VODAFONE GROUP PLC-SP ADR (VOD) Stock Fundamental Analysis
USA - NASDAQ:VOD - US92857W3088 - ADR
11.34 USD
+0.07 (+0.62%)
11.37 USD
+0.03 (+0.26%)
We assign a fundamental rating of 4 out of 10 to VOD. VOD was compared to 22 industry peers in the Wireless Telecommunication Services industry. The financial health of VOD is average, but there are quite some concerns on its profitability. VOD scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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 each of the past 5 years.
1.2 Ratios
The Return On Assets of VOD (-3.24%) is worse than 81.82% of its industry peers.
Looking at the Return On Equity, with a value of -7.90%, VOD is doing worse than 81.82% of the companies in the same industry.
The Return On Invested Capital of VOD (3.69%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for VOD is below the industry average of 5.80%.
The last Return On Invested Capital (3.69%) for VOD is above the 3 year average (2.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.24% | ||
| ROE | -7.9% | ||
| ROIC | 3.69% |
ROA(3y)1.72%
ROA(5y)1.33%
ROE(3y)4.22%
ROE(5y)3.37%
ROIC(3y)2.95%
ROIC(5y)3.04%
1.3 Margins
The Operating Margin of VOD (13.19%) is better than 63.64% of its industry peers.
VOD's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 33.43%, VOD is doing worse than 77.27% of the companies in the same industry.
VOD's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.19% | ||
| PM (TTM) | N/A | ||
| GM | 33.43% |
OM growth 3Y3.5%
OM growth 5Y-6.47%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.51%
GM growth 5Y1.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VOD is destroying value.
The number of shares outstanding for VOD has been reduced compared to 1 year ago.
The number of shares outstanding for VOD has been reduced compared to 5 years ago.
VOD has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.69, we must say that VOD is in the distress zone and has some risk of bankruptcy.
VOD has a Altman-Z score of -0.69. This is amonst the worse of the industry: VOD underperforms 81.82% of its industry peers.
VOD has a debt to FCF ratio of 6.13. This is a slightly negative value and a sign of low solvency as VOD would need 6.13 years to pay back of all of its debts.
VOD's Debt to FCF ratio of 6.13 is fine compared to the rest of the industry. VOD outperforms 72.73% 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 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.13 | ||
| Altman-Z | -0.69 |
ROIC/WACC0.65
WACC5.72%
2.3 Liquidity
VOD has a Current Ratio of 1.26. This is a normal value and indicates that VOD is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.26, VOD is doing good in the industry, outperforming 63.64% of the companies in the same industry.
A Quick Ratio of 1.23 indicates that VOD should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.23, VOD is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.33% over the past year.
Measured over the past 5 years, VOD shows a small growth in Earnings Per Share. The EPS has been growing by 6.51% on average per year.
The Revenue has been growing slightly by 1.99% in the past year.
VOD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.60% yearly.
EPS 1Y (TTM)5.33%
EPS 3Y-10.45%
EPS 5Y6.51%
EPS Q2Q%-35.56%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y-6.34%
Revenue growth 5Y-3.6%
Sales Q2Q%29.72%
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 10.49% yearly.
The Revenue is expected to grow by 0.34% on average over the next years.
EPS Next Y11.88%
EPS Next 2Y13.69%
EPS Next 3Y12.12%
EPS Next 5Y10.49%
Revenue Next Year5.55%
Revenue Next 2Y3.53%
Revenue Next 3Y2.17%
Revenue Next 5Y0.34%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.69, the valuation of VOD can be described as reasonable.
Based on the Price/Earnings ratio, VOD is valued a bit cheaper than 77.27% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.67, VOD is valued rather cheaply.
VOD is valuated reasonably with a Price/Forward Earnings ratio of 10.46.
Based on the Price/Forward Earnings ratio, VOD is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
VOD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 31.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.69 | ||
| Fwd PE | 10.46 |
4.2 Price Multiples
VOD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VOD is cheaper than 95.45% 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 95.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.72 | ||
| EV/EBITDA | 3.23 |
4.3 Compensation for Growth
VOD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VOD's earnings are expected to grow with 12.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.98
PEG (5Y)1.79
EPS Next 2Y13.69%
EPS Next 3Y12.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.21%, VOD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.83, VOD has a dividend in line with its industry peers.
VOD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
5.2 History
The dividend of VOD decreases each year by -4.17%.
VOD has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-4.17%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of VOD are negative and hence is the payout ratio. VOD will probably not be able to sustain this dividend level.
