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VOD

Vodafone Group LSE:VOD Stock Report

Last Price

UK£1.18

Market Cap

UK£33.2b

7D

-2.2%

1Y

-16.3%

Updated

15 May, 2022

Data

Company Financials +
VOD fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health2/6
Dividends3/6

VOD Stock Overview

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

Vodafone Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Vodafone Group
Historical stock prices
Current Share PriceUK£1.18
52 Week HighUK£1.42
52 Week LowUK£1.06
Beta0.70
1 Month Change-10.84%
3 Month Change-13.71%
1 Year Change-16.27%
3 Year Change-5.20%
5 Year Change-46.52%
Change since IPO114.08%

Recent News & Updates

Shareholder Returns

VODGB Wireless TelecomGB Market
7D-2.2%-1.6%0.2%
1Y-16.3%-10.8%-3.8%

Return vs Industry: VOD underperformed the UK Wireless Telecom industry which returned -10.8% over the past year.

Return vs Market: VOD underperformed the UK Market which returned -3.8% over the past year.

Price Volatility

Is VOD's price volatile compared to industry and market?
VOD volatility
VOD Average Weekly Movement3.7%
Wireless Telecom Industry Average Movement6.4%
Market Average Movement6.1%
10% most volatile stocks in GB Market11.7%
10% least volatile stocks in GB Market3.1%

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

FoundedEmployeesCEOWebsite
1984105,000Nick Readhttps://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€39.04b
Earnings (TTM)-€161.00m
Revenue (TTM)€44.87b

0.9x

P/S Ratio

-242.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VOD income statement (TTM)
Revenue€44.87b
Cost of Revenue€30.43b
Gross Profit€14.44b
Other Expenses€14.60b
Earnings-€161.00m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

May 17, 2022

Earnings per share (EPS)-0.0057
Gross Margin32.19%
Net Profit Margin-0.36%
Debt/Equity Ratio104.4%

How did VOD perform over the long term?

See historical performance and comparison

Dividends

6.2%

Current Dividend Yield

-1,649%

Payout Ratio

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 (£1.18) is trading below our estimate of fair value (£4.07)

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 European 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 (0.7x) 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 19 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


14.7%

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 (0.9%).

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

High Growth Earnings: VOD's is expected to become profitable in the next 3 years.

Revenue vs Market: VOD's revenue is expected to decline over the next 3 years (-0.1% per year).

High Growth Revenue: VOD's revenue is forecast to decline over the next 3 years (-0.1% 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%).


Past Performance

How has Vodafone Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


16.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VOD is currently unprofitable.

Growing Profit Margin: VOD is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VOD is unprofitable, but has reduced losses over the past 5 years at a rate of 16.5% 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 (46.1%).


Return on Equity

High ROE: VOD has a negative Return on Equity (0.59%), as it is currently unprofitable.


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

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: VOD's short term assets (€27.4B) do not cover its short term liabilities (€30.1B).

Long Term Liabilities: VOD's short term assets (€27.4B) do not cover its long term liabilities (€65.9B).


Debt to Equity History and Analysis

Debt Level: VOD's net debt to equity ratio (81%) is considered high.

Reducing Debt: VOD's debt to equity ratio has increased from 76.5% to 104.4% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable VOD has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: VOD is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 23.1% per year.


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


6.24%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: VOD's dividend (6.24%) is higher than the bottom 25% of dividend payers in the UK market (1.78%).

High Dividend: VOD's dividend (6.24%) is in the top 25% of dividend payers in the UK market (4.85%)


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


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (29.8%), VOD's dividend payments are well covered by cash flows.


Next Steps

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 ($USD4.42M) is about average for companies of similar size in the UK market ($USD5.00M).

Compensation vs Earnings: Nick's compensation has increased whilst the company is unprofitable.


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: 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Vodafone Group Public Limited Company's employee growth, exchange listings and data sources


Key Information

  • Name: Vodafone Group Public Limited Company
  • Ticker: VOD
  • Exchange: LSE
  • Founded: 1984
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Implied Market Cap: UK£33.212b
  • Shares outstanding: 28.19b
  • Website: https://www.vodafone.com

Number of Employees


Location

  • Vodafone Group Public Limited Company
  • Vodafone House
  • The Connection
  • Newbury
  • Berkshire
  • RG14 2FN
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/15 00:00
End of Day Share Price2022/05/13 00:00
Earnings2021/09/30
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.