VEON Ltd. Fundamental Analysis (NASDAQ: VEON)
VEON Ltd. Fundamental Analysis (NASDAQ: VEON)
VEON Ltd. (NASDAQ: VEON) shows weak financial fundamentals with a PE ratio of 84.29, profit margin of 1.24%, and ROE of 4.15%. The company generates $4.7B in annual revenue with strong year-over-year growth of 11.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VEON's fundamental strength across five key dimensions:
Efficiency Score
WeakVEON struggles to generate sufficient returns from assets.
Valuation Score
ModerateVEON shows balanced valuation metrics.
Growth Score
ExcellentVEON delivers strong and consistent growth momentum.
Financial Health Score
WeakVEON carries high financial risk with limited liquidity.
Profitability Score
WeakVEON struggles to sustain strong margins.
Key Financial Metrics
Is VEON Expensive or Cheap?
P/E Ratio
VEON trades at 84.29 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, VEON's PEG of -0.89 indicates potential undervaluation.
Price to Book
The market values VEON Ltd. at 2.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.19 times EBITDA. This is generally considered low.
How Well Does VEON Make Money?
Net Profit Margin
For every $100 in sales, VEON Ltd. keeps $1.24 as profit after all expenses.
Operating Margin
Core operations generate 21.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.15 in profit for every $100 of shareholder equity.
ROA
VEON Ltd. generates $0.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
VEON Ltd. generates strong operating cash flow of $1.64B, reflecting robust business health.
Free Cash Flow
VEON Ltd. generates strong free cash flow of $822.81M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.88 in free cash annually.
FCF Yield
VEON converts 20.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
84.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.89
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.87
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How VEON Stacks Against Its Sector Peers
| Metric | VEON Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 84.29 | 19.63 | Worse (Expensive) |
| ROE | 4.15% | 605.00% | Weak |
| Net Margin | 1.24% | 492.00% | Weak |
| Debt/Equity | 3.87 | 0.80 | Weak (High Leverage) |
| Current Ratio | 0.97 | 1.90 | Weak Liquidity |
| ROA | 0.58% | 301.00% | Weak |
VEON outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews VEON Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.28%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
251.16%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
-45.08%
Industry Style: Growth, Technology, Streaming
Declining