Market Cap
US$3.1b
Last Updated
2020/07/04 23:49 UTC
Data Sources
Company Financials +
Executive Summary
VEON Ltd., through its subsidiaries, provides mobile and fixed-line telecommunications services.
Rewards
Risk Analysis
Dividend of 15.64% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Undervalued with solid track record.
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
Stable Share Price: VEON has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
4.7%
VEON
1.2%
US Wireless Telecom
4.0%
US Market
1 Year Return
-38.7%
VEON
25.1%
US Wireless Telecom
4.9%
US Market
Return vs Industry: VEON underperformed the US Wireless Telecom industry which returned 25.1% over the past year.
Return vs Market: VEON underperformed the US Market which returned 5% over the past year.
Shareholder returns
| VEON | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.7% | 1.2% | 4.0% |
| 30 Day | 10.5% | 4.9% | 1.3% |
| 90 Day | 17.8% | 27.1% | 29.5% |
| 1 Year | -32.7%-38.7% | 26.6%25.1% | 7.2%4.9% |
| 3 Year | -41.6%-54.3% | 55.7%50.6% | 36.1%27.2% |
| 5 Year | -50.4%-63.2% | 111.7%96.2% | 65.3%46.9% |
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
2 months ago | Simply Wall St
Should You Use VEON's (NASDAQ:VEON) Statutory Earnings To Analyse It?2 months ago | Simply Wall St
Here's What VEON Ltd.'s (NASDAQ:VEON) ROCE Can Tell Us3 months ago | Simply Wall St
How Does Investing In VEON Ltd. (NASDAQ:VEON) Impact The Volatility Of Your Portfolio?Valuation
Is VEON undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VEON ($1.79) is trading below our estimate of fair value ($15.52)
Significantly Below Fair Value: VEON is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: VEON is good value based on its PE Ratio (13.4x) compared to the Wireless Telecom industry average (22.1x).
PE vs Market: VEON is good value based on its PE Ratio (13.4x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: VEON is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: VEON is overvalued based on its PB Ratio (5.8x) compared to the US Wireless Telecom industry average (3.2x).
Next Steps
Future Growth
How is VEON forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
25.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VEON's forecast earnings growth (25% per year) is above the savings rate (2.2%).
Earnings vs Market: VEON's earnings (25% per year) are forecast to grow faster than the US market (22.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: VEON's revenue (2% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: VEON's revenue (2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: VEON's Return on Equity is forecast to be high in 3 years time (37%)
Next Steps
Past Performance
How has VEON performed over the past 5 years?
53.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VEON has high quality earnings.
Growing Profit Margin: VEON's current net profit margins (2.7%) are higher than last year (0.9%).
Past Earnings Growth Analysis
Earnings Trend: VEON has become profitable over the past 5 years, growing earnings by 53.3% per year.
Accelerating Growth: VEON's earnings growth over the past year (190.8%) exceeds its 5-year average (53.3% per year).
Earnings vs Industry: VEON earnings growth over the past year (190.8%) exceeded the Wireless Telecom industry -9.3%.
Return on Equity
High ROE: VEON's Return on Equity (18.3%) is considered low.
Next Steps
Financial Health
How is VEON's financial position?
Financial Position Analysis
Short Term Liabilities: VEON's short term assets ($2.7B) do not cover its short term liabilities ($5.7B).
Long Term Liabilities: VEON's short term assets ($2.7B) do not cover its long term liabilities ($7.2B).
Debt to Equity History and Analysis
Debt Level: VEON's debt to equity ratio (558.2%) is considered high.
Reducing Debt: VEON's debt to equity ratio has increased from 433.1% to 558.2% over the past 5 years.
Debt Coverage: VEON's debt is well covered by operating cash flow (33%).
Interest Coverage: VEON's interest payments on its debt are not well covered by EBIT (2.1x coverage).
Balance Sheet
Next Steps
Dividend
What is VEON current dividend yield, its reliability and sustainability?
15.64%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: VEON's dividend (15.64%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: VEON's dividend (15.64%) is in the top 25% of dividend payers in the US market (4.5%)
Stability and Growth of Payments
Stable Dividend: VEON's dividend payments have been volatile in the past 10 years.
