the past 5 years.
VEON Yearly Net Income VS EBIT VS OCF VS FCFVEON Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B 2B -2B

1.2 Ratios

VEON has a Return On Assets of -40.88%. This is amonst the worse of the industry: VEON underperforms 90.48% of its industry peers.
VEON has a worse Return On Equity (-328.87%) than 90.48% of its industry peers.
With an excellent Return On Invested Capital value of 17.17%, VEON belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VEON is above the industry average of 6.49%.
The last Return On Invested Capital (17.17%) for VEON is above the 3 year average (10.20%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -40.88%
ROE -328.87%
ROIC 17.17%
ROA(3y)-9.2%
ROA(5y)-5.23%
ROE(3y)-69.36%
ROE(5y)-74.31%
ROIC(3y)10.2%
ROIC(5y)11.69%
VEON Yearly ROA, ROE, ROICVEON Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 -100 -200

1.3 Margins

Looking at the Operating Margin, with a value of 23.71%, VEON belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
VEON's Operating Margin has improved in the last couple of years.
VEON's Gross Margin of 88.26% is amongst the best of the industry. VEON outperforms 95.24% of its industry peers.
In the last couple of years the Gross Margin of VEON has grown nicely.
Industry RankSector Rank
OM 23.71%
PM (TTM) N/A
GM 88.26%
OM growth 3Y7.31%
OM growth 5Y8.56%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.8%
GM growth 5Y2.8%
VEON Yearly Profit, Operating, Gross MarginsVEON Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50

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2

2. Health

2.1 Basic Checks

VEON has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for VEON remains at a similar level compared to 1 year ago.
The number of shares outstanding for VEON has been increased compared to 5 years ago.
Compared to 1 year ago, VEON has a worse debt to assets ratio.
VEON Yearly Shares OutstandingVEON Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
VEON Yearly Total Debt VS Total AssetsVEON Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B

2.2 Solvency

VEON has an Altman-Z score of 0.00. This is a bad value and indicates that VEON is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.00, VEON is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
VEON has a debt to FCF ratio of 6.05. This is a slightly negative value and a sign of low solvency as VEON would need 6.05 years to pay back of all of its debts.
VEON has a Debt to FCF ratio of 6.05. This is in the better half of the industry: VEON outperforms 76.19% of its industry peers.
A Debt/Equity ratio of 3.28 is on the high side and indicates that VEON has dependencies on debt financing.
With a Debt to Equity ratio value of 3.28, VEON is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 3.28
Debt/FCF 6.05
Altman-Z 0
ROIC/WACC2.75
WACC6.25%
VEON Yearly LT Debt VS Equity VS FCFVEON Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B 8B 10B

2.3 Liquidity

A Current Ratio of 0.73 indicates that VEON may have some problems paying its short term obligations.
The Current ratio of VEON (0.73) is worse than 80.95% of its industry peers.
VEON has a Quick Ratio of 0.73. This is a bad value and indicates that VEON is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of VEON (0.72) is worse than 80.95% of its industry peers.
Industry RankSector Rank
Current Ratio 0.73
Quick Ratio 0.72
VEON Yearly Current Assets VS Current LiabilitesVEON Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

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3

3. Growth

3.1 Past

VEON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -2612.57%.
The Revenue for VEON has decreased by -49.33% in the past year. This is quite bad
Measured over the past years, VEON shows a very negative growth in Revenue. The Revenue has been decreasing by -16.46% on average per year.
EPS 1Y (TTM)-2612.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-69.23%
Revenue 1Y (TTM)-49.33%
Revenue growth 3Y-20.25%
Revenue growth 5Y-16.46%
Sales Q2Q%12.12%

3.2 Future

The Earnings Per Share is expected to grow by 23.82% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.56% on average over the next years. This is quite good.
EPS Next Y8.26%
EPS Next 2Y18.41%
EPS Next 3Y19.45%
EPS Next 5Y23.82%
Revenue Next Year12.96%
Revenue Next 2Y10.08%
Revenue Next 3Y9.23%
Revenue Next 5Y8.56%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
VEON Yearly Revenue VS EstimatesVEON Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B
VEON Yearly EPS VS EstimatesVEON Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 100 200 300

