54.2 USD
+0.13 (+0.24%)
55.28 USD
+1.08 (+1.99%)
Taking everything into account, VEON scores 5 out of 10 in our fundamental rating. VEON was compared to 22 industry peers in the Wireless Telecommunication Services industry. VEON scores excellent on profitability, but there are concerns on its financial health. VEON may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- In the past year VEON was profitable.
- 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.
- Each year in the past 5 years VEON had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 7.31%, VEON belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 46.60%, VEON belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- VEON's Return On Invested Capital of 11.26% is amongst the best of the industry. VEON outperforms 86.36% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for VEON is above the industry average of 6.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.31% | ||
| ROE | 46.6% | ||
| ROIC | 11.26% |
ROA(3y)-8.89%
ROA(5y)-4.97%
ROE(3y)-96.72%
ROE(5y)-77.85%
ROIC(3y)11.44%
ROIC(5y)10.01%
1.3 Margins
- VEON's Profit Margin of 15.24% is amongst the best of the industry. VEON outperforms 90.91% of its industry peers.
- VEON's Profit Margin has improved in the last couple of years.
- The Operating Margin of VEON (22.43%) is better than 77.27% of its industry peers.
- VEON's Operating Margin has been stable in the last couple of years.
- VEON's Gross Margin of 88.24% is amongst the best of the industry. VEON outperforms 95.45% of its industry peers.
- VEON's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.43% | ||
| PM (TTM) | 15.24% | ||
| GM | 88.24% |
OM growth 3Y-3.83%
OM growth 5Y-0.35%
PM growth 3Y-16.1%
PM growth 5Y8.09%
GM growth 3Y-0.11%
GM growth 5Y2.49%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), VEON is creating some value.
- The number of shares outstanding for VEON has been increased compared to 1 year ago.
- VEON has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for VEON has been reduced compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.32, we must say that VEON is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.32, VEON is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
- The Debt to FCF ratio of VEON is 4.13, which is a neutral value as it means it would take VEON, 4.13 years of fcf income to pay off all of its debts.
- VEON has a Debt to FCF ratio of 4.13. This is in the better half of the industry: VEON outperforms 68.18% of its industry peers.
- A Debt/Equity ratio of 2.92 is on the high side and indicates that VEON has dependencies on debt financing.
- The Debt to Equity ratio of VEON (2.92) is worse than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.92 | ||
| Debt/FCF | 4.13 | ||
| Altman-Z | 0.32 |
ROIC/WACC1.33
WACC8.45%
2.3 Liquidity
- A Current Ratio of 0.95 indicates that VEON may have some problems paying its short term obligations.
- VEON has a Current ratio (0.95) which is in line with its industry peers.
- A Quick Ratio of 0.94 indicates that VEON may have some problems paying its short term obligations.
- VEON has a Quick ratio of 0.94. This is comparable to the rest of the industry: VEON outperforms 59.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 120.14% over the past year.
- Measured over the past years, VEON shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.57% on average per year.
- The Revenue has been growing slightly by 6.74% in the past year.
- Measured over the past years, VEON shows a very negative growth in Revenue. The Revenue has been decreasing by -14.69% on average per year.
EPS 1Y (TTM)120.14%
EPS 3Y-15.41%
EPS 5Y-8.57%
EPS Q2Q%-116%
Revenue 1Y (TTM)6.74%
Revenue growth 3Y1.32%
Revenue growth 5Y-14.69%
Sales Q2Q%7.52%
3.2 Future
- Based on estimates for the next years, VEON will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.44% on average per year.
- The Revenue is expected to grow by 6.47% on average over the next years.
EPS Next Y83.29%
EPS Next 2Y22.79%
EPS Next 3Y22.25%
EPS Next 5Y15.44%
Revenue Next Year9.29%
Revenue Next 2Y8.6%
Revenue Next 3Y7.56%
Revenue Next 5Y6.47%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 20.69 indicates a rather expensive valuation of VEON.
- VEON's Price/Earnings is on the same level as the industry average.
- VEON's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.60.
- Based on the Price/Forward Earnings ratio of 6.90, the valuation of VEON can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of VEON indicates a rather cheap valuation: VEON is cheaper than 100.00% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of VEON to the average of the S&P500 Index (25.83), we can say VEON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.69 | ||
| Fwd PE | 6.9 |
4.2 Price Multiples
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of VEON indicates a rather cheap valuation: VEON is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.07 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of VEON may justify a higher PE ratio.
- VEON's earnings are expected to grow with 22.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.25
PEG (5Y)N/A
EPS Next 2Y22.79%
EPS Next 3Y22.25%
5. Dividend
5.1 Amount
- VEON does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
VEON LTD / VEON FAQ
Can you provide the ChartMill fundamental rating for VEON LTD?
ChartMill assigns a fundamental rating of 5 / 10 to VEON.
What is the valuation status of VEON LTD (VEON) stock?
ChartMill assigns a valuation rating of 7 / 10 to VEON LTD (VEON). This can be considered as Undervalued.
What is the profitability of VEON stock?
VEON LTD (VEON) has a profitability rating of 8 / 10.
What is the valuation of VEON LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for VEON LTD (VEON) is 20.69 and the Price/Book (PB) ratio is 2.77.
What is the expected EPS growth for VEON LTD (VEON) stock?
The Earnings per Share (EPS) of VEON LTD (VEON) is expected to grow by 83.29% in the next year.