Vimpel-Communications

Vimpel-Communications (VIP - Snapshot Report) recently posted fourth-quarter and full-year 2007 results, noting that revenues exceeded $7 billion and grew at a remarkable rate of 47%. The company exhibited growth in many areas, but growth is not the only story for this Growth & Income pick. VIP also offers a dividend yield of 0.9%, which is better than the industry average. The company ROE of 31% also tops the industry average of 10%.

Full Analysis

Vimpel-Communications includes cellular companies operating in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia and Armenia. The Company operates under the 'Beeline' brand.

VimpelCom is recognized for introducing two digital cellular communications standards in Russia. It built the first dual band GSM-900/1800 cellular network in Russia and leads the development and emergence of the mass consumer market for wireless telecommunications in Russia with prepaid products.

The company recently posted fourth-quarter and full-year 2007 results, noting that revenues exceeded $7 billion and grew at a remarkable rate of 47%. VIP added that strong revenue growth, coupled with a healthy margin and a balanced investment policy, resulted in free cash flow of $1.26 billion, almost tripling the 2006 level.

Analysts are upbeat on this year’s earnings expectations. Three out of eight analysts upped full-year 2008 estimates to $2.05 per share from last month’s $2.02. The most accurate forecast is a more bullish $2.12 per share. The company’s earnings per share are expected to grow by 24% over the next 3 – 5 years, which is above the industry average of 18%.

Vimpel’s return on equity (ROE) of 31% stands high above the industry average of 10%. The company’s dividend yield of 0.9% is also better than the industry average. Also, VIP sports a net profit margin of 20.4%, while the industry average is at a negative 1.0%.