NasdaqGS:VEON

Stock Analysis Report

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Executive Summary

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

Rewards

Trading at 85.2% below our estimate of its fair value

Earnings are forecast to grow 39.48% per year

Risk Analysis

No risks detected for VEON from our risk checks.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: VEON's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-9.2%

VEON

-6.6%

US Wireless Telecom

-2.7%

US Market


1 Year Return

-37.0%

VEON

43.1%

US Wireless Telecom

21.2%

US Market

Return vs Industry: VEON underperformed the US Wireless Telecom industry which returned 48.9% over the past year.

Return vs Market: VEON underperformed the US Market which returned 24.3% over the past year.


Shareholder returns

VEONIndustryMarket
7 Day-9.2%-6.6%-2.7%
30 Day7.1%-6.6%1.8%
90 Day38.0%13.3%16.4%
1 Year-33.6%-37.0%43.5%43.1%23.9%21.2%
3 Year-45.0%-56.1%64.7%61.2%43.7%34.2%
5 Year-35.3%-51.6%166.9%156.7%124.3%99.2%

Long-Term 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 ($1.67) is trading below our estimate of fair value ($11.26)

Significantly Below Fair Value: VEON is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VEON is unprofitable, so we can't compare its PE Ratio to the US Wireless Telecom industry average.

PE vs Market: VEON 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 VEON's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VEON has negative assets, so we can't compare its PB Ratio to the US Wireless Telecom industry average.


Next Steps

Future Growth

How is VEON forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

39.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VEON is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: VEON is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VEON's is expected to become profitable in the next 3 years.

Revenue vs Market: VEON's revenue (1.8% per year) is forecast to grow slower than the US market (10.6% per year).

High Growth Revenue: VEON's revenue (1.8% 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 (25%)


Next Steps

Past Performance

How has VEON performed over the past 5 years?

59.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VEON is currently unprofitable.

Growing Profit Margin: VEON is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VEON is unprofitable, but has reduced losses over the past 5 years at a rate of 59.9% per year.

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

Earnings vs Industry: VEON is unprofitable, making it difficult to compare its past year earnings growth to the Wireless Telecom industry (77.1%).


Return on Equity

High ROE: VEON has a negative Return on Equity (-36.3%), as it is currently unprofitable.


Next Steps

Financial Health

How is VEON's financial position?


Financial Position Analysis

Short Term Liabilities: VEON's short term assets ($2.3B) do not cover its short term liabilities ($5.0B).

Long Term Liabilities: VEON's short term assets ($2.3B) do not cover its long term liabilities ($7.3B).


Debt to Equity History and Analysis

Debt Level: VEON's debt to equity ratio (903.5%) is considered high.

Reducing Debt: VEON's debt to equity ratio has increased from 225.3% to 903.5% over the past 5 years.


Balance Sheet


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: Whilst unprofitable VEON has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: VEON is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 3.7% per year.


Next Steps

Dividend

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

12.40%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: VEON is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VEON'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?

1.2yrs

Average management tenure


CEO

Muhterem Terzioglu (52 yo)

0.83

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 ($USD1.01M) is below average for companies of similar size in the US market ($USD5.03M).

Compensation vs Earnings: Insufficient data to compare Muhterem's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Muhterem Terzioglu
Co-Chief Executive Officer0.83yrUS$1.01m0.023%
$ 668.0k
Sergi Herrero
Co-Chief Executive Officer0.83yrUS$2.70mno data
Scott Dresser
Group General Counsel6.33yrsUS$4.80mno data
Kjell Johnsen
1.17yrsUS$7.06mno data
Murat Kirkgöz
Group Deputy Chief Financial Officer0.67yrUS$582.21kno data
Aleksandr Krupnov
President5.58yrsno datano data
Augie Fabela
Co-Founder & Chairman Emeritus19yrsno datano data
Dmitry Zimin
Founder & Honorary President10.67yrsno datano data
Serkan Okandan
Group Chief Financial Officer0.67yrno datano data
Henrich Daubner
Group Director of Accountingno datano datano data
Richard James
Group Director of Corporate Financeno datano datano data
Nik Kershaw
Group Director of Investor Relationsno datano datano data

1.2yrs

Average Tenure

52yo

Average Age

Experienced Management: VEON's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Augie Fabela
Co-Founder & Chairman Emeritus19yrsno datano data
Hans Albrecht
Director0.58yrno datano data
Mikhail Fridman
Director2.5yrsUS$44.77kno data
Stephen Pusey
Director0.58yrno datano data
Peter Derby
Director0.58yrno datano data
Amos Genish
Director0.58yrno datano data
Andrei Gusev
Director2.5yrsUS$884.16kno data
Gennady Gazin
Independent Chairman0.58yrUS$369.34kno data
Osama Bedier
Director2.5yrsUS$307.78kno data
Gunnar Holt
Independent Director2.5yrsUS$357.74kno data
Robert Jan de Kraats
Independent Director2.5yrsUS$313.38kno data
Yaroslav Glazunov
Director1yrno datano data

1.8yrs

Average Tenure

57yo

Average Age

Experienced Board: VEON's board of directors are not considered experienced ( 1.8 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$2.921b
  • 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)YesADR EACH REPR 1 SHAREUSUSDApr 2010
35VDB (Deutsche Boerse AG)YesADR EACH REPR 1 SHAREDEEURApr 2010
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. T...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/28 01:01
End of Day Share Price2021/01/27 00:00
Earnings2020/09/30
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.