VODAFONE GROUP PLC-SP ADR (VOD) Stock Fundamental Analysis
NASDAQ:VOD - Nasdaq - US92857W3088 - ADR - Currency: USD
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. The financial health of VOD is average, but there are quite some concerns on its profitability. VOD is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year VOD was profitable.
In the past year VOD had a positive cash flow from operations.
Of the past 5 years VOD 4 years were profitable.
VOD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -3.24%, VOD is doing worse than 80.95% of the companies in the same industry.
With a Return On Equity value of -7.90%, VOD is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
VOD has a Return On Invested Capital (3.69%) which 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 6.35%.
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
VOD has a Operating Margin of 13.19%. This is comparable to the rest of the industry: VOD outperforms 57.14% of its industry peers.
In the last couple of years the Operating Margin of VOD has declined.
The Gross Margin of VOD (33.43%) is worse 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
VOD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
VOD has an Altman-Z score of -0.68. This is a bad value and indicates that VOD is not financially healthy and even has some risk of bankruptcy.
VOD has a worse Altman-Z score (-0.68) than 80.95% 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 has a better Debt to FCF ratio (6.13) than 76.19% of its industry peers.
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 | -0.68 |
ROIC/WACC0.64
WACC5.75%
2.3 Liquidity
A Current Ratio of 1.26 indicates that VOD should not have too much problems paying its short term obligations.
With a Current ratio value of 1.26, VOD perfoms like the industry average, outperforming 52.38% 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.
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%.
VOD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.24% 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 5Y6.24%
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
The Earnings Per Share is expected to grow by 7.89% on average over the next years.
VOD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.57% yearly.
EPS Next Y16.69%
EPS Next 2Y14.67%
EPS Next 3Y13.35%
EPS Next 5Y7.89%
Revenue Next Year4.79%
Revenue Next 2Y3.51%
Revenue Next 3Y2.77%
Revenue Next 5Y-0.57%
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.
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
With a Price/Earnings ratio of 11.94, the valuation of VOD can be described as very reasonable.
Based on the Price/Earnings ratio, VOD is valued a bit cheaper than 76.19% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.41. VOD is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.26 indicates a reasonable valuation of VOD.
VOD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VOD is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.87, VOD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.94 | ||
| Fwd PE | 10.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VOD indicates a rather cheap valuation: VOD is cheaper than 90.48% of the companies listed 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 | 2.79 | ||
| EV/EBITDA | 3.26 |
4.3 Compensation for Growth
The 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 13.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)1.91
EPS Next 2Y14.67%
EPS Next 3Y13.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.15%, VOD is a good candidate for dividend investing.
VOD's Dividend Yield is comparable with the industry average which is at 51.43.
VOD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| 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
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 2Y14.67%
EPS Next 3Y13.35%
NASDAQ:VOD (8/12/2025, 11:33:08 AM)
11.585
+0.08 (+0.65%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners57.41%
Inst Owner Change0.35%
Ins Owners0.8%
Ins Owner ChangeN/A
Market Cap28.11B
Analysts68.28
Price Target11.45 (-1.17%)
Short Float %0.89%
Short Ratio1.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
Yearly Dividend0.84
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)3.08%
PT rev (3m)2.63%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.93%
EPS NY rev (3m)-2.22%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.13%
Revenue NY rev (3m)2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.94 | ||
| Fwd PE | 10.26 | ||
| P/S | 0.65 | ||
| P/FCF | 2.79 | ||
| P/OCF | 1.57 | ||
| P/B | 0.46 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 3.26 |
EPS(TTM)0.97
EY8.37%
EPS(NY)1.13
Fwd EY9.74%
FCF(TTM)4.15
FCFY35.86%
OCF(TTM)7.36
OCFY63.56%
SpS17.94
BVpS25.27
TBVpS9.25
PEG (NY)0.72
PEG (5Y)1.91
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
WACC5.75%
ROIC/WACC0.64
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 5Y6.24%
EPS Q2Q%-35.56%
EPS Next Y16.69%
EPS Next 2Y14.67%
EPS Next 3Y13.35%
EPS Next 5Y7.89%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y-6.34%
Revenue growth 5Y-3.6%
Sales Q2Q%29.72%
Revenue Next Year4.79%
Revenue Next 2Y3.51%
Revenue Next 3Y2.77%
Revenue Next 5Y-0.57%
EBIT growth 1Y33.65%
EBIT growth 3Y-3.06%
EBIT growth 5Y-9.83%
EBIT Next Year161.76%
EBIT Next 3Y40.87%
EBIT Next 5Y21.93%
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%