NYSE:VNE

Stock Analysis Report

Executive Summary

Veoneer, Inc. designs, develops, manufactures, and sells automotive safety electronic products in Asia, the Americas, and Europe.

Rewards

Revenue is forecast to grow 10.98% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet and overvalued.


Similar Companies

Share Price & News

How has Veoneer's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VNE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.1%

VNE

1.1%

US Auto Components

1.8%

US Market


1 Year Return

-48.8%

VNE

-6.8%

US Auto Components

20.1%

US Market

Return vs Industry: VNE underperformed the US Auto Components industry which returned -7% over the past year.

Return vs Market: VNE underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

VNEIndustryMarket
7 Day2.1%1.1%1.8%
30 Day8.6%-5.1%1.4%
90 Day-3.4%-3.6%8.8%
1 Year-48.8%-48.8%-5.4%-6.8%22.7%20.1%
3 Yearn/a-7.4%-16.6%50.1%40.4%
5 Yearn/a2.9%-11.8%72.9%53.9%

Price Volatility Vs. Market

How volatile is Veoneer's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Veoneer undervalued compared to its fair value and its price relative to the market?

0.95x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate VNE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate VNE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: VNE is unprofitable, so we can't compare its PE Ratio to the Auto Components industry average.

PE vs Market: VNE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VNE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VNE is good value based on its PB Ratio (1x) compared to the US Auto Components industry average (1.4x).


Next Steps

Future Growth

How is Veoneer forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

46.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VNE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: VNE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: VNE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: VNE's revenue (11% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: VNE's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VNE is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Veoneer performed over the past 5 years?

-44.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VNE is currently unprofitable.

Growing Profit Margin: VNE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VNE is unprofitable, and losses have increased over the past 5 years at a rate of -44.4% per year.

Accelerating Growth: Unable to compare VNE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VNE is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (12.3%).


Return on Equity

High ROE: VNE has a negative Return on Equity (-28.71%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Veoneer's financial position?


Financial Position Analysis

Short Term Liabilities: VNE's short term assets ($1.6B) exceed its short term liabilities ($591.0M).

Long Term Liabilities: VNE's short term assets ($1.6B) exceed its long term liabilities ($334.0M).


Debt to Equity History and Analysis

Debt Level: VNE's debt to equity ratio (7.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if VNE's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: VNE has a high level of physical assets or inventory.

Debt Coverage by Assets: VNE's debt is covered by short term assets (assets are 11.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: VNE has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: VNE has sufficient cash runway for 2.2 years if free cash flow continues to reduce at historical rates of -42.1% each year.


Next Steps

Dividend

What is Veoneer's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate VNE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate VNE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VNE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VNE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VNE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Jan Carlson (59yo)

US$7,612,626

Compensation

Mr. Jan Carlson has been Chairman of the Board of Autoliv Inc. since May 2014 and serves as its Director since May 2007. Mr. Carlson serves as Chairman of the Board of Directors, President and Chief Execut ...


CEO Compensation Analysis

Compensation vs Market: Jan's total compensation ($USD7.61M) is above average for companies of similar size in the US market ($USD3.74M).

Compensation vs Earnings: Jan's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Jan Carlson
Chairman of the Board of Directors0yrsUS$7.61m0.17% $2.7m
Thomas Jönsson
Executive Vice President of Communications & IR1.7yrsUS$767.02k0.0067% $110.7k
Lars Sjöbring
Executive VP of Legal Affairs1.8yrsUS$2.64m0.0039% $64.7k
Art Blanchford
Executive Vice President of Business Units NACK (North America1.8yrsUS$881.54k0.0016% $26.0k
Mats Backman
CFO & Executive VP of Financial Affairs0.9yrsno data0.0026% $43.2k
Steve Rodé
Executive Vice President of Operations1.8yrsno datano data
Nishant Batra
CTO and Executive VP of Technology1.3yrsno datano data
Mikko Taipale
Executive Vice President of Human Resources1.8yrsno data0.0018% $30.1k
Takayoshi Matsunaga
Executive Vice President of Business Unit Japan & India0yrsno datano data
Per Skytt
Executive Vice President Technical Competence Centers0yrsno datano data

1.8yrs

Average Tenure

52yo

Average Age

Experienced Management: VNE's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jan Carlson
Chairman of the Board of Directors0yrsUS$7.61m0.17% $2.7m
James Ringler
Independent Director1.8yrsUS$190.00k0.014% $230.6k
Wolfgang Ziebart
Independent Director1.7yrsUS$70.00k0.0040% $66.3k
Robert Alspaugh
Independent Director1.7yrsUS$75.00k0.0057% $95.1k
Kazuhiko Sakamoto
Independent Director1.7yrsUS$60.00k0.0032% $53.8k
Jonas Synnergren
Independent Director1.7yrsUS$160.00k0.0021% $34.9k
Mark Durcan
Independent Director1.7yrsUS$160.00kno data
Mary Cummings
Independent Director1.7yrsUS$160.00k0.0021% $34.9k

1.7yrs

Average Tenure

64yo

Average Age

Experienced Board: VNE's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.6%.


Top Shareholders

Company Information

Veoneer, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Veoneer, Inc.
  • Ticker: VNE
  • Exchange: NYSE
  • Founded:
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$1.654b
  • Shares outstanding: 111.40m
  • Website: https://www.veoneer.com

Number of Employees


Location

  • Veoneer, Inc.
  • Klarabergsviadukten 70
  • Section C6
  • Stockholm
  • Stockholm County
  • 103 02
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VNENYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2018
1EKDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2018
VNE SDBOM (OMX Nordic Exchange Stockholm)SDR EACH REP 1 USD1SESEKJul 2018
VNESBATS-CHIXE (BATS 'Chi-X Europe')SDR EACH REP 1 USD1GBSEKJul 2018

Biography

Veoneer, Inc. designs, develops, manufactures, and sells automotive safety electronic products in Asia, the Americas, and Europe. It operates in two segments, Electronics and Brake Systems. The company provides automotive radars, night driving assist systems, positioning systems, advanced driver assistance systems (ADAS), night vision systems, brake control systems, electronic control units, active safety sensors, and controllers; mono-and stereo-vision cameras; and passive safety electronics, such as airbag control units and crash sensors. It also offers ADAS software for highly automated driving (HAD) and autonomous driving (AD) solutions; and driver monitoring systems, LiDAR sensors, RoadScape positioning systems, and other technologies for HAD and AD solutions. Veoneer, Inc. is headquartered in Stockholm, Sweden. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 01:32
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.