LSE:VOD

Stock Analysis Report

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Market Cap

UK£32.3b

Last Updated

2021/08/02 17:32 UTC

Data Sources

Company Financials +

Share Price & News

How has Vodafone Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VOD is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: VOD's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.7%

VOD

-1.1%

GB Wireless Telecom

0.3%

GB Market


1 Year Return

-0.2%

VOD

7.8%

GB Wireless Telecom

22.5%

GB Market

Return vs Industry: VOD underperformed the UK Wireless Telecom industry which returned 7.8% over the past year.

Return vs Market: VOD underperformed the UK Market which returned 22.5% over the past year.


Shareholder returns

VODIndustryMarket
7 Day-0.7%-1.1%0.3%
30 Day-4.2%-1.9%-0.8%
90 Day-15.3%-8.4%1.5%
1 Year6.1%-0.2%14.4%7.8%27.8%22.5%
3 Year-25.6%-37.2%-17.7%-29.3%13.3%0.9%
5 Year-32.7%-49.9%-18.9%-39.3%39.6%13.2%

Long-Term Price Volatility Vs. Market

How volatile is Vodafone Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Vodafone Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VOD (£1.17) is trading below our estimate of fair value (£3.98)

Significantly Below Fair Value: VOD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VOD is poor value based on its PE Ratio (361.8x) compared to the European Wireless Telecom industry average (18x).

PE vs Market: VOD is poor value based on its PE Ratio (361.8x) compared to the UK market (23.5x).


Price to Earnings Growth Ratio

PEG Ratio: VOD is poor value based on its PEG Ratio (12x)


Price to Book Ratio

PB vs Industry: VOD is good value based on its PB Ratio (0.7x) compared to the XE Wireless Telecom industry average (1.7x).


Future Growth

How is Vodafone Group forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

30.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VOD's forecast earnings growth (30.2% per year) is above the savings rate (0.9%).

Earnings vs Market: VOD's earnings (30.2% per year) are forecast to grow faster than the UK market (14.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VOD's revenue (1.9% per year) is forecast to grow slower than the UK market (4.8% per year).

High Growth Revenue: VOD's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VOD's Return on Equity is forecast to be low in 3 years time (6.5%).


Past Performance

How has Vodafone Group performed over the past 5 years?

29.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VOD has high quality earnings.

Growing Profit Margin: VOD became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: VOD has become profitable over the past 5 years, growing earnings by 29.8% per year.

Accelerating Growth: VOD has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: VOD has become profitable in the last year, making it difficult to compare its past year earnings growth to the Wireless Telecom industry (19.2%).


Return on Equity

High ROE: VOD's Return on Equity (0.9%) is considered low.


Financial Health

How is Vodafone Group's financial position?


Financial Position Analysis

Short Term Liabilities: VOD's short term assets (€28.3B) do not cover its short term liabilities (€28.7B).

Long Term Liabilities: VOD's short term assets (€28.3B) do not cover its long term liabilities (€68.5B).


Debt to Equity History and Analysis

Debt Level: VOD's debt to equity ratio (102.4%) is considered high.

Reducing Debt: VOD's debt to equity ratio has increased from 69.3% to 102.4% over the past 5 years.

Debt Coverage: VOD's debt is well covered by operating cash flow (29.1%).

Interest Coverage: VOD's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Dividend

What is Vodafone Group current dividend yield, its reliability and sustainability?

6.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VOD's dividend (6.57%) is higher than the bottom 25% of dividend payers in the UK market (1.32%).

High Dividend: VOD's dividend (6.57%) is in the top 25% of dividend payers in the UK market (3.93%)


Stability and Growth of Payments

Stable Dividend: VOD's dividend payments have been volatile in the past 10 years.

Growing Dividend: VOD's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (2378.4%), VOD's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VOD's dividends in 3 years are forecast to be covered by earnings (69.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Nick Read (56 yo)

2.83yrs

Tenure

€4,243,098

Compensation

Mr. Nicholas Jonathan Read, also known as Nick, serves as Chief Executive Officer at Vodafone Group Plc (Vodafone UK) since October 1, 2018 and has been its Executive Director. He serves as the Chief Execu...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD5.03M) is above average for companies of similar size in the UK market ($USD3.64M).

Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: VOD's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: VOD's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.5%.


Top Shareholders

Company Information

Vodafone Group Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vodafone Group Plc
  • Ticker: VOD
  • Exchange: LSE
  • Founded: 1984
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: UK£32.269b
  • Shares outstanding: 27.77b
  • Website: https://www.vodafone.com

Number of Employees


Location

  • Vodafone Group Plc
  • Vodafone House
  • The Connection
  • Newbury
  • Berkshire
  • RG14 2FN
  • United Kingdom

Listings


Biography

Vodafone Group Plc engages in telecommunication services in Europe and internationally. The company offers mobile services that enable customers to call, text, and access data; fixed line services, includi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/02 17:32
End of Day Share Price2021/08/02 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.