VEON (VEON) AI Stock Analysis

• Market Cap: $3.03B
• Dividend Yield: N/A
• Average Volume (3M): 259.57K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.74
• Revenue Growth: 8.27%
• EPS Growth: N/A
• Country: US
• Employees: 18,027
• Sector: Communication Services
• Sector Strength: 90
• Industry: Telecommunications Services
• EPS (TTM): N/A
• Shares Outstanding: 73,967,630
• 10 Day Avg. Volume: 220,377
• 30 Day Avg. Volume: 259,566
• PEG Ratio: 3.11
• Price to Book (P/B): 27.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.88
• Enterprise Value/Market Cap: 8.55
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 8.59
• Enterprise Value/Ebitda: 3.43
• 1Y Price Target: $60.00
• Price Target Upside: 37.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ―

VEON's stock score reflects a mix of strong operational efficiency against significant financial risks due to high leverage and net losses. Positive technical indicators and a strong earnings call with growth in digital services and improved financial position boost the score, though challenges in certain regions and capital expenditure concerns present risks.

Positive Factors

Digital Revenue Growth

VEON's digital revenue showed substantial growth, now representing a significant portion of total revenues.

Earnings

VEON's exemplary earnings result and positive current tone are a visible backbone for its outlook anticipating 12%-14% underlying local currency growth in revenues.

Negative Factors

Liquidity and Stock Trade

VEON stock sold off 18% almost certainly in reaction to an early morning block trade with the decline exacerbated by limited liquidity.

Spectrum and Network Spending

VEON faces modest further spectrum spend and must carefully manage elevated spending for network resiliency.

VEON Business Overview & Revenue Model

Company Description

VEON Ltd. is a global telecommunications and digital services company headquartered in Amsterdam, Netherlands. The company provides a wide range of communication services, including voice, data, and digital services to customers across several countries. VEON operates through its various subsidiaries and offers a portfolio of integrated telecommunications solutions, including mobile and fixed-line telephony, broadband internet, and digital content services. With a focus on emerging markets, VEON serves millions of customers in regions such as Russia, Pakistan, Ukraine, Kazakhstan, and Bangladesh.

How the Company Makes Money

VEON generates revenue primarily through its telecommunications services, including mobile voice services, data services, and other digital services. The company earns money from customer subscriptions, prepaid and postpaid plans, and usage-based charges for voice and data services. Additionally, VEON offers value-added services such as digital content, mobile financial services, and enterprise solutions, contributing to its revenue streams. Key factors such as market penetration, competitive pricing strategies, and strategic partnerships with technology providers and local businesses play a significant role in driving VEON's earnings. The company also benefits from its presence in high-growth emerging markets, which helps in expanding its customer base and increasing service usage.

VEON Financial Statement Overview

Summary

VEON shows strong operational efficiency with high gross profit and EBITDA margins, but faces challenges with declining revenue and significant net losses impacting net profit margins. The balance sheet reveals a high reliance on debt, which could increase financial risk. However, strong free cash flow generation provides some cushion against profitability issues. Overall, financial stability is a concern due to high leverage and consistent net losses.

Income Statement

The company experienced a significant decline in total revenue from $3.755 billion in 2022 to $3.698 billion in 2023, indicating a negative growth trajectory. The gross profit margin is relatively high at 88%, but the net profit margin is deeply negative due to a substantial net loss in 2023. EBIT and EBITDA margins are strong at 25% and 49% respectively, pointing to operational efficiencies despite the revenue drop and net income challenges.

Balance Sheet

The debt-to-equity ratio is high at 5.55 in 2023, indicating a significant reliance on debt financing, which poses a risk. However, the company has managed to increase its stockholders' equity over the year. The equity ratio is relatively low at 10%, implying limited equity buffer, although the return on equity is negative due to the net loss.

Cash Flow

The company has maintained positive free cash flow, with a slight increase from 2022 to 2023, reflecting strong cash generation capability. The operating cash flow to net income ratio is high due to the negative net income, which indicates operational cash generation is not translating into profitability. The free cash flow to net income ratio is positive due to positive free cash flow despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.09B	4.00B	3.70B	3.75B	7.79B	7.98B
Gross Profit	3.02B	3.49B	3.26B	3.28B	5.91B	6.09B
EBITDA	1.95B	1.93B	1.82B	2.16B	1.85B	2.33B
Net Income	376.00M	415.00M	-2.53B	737.00M	674.00M	-316.00M
Balance Sheet
Total Assets	8.25B	8.04B	8.22B	15.10B	15.92B	14.55B
Cash, Cash Equivalents and Short-Term Investments	1.77B	2.05B	2.33B	4.01B	2.34B	1.76B
Total Debt	4.70B	0.00	0.00	7.57B	10.65B	10.06B
Total Liabilities	6.86B	6.78B	7.15B	14.32B	14.42B	13.54B
Stockholders Equity	1.39B	1.10B	858.00M	776.00M	586.00M	163.00M
Cash Flow
Free Cash Flow	789.00M	243.00M	1.58B	1.55B	843.00M	665.00M
Operating Cash Flow	1.31B	1.15B	2.11B	2.56B	2.64B	2.44B
Investing Cash Flow	-786.00M	-778.00M	-2.24B	-1.66B	-1.18B	-1.91B
Financing Cash Flow	411.00M	-551.00M	-1.15B	116.00M	-744.00M	-103.00M

VEON Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 43.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VEON, the sentiment is Negative. The current price of 43.5 is below the 20-day moving average (MA) of 44.00, below the 50-day MA of 47.29, and above the 200-day MA of 40.44, indicating a neutral trend. The MACD of -1.40 indicates Negative momentum. The RSI at 46.37 is Neutral, neither overbought nor oversold. The STOCH value of 74.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VEON.

VEON Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TKC	77 Outperform	$5.39B	12.82	6.74%	3.85%	14.09%	-11.43%
SHEN	64 Neutral	$768.55M	―	-4.30%	0.71%	21.68%	-1010.29%
VEON	63 Neutral	$3.03B	6.72	43.22%	―	8.27%	―
Sector *	61 Neutral	$41.07B	-0.81	-14.21%	3.83%	2.45%	-73.69%
RBBN	57 Neutral	$737.96M	―	-12.42%	―	1.91%	15.71%
TEO	55 Neutral	$3.84B	18.83	3.99%	―	-12.77%	40.80%
IHS	55 Neutral	$2.11B	―	493.63%	―	-10.70%	98.70%