VEON (Nasdaq: VEON) is a $5 billion company today. Investors that bought shares one year ago are sitting on a -29.36% total return. That’s below the S&P 500’s return of 13.35%.
VEON stock is underperforming the market. It’s beaten down, but it reports earnings soon. So is it a good time to buy? To answer this question we’ve turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company.
Our system looks at six key metrics…
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✗ Earnings-per-Share (EPS) Growth: VEON reported a recent EPS growth rate of -22.7%. That’s below the wireless telecommunication services industry average of -17.06%. That’s not a good sign. We like to see companies that have higher earnings growth.
✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the wireless telecommunication services industry is 37.93. And VEON’s ratio comes in at 4.817. It’s trading at a better value than many of its competitors.
✓ Debt-to-Equity: The debt-to-equity ratio for VEON stock is 292.43%. That’s below the wireless telecommunication services industry average of 353.67%. That’s a good sign. VEON’s debt levels are not out of control.
✓ Free Cash Flow per Share Growth: VEON has increased its FCF per share over the last year relative to its competitors. That’s good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth.
✗ Profit Margins: The profit margin of VEON comes in at -14.01% today. And generally, the higher, the better. We also like to see this ratio above competitors. VEON’s profit margin is below the wireless telecommunication services average of 4.24%. So that’s a negative indicator for investors.
✗ Return on Equity: Return on equity tells us how much profit a company produces with the money shareholders invest. The ROE for VEON is -9.37% and that’s below its industry average ROE of 14.98%.
VEON stock passes three of our six key metrics today. That’s why our Investment U Stock Grader gives it a Hold.
Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That’s why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.
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Source:: Investment You
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From:: Junior Mining Analyst