54.04 USD
-1.24 (-2.24%)
Overall VEON gets a fundamental rating of 5 out of 10. We evaluated VEON against 22 industry peers in the Wireless Telecommunication Services industry. VEON scores excellent on profitability, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on VEON.
1. Profitability
1.1 Basic Checks
- VEON had positive earnings in the past year.
- VEON had a positive operating cash flow in the past year.
- In multiple years VEON reported negative net income over the last 5 years.
- VEON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- VEON has a better Return On Assets (7.31%) than 86.36% of its industry peers.
- VEON's Return On Equity of 46.60% is amongst the best of the industry. VEON outperforms 100.00% of its industry peers.
- VEON has a better Return On Invested Capital (11.26%) than 86.36% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- The Profit Margin of VEON (15.24%) is better than 90.91% of its industry peers.
- In the last couple of years the Profit Margin of VEON has grown nicely.
- The Operating Margin of VEON (22.43%) is better than 77.27% of its industry peers.
- In the last couple of years the Operating Margin of VEON has remained more or less at the same level.
- VEON has a better Gross Margin (88.24%) than 95.45% of its industry peers.
- In the last couple of years the Gross Margin of VEON has grown nicely.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so VEON is still creating some value.
- VEON has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, VEON has more shares outstanding
- The debt/assets ratio for VEON has been reduced compared to a year ago.
2.2 Solvency
- VEON has an Altman-Z score of 0.32. This is a bad value and indicates that VEON is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.32, VEON is doing worse than 72.73% of the companies in the same industry.
- 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's Debt to FCF ratio of 4.13 is fine compared to the rest of the industry. VEON outperforms 68.18% of its industry peers.
- VEON has a Debt/Equity ratio of 2.92. This is a high value indicating a heavy dependency on external financing.
- VEON has a worse Debt to Equity ratio (2.92) 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.
- The Current ratio of VEON (0.95) is comparable to the rest of the industry.
- VEON has a Quick Ratio of 0.95. 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 (0.94) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
- VEON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 120.14%, which is quite impressive.
- VEON shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.57% yearly.
- VEON shows a small growth in Revenue. In the last year, the Revenue has grown by 6.74%.
- The Revenue for VEON have been decreasing by -14.69% on average. This is quite bad
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
- VEON is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.44% yearly.
- VEON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.47% yearly.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- VEON is valuated rather expensively with a Price/Earnings ratio of 20.63.
- VEON's Price/Earnings is on the same level as the industry average.
- VEON is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 6.88 indicates a rather cheap valuation of VEON.
- Based on the Price/Forward Earnings ratio, VEON is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- VEON's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.63 | ||
| Fwd PE | 6.88 |
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 | 3.06 | ||
| 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
- No dividends for VEON!.
| 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 20.63 and the Price/Book (PB) ratio is 2.76.
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.