VODAFONE GROUP PLC-SP ADR (VOD) Stock Fundamental Analysis
USA - NASDAQ:VOD - US92857W3088 - ADR
11.44 USD
+0.17 (+1.51%)
11.44 USD
0 (0%)
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. The financial health of VOD is average, but 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
In the past year VOD was profitable.
VOD had a positive operating cash flow in the past year.
VOD had positive earnings in 4 of the past 5 years.
In the past 5 years VOD always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -3.24%, VOD is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -7.90%, VOD is doing worse than 77.27% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.69%, VOD is in line with its industry, outperforming 45.45% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VOD is below the industry average of 5.96%.
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
VOD has a Operating Margin of 13.19%. This is in the better half of the industry: VOD outperforms 63.64% of its industry peers.
VOD's Operating Margin has declined in the last couple of years.
VOD has a worse Gross Margin (33.43%) than 77.27% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VOD is destroying value.
The number of shares outstanding for VOD has been reduced compared to 1 year ago.
Compared to 5 years ago, VOD has less shares outstanding
The debt/assets ratio for VOD is higher compared to a year ago.
2.2 Solvency
VOD has an Altman-Z score of -0.69. This is a bad value and indicates that VOD is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.69, VOD is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
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.
Looking at the Debt to FCF ratio, with a value of 6.13, VOD is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
A Debt/Equity ratio of 0.87 indicates that VOD is somewhat dependend on debt financing.
The Debt to Equity ratio of VOD (0.87) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.13 | ||
| Altman-Z | -0.69 |
ROIC/WACC0.63
WACC5.85%
2.3 Liquidity
A Current Ratio of 1.26 indicates that VOD should not have too much problems paying its short term obligations.
VOD has a Current ratio (1.26) which is comparable to the rest of the industry.
A Quick Ratio of 1.23 indicates that VOD should not have too much problems paying its short term obligations.
VOD has a Quick ratio (1.23) which is in line with its industry peers.
| 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%.
Measured over the past 5 years, VOD shows a small growth in Earnings Per Share. The EPS has been growing by 6.36% on average per year.
VOD shows a small growth in Revenue. In the last year, the Revenue has grown by 1.99%.
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 5Y6.36%
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
Based on estimates for the next years, VOD will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.28% on average per year.
Based on estimates for the next years, VOD will show a small growth in Revenue. The Revenue will grow by 0.47% on average per year.
EPS Next Y9.78%
EPS Next 2Y12.5%
EPS Next 3Y12.33%
EPS Next 5Y10.28%
Revenue Next Year5.6%
Revenue Next 2Y3.63%
Revenue Next 3Y2.7%
Revenue Next 5Y0.47%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 11.67, the valuation of VOD can be described as very reasonable.
VOD's Price/Earnings ratio is rather cheap when compared to the industry. VOD is cheaper than 81.82% of the companies in the same industry.
VOD is valuated cheaply when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.60, the valuation of VOD can be described as reasonable.
Based on the Price/Forward Earnings ratio, VOD is valued cheaply inside the industry as 81.82% 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 22.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 10.6 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than VOD, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VOD indicates a rather cheap valuation: VOD is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.71 | ||
| EV/EBITDA | 3.2 |
4.3 Compensation for Growth
The 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 12.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)1.84
EPS Next 2Y12.5%
EPS Next 3Y12.33%
5. Dividend
5.1 Amount
VOD has a Yearly Dividend Yield of 4.15%, which is a nice return.
VOD's Dividend Yield is comparable with the industry average which is at 8.48.
VOD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
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
VOD has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-42.86%
EPS Next 2Y12.5%
EPS Next 3Y12.33%
11.44
+0.17 (+1.51%)
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 Cap27.60B
Analysts68.28
Price Target11.69 (2.19%)
Short Float %0.69%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
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)2.08%
PT rev (3m)5.22%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.17%
EPS NY rev (3m)-3.35%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 10.6 | ||
| P/S | 0.63 | ||
| P/FCF | 2.71 | ||
| P/OCF | 1.53 | ||
| P/B | 0.45 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 3.2 |
EPS(TTM)0.98
EY8.57%
EPS(NY)1.08
Fwd EY9.43%
FCF(TTM)4.22
FCFY36.89%
OCF(TTM)7.48
OCFY65.38%
SpS18.22
BVpS25.66
TBVpS9.39
PEG (NY)1.19
PEG (5Y)1.84
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 | -0.69 |
F-Score6
WACC5.85%
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 3Y12.33%
EPS Next 5Y10.28%
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 2Y3.63%
Revenue Next 3Y2.7%
Revenue Next 5Y0.47%
EBIT growth 1Y33.65%
EBIT growth 3Y-3.06%
EBIT growth 5Y-9.83%
EBIT Next Year161.76%
EBIT Next 3Y41.02%
EBIT Next 5Y22.26%
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%