DP-42.86%
EPS Next 2Y13.69%
EPS Next 3Y12.12%
11.34
+0.07 (+0.62%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners59.71%
Inst Owner Change-0.56%
Ins Owners0.82%
Ins Owner ChangeN/A
Market Cap27.16B
Revenue(TTM)37.45B
Net Income(TTM)-4.17B
Analysts68.28
Price Target11.6 (2.29%)
Short Float %0.57%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend0.85
Dividend Growth(5Y)-4.17%
DP-42.86%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.73%
PT rev (3m)1.66%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.18%
EPS NY rev (3m)-2.88%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.69 | ||
| Fwd PE | 10.46 | ||
| P/S | 0.63 | ||
| P/FCF | 2.72 | ||
| P/OCF | 1.54 | ||
| P/B | 0.45 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 3.23 |
EPS(TTM)0.97
EY8.55%
EPS(NY)1.08
Fwd EY9.56%
FCF(TTM)4.16
FCFY36.7%
OCF(TTM)7.38
OCFY65.04%
SpS17.97
BVpS25.31
TBVpS9.26
PEG (NY)0.98
PEG (5Y)1.79
Graham Number23.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.24% | ||
| ROE | -7.9% | ||
| ROCE | 4.67% | ||
| ROIC | 3.69% | ||
| ROICexc | 4.47% | ||
| ROICexgc | 7.24% | ||
| OM | 13.19% | ||
| PM (TTM) | N/A | ||
| GM | 33.43% | ||
| FCFM | 23.16% |
ROA(3y)1.72%
ROA(5y)1.33%
ROE(3y)4.22%
ROE(5y)3.37%
ROIC(3y)2.95%
ROIC(5y)3.04%
ROICexc(3y)3.44%
ROICexc(5y)3.51%
ROICexgc(3y)5.61%
ROICexgc(5y)6.14%
ROCE(3y)3.86%
ROCE(5y)3.97%
ROICexgc growth 3Y-3.2%
ROICexgc growth 5Y-6.95%
ROICexc growth 3Y3.53%
ROICexc growth 5Y-4.45%
OM growth 3Y3.5%
OM growth 5Y-6.47%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.51%
GM growth 5Y1.02%
F-Score6
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.13 | ||
| Debt/EBITDA | 2.93 | ||
| Cap/Depr | 62% | ||
| Cap/Sales | 17.89% | ||
| Interest Coverage | 1.83 | ||
| Cash Conversion | 97.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | -0.69 |
F-Score6
WACC5.72%
ROIC/WACC0.65
Cap/Depr(3y)65.18%
Cap/Depr(5y)64.45%
Cap/Sales(3y)18.91%
Cap/Sales(5y)19.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.33%
EPS 3Y-10.45%
EPS 5Y6.51%
EPS Q2Q%-35.56%
EPS Next Y11.88%
EPS Next 2Y13.69%
EPS Next 3Y12.12%
EPS Next 5Y10.49%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y-6.34%
Revenue growth 5Y-3.6%
Sales Q2Q%29.72%
Revenue Next Year5.55%
Revenue Next 2Y3.53%
Revenue Next 3Y2.17%
Revenue Next 5Y0.34%
EBIT growth 1Y33.65%
EBIT growth 3Y-3.06%
EBIT growth 5Y-9.83%
EBIT Next Year168.13%
EBIT Next 3Y40.81%
EBIT Next 5Y22.16%
FCF growth 1Y-10.55%
FCF growth 3Y-1.3%
FCF growth 5Y-2.36%
OCF growth 1Y-7.15%
OCF growth 3Y-5.26%
OCF growth 5Y-2.42%
VODAFONE GROUP PLC-SP ADR / VOD FAQ
What is the fundamental rating for VOD stock?
ChartMill assigns a fundamental rating of 4 / 10 to VOD.
Can you provide the valuation status for VODAFONE GROUP PLC-SP ADR?
ChartMill assigns a valuation rating of 7 / 10 to VODAFONE GROUP PLC-SP ADR (VOD). This can be considered as Undervalued.
How profitable is VODAFONE GROUP PLC-SP ADR (VOD) stock?
VODAFONE GROUP PLC-SP ADR (VOD) has a profitability rating of 3 / 10.
How financially healthy is VODAFONE GROUP PLC-SP ADR?
The financial health rating of VODAFONE GROUP PLC-SP ADR (VOD) is 4 / 10.
What is the expected EPS growth for VODAFONE GROUP PLC-SP ADR (VOD) stock?
The Earnings per Share (EPS) of VODAFONE GROUP PLC-SP ADR (VOD) is expected to grow by 11.88% in the next year.