VEON LTD (VEON)
US91822M5022 - ADR
We assign a fundamental rating of 6 out of 10 to VEON. VEON was compared to 22 industry peers in the Wireless Telecommunication Services industry. While VEON belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. VEON is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
VEON had positive earnings in the past year.
In the past year VEON had a positive cash flow from operations.
In multiple years VEON reported negative net income over the last 5 years.
VEON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VEON's Return On Assets of 6.99% is amongst the best of the industry. VEON outperforms 80.95% of its industry peers.
VEON has a Return On Equity of 82.46%. This is amongst the best in the industry. VEON outperforms 95.24% of its industry peers.
The Return On Invested Capital of VEON (11.12%) is better than 90.48% of its industry peers.
VEON had an Average Return On Invested Capital over the past 3 years of 6.49%. This is in line with the industry average of 7.54%.
The last Return On Invested Capital (11.12%) for VEON is above the 3 year average (6.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.99% | ||
| ROE | 82.46% | ||
| ROIC | 11.12% |
ROA(3y)0.25%
ROA(5y)1.75%
ROE(3y)-42.52%
ROE(5y)-12.21%
ROIC(3y)6.49%
ROIC(5y)8.11%
1.3 Margins
Looking at the Profit Margin, with a value of 13.52%, VEON belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
With an excellent Operating Margin value of 27.38%, VEON belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
In the last couple of years the Operating Margin of VEON has grown nicely.
VEON has a Gross Margin of 87.54%. This is amongst the best in the industry. VEON outperforms 90.48% of its industry peers.
VEON's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.38% | ||
| PM (TTM) | 13.52% | ||
| GM | 87.54% |
OM growth 3Y5.4%
OM growth 5Y11.73%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.26%
GM growth 5Y2.44%
2. Health
2.1 Basic Checks
VEON has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, VEON has more shares outstanding
The number of shares outstanding for VEON has been increased compared to 5 years ago.
Compared to 1 year ago, VEON has an improved debt to assets ratio.
2.2 Solvency
VEON has an Altman-Z score of 0.81. This is a bad value and indicates that VEON is not financially healthy and even has some risk of bankruptcy.
VEON has a worse Altman-Z score (0.81) than 61.90% of its industry peers.
The Debt to FCF ratio of VEON is 2.18, which is a good value as it means it would take VEON, 2.18 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.18, VEON belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
A Debt/Equity ratio of 3.04 is on the high side and indicates that VEON has dependencies on debt financing.
VEON has a Debt to Equity ratio of 3.04. This is in the lower half of the industry: VEON underperforms 76.19% of its industry peers.
Although VEON does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.04 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | 0.81 |
ROIC/WACC2.97
WACC3.74%
2.3 Liquidity
A Current Ratio of 0.97 indicates that VEON may have some problems paying its short term obligations.
VEON's Current ratio of 0.97 is in line compared to the rest of the industry. VEON outperforms 42.86% of its industry peers.
VEON has a Quick Ratio of 0.97. This is a bad value and indicates that VEON is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.97, VEON perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 450.00% over the past year.
VEON shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.34%.
The Revenue for VEON have been decreasing by -16.90% on average. This is quite bad
EPS 1Y (TTM)450%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q189.66%
Revenue 1Y (TTM)-18.34%
Revenue growth 3Y-24.89%
Revenue growth 5Y-16.9%
Revenue growth Q2Q-54.5%
3.2 Future
Based on estimates for the next years, VEON will show a very strong growth in Earnings Per Share. The EPS will grow by 394.83% on average per year.
VEON is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -17.32% yearly.
EPS Next Y33823.08%
EPS Next 2Y1697.24%
EPS Next 3Y639.78%
EPS Next 5Y394.83%
Revenue Next Year-58.05%
Revenue Next 2Y-33.76%
Revenue Next 3YN/A
Revenue Next 5Y-17.32%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 2.21, the valuation of VEON can be described as very cheap.
Based on the Price/Earnings ratio, VEON is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.11, VEON is valued rather cheaply.
VEON is valuated cheaply with a Price/Forward Earnings ratio of 0.24.
100.00% of the companies in the same industry are more expensive than VEON, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.39, VEON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.21 | ||
| Fwd PE | 0.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VEON is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VEON is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.84 | ||
| EV/EBITDA | 3.5 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VEON has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as VEON's earnings are expected to grow with 639.78% in the coming years.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y1697.24%
EPS Next 3Y639.78%
5. Dividend
5.1 Amount
VEON does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VEON LTD
NASDAQ:VEON (5/8/2024, 11:00:02 AM)
25.27
+0.05 (+0.2%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.21 | ||
| Fwd PE | 0.24 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.99% | ||
| ROE | 82.46% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.38% | ||
| PM (TTM) | 13.52% | ||
| GM | 87.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.04 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)450%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y33823.08%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-18.34%
Revenue growth 3Y-24.89%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y