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VODAFONE GROUP PLC-SP ADR (VOD) Stock Fundamental Analysis

NASDAQ:VOD - Nasdaq - US92857W3088 - ADR - Currency: USD

9.6  -0.01 (-0.1%)

After market: 9.5999 0 (0%)

Fundamental Rating

4

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 is still in line with the averages on profitability rating, there are concerns on its financial health. VOD is cheap, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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5

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.
Of the past 5 years VOD 4 years were profitable.
Each year in the past 5 years VOD had a positive operating cash flow.
VOD Yearly Net Income VS EBIT VS OCF VS FCFVOD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B 15B

1.2 Ratios

VOD has a Return On Assets of 0.82%. This is comparable to the rest of the industry: VOD outperforms 42.86% of its industry peers.
VOD's Return On Equity of 1.91% is in line compared to the rest of the industry. VOD outperforms 42.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.49%, VOD is in line with its industry, outperforming 42.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VOD is below the industry average of 6.19%.
Industry RankSector Rank
ROA 0.82%
ROE 1.91%
ROIC 2.49%
ROA(3y)3.28%
ROA(5y)1.87%
ROE(3y)8.22%
ROE(5y)4.65%
ROIC(3y)2.89%
ROIC(5y)3.25%
VOD Yearly ROA, ROE, ROICVOD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10

1.3 Margins

VOD has a Profit Margin (3.10%) which is in line with its industry peers.
In the last couple of years the Profit Margin of VOD has grown nicely.
With a Operating Margin value of 10.07%, VOD perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
In the last couple of years the Operating Margin of VOD has grown nicely.
VOD has a worse Gross Margin (33.39%) than 80.95% of its industry peers.
In the last couple of years the Gross Margin of VOD has grown nicely.
Industry RankSector Rank
OM 10.07%
PM (TTM) 3.1%
GM 33.39%
OM growth 3Y-2.47%
OM growth 5Y4.78%
PM growth 3Y184.61%
PM growth 5YN/A
GM growth 3Y2.15%
GM growth 5Y1.54%
VOD Yearly Profit, Operating, Gross MarginsVOD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30

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3

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 increased compared to 1 year ago.
The number of shares outstanding for VOD has been reduced compared to 5 years ago.
Compared to 1 year ago, VOD has an improved debt to assets ratio.
VOD Yearly Shares OutstandingVOD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B
VOD Yearly Total Debt VS Total AssetsVOD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

2.2 Solvency

VOD has an Altman-Z score of -0.64. This is a bad value and indicates that VOD is not financially healthy and even has some risk of bankruptcy.
VOD's Altman-Z score of -0.64 is on the low side compared to the rest of the industry. VOD is outperformed by 76.19% of its industry peers.
VOD has a debt to FCF ratio of 5.06. This is a neutral value as VOD would need 5.06 years to pay back of all of its debts.
VOD has a Debt to FCF ratio of 5.06. This is in the better half of the industry: VOD outperforms 76.19% of its industry peers.
VOD has a Debt/Equity ratio of 0.79. This is a neutral value indicating VOD is somewhat dependend on debt financing.
The Debt to Equity ratio of VOD (0.79) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.79
Debt/FCF 5.06
Altman-Z -0.64
ROIC/WACC0.51
WACC4.84%
VOD Yearly LT Debt VS Equity VS FCFVOD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

2.3 Liquidity

A Current Ratio of 1.08 indicates that VOD should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.08, VOD is doing worse than 61.90% of the companies in the same industry.
A Quick Ratio of 1.05 indicates that VOD should not have too much problems paying its short term obligations.
VOD has a Quick ratio of 1.05. This is in the lower half of the industry: VOD underperforms 61.90% of its industry peers.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 1.05
VOD Yearly Current Assets VS Current LiabilitesVOD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 18.75% over the past year.
Measured over the past years, VOD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.45% on average per year.
Looking at the last year, VOD shows a very negative growth in Revenue. The Revenue has decreased by -19.67% in the last year.
VOD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.41% yearly.
EPS 1Y (TTM)18.75%
EPS 3Y-2.13%
EPS 5Y8.45%
EPS Q2Q%66.67%
Revenue 1Y (TTM)-19.67%
Revenue growth 3Y-5.72%
Revenue growth 5Y-3.41%
Sales Q2Q%-16.69%

3.2 Future

The Earnings Per Share is expected to grow by 9.05% on average over the next years. This is quite good.
The Revenue is expected to decrease by -2.59% on average over the next years.
EPS Next Y7.72%
EPS Next 2Y10.87%
EPS Next 3Y11.47%
EPS Next 5Y9.05%
Revenue Next Year-11.81%
Revenue Next 2Y-4.67%
Revenue Next 3Y-3.12%
Revenue Next 5Y-2.59%

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 stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
VOD Yearly Revenue VS EstimatesVOD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B 40B 50B
VOD Yearly EPS VS EstimatesVOD Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.5 1 1.5

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7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 8.28, which indicates a very decent valuation of VOD.
Compared to the rest of the industry, the Price/Earnings ratio of VOD indicates a rather cheap valuation: VOD is cheaper than 85.71% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.10. VOD is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.52, which indicates a very decent valuation of VOD.
Based on the Price/Forward Earnings ratio, VOD is valued cheaply inside the industry as 85.71% 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 20.74.
Industry RankSector Rank
PE 8.28
Fwd PE 8.52
VOD Price Earnings VS Forward Price EarningsVOD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, VOD is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VOD is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 1.91
EV/EBITDA 4.6
VOD Per share dataVOD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.07
PEG (5Y)0.98
EPS Next 2Y10.87%
EPS Next 3Y11.47%

