VEON (VEON) AI Stock Analysis

• Market Cap: $3.33B
• Dividend Yield: N/A
• Average Volume (3M): 98.64K
• Price to Earnings (P/E): 3.4
• Beta (1Y): 0.79
• Revenue Growth: 8.66%
• EPS Growth: N/A
• Country: US
• Employees: 18,027
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 8.30
• Shares Outstanding: 69,153,800
• 10 Day Avg. Volume: 89,143
• 30 Day Avg. Volume: 98,641
• PEG Ratio: -0.06
• Price to Book (P/B): 2.58
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 11.68
• Enterprise Value/Market Cap: 1.97
• Enterprise Value/Revenue: 1.58
• Enterprise Value/Gross Profit: 1.71
• Enterprise Value/Ebitda: 3.25
• 1Y Price Target: $73.25
• Price Target Upside: 52.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $58.00 ▲(20.61% Upside)

VEON's strong earnings call and attractive valuation are the most significant factors driving the score. While financial performance shows profitability, high leverage and declining cash flow growth are concerns. Technical indicators suggest potential short-term weakness, but the overall outlook remains positive due to strategic achievements and undervaluation.

Positive Factors

Digital Revenue Growth

The significant increase in digital revenues highlights VEON's successful pivot towards digital services, enhancing its long-term growth prospects and market competitiveness.

Strategic Acquisitions

The acquisition of OLX Kazakhstan expands VEON's digital ecosystem, strengthening its market position and service offerings in Kazakhstan, supporting sustained growth.

Strategic Partnerships

Strategic partnerships like the one with Engro enhance VEON's operational capabilities and market reach, fostering long-term growth and resilience in key markets.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, potentially limiting VEON's ability to invest in growth opportunities and manage economic volatility.

Declining Cash Flow Growth

Decreasing cash flow growth could hinder VEON's ability to fund operations and strategic initiatives, impacting its long-term financial health and flexibility.

Inflationary Pressures

Rising inflation could increase operational costs and pressure margins, challenging VEON's ability to maintain profitability and competitive pricing.

VEON Business Overview & Revenue Model

Company Description

VEON Ltd., through its subsidiaries, provides mobile and fixed-line telecommunications services. It offers voice, data, and other telecommunication services through a range of wireless, fixed, and broadband internet services. The company provides value-added services, including short messages, multimedia messages, caller number identification, call waiting, data transmission, mobile internet, downloadable content, mobile finance, machine-to-machine, and other services; national and international roaming services; wireless internet access; and mobile bundles and call completion services. It also offers value-added 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, and Georgia. It serves approximately 220 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.

How the Company Makes Money

VEON generates revenue primarily through its telecommunications services, which include mobile voice and data plans, fixed broadband services, and various value-added services. The company's key revenue streams consist of mobile service subscriptions, data usage fees, and sales of devices. Additionally, VEON has developed a digital ecosystem that includes applications and platforms for messaging, e-commerce, and financial services, which contribute to its earnings. Significant partnerships with local and international companies enhance its service offerings and customer engagement, further driving revenue growth.

VEON Financial Statement Overview

Summary

VEON shows strong profitability with high margins and positive revenue growth. However, high leverage and declining free cash flow growth pose risks. The company needs to manage debt levels and improve cash flow generation for long-term stability.

Income Statement

VEON's income statement shows strong profitability with a high gross profit margin of 92.19% and a net profit margin of 23.70% for TTM (Trailing-Twelve-Months). The company has demonstrated a positive revenue growth rate of 1.49% in the latest period, indicating a recovery from previous declines. EBIT and EBITDA margins are healthy at 30.23% and 48.51%, respectively, reflecting efficient operations. However, historical volatility in net income and revenue growth poses a risk.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.76, indicating significant leverage, which could be a risk in volatile markets. However, the return on equity is strong at 83.96%, suggesting effective use of equity. The equity ratio stands at 15.43%, showing a moderate level of equity financing relative to total assets. The company needs to manage its debt levels to ensure long-term stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 15.07% in the TTM, which is a concern. However, the operating cash flow to net income ratio of 0.42 indicates reasonable cash generation relative to net income. The free cash flow to net income ratio is 0.48, suggesting that a significant portion of net income is converted into free cash flow. The company should focus on improving free cash flow generation to support future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.15B	4.00B	3.70B	3.75B	3.85B	3.48B
Gross Profit	3.82B	3.49B	3.26B	3.28B	3.37B	3.03B
EBITDA	2.01B	1.48B	1.39B	1.64B	1.84B	1.73B
Net Income	983.00M	415.00M	-2.53B	-162.00M	674.00M	-349.00M
Balance Sheet
Total Assets	8.46B	8.04B	8.22B	15.08B	15.92B	14.55B
Cash, Cash Equivalents and Short-Term Investments	1.79B	2.05B	2.33B	3.23B	2.34B	1.76B
Total Debt	4.91B	4.69B	5.16B	8.18B	10.65B	10.06B
Total Liabilities	6.97B	6.78B	7.15B	14.32B	14.42B	13.54B
Stockholders Equity	1.31B	1.10B	858.00M	569.00M	586.00M	163.00M
Cash Flow
Free Cash Flow	612.35M	523.00M	1.58B	1.92B	1.94B	766.00M
Operating Cash Flow	1.27B	1.15B	2.11B	2.56B	2.64B	2.44B
Investing Cash Flow	-559.53M	-778.00M	-2.24B	-1.66B	-1.46B	-1.87B
Financing Cash Flow	-328.99M	-551.00M	-1.15B	116.00M	-465.00M	-102.00M

