VODAFONE GROUP PLC-SP ADR (VOD) Stock Fundamental Analysis
NASDAQ:VOD - Nasdaq - US92857W3088 - ADR - Currency: USD
We assign a fundamental rating of 4 out of 10 to VOD. VOD was compared to 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. VOD is cheap, but on the other hand it scores bad on growth.
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.
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
VOD has a worse Return On Assets (-3.24%) than 80.95% of its industry peers.
VOD's Return On Equity of -7.90% is on the low side compared to the rest of the industry. VOD is outperformed by 80.95% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.69%, VOD is in line with its industry, outperforming 42.86% 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 6.34%.
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
Looking at the Operating Margin, with a value of 13.19%, VOD is in line with its industry, outperforming 57.14% 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: 80.95% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of VOD has remained more or less at the same level.
| 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.
Compared to 1 year ago, VOD has a worse debt to assets ratio.
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.
VOD has a worse Altman-Z score (-0.69) than 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.
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.
Looking at the Debt to Equity ratio, with a value of 0.87, VOD is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.13 | ||
| Altman-Z | -0.69 |
ROIC/WACC0.65
WACC5.7%
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 of 1.26. This is comparable to the rest of the industry: VOD outperforms 57.14% of its industry peers.
A Quick Ratio of 1.23 indicates that VOD should not have too much problems paying 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
The Earnings Per Share has been growing slightly by 5.33% over the past year.
Measured over the past 5 years, VOD shows a small growth in Earnings Per Share. The EPS has been growing by 6.04% on average per year.
VOD shows a small growth in Revenue. In the last year, the Revenue has grown by 1.99%.
The Revenue has been decreasing by -3.60% on average over the past years.
EPS 1Y (TTM)5.33%
EPS 3Y-10.45%
EPS 5Y6.04%
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 small growth in Earnings Per Share. The EPS will grow by 7.89% on average per year.
Based on estimates for the next years, VOD will show a decrease in Revenue. The Revenue will decrease by -0.56% on average per year.
EPS Next Y16.69%
EPS Next 2Y14.67%
EPS Next 3Y13.7%
EPS Next 5Y7.89%
Revenue Next Year2.67%
Revenue Next 2Y1.37%
Revenue Next 3Y1.25%
Revenue Next 5Y-0.56%
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
VOD is valuated reasonably with a Price/Earnings ratio of 11.43.
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.
VOD is valuated cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.78, the valuation of VOD can be described as reasonable.
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.
When comparing the Price/Forward Earnings ratio of VOD to the average of the S&P500 Index (36.44), we can say VOD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.43 | ||
| Fwd PE | 9.78 |
4.2 Price Multiples
95.24% of the companies in the same industry are more expensive than VOD, based on the Enterprise Value to EBITDA ratio.
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 | 2.66 | ||
| EV/EBITDA | 3.2 |
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.
A more expensive valuation may be justified as VOD's earnings are expected to grow with 13.70% in the coming years.
PEG (NY)0.68
PEG (5Y)1.89
EPS Next 2Y14.67%
EPS Next 3Y13.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.11%, VOD is a good candidate for dividend investing.
VOD's Dividend Yield is comparable with the industry average which is at 5.75.
Compared to an average S&P500 Dividend Yield of 2.35, VOD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
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 2Y14.67%
EPS Next 3Y13.7%
10.97
+0.03 (+0.27%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners57.41%
Inst Owner Change0.3%
Ins Owners0.8%
Ins Owner ChangeN/A
Market Cap26.86B
Analysts69.29
Price Target11.41 (4.01%)
Short Float %0.86%
Short Ratio1.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.11% |
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)1.47%
PT rev (3m)5.21%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.22%
EPS NY rev (3m)-2.98%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.43 | ||
| Fwd PE | 9.78 | ||
| P/S | 0.62 | ||
| P/FCF | 2.66 | ||
| P/OCF | 1.5 | ||
| P/B | 0.44 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 3.2 |
EPS(TTM)0.96
EY8.75%
EPS(NY)1.12
Fwd EY10.22%
FCF(TTM)4.13
FCFY37.62%
OCF(TTM)7.31
OCFY66.67%
SpS17.82
BVpS25.09
TBVpS9.19
PEG (NY)0.68
PEG (5Y)1.89
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
WACC5.7%
ROIC/WACC0.65
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 5Y6.04%
EPS Q2Q%-35.56%
EPS Next Y16.69%
EPS Next 2Y14.67%
EPS Next 3Y13.7%
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 Year2.67%
Revenue Next 2Y1.37%
Revenue Next 3Y1.25%
Revenue Next 5Y-0.56%
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%