VODAFONE GROUP PLC-SP ADR (VOD) Stock Fundamental Analysis
NASDAQ:VOD - US92857W3088 - ADR
11.855 USD
+0.11 (+0.89%)
VOD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 21 industry peers in the Wireless Telecommunication Services industry. While VOD seems to be doing ok healthwise, there are quite some concerns on its profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on VOD.
1. Profitability
1.1 Basic Checks
VOD had positive earnings in the past year.
In the past year VOD had a positive cash flow from operations.
VOD had positive earnings in 4 of the past 5 years.
Each year in the past 5 years VOD had a positive operating cash flow.
1.2 Ratios
VOD has a Return On Assets of -3.24%. This is amonst the worse of the industry: VOD underperforms 80.95% of its industry peers.
VOD has a Return On Equity of -7.90%. This is amonst the worse of the industry: VOD underperforms 80.95% of its industry peers.
VOD has a Return On Invested Capital of 3.69%. This is comparable to the rest of the industry: VOD outperforms 42.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VOD is below the industry average of 6.09%.
The 3 year average ROIC (2.95%) for VOD is below the current ROIC(3.69%), indicating increased profibility in the last year.
| 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
With a Operating Margin value of 13.19%, VOD perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
VOD's Operating Margin has declined in the last couple of years.
VOD has a worse Gross Margin (33.43%) than 80.95% of its industry peers.
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.
Compared to 1 year ago, VOD has less shares outstanding
The number of shares outstanding for VOD has been reduced compared to 5 years ago.
The debt/assets ratio for VOD is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.68, we must say that VOD is in the distress zone and has some risk of bankruptcy.
VOD has a Altman-Z score of -0.68. This is amonst the worse of the industry: VOD underperforms 80.95% of its industry peers.
The Debt to FCF ratio of VOD is 6.13, which is on the high side as it means it would take VOD, 6.13 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VOD (6.13) is better than 71.43% of its industry peers.
A Debt/Equity ratio of 0.87 indicates that VOD is somewhat dependend on debt financing.
VOD's Debt to Equity ratio of 0.87 is in line compared to the rest of the industry. VOD outperforms 47.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.13 | ||
| Altman-Z | -0.68 |
ROIC/WACC0.63
WACC5.88%
2.3 Liquidity
A Current Ratio of 1.26 indicates that VOD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.26, VOD is in line with its industry, outperforming 57.14% of the companies in the same industry.
VOD has a Quick Ratio of 1.23. This is a normal value and indicates that VOD is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of VOD (1.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
VOD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.33%.
VOD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.36% yearly.
Looking at the last year, VOD shows a small growth in Revenue. The Revenue has grown by 1.99% in the last year.
Measured over the past years, VOD shows a decrease in Revenue. The Revenue has been decreasing by -3.60% on average per year.
EPS 1Y (TTM)5.33%
EPS 3Y-10.45%
EPS 5Y6.36%
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 10.33% yearly.
VOD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.78% yearly.
EPS Next Y9.78%
EPS Next 2Y12.5%
EPS Next 3Y13.69%
EPS Next 5Y10.33%
Revenue Next Year5.6%
Revenue Next 2Y3.98%
Revenue Next 3Y3%
Revenue Next 5Y0.78%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 12.22, the valuation of VOD can be described as correct.
Based on the Price/Earnings ratio, VOD is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VOD to the average of the S&P500 Index (27.03), we can say VOD is valued rather cheaply.
The Price/Forward Earnings ratio is 11.08, which indicates a very decent valuation of VOD.
Based on the Price/Forward Earnings ratio, VOD is valued a bit cheaper than the industry average as 71.43% 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 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.22 | ||
| Fwd PE | 11.08 |
4.2 Price Multiples
VOD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VOD is cheaper than 95.24% of the companies in the same industry.
100.00% of the companies in the same industry are more expensive than VOD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.83 | ||
| EV/EBITDA | 3.28 |
4.3 Compensation for Growth
VOD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
VOD's earnings are expected to grow with 13.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.25
PEG (5Y)1.92
EPS Next 2Y12.5%
EPS Next 3Y13.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.35%, VOD is a good candidate for dividend investing.
VOD's Dividend Yield is comparable with the industry average which is at 8.15.
Compared to an average S&P500 Dividend Yield of 2.32, VOD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
5.2 History
The dividend of VOD decreases each year by -4.17%.
VOD has paid a dividend for at least 10 years, which is 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 2Y12.5%
EPS Next 3Y13.69%
NASDAQ:VOD (9/5/2025, 9:48:04 AM)
11.855
+0.11 (+0.89%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners57.41%
Inst Owner Change-0.41%
Ins Owners0.8%
Ins Owner ChangeN/A
Market Cap28.60B
Analysts68.28
Price Target11.57 (-2.4%)
Short Float %0.69%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.35% |
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)1.36%
PT rev (3m)3.69%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-5.39%
EPS NY rev (3m)-3.34%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)2.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.22 | ||
| Fwd PE | 11.08 | ||
| P/S | 0.66 | ||
| P/FCF | 2.83 | ||
| P/OCF | 1.6 | ||
| P/B | 0.47 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 3.28 |
EPS(TTM)0.97
EY8.18%
EPS(NY)1.07
Fwd EY9.03%
FCF(TTM)4.19
FCFY35.32%
OCF(TTM)7.42
OCFY62.6%
SpS18.08
BVpS25.46
TBVpS9.32
PEG (NY)1.25
PEG (5Y)1.92
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%
ROICexcg growth 3Y-3.2%
ROICexcg 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 | -0.68 |
F-Score6
WACC5.88%
ROIC/WACC0.63
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 5Y6.36%
EPS Q2Q%-35.56%
EPS Next Y9.78%
EPS Next 2Y12.5%
EPS Next 3Y13.69%
EPS Next 5Y10.33%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y-6.34%
Revenue growth 5Y-3.6%
Sales Q2Q%29.72%
Revenue Next Year5.6%
Revenue Next 2Y3.98%
Revenue Next 3Y3%
Revenue Next 5Y0.78%
EBIT growth 1Y33.65%
EBIT growth 3Y-3.06%
EBIT growth 5Y-9.83%
EBIT Next Year161.76%
EBIT Next 3Y40.97%
EBIT Next 5Y23.65%
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%