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 7.70%, VOD is a good candidate for dividend investing.
VOD's Dividend Yield is rather good when compared to the industry average which is at 5.41. VOD pays more dividend than 100.00% of the companies in the same industry.
VOD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
Industry RankSector Rank
Dividend Yield 7.7%

5.2 History

The dividend of VOD decreases each year by -9.83%.
VOD has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-9.83%
Div Incr Years0
Div Non Decr Years0
VOD Yearly Dividends per shareVOD Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

VOD pays out 212.37% of its income as dividend. This is not a sustainable payout ratio.
DP212.37%
EPS Next 2Y10.87%
EPS Next 3Y11.47%
VOD Yearly Income VS Free CF VS DividendVOD Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B
VOD Dividend Payout.VOD Dividend Payout, showing the Payout Ratio.VOD Dividend Payout.PayoutRetained Earnings

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VODAFONE GROUP PLC-SP ADR

NASDAQ:VOD (5/5/2025, 8:00:02 PM)

After market: 9.5999 0 (0%)

9.6

-0.01 (-0.1%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)02-04 2025-02-04
Earnings (Next)05-20 2025-05-20/amc
Inst Owners59.87%
Inst Owner Change0.48%
Ins Owners0.79%
Ins Owner ChangeN/A
Market Cap23.90B
Analysts54.81
Price Target11.16 (16.25%)
Short Float %0.8%
Short Ratio1.24
Dividend
Industry RankSector Rank
Dividend Yield 7.7%
Yearly Dividend1.1
Dividend Growth(5Y)-9.83%
DP212.37%
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)-0.26%
PT rev (3m)-5.26%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.11%
EPS NY rev (3m)0.71%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.28%
Revenue NY rev (3m)0.19%
Valuation
Industry RankSector Rank
PE 8.28
Fwd PE 8.52
P/S 0.57
P/FCF 1.91
P/OCF 1.26
P/B 0.35
P/tB 1
EV/EBITDA 4.6
EPS(TTM)1.16
EY12.08%
EPS(NY)1.13
Fwd EY11.74%
FCF(TTM)5.02
FCFY52.28%
OCF(TTM)7.59
OCFY79.05%
SpS16.73
BVpS27.17
TBVpS9.65
PEG (NY)1.07
PEG (5Y)0.98
Profitability
Industry RankSector Rank
ROA 0.82%
ROE 1.91%
ROCE 3.15%
ROIC 2.49%
ROICexc 2.8%
ROICexgc 4.43%
OM 10.07%
PM (TTM) 3.1%
GM 33.39%
FCFM 30%
ROA(3y)3.28%
ROA(5y)1.87%
ROE(3y)8.22%
ROE(5y)4.65%
ROIC(3y)2.89%
ROIC(5y)3.25%
ROICexc(3y)3.3%
ROICexc(5y)3.73%
ROICexgc(3y)5.86%
ROICexgc(5y)6.75%
ROCE(3y)3.81%
ROCE(5y)4.27%
ROICexcg growth 3Y-14.62%
ROICexcg growth 5Y-6.54%
ROICexc growth 3Y-8.13%
ROICexc growth 5Y-3.16%
OM growth 3Y-2.47%
OM growth 5Y4.78%
PM growth 3Y184.61%
PM growth 5YN/A
GM growth 3Y2.15%
GM growth 5Y1.54%
F-Score7
Asset Turnover0.26
Health
Industry RankSector Rank
Debt/Equity 0.79
Debt/FCF 5.06
Debt/EBITDA 3.76
Cap/Depr 63.74%
Cap/Sales 15.36%
Interest Coverage 1.4
Cash Conversion 132.76%
Profit Quality 966.32%
Current Ratio 1.08
Quick Ratio 1.05
Altman-Z -0.64
F-Score7
WACC4.84%
ROIC/WACC0.51
Cap/Depr(3y)66.32%
Cap/Depr(5y)62.78%
Cap/Sales(3y)19.57%
Cap/Sales(5y)19.07%
Profit Quality(3y)442.85%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.75%
EPS 3Y-2.13%
EPS 5Y8.45%
EPS Q2Q%66.67%
EPS Next Y7.72%
EPS Next 2Y10.87%
EPS Next 3Y11.47%
EPS Next 5Y9.05%
Revenue 1Y (TTM)-19.67%
Revenue growth 3Y-5.72%
Revenue growth 5Y-3.41%
Sales Q2Q%-16.69%
Revenue Next Year-11.81%
Revenue Next 2Y-4.67%
Revenue Next 3Y-3.12%
Revenue Next 5Y-2.59%
EBIT growth 1Y-21.34%
EBIT growth 3Y-8.05%
EBIT growth 5Y1.21%
EBIT Next Year136.44%
EBIT Next 3Y35.65%
EBIT Next 5Y17.28%
FCF growth 1Y27.09%
FCF growth 3Y4.18%
FCF growth 5Y14.96%
OCF growth 1Y-6.98%
OCF growth 3Y-1.29%
OCF growth 5Y4.99%