Growing Dividend: VEON's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (210.2%), VEON's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: VEON's dividends in 3 years are not forecast to be well covered by earnings (92.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.7yrs
Average management tenure
CEO
Muhterem Terzioglu (52yo)
0.33
Tenure
US$1,007,745
Compensation
Mr. Muhterem Kaan Terzioglu serves as Co-Chief Executive Officer of VEON Ltd. since March 1, 2020. Mr. Terzioglu served as Group Chief Operating Officer at VEON Ltd. since November 1, 2019 until March 1, 2 ...
CEO Compensation Analysis
Compensation vs Market: Muhterem's total compensation ($USD1.01M) is below average for companies of similar size in the US market ($USD5.82M).
Compensation vs Earnings: Insufficient data to compare Muhterem's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Chief Executive Officer | 0.33yr | US$1.01m | 0.023% $716.0k | |
| Co-Chief Executive Officer | 0.33yr | US$2.70m | no data | |
| Group General Counsel | 5.83yrs | US$4.80m | no data | |
| 0.67yr | US$7.06m | no data | ||
| Group Deputy Chief Financial Officer | 0.17yr | US$582.21k | no data | |
| President | 5.08yrs | no data | no data | |
| Co-Founder & Chairman Emeritus | 18.5yrs | no data | no data | |
| Founder & Honorary President | 10.17yrs | no data | no data | |
| Group Chief Financial Officer | 0.17yr | no data | no data | |
| Group Director of Accounting | no data | no data | no data |
0.7yrs
Average Tenure
52yo
Average Age
Experienced Management: VEON's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Chairman Emeritus | 18.5yrs | no data | no data | |
| Director | 2yrs | US$44.77k | no data | |
| Director | 0.083yr | no data | no data | |
| Director | 2yrs | US$44.77k | no data | |
| Director | 0.083yr | no data | no data | |
| Director | 2yrs | US$884.16k | no data | |
| Independent Chairman | 0.083yr | US$369.34k | no data | |
| Director | 2yrs | US$307.78k | no data | |
| Independent Director | 2yrs | US$357.74k | no data | |
| Independent Director | 2yrs | US$313.38k | no data |
2.0yrs
Average Tenure
54.5yo
Average Age
Experienced Board: VEON's board of directors are not considered experienced ( 2 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 not been meaningfully diluted in the past year.
Top Shareholders
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$3.131b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| VEON | NasdaqGS (Nasdaq Global Select) | Yes | SPONSORED ADR | US | USD | Apr 2010 |
| 35V | DB (Deutsche Boerse AG) | Yes | SPONSORED ADR | DE | EUR | Apr 2010 |
| A2DN8Y | DB (Deutsche Boerse AG) | SPON ADR EACH REPR 1 ORD SHS | DE | EUR | Mar 2017 | |
| 0RO7 | LSE (London Stock Exchange) | Common Stock | GB | EUR | Apr 2017 | |
| VEON | ENXTAM (Euronext Amsterdam) | Common Stock | NL | EUR | Apr 2017 | |
| 35V1 | DB (Deutsche Boerse AG) | Common Stock | DE | EUR | Apr 2017 | |
| VEONA | BATS-CHIXE (BATS 'Chi-X Europe') | Common Stock | GB | EUR | Apr 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. The company provides value added services, including short messages, multimedia messages, caller number identification, call waiting, data transmission, mobile internet, downloadable content, mobile finance services, machine-to-machine, and other services; national and international roaming services; wireless Internet access and mobile financial services; and mobile bundles and call completion services. It also offers fixed-line telecommunication services, such as voice, data, and Internet services; and PSTN-fixed telephony, Internet, data transmission and network access, domestic and international voice termination, and IPLC and TCP/IP international transit services for corporations, operators, and consumers, as well as sells equipment and accessories. The company provides its services under the Beeline, Kyivstar, Jazz, Djezzy, and banglalink brands in Russia, Pakistan, Algeria, Uzbekistan, Ukraine, Bangladesh, Kazakhstan, Kyrgyzstan, Armenia, and Georgia. It serves approximately 212 million customers. The company was formerly known as VimpelCom Ltd. and changed its name to VEON Ltd. in March 2017. VEON Ltd. was founded in 1992 and is headquartered in Amsterdam, the Netherlands.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/04 23:49 |
| End of Day Share Price | 2020/07/02 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.