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 12.55% per year

Risk Analysis

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

Highly volatile share price over past 3 months

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.8%

VNE

2.3%

US Auto Components

1.2%

US Market


1 Year Return

-55.4%

VNE

1.2%

US Auto Components

24.2%

US Market

Return vs Industry: VNE underperformed the US Auto Components industry which returned 1.9% over the past year.

Return vs Market: VNE underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

VNEIndustryMarket
7 Day-0.8%2.3%1.2%
30 Day-14.1%-2.9%3.5%
90 Day-18.2%3.3%11.7%
1 Year-55.4%-55.4%2.7%1.2%26.9%24.2%
3 Yearn/a0.9%-9.3%53.0%43.2%
5 Yearn/a18.8%2.1%75.3%56.0%

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?

0.84x

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 (0.8x) compared to the US Auto Components industry average (1.3x).


Next Steps

Future Growth

How is Veoneer forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

36.8%

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 (12.5% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: VNE's revenue (12.5% 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?

-46.9%

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 -46.9% 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 (4.1%).


Return on Equity

High ROE: VNE has a negative Return on Equity (-28.89%), 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 ($613.0M).

Long Term Liabilities: VNE's short term assets ($1.6B) exceed its long term liabilities ($342.0M).


Debt to Equity History and Analysis

Debt Level: VNE's debt to equity ratio (9.5%) 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 8.9x 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 2.8 years if free cash flow continues to reduce at historical rates of -49.6% 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%industryaverage1.8%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

What is the CEO of Veoneer's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Jan Carlson (59yo)

0yrs

Tenure

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 ($USD7.61M) is above average for companies of similar size in the US market ($USD3.86M).

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


Management Age and Tenure

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 Age and Tenure

1.6yrs

Average Tenure

64yo

Average Age

Experienced Board: VNE's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Insider Trading

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 9.6%.


Management Team

  • Jan Carlson (59yo)

    Chairman of the Board of Directors

    • Compensation: US$7.61m
  • Thomas Jönsson (53yo)

    Executive Vice President of Communications & IR

    • Tenure: 1.6yrs
    • Compensation: US$767.02k
  • Lars Sjöbring (52yo)

    Executive VP of Legal Affairs

    • Tenure: 1.8yrs
    • Compensation: US$2.64m
  • Mats Backman (51yo)

    CFO & Executive VP of Financial Affairs

    • Tenure: 0.8yrs
  • Takayoshi Matsunaga (62yo)

    Executive Vice President of Business Unit Japan & India

    • Art Blanchford (48yo)

      Executive Vice President of Business Units NACK (North America

      • Tenure: 1.8yrs
      • Compensation: US$881.54k
    • Steve Rodé (58yo)

      Executive Vice President of Operations

      • Tenure: 1.8yrs
    • Mikko Taipale (49yo)

      Executive Vice President of Human Resources

      • Tenure: 1.8yrs
    • Nishant Batra (41yo)

      CTO and Executive VP of Technology

      • Tenure: 1.2yrs
    • Per Skytt (52yo)

      Executive Vice President Technical Competence Centers


      Board Members

      • Jim Ringler (74yo)

        Independent Director

        • Tenure: 1.8yrs
        • Compensation: US$190.00k
      • Wolfgang Ziebart (69yo)

        Independent Director

        • Tenure: 1.6yrs
        • Compensation: US$70.00k
      • Bob Alspaugh (72yo)

        Independent Director

        • Tenure: 1.6yrs
        • Compensation: US$75.00k
      • Kazuhiko Sakamoto (74yo)

        Independent Director

        • Tenure: 1.6yrs
        • Compensation: US$60.00k
      • Jan Carlson (59yo)

        Chairman of the Board of Directors

        • Compensation: US$7.61m
      • Jonas Synnergren (42yo)

        Independent Director

        • Tenure: 1.6yrs
        • Compensation: US$160.00k
      • Mark Durcan (58yo)

        Independent Director

        • Tenure: 1.6yrs
        • Compensation: US$160.00k
      • Mary Cummings (52yo)

        Independent Director

        • Tenure: 1.6yrs
        • Compensation: US$160.00k

      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$1.524b
      • 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 Analysis2020/01/21 01:20
      End of Day Share Price2020/01/17 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      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.