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7

4. Valuation

4.1 Price/Earnings Ratio

VEON reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 0.29, the valuation of VEON can be described as very cheap.
Based on the Price/Forward Earnings ratio, VEON is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.44. VEON is valued rather cheaply when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 0.29
VEON Price Earnings VS Forward Price EarningsVEON Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, VEON is valued cheaper than 90.48% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VEON indicates a rather cheap valuation: VEON is cheaper than 95.24% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 4.5
EV/EBITDA 3.36
VEON Per share dataVEON EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

4.3 Compensation for Growth

VEON's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VEON has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as VEON's earnings are expected to grow with 19.45% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y18.41%
EPS Next 3Y19.45%

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0

5. Dividend

5.1 Amount

No dividends for VEON!.
Industry RankSector Rank
Dividend Yield N/A

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VEON LTD

NASDAQ:VEON (1/21/2025, 8:00:02 PM)

45.69

-0.31 (-0.67%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)11-14 2024-11-14/bmo
Earnings (Next)N/A N/A
Inst Owners15.24%
Inst Owner Change0.02%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.23B
Analysts80
Price TargetN/A
Short Float %0.19%
Short Ratio0.76
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)4.63%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 0.29
P/S 0.83
P/FCF 4.5
P/OCF 2.11
P/B 3.54
P/tB N/A
EV/EBITDA 3.36
EPS(TTM)-39.16
EYN/A
EPS(NY)158.3
Fwd EY346.46%
FCF(TTM)10.15
FCFY22.21%
OCF(TTM)21.61
OCFY47.3%
SpS54.73
BVpS12.89
TBVpS-8.53
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -40.88%
ROE -328.87%
ROCE 21.54%
ROIC 17.17%
ROICexc 25.88%
ROICexgc 55.78%
OM 23.71%
PM (TTM) N/A
GM 88.26%
FCFM 18.54%
ROA(3y)-9.2%
ROA(5y)-5.23%
ROE(3y)-69.36%
ROE(5y)-74.31%
ROIC(3y)10.2%
ROIC(5y)11.69%
ROICexc(3y)17.17%
ROICexc(5y)16.84%
ROICexgc(3y)44.58%
ROICexgc(5y)42.62%
ROCE(3y)12.8%
ROCE(5y)14.67%
ROICexcg growth 3Y57.38%
ROICexcg growth 5Y13.93%
ROICexc growth 3Y31.71%
ROICexc growth 5Y15.79%
OM growth 3Y7.31%
OM growth 5Y8.56%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.8%
GM growth 5Y2.8%
F-Score3
Asset Turnover0.53
Health
Industry RankSector Rank
Debt/Equity 3.28
Debt/FCF 6.05
Debt/EBITDA 1.8
Cap/Depr 109.31%
Cap/Sales 20.95%
Interest Coverage 2.11
Cash Conversion 92.1%
Profit Quality N/A
Current Ratio 0.73
Quick Ratio 0.72
Altman-Z 0
F-Score3
WACC6.25%
ROIC/WACC2.75
Cap/Depr(3y)119.82%
Cap/Depr(5y)100.8%
Cap/Sales(3y)23.3%
Cap/Sales(5y)22.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2612.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-69.23%
EPS Next Y8.26%
EPS Next 2Y18.41%
EPS Next 3Y19.45%
EPS Next 5Y23.82%
Revenue 1Y (TTM)-49.33%
Revenue growth 3Y-20.25%
Revenue growth 5Y-16.46%
Sales Q2Q%12.12%
Revenue Next Year12.96%
Revenue Next 2Y10.08%
Revenue Next 3Y9.23%
Revenue Next 5Y8.56%
EBIT growth 1Y-55.11%
EBIT growth 3Y-14.42%
EBIT growth 5Y-9.31%
EBIT Next Year-1.89%
EBIT Next 3Y5.95%
EBIT Next 5Y7.18%
FCF growth 1Y27.35%
FCF growth 3Y20.64%
FCF growth 5Y18.86%
OCF growth 1Y-41.38%
OCF growth 3Y-4.75%
OCF growth 5Y-3.44%