Market Cap
US$4.3b
Last Updated
2020/02/17 00:49 UTC
Data Sources
Company Financials +
Executive Summary
VEON Ltd., through its subsidiaries, provides mobile and fixed-line telecommunications services.
Rewards
Risk Analysis
Snowflake Analysis
Good value with acceptable 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
-7.6%
VEON
22.0%
US Wireless Telecom
1.5%
US Market
1 Year Return
-3.2%
VEON
23.0%
US Wireless Telecom
20.1%
US Market
Return vs Industry: VEON underperformed the US Wireless Telecom industry which returned 23% over the past year.
Return vs Market: VEON underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| VEON | Industry | Market | |
|---|---|---|---|
| 7 Day | -7.6% | 22.0% | 1.5% |
| 30 Day | -8.6% | 23.3% | 1.4% |
| 90 Day | 1.7% | 27.0% | 8.7% |
| 1 Year | 6.5%-3.2% | 24.6%23.0% | 22.7%20.1% |
| 3 Year | -28.1%-42.9% | 20.8%16.2% | 50.1%40.5% |
| 5 Year | -37.1%-50.7% | 103.1%85.9% | 73.1%54.1% |
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 weeks ago | Simply Wall St
Does VEON (NASDAQ:VEON) Have A Healthy Balance Sheet?1 month ago | Simply Wall St
If You Had Bought VEON (NASDAQ:VEON) Stock Five Years Ago, You'd Be Sitting On A 35% Loss, Today2 months ago | Simply Wall St
Why VEON Ltd. (NASDAQ:VEON) Could Be Worth WatchingValuation
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 ($2.44) is trading below our estimate of fair value ($17.39)
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 (7.3x) compared to the Wireless Telecom industry average (23.4x).
PE vs Market: VEON is good value based on its PE Ratio (7.3x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: VEON is poor value based on its PEG Ratio (1.3x)
Price to Book Ratio
PB vs Industry: VEON is overvalued based on its PB Ratio (3.4x) compared to the US Wireless Telecom industry average (2.5x).
Next Steps
Future Growth
How is VEON forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
5.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VEON's forecast earnings growth (5.5% per year) is above the savings rate (1.7%).
Earnings vs Market: VEON's earnings (5.5% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: VEON's earnings are forecast to grow, but not significantly.
Revenue vs Market: VEON's revenue (0.8% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: VEON's revenue (0.8% 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 (27.7%)
Next Steps
Past Performance
How has VEON performed over the past 5 years?
50.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VEON has high quality earnings.
Growing Profit Margin: VEON became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: VEON has become profitable over the past 5 years, growing earnings by 50.9% per year.
Accelerating Growth: VEON has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: VEON has become profitable in the last year, making it difficult to compare its past year earnings growth to the Wireless Telecom industry (-39.1%).
Return on Equity
High ROE: Whilst VEON's Return on Equity (30.74%) is high, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is VEON's financial position?
Financial Position Analysis
Short Term Liabilities: VEON's short term assets ($2.6B) do not cover its short term liabilities ($5.8B).
Long Term Liabilities: VEON's short term assets ($2.6B) do not cover its long term liabilities ($7.7B).
Debt to Equity History and Analysis
Debt Level: VEON's debt to equity ratio (471.7%) is considered high.
Reducing Debt: VEON's debt to equity ratio has increased from 407.6% to 471.7% over the past 5 years.
Balance Sheet
Inventory Level: VEON has a high level of physical assets or inventory.
Debt Coverage by Assets: VEON's debt is not covered by short term assets (assets are 0.2x 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: VEON is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: VEON is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is VEON's current dividend yield, its reliability and sustainability?
11.48%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: VEON's dividend (11.48%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: VEON's dividend (11.48%) is in the top 25% of dividend payers in the US market (3.69%)
Stability and Growth of Payments
Stable Dividend: VEON has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: VEON has only been paying a dividend for 9 years, and since then payments have fallen.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (129.3%), VEON's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: VEON's dividends in 3 years are forecast to be covered by earnings (64.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.9yrs
Average management tenure
CEO
Ursula Burns (60yo)
1.2yrs
Tenure
US$7,209,428
Compensation
Ms. Ursula M. Burns has been the Executive Chairman of the Board of Directors and Chief Executive Officer at VEON Ltd. since July 30, 2018 and December 13, 2018 respectively. Ms. Burns has extensive intern ...
CEO Compensation Analysis
Compensation vs Market: Ursula's total compensation ($USD7.21M) is above average for companies of similar size in the US market ($USD4.88M).
Compensation vs Earnings: Ursula's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & CEO | 1.2yrs | US$7.21m | 0.013% $564.6k | |
| Group General Counsel | 5.4yrs | US$3.03m | no data | |
| 0.3yrs | US$1.76m | no data | ||
| President | 4.7yrs | no data | no data | |
| Co-Founder & Chairman Emeritus | 18.1yrs | no data | no data | |
| Founder & Honorary President | 9.8yrs | no data | no data | |
| Group Deputy Chief Financial Officer | 0yrs | no data | no data | |
| Group Chief Operating Officer | 0.3yrs | no data | no data | |
| Group Chief Operating Officer | 0.3yrs | no data | no data | |
| Group Director of Accounting | 0yrs | no data | no data |
2.9yrs
Average Tenure
52yo
Average Age
Experienced Management: VEON's management team is considered experienced (2.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & CEO | 1.2yrs | US$7.21m | 0.013% $564.6k | |
| Co-Founder & Chairman Emeritus | 18.1yrs | no data | no data | |
| Director | 1.6yrs | US$260.50k | no data | |
| Director | 1.6yrs | US$40.00k | no data | |
| Director | 1.6yrs | US$40.00k | no data | |
| Director | 1.6yrs | US$315.50k | no data | |
| Director | 1.6yrs | US$307.85k | no data | |
| Director | 1.6yrs | US$300.00k | no data | |
| Director | 1.6yrs | US$126.00k | no data | |
| Director | 1.6yrs | US$117.60k | no data |
1.6yrs
Average Tenure
55.5yo
Average Age
Experienced Board: VEON's board of directors are not considered experienced ( 1.6 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.7%.
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$4.268b
- 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 | ADR EACH REPR 1 SHARE | US | USD | Apr 2010 |
| 35V | DB (Deutsche Boerse AG) | Yes | ADR EACH REPR 1 SHARE | 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 210 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 | 2020/02/17 00:49 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.