LSE:VOD

Stock Analysis Report

Executive Summary

Vodafone Group Plc engages in telecommunication services in Europe and internationally.

Snowflake

Fundamentals

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.1%

VOD

0.3%

GB Wireless Telecom

0.08%

GB Market


1 Year Return

9.4%

VOD

9.4%

GB Wireless Telecom

3.5%

GB Market

Return vs Industry: VOD exceeded the UK Wireless Telecom industry which returned 9.4% over the past year.

Return vs Market: VOD exceeded the UK Market which returned 3.5% over the past year.


Shareholder returns

VODIndustryMarket
7 Day-1.1%0.3%0.08%
30 Day0.3%1.2%-1.3%
90 Day21.4%14.9%-2.2%
1 Year15.7%9.4%14.9%9.4%9.0%3.5%
3 Year-15.2%-29.2%-3.8%-19.4%18.1%3.1%
5 Year3.9%-21.4%11.8%-16.1%36.2%5.3%

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 (£1.6) is trading below our estimate of fair value (£3.61)

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


Price To Earnings Ratio

PE vs Industry: VOD is unprofitable, so we can't compare its PE Ratio to the Wireless Telecom industry average.

PE vs Market: VOD is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VOD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VOD is good value based on its PB Ratio (0.8x) compared to the XE Wireless Telecom industry average (2x).


Next Steps

Future Growth

How is Vodafone Group forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

31.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VOD is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: VOD is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: VOD's loss is forecast to worsen by 0% next year.

Revenue vs Market: VOD's revenue (1.8% per year) is forecast to grow slower than the UK market (4% per year).

High Growth Revenue: VOD's revenue (1.8% 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 (6.1%).


Next Steps

Past Performance

How has Vodafone Group performed over the past 5 years?

-45.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VOD is unprofitable, and losses have increased over the past 5 years at a rate of -45.7% per year.

Accelerating Growth: Unable to compare VOD's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VOD is unprofitable, making it difficult to compare its past year earnings growth to the Wireless Telecom industry (-38.3%).


Return on Equity

High ROE: VOD has a negative Return on Equity (-6.48%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: VOD is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: VOD is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Vodafone Group's financial position?


Financial Position Analysis

Short Term Liabilities: VOD's short term assets (€39.6B) exceeds its short term liabilities (€25.5B)

Long Term Liabilities: VOD's short term assets (39.6B) do not cover its long term liabilities (53.9B)


Debt to Equity History and Analysis

Debt Level: VOD's debt to equity ratio (89.7%) is considered high

Reducing Debt: VOD's debt to equity ratio has increased from 40.7% to 89.7% over the past 5 years.

Debt Coverage: VOD's debt is well covered by operating cash flow (22.8%).

Interest Coverage: VOD is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: VOD has a low level of unsold assets or inventory.

Debt Coverage by Assets: VOD's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

4.84%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%2.0%markettop25%5.4%industryaverage4.7%forecastin3Years5.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VOD's dividend (4.84%) is higher than the bottom 25% of dividend payers in the UK market (1.98%).

High Dividend: VOD's dividend (4.84%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

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: VOD is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: VOD's dividends in 3 years are forecast to be covered by earnings (72.2% payout ratio).


Next Steps

Management

What is the CEO of Vodafone Group's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Nick Read (54yo)

1yrs

Tenure

€3,040,000

Compensation

Mr. Nicholas Jonathan Read, also known as Nick, serves as Chief Executive Officer since October 1, 2018 and has been its Executive Director. He serves as the Chief Executive Officer of Africa, Middle East  ...


CEO Compensation Analysis

Compensation vs. Market: Nick has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

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


Management Age and Tenure

3.1yrs

Average Tenure

53.5yo

Average Age

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


Board Age and Tenure

4.4yrs

Average Tenure

60.5yo

Average Age

Experienced Board: VOD's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buy€26,38206 Mar 19
David Nish
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares20,000
Max Price€1.32
Sell€474,81028 Dec 18
Ronald Adrianus Schellekens
EntityIndividual
Shares316,329
Max Price€1.50
Sell€39,59727 Nov 18
Maria Amparo Moraleda Martinez
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares25,000
Max Price€1.58
Buy€46,35127 Nov 18
Maria Amparo Moraleda Martinez
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares30,000
Max Price€1.55

Ownership Breakdown


Management Team

  • Rosemary Elisabeth Martin (59yo)

    Group General Counsel & Company Secretary

    • Tenure: 9.5yrs
  • António Rui Lacerda Carrapatoso

    Chief Executive Officer of Vodafone Portugal Operations

    • Tenure: 0yrs
  • Nick Read (54yo)

    CEO & Executive Director

    • Tenure: 1yrs
    • Compensation: €3.04m
  • Rob Mukherjee

    Head of North West regional business

    • Tenure: 7.6yrs
  • Johan Wibergh (56yo)

    Group Technology Officer

    • Tenure: 4.3yrs
  • Serpil Timuray (50yo)

    Chief Executive Officer of Europe Cluster

    • Tenure: 3yrs
  • Margherita Della Valle (53yo)

    CFO & Director

    • Tenure: 1.3yrs
    • Compensation: €1.18m
  • Ahmed Essam

    Group Chief Commercial & Strategy Officer

    • Tenure: 3.1yrs
  • Leanne Wood (46yo)

    Chief Human Resources Officer

    • Tenure: 0.5yrs
  • Tony Bailey

    Head of Regional Business

    • Tenure: 7.6yrs

Board Members

  • Crispin Davis (69yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: €116.00k
  • Gerard Kleisterlee (73yo)

    Group Chairman of the Board

    • Tenure: 8.3yrs
    • Compensation: €730.00k
  • David Nish (59yo)

    Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: €177.00k
  • Clara Hedwig Frances Furse (62yo)

    Independent Non-Executive Director

    • Tenure: 5.1yrs
    • Compensation: €117.00k
  • Renée James (54yo)

    Independent Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: €156.00k
  • Nick Read (54yo)

    CEO & Executive Director

    • Tenure: 1yrs
    • Compensation: €3.04m
  • Val Gooding (68yo)

    Senior Independent Director

    • Tenure: 2.3yrs
    • Compensation: €172.00k
  • Michel Demaré (63yo)

    Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: €132.00k
  • Maria Amparo Moraleda Martinez (55yo)

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: €133.00k
  • Margherita Della Valle (53yo)

    CFO & Director

    • Tenure: 1.3yrs
    • Compensation: €1.18m

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£42.835b
  • Shares outstanding: 26.77b
  • Website: https://www.vodafone.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VODLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 1988
VODIDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 1988
VODP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 1988
VODLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 1988
VODSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFOct 1988
VODNasdaqGS (Nasdaq Global Select)SPON ADR EACH REP 10 ORDUSUSDOct 1988
VOD NBMV (Bolsa Mexicana de Valores)SPON ADR EACH REP 10 ORDMXMXNOct 1988
VODJDB (Deutsche Boerse AG)SPON ADR EACH REP 10 ORDDEEUROct 1988
VODWBAG (Wiener Boerse AG)SPON ADR EACH REP 10 ORDATEUROct 1988
0LQQLSE (London Stock Exchange)SPON ADR EACH REP 10 ORDGBUSDOct 1988

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 Analysis2019/10/22 20:50
End of Day Share Price2019/10/22 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.