13.21 USD
-0.02 (-0.15%)
13.2713 USD
+0.06 (+0.46%)
Overall VOD gets a fundamental rating of 4 out of 10. We evaluated VOD against 22 industry peers in the Wireless Telecommunication Services industry. While VOD seems to be doing ok healthwise, there are quite some concerns on its profitability. VOD has a correct valuation and a medium growth rate.
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.
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 worse Return On Assets (-3.24%) than 81.82% of its industry peers.
The Return On Equity of VOD (-7.90%) is worse than 81.82% 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 45.45% of its industry peers.
VOD had an Average Return On Invested Capital over the past 3 years of 2.95%. This is below the industry average of 6.45%.
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
Looking at the Operating Margin, with a value of 13.19%, VOD is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
VOD's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 33.43%, VOD is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
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.
VOD has less shares outstanding than it did 1 year ago.
VOD has less shares outstanding than it did 5 years ago.
VOD has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.66, we must say that VOD is in the distress zone and has some risk of bankruptcy.
VOD's Altman-Z score of -0.66 is on the low side compared to the rest of the industry. VOD is outperformed by 81.82% of its industry peers.
The Debt to FCF ratio of VOD is 6.72, which is on the high side as it means it would take VOD, 6.72 years of fcf income to pay off all of its debts.
VOD has a Debt to FCF ratio (6.72) which is comparable to the rest of the industry.
VOD has a Debt/Equity ratio of 0.87. This is a neutral value indicating 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 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.72 | ||
| Altman-Z | -0.66 |
ROIC/WACC0.63
WACC5.86%
2.3 Liquidity
A Current Ratio of 1.26 indicates that VOD should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.26, VOD belongs to the best of the industry, outperforming 81.82% 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 better than 81.82% of 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 5.84% on average per year.
Looking at the last year, VOD shows a small growth in Revenue. The Revenue has grown by 1.99% in the last year.
The Revenue has been decreasing by -3.60% on average over the past years.
EPS 1Y (TTM)5.33%
EPS 3Y-10.45%
EPS 5Y5.84%
EPS Q2Q%-14.07%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y-6.34%
Revenue growth 5Y-3.6%
Sales Q2Q%7.29%
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 13.41% yearly.
VOD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.73% yearly.
EPS Next Y6.68%
EPS Next 2Y9.52%
EPS Next 3Y11.06%
EPS Next 5Y13.41%
Revenue Next Year6.57%
Revenue Next 2Y4.67%
Revenue Next 3Y3.68%
Revenue Next 5Y1.73%
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 13.76, VOD is valued correctly.
Based on the Price/Earnings ratio, VOD is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VOD to the average of the S&P500 Index (26.51), we can say VOD is valued slightly cheaper.
A Price/Forward Earnings ratio of 11.48 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 63.64% of the companies in the same industry.
VOD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.76 | ||
| Fwd PE | 11.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VOD is valued cheaper than 90.91% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VOD is valued cheaper than 95.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.39 | ||
| EV/EBITDA | 3.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.06
PEG (5Y)2.36
EPS Next 2Y9.52%
EPS Next 3Y11.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.03%, VOD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.85, VOD has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, VOD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.03% |
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-27.44%
EPS Next 2Y9.52%
EPS Next 3Y11.06%
13.21
-0.02 (-0.15%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners59.71%
Inst Owner Change-3.2%
Ins Owners0.82%
Ins Owner ChangeN/A
Market Cap31.49B
Revenue(TTM)37.45B
Net Income(TTM)-4.17B
Analysts54.81
Price Target12.71 (-3.79%)
Short Float %0.52%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.03% |
Yearly Dividend0.84
Dividend Growth(5Y)-4.17%
DP-27.44%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)7.73%
PT rev (3m)8.71%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-7.76%
EPS NY rev (3m)-6.98%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.5%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.76 | ||
| Fwd PE | 11.48 | ||
| P/S | 0.72 | ||
| P/FCF | 3.39 | ||
| P/OCF | 1.81 | ||
| P/B | 0.51 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 3.29 |
EPS(TTM)0.96
EY7.27%
EPS(NY)1.15
Fwd EY8.71%
FCF(TTM)3.9
FCFY29.5%
OCF(TTM)7.31
OCFY55.3%
SpS18.46
BVpS26
TBVpS9.52
PEG (NY)2.06
PEG (5Y)2.36
Graham Number23.7
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 | 21.11% |
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 | 6.72 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 59.99% | ||
| Cap/Sales | 18.47% | ||
| Interest Coverage | 2.24 | ||
| Cash Conversion | 90% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | -0.66 |
F-Score6
WACC5.86%
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 5Y5.84%
EPS Q2Q%-14.07%
EPS Next Y6.68%
EPS Next 2Y9.52%
EPS Next 3Y11.06%
EPS Next 5Y13.41%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y-6.34%
Revenue growth 5Y-3.6%
Sales Q2Q%7.29%
Revenue Next Year6.57%
Revenue Next 2Y4.67%
Revenue Next 3Y3.68%
Revenue Next 5Y1.73%
EBIT growth 1Y33.65%
EBIT growth 3Y-3.06%
EBIT growth 5Y-9.83%
EBIT Next Year168.65%
EBIT Next 3Y45.04%
EBIT Next 5Y23.96%
FCF growth 1Y-7.75%
FCF growth 3Y-1.3%
FCF growth 5Y-2.36%
OCF growth 1Y-14.42%
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.
What is the valuation status of VODAFONE GROUP PLC-SP ADR (VOD) stock?
ChartMill assigns a valuation rating of 6 / 10 to VODAFONE GROUP PLC-SP ADR (VOD). This can be considered as Fairly Valued.
What is the profitability of VOD stock?
VODAFONE GROUP PLC-SP ADR (VOD) has a profitability rating of 3 / 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 6.68% in the next year.
Can you provide the dividend sustainability for VOD stock?
The dividend rating of VODAFONE GROUP PLC-SP ADR (VOD) is 4 / 10 and the dividend payout ratio is -27.44%.