Vodafone Group (LSE:VOD) - Share price, News & Analysis

VOD fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	5/6
Financial Health	2/6
Dividends	3/6

VOD Stock Overview

Vodafone Group Public Limited Company engages in telecommunication services in Europe and internationally.

Rewards

Trading at 69.4% below our estimate of its fair value

Earnings are forecast to grow 12.46% per year

Earnings grew by 1764.3% over the past year

Risk Analysis

Has a high level of debt

Dividend of 5.87% is not well covered by earnings

Vodafone Group Competitors

Apple

NasdaqGS:AAPL

US$2.4t

Amazon.com

NasdaqGS:AMZN

US$1.2t

Tencent Holdings

SEHK:700

HK$3.3t

Verizon Communications

NYSE:VZ

US$215.9b

Price History & Performance

Summary of all time highs, changes and price drops for Vodafone Group
Historical stock prices
Current Share Price	UK£1.30
52 Week High	UK£1.42
52 Week Low	UK£1.06
Beta	0.70
1 Month Change	2.44%
3 Month Change	-2.57%
1 Year Change	1.43%
3 Year Change	0.56%
5 Year Change	-43.41%
Change since IPO	136.47%

Shareholder Returns

	VOD	GB Wireless Telecom	GB Market
7D	7.5%	5.4%	2.5%
1Y	1.4%	2.1%	-2.1%

Return vs Industry: VOD matched the UK Wireless Telecom industry which returned 2.1% over the past year.

Return vs Market: VOD exceeded the UK Market which returned -2% over the past year.

Price Volatility

Is VOD's price volatile compared to industry and market?
VOD volatility
VOD Average Weekly Movement	3.8%
Wireless Telecom Industry Average Movement	6.1%
Market Average Movement	6.0%
10% most volatile stocks in GB Market	11.4%
10% least volatile stocks in GB Market	3.0%

Stable Share Price: VOD is less volatile than 75% 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.

About the Company

Founded	Employees	CEO	Website
1984	105,000	Nick Read	https://www.vodafone.com

Vodafone Group Public Limited Company 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, including broadband, television (TV) offerings, and voice; and convergence services under the GigaKombi and Vodafone One names to customers. It also provides value added services, such as Internet of Things (IoT) comprising logistics and fleet management, smart metering, insurance, cloud, and security services; and automotive and health solutions.

Vodafone Group Fundamentals Summary

How do Vodafone Group's earnings and revenue compare to its market cap?
VOD fundamental statistics
Market Cap	€43.10b
Earnings (TTM)	€2.09b
Revenue (TTM)	€45.58b

20.6x

P/E Ratio

0.9x

P/S Ratio

Is VOD overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
VOD income statement (TTM)
Revenue	€45.58b
Cost of Revenue	€30.57b
Gross Profit	€15.01b
Other Expenses	€12.92b
Earnings	€2.09b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 25, 2022

Earnings per share (EPS)	0.074
Gross Margin	32.92%
Net Profit Margin	4.58%
Debt/Equity Ratio	104.8%

How did VOD perform over the long term?

See historical performance and comparison

Dividends

5.9%

Current Dividend Yield

125%

Payout Ratio

Does VOD pay a reliable dividends?

See VOD dividend history and benchmarks

When do you need to buy VOD by to receive an upcoming dividend?
Vodafone Group dividend dates
Ex Dividend Date	Jun 01 2022
Dividend Pay Date	Aug 05 2022
Days until Ex dividend	3 days
Days until Dividend pay date	68 days

Does VOD pay a reliable dividends?

See VOD dividend history and benchmarks

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: VOD (£1.3) is trading below our estimate of fair value (£4.25)

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 Price-To-Earnings Ratio (20.6x) compared to the European Wireless Telecom industry average (13.5x).

PE vs Market: VOD is poor value based on its Price-To-Earnings Ratio (20.6x) compared to the UK market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: VOD is poor value based on its PEG Ratio (1.7x)

Price to Book Ratio

PB vs Industry: VOD is good value based on its Price-To-Book Ratio (0.8x) compared to the XE Wireless Telecom industry average (1.8x).

Future Growth

How is Vodafone Group forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

12.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: VOD's forecast earnings growth (12.5% per year) is above the savings rate (0.9%).

Earnings vs Market: VOD's earnings (12.5% per year) are forecast to grow faster than the UK market (11.1% per year).

High Growth Earnings: VOD's earnings are forecast to grow, but not significantly.

Revenue vs Market: VOD's revenue (0.2% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: VOD's revenue (0.2% 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 (7%).

Past Performance

How has Vodafone Group performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

19.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VOD has high quality earnings.

Growing Profit Margin: VOD's current net profit margins (4.6%) are higher than last year (0.3%).

Past Earnings Growth Analysis

Earnings Trend: VOD has become profitable over the past 5 years, growing earnings by 19.9% per year.

Accelerating Growth: VOD's earnings growth over the past year (1764.3%) exceeds its 5-year average (19.9% per year).

Earnings vs Industry: VOD earnings growth over the past year (1764.3%) exceeded the Wireless Telecom industry 56.7%.

Return on Equity

High ROE: VOD's Return on Equity (4.6%) is considered low.

Financial Health

How is Vodafone Group's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: VOD's short term assets (€28.5B) do not cover its short term liabilities (€33.6B).

Long Term Liabilities: VOD's short term assets (€28.5B) do not cover its long term liabilities (€63.3B).

Debt to Equity History and Analysis

Debt Level: VOD's net debt to equity ratio (77.7%) is considered high.

Reducing Debt: VOD's debt to equity ratio has increased from 65.4% to 104.8% over the past 5 years.

Debt Coverage: VOD's debt is well covered by operating cash flow (30.3%).

Interest Coverage: VOD's interest payments on its debt are well covered by EBIT (3.2x coverage).

Balance Sheet

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

5.87%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: VOD's dividend (5.87%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: VOD's dividend (5.87%) is in the top 25% of dividend payers in the UK market (4.79%)

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.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (125.1%), VOD's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (28.1%), VOD's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

3.8yrs

Average management tenure

CEO

Nick Read (56 yo)

3.58yrs

Tenure

€4,243,098

Compensation

Mr. Nicholas Jonathan Read, also known as Nick, serves as Chief Executive Officer at Vodafone Group Public Limited Company (formerly known as Vodafone AirTouch Public Limited Company) (Vodafone UK) since O...

CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD4.55M) is about average for companies of similar size in the UK market ($USD5.14M).

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 (3.8 years average tenure).

Board Members

Experienced Board: VOD's board of directors are considered experienced (4.9 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: VOD insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/28 00:00
End of Day Share Price	2022/05/27 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31