VEON Ltd. ADS (VEON)
Fast GrowerFairStock Score: 85/100 — HIGH CONVICTION
Key Financials
| Current Price | $54.29 |
| Market Cap | $3.8B |
| P/E Ratio | 7.24 |
| ROE | 40.89% |
| Dividend Yield | —% |
| Sector | Communication Services |
Strengths
- Generates $580 million in annual free cash flow (15.4% yield on market cap)
- High return on equity of 40.9% demonstrating efficient capital deployment
- Revenue growth of 17.3% demonstrates strong top-line momentum
- FairStock composite score of 85/100 places it in the top tier across value, quality, and momentum factors
- Established organization with 18,938 employees providing operational scale
Concerns
- Trades significantly above Graham Number ($11) with negative 378% margin of safety—limited downside protection
- High leverage at 3.15x debt-to-equity increases financial risk and interest expense burden
- Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
- Altman Z-Score of 0.1 places it in the financial distress zone—elevated bankruptcy risk
AI Analysis
VEON Ltd. ADS is a small-cap communication services company valued at $3.8 billion. Revenue stands at $4.4 billion, though the company is currently unprofitable. From a quality standpoint, VEON shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.1 warrants caution. On valuation, the stock is deeply undervalued on a P/E basis at 7.3x, with trades far above its Graham Number ($11) with no margin of safety. Growth dynamics show revenue growing at 17.3%. Our composite FairStock Score of 85/100 reflects strong fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.
Bull Case
VEON's 17% revenue growth trajectory could accelerate as it captures additional market share in the communication services sector. With $580 million in annual free cash flow (15.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
Without a clear path to profitability, continued cash burn forces either dilutive equity raises or debt accumulation that destroys shareholder value. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer