NasdaqGS:VEON

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


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

VEONIndustryMarket
7 Day4.7%1.2%4.0%
30 Day10.5%4.9%1.3%
90 Day17.8%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

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

NamePositionTenureCompensationOwnership
Muhterem Terzioglu
Co-Chief Executive Officer0.33yrUS$1.01m0.023% $716.0k
Sergi Herrero
Co-Chief Executive Officer0.33yrUS$2.70mno data
Scott Dresser
Group General Counsel5.83yrsUS$4.80mno data
Kjell Johnsen
0.67yrUS$7.06mno data
Murat Kirkgöz
Group Deputy Chief Financial Officer0.17yrUS$582.21kno data
Aleksandr Krupnov
President5.08yrsno datano data
Augie Fabela
Co-Founder & Chairman Emeritus18.5yrsno datano data
Dmitry Zimin
Founder & Honorary President10.17yrsno datano data
Serkan Okandan
Group Chief Financial Officer0.17yrno datano data
Henrich Daubner
Group Director of Accountingno datano datano 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

NamePositionTenureCompensationOwnership
Augie Fabela
Co-Founder & Chairman Emeritus18.5yrsno datano data
Mikhail Fridman
Director2yrsUS$44.77kno data
Mariano Sebastian De Beer
Director0.083yrno datano data
Alexander Pertsovsky
Director2yrsUS$44.77kno data
Peter Derby
Director0.083yrno datano data
Andrei Gusev
Director2yrsUS$884.16kno data
Gennady Gazin
Independent Chairman0.083yrUS$369.34kno data
Osama Bedier
Director2yrsUS$307.78kno data
Gunnar Holt
Independent Director2yrsUS$357.74kno data
Robert Jan de Kraats
Independent Director2yrsUS$313.38kno 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

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
35V1DB (Deutsche Boerse AG)Common StockDEEURApr 2017
VEONABATS-CHIXE (BATS 'Chi-X Europe')Common StockGBEURApr 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 23:49
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
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.