VEON Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 48.09 is below the 20-day moving average (MA) of 50.38, below the 50-day MA of 52.83, and below the 200-day MA of 48.59, indicating a bearish trend. The MACD of -1.26 indicates Positive momentum. The RSI at 39.59 is Neutral, neither overbought nor oversold. The STOCH value of 25.21 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	81 Outperform	$5.18B	11.85	7.38%	5.54%	19.25%	5.69%
VEON	75 Outperform	$3.33B	3.38	89.94%	―	8.66%	―
PHI	70 Neutral	$4.11B	7.43	27.07%	8.66%	0.35%	19.08%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
AD	57 Neutral	$4.28B	-162.52	-0.54%	46.40%	-3.65%	-134.04%
TEO	54 Neutral	$5.49B	―	-0.27%	1.69%	3.89%	-107.44%
TDS	50 Neutral	$4.19B	―	-0.81%	0.40%	-5.62%	80.09%

VEON Corporate Events

VEON’s Beeline Kazakhstan to Acquire OLX Kazakhstan for $75 Million

On October 21, 2025, VEON Ltd. announced that its Kazakh operating company, Beeline Kazakhstan, has agreed to acquire OLX Kazakhstan, a leading online classifieds business, for USD 75 million. This acquisition is expected to enhance Beeline Kazakhstan’s digital services ecosystem by integrating OLX KZ’s marketplace, which serves millions of users in Kazakhstan. The acquisition aligns with VEON’s strategy to expand its digital operator capabilities and is subject to regulatory approvals and customary closing conditions.

VEON and Kyivstar Host Investor Meeting to Discuss Strategic Updates

On August 28, 2025, VEON Ltd. and Kyivstar Group Ltd. announced an investor meeting to provide updates on Kyivstar’s strategic initiatives, financial performance, and market outlook. The meeting, held virtually, featured presentations from senior management on key developments from the second quarter of 2025 and included a Q&A session with investors. This event underscores Kyivstar’s commitment to transparency and engagement with stakeholders, as well as its ongoing investment in Ukraine’s digital infrastructure.

VEON Releases Interim Financial Report Amid Geopolitical and Economic Challenges

On August 22, 2025, VEON Ltd. released its unaudited interim condensed consolidated financial statements for the six-month period ending June 30, 2025. The report highlights the company’s ongoing challenges due to the war in Ukraine, geopolitical tensions, and economic conditions such as inflation and rising interest rates. VEON is focused on generating sufficient cash flow, developing new revenue streams, and optimizing its capital structure to navigate these challenges. The company is also addressing potential cybersecurity threats and environmental factors that could impact its operations.

VEON’s Kyivstar Group Completes Nasdaq Listing via Cohen Circle Merger

On August 14, 2025, VEON Ltd. announced the completion of a business combination between its subsidiary, Kyivstar Group Ltd., and Cohen Circle Acquisition Corp. I. This merger will result in Kyivstar Group becoming a U.S.-listed company on Nasdaq, trading under the ticker symbols ‘KYIV’ and ‘KYIVW’. This marks Kyivstar as the first pure-play Ukrainian investment opportunity in the U.S. stock markets. VEON holds an 89.6% stake in Kyivstar, which serves nearly 23 million mobile customers and offers a range of digital services in Ukraine. The move is seen as a significant step in making Ukraine’s success story visible to U.S. investors and highlights VEON’s commitment to investing in Ukraine’s technological and infrastructure development.

VEON’s Strategic Business Combination with Cohen Circle Nears Completion

VEON Ltd., a telecommunications company, is involved in a significant business combination with Cohen Circle Acquisition Corp. I, announced on March 18, 2025. This transaction involves VEON Holdings B.V., PubCo, and Varna Merger Sub Corp., collectively known as the Kyivstar Group. On August 11, 2025, Cohen Circle revealed that 25.4% of its Class A ordinary shares were redeemed by shareholders ahead of an extraordinary general meeting on August 12, 2025. The business combination, subject to shareholder and regulatory approvals, is expected to close around August 14, 2025, with approximately $178 million remaining in Cohen Circle’s Trust Account. This move is anticipated to position PubCo as a notable U.S.-listed Ukrainian investment opportunity, impacting VEON’s operations and market presence.

VEON Reports Strong Q2 2025 Results with Digital Revenue Surge

On August 7, 2025, VEON Ltd. announced its financial results for the second quarter of 2025, reporting a 5.9% increase in USD revenues and a 13.2% rise in USD EBITDA compared to the previous year. The company achieved significant growth in direct digital revenues, which surged by 56.6% year-over-year, reflecting its strategic focus on digital transformation. VEON’s acquisition of Uklon in April 2025 contributed to this growth, adding $21.7 million to direct digital revenues. The company also completed its share buyback program on August 1, 2025, repurchasing 2.14 million ADSs. VEON has revised its 2025 outlook, expecting local currency revenue growth of 13% to 15% and EBITDA growth of 14% to 16%.