NasdaqGS:VEON

Stock Analysis Report

Executive Summary

VEON Ltd., through its subsidiaries, provides mobile and fixed-line telecommunications services.

Snowflake

Fundamentals

Solid track record and fair value.

Risks

  • VEON has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.4%

NasdaqGS:VEON

0.5%

US Wireless Telecom

1.2%

US Market


1 Year Return

-12.4%

NasdaqGS:VEON

6.9%

US Wireless Telecom

1.7%

US Market

VEON underperformed the Wireless Telecom industry which returned 6.9% over the past year.

VEON underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

VEONIndustryMarket
7 Day-2.4%0.5%1.2%
30 Day-5.4%2.1%4.9%
90 Day-3.9%0.6%3.7%
1 Year-3.7%-12.4%8.1%6.9%3.9%1.7%
3 Year-7.9%-27.4%35.0%29.9%47.2%37.7%
5 Year-60.3%-69.0%35.2%22.1%60.0%42.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is VEON undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

VEON's share price is below the future cash flow value, and at a moderate discount (> 20%).

VEON's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

VEON is overvalued based on earnings compared to the US Wireless Telecom industry average.

VEON is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

VEON earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

VEON is good value based on assets compared to the US Wireless Telecom industry average.


Next Steps

Future Growth

How is VEON expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

-7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

VEON's revenue is expected to grow by 0.2% yearly, however this is not considered high growth (20% yearly).

VEON's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

VEON's revenue growth is positive but not above the United States of America market average.

VEON's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

VEON's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

VEON is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has VEON performed over the past 5 years?

49.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

VEON has delivered over 20% year on year earnings growth in the past 5 years.

VEON's 1-year earnings growth exceeds its 5-year average (205% vs 49.8%)

VEON's earnings growth has exceeded the US Wireless Telecom industry average in the past year (205% vs 7.7%).


Return on Equity

It is difficult to establish if VEON has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

VEON used its assets more efficiently than the US Wireless Telecom industry average last year based on Return on Assets.


Return on Capital Employed

VEON has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is VEON's financial position?


Financial Position Analysis

VEON's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

VEON's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

VEON's level of debt (336.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (378.8% vs 336.9% today).

Debt is well covered by operating cash flow (27.4%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.1x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

11.30%

Expected Dividend Yield


Dividend Yield and Payments Analysis

VEON's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

VEON's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

VEON has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

VEON has only been paying a dividend for 9 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.2x coverage).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Ursula Burns (60yo)

0.8yrs

Tenure

US$7,209,428

Compensation

Ms. Ursula M. Burns has been the Executive Chairman of the Board of Directors and Chief Executive Officer at VEON Ltd. since July 30, 2018 and December 13, 2018 respectively. Ms. Burns has extensive intern ...


CEO Compensation Analysis

Ursula's remuneration is higher than average for companies of similar size in United States of America.

Ursula's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.6yrs

Average Tenure

53yo

Average Age

The tenure for the VEON management team is about average.


Board Age and Tenure

1.2yrs

Average Tenure

56yo

Average Age

The average tenure for the VEON board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$216,000,00029 Mar 19
Telenor ASA
EntityCompany
Shares100,000,000
Max PriceUS$2.16

Ownership Breakdown


Management Team

  • Augie Fabela (53yo)

    Co-Founder & Chairman Emeritus

    • Tenure: 17.7yrs
  • Dmitry Zimin (86yo)

    Founder & Honorary President

    • Tenure: 9.3yrs
  • Ursula Burns (60yo)

    Executive Chairman & CEO

    • Tenure: 0.8yrs
    • Compensation: US$7.21m
  • Scott Dresser (51yo)

    Group General Counsel

    • Tenure: 5yrs
    • Compensation: US$3.03m
  • Trond Westlie (58yo)

    Group Chief Financial Officer

    • Tenure: 1.8yrs
    • Compensation: US$1.95m
  • Kjell Johnsen (51yo)

    Group Chief Operating Officer

    • Tenure: 1.5yrs
    • Compensation: US$1.76m
  • Yogesh Malik (46yo)

    Group Chief Technology Officer

    • Tenure: 5.5yrs
  • Henrich Daubner

    Group Director of Accounting

    • Tenure: 0yrs
  • Aleksandr Krupnov

    President

    • Tenure: 4.3yrs
  • Richard James

    Group Director of Corporate Finance

    • Tenure: 0yrs

Board Members

  • Julian Horn-Smith (71yo)

    Director

    • Tenure: 0yrs
    • Compensation: US$260.50k
  • Augie Fabela (53yo)

    Co-Founder & Chairman Emeritus

    • Tenure: 17.7yrs
  • Ursula Burns (60yo)

    Executive Chairman & CEO

    • Tenure: 0.8yrs
    • Compensation: US$7.21m
  • Mikhail Fridman (55yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: US$40.00k
  • Andrei Gusev (47yo)

    Director

    • Tenure: 0yrs
    • Compensation: US$40.00k
  • Gennady Gazin (54yo)

    Director

    • Tenure: 0yrs
    • Compensation: US$315.50k
  • Guy Laurence (57yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$307.85k
  • Gunnar Holt (64yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: US$300.00k
  • Guillaume Bacuvier (46yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: US$126.00k
  • Robert Jan de Kraats (58yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: US$117.60k

Company Information

VEON Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: VEON Ltd.
  • Ticker: VEON
  • Exchange: NasdaqGS
  • Founded: 1992
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: US$4.320b
  • Shares outstanding: 1.75b
  • Website: https://www.veon.com

Number of Employees


Location

  • VEON Ltd.
  • The Rock Building
  • Claude Debussylaan 88
  • Amsterdam
  • Noord-Holland
  • 1082 MD
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VEONNasdaqGS (Nasdaq Global Select)YesSPONSORED ADRUSUSDApr 2010
35VDB (Deutsche Boerse AG)YesSPONSORED ADRDEEURApr 2010
A2DN8YDB (Deutsche Boerse AG)SPON ADR EACH REPR 1 ORD SHSDEEURMar 2017
0RO7LSE (London Stock Exchange)Common StockGBEURApr 2017
VEONENXTAM (Euronext Amsterdam)Common StockNLEURApr 2017

Biography

VEON Ltd., through its subsidiaries, provides mobile and fixed-line telecommunications services. It offers voice and data telecommunication services through a range of mobile and fixed-line technologies. T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 00:14
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
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.