VODAFONE GROUP PLC-SP ADR (VOD)
US92857W3088 - ADR
VOD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 22 industry peers in the Wireless Telecommunication Services industry. VOD has a medium profitability rating, but doesn't score so well on its financial health evaluation. VOD has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
VOD had positive earnings in the past year.
VOD had a positive operating cash flow in the past year.
VOD had positive earnings in 4 of the past 5 years.
VOD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
VOD has a better Return On Assets (7.09%) than 85.71% of its industry peers.
With a decent Return On Equity value of 17.38%, VOD is doing good in the industry, outperforming 71.43% of the companies in the same industry.
VOD's Return On Invested Capital of 2.49% is on the low side compared to the rest of the industry. VOD is outperformed by 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.09% | ||
| ROE | 17.38% | ||
| ROIC | 2.49% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of VOD (23.50%) is better than 95.24% of its industry peers.
In the last couple of years the Profit Margin of VOD has grown nicely.
VOD has a Operating Margin (8.39%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of VOD has grown nicely.
Looking at the Gross Margin, with a value of 31.68%, VOD is doing worse than 80.95% of the companies in the same industry.
In the last couple of years the Gross Margin of VOD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.39% | ||
| PM (TTM) | 23.5% | ||
| GM | 31.68% |
OM growth 3Y-2.47%
OM growth 5Y4.78%
PM growth 3Y184.61%
PM growth 5YN/A
GM growth 3Y2.15%
GM growth 5Y1.54%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VOD is destroying value.
There is no outstanding debt for VOD. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of -0.56, we must say that VOD is in the distress zone and has some risk of bankruptcy.
VOD has a Altman-Z score of -0.56. This is amonst the worse of the industry: VOD underperforms 85.71% of its industry peers.
The Debt to FCF ratio of VOD is 7.59, which is on the high side as it means it would take VOD, 7.59 years of fcf income to pay off all of its debts.
VOD has a Debt to FCF ratio of 7.59. This is in the better half of the industry: VOD outperforms 61.90% of its industry peers.
A Debt/Equity ratio of 0.87 indicates that VOD is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.87, VOD is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 7.59 | ||
| Altman-Z | -0.56 |
ROIC/WACC0.61
WACC4.06%
2.3 Liquidity
VOD has a Current Ratio of 0.89. This is a bad value and indicates that VOD is not financially healthy enough and could expect problems in meeting its short term obligations.
VOD has a Current ratio of 0.89. This is in the lower half of the industry: VOD underperforms 71.43% of its industry peers.
VOD has a Quick Ratio of 0.89. This is a bad value and indicates that VOD is not financially healthy enough and could expect problems in meeting its short term obligations.
VOD's Quick ratio of 0.86 is on the low side compared to the rest of the industry. VOD is outperformed by 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
VOD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -89.00%.
The Revenue for VOD has decreased by -19.67% in the past year. This is quite bad
VOD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.41% yearly.
EPS 1Y (TTM)-89%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-85.68%
Revenue 1Y (TTM)-19.67%
Revenue growth 3Y-5.72%
Revenue growth 5Y-3.41%
Revenue growth Q2Q-35.11%
3.2 Future
VOD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.79% yearly.
VOD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.13% yearly.
EPS Next Y18.49%
EPS Next 2Y20.76%
EPS Next 3Y14.79%
EPS Next 5YN/A
Revenue Next Year-5.92%
Revenue Next 2Y-2.78%
Revenue Next 3Y-2.13%
Revenue Next 5Y0.13%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.20, VOD is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as VOD.
The average S&P500 Price/Earnings ratio is at 28.60. VOD is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 10.42 indicates a reasonable valuation of VOD.
VOD's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of VOD to the average of the S&P500 Index (20.15), we can say VOD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.2 | ||
| Fwd PE | 10.42 |
4.2 Price Multiples
VOD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VOD is cheaper than 85.71% of the companies in the same industry.
VOD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VOD is cheaper than 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.85 | ||
| EV/EBITDA | 4.07 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of VOD may justify a higher PE ratio.
VOD's earnings are expected to grow with 14.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y20.76%
EPS Next 3Y14.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 9.99%, VOD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.77, VOD pays a better dividend. On top of this VOD pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, VOD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.99% |
5.2 History
The dividend of VOD decreases each year by -9.42%.
VOD has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-9.42%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VOD pays out 23.14% of its income as dividend. This is a sustainable payout ratio.
DP23.14%
EPS Next 2Y20.76%
EPS Next 3Y14.79%
VODAFONE GROUP PLC-SP ADR
NASDAQ:VOD (5/17/2024, 7:00:02 PM)
Premarket: 9.83 +0.04 (+0.41%)9.79
-0.01 (-0.1%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap26.50B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.99% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.2 | ||
| Fwd PE | 10.42 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.09% | ||
| ROE | 17.38% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.39% | ||
| PM (TTM) | 23.5% | ||
| GM | 31.68% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-89%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y18.49%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-19.67%
Revenue growth 3Y-5.72%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y