VEON Ltd (VEON, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $1.42 billion. The current price of $20.2 reflects a significant 16.85% gain over the past week. Over the past three months, the stock has seen a 15.01% increase, showcasing a robust upward trend. According to GuruFocus's valuation metrics, the GF Value is currently at $18.59, suggesting that the stock is Fairly Valued. This is a marked change from three months ago when the stock was considered Significantly Overvalued with a GF Value of $12.16.
Understanding VEON Ltd
VEON Ltd operates within the telecommunication services industry, providing essential connectivity and internet services to over 210 million customers globally. The company's operations span across 9 countries, with a diverse portfolio of brands including Beeline, Kyivstar, banglalink, Jazz, and Djezzy. The company's strategic positioning in various emerging markets allows it to tap into a vast customer base, offering a range of services from voice and data to digital solutions. 
Profitability Insights
VEON's Profitability Rank stands at 5/10, indicating an average level of profitability within its sector. The company's Operating Margin is an impressive 25.71%, which is higher than 87.66% of its industry peers. Its Return on Equity (ROE) is a staggering 69.23%, outperforming 94.52% of competitors, while the Return on Assets (ROA) at 2.93% is better than 51.13% of the industry. Additionally, VEON's Return on Invested Capital (ROIC) of 3.82% surpasses 44.33% of the sector. These figures demonstrate VEON's ability to generate profits and manage its assets effectively. 
Growth Trajectory
Despite the positive profitability, VEON's Growth Rank is low at 2/10. The company has experienced a 3-Year Revenue Growth Rate per Share decline of -21.50%, which is only better than 6.13% of the industry. The 5-Year Revenue Growth Rate per Share also decreased by -19.60%, slightly ahead of 6.69% of the industry. The 3-Year EPS without NRI Growth Rate fell by -25.00%, surpassing 11.97% of the industry, and the 5-Year EPS without NRI Growth Rate decreased by -12.10%, which is better than 12.5% of the industry. These figures highlight the challenges VEON faces in terms of revenue and earnings growth. 
Competitive Landscape
When compared to its competitors, VEON stands out with a significantly higher market cap. Hong Kong Shanghai Alliance Holdings Ltd (HKSE:01001, Financial) has a market cap of $27.479 million, Bosa Technology Holdings Ltd (HKSE:08140, Financial) is valued at $7.992 million, and Maike Tube Industry Holdings Ltd (HKSE:01553, Financial) has a market cap of $67.786 million. VEON's larger size may provide it with competitive advantages in terms of resources and market presence.
Conclusion
In summary, VEON Ltd's recent stock performance has been impressive, with a 15.01% increase over the past three months and a current valuation that suggests the stock is Fairly Valued. The company's profitability metrics are strong, particularly in terms of operating margin and ROE. However, growth remains a concern, with negative trends in revenue and EPS growth rates. Despite these challenges, VEON's market cap significantly exceeds that of its closest competitors, indicating a strong competitive position within the telecommunication services industry. Investors should consider these factors when evaluating VEON's potential for long-term value creation.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
