Loading...

Vodafone Group

LSE:VOD
Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VOD
LSE
£34B
Market Cap
  1. Home
  2. GB
  3. Telecom
Company description

Vodafone Group Plc engages in telecommunication services in Europe and internationally. The last earnings update was 16 days ago. More info.


Add to Portfolio Compare Print
VOD Share Price and Events
7 Day Returns
-1.4%
LSE:VOD
-0.8%
Europe Wireless Telecom
0.4%
GB Market
1 Year Returns
-30.7%
LSE:VOD
-27%
Europe Wireless Telecom
-3.7%
GB Market
VOD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Vodafone Group (VOD) -1.4% 3% -11.2% -30.7% -39.4% -33.3%
Europe Wireless Telecom -0.8% 0.8% -9.3% -27% -29% -26%
GB Market 0.4% 0.3% 1.6% -3.7% 19% 3.4%
1 Year Return vs Industry and Market
  • VOD underperformed the Wireless Telecom industry which returned -27% over the past year.
  • VOD underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -3.7% over the past year.
Price Volatility
VOD
Industry
5yr Volatility vs Market

VOD Value

 Is Vodafone Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Vodafone Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Vodafone Group.

LSE:VOD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:VOD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Wireless Telecom Unlevered Beta Simply Wall St/ S&P Global 0.32
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.318 (1 + (1- 19%) (148.96%))
0.8
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.8 * 6.65%)
6.55%

Discounted Cash Flow Calculation for LSE:VOD using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Vodafone Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:VOD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 6.55%)
2019 5,106.39 Analyst x8 4,792.49
2020 5,210.71 Analyst x7 4,589.79
2021 5,303.40 Analyst x7 4,384.27
2022 5,402.73 Analyst x4 4,191.83
2023 5,492.83 Est @ 1.67% 3,999.77
2024 5,577.18 Est @ 1.54% 3,811.54
2025 5,657.66 Est @ 1.44% 3,628.86
2026 5,735.63 Est @ 1.38% 3,452.73
2027 5,812.08 Est @ 1.33% 3,283.67
2028 5,887.70 Est @ 1.3% 3,121.92
Present value of next 10 years cash flows €39,256.86
LSE:VOD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €5,887.70 × (1 + 1.23%) ÷ (6.55% – 1.23%)
€111,971.47
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €111,971.47 ÷ (1 + 6.55%)10
€59,372.31
LSE:VOD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €39,256.86 + €59,372.31
€98,629.17
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €98,629.17 / 26,723.38
€3.69
LSE:VOD Discount to Share Price
Calculation Result
Exchange Rate EUR/GBP
(Reporting currency to currency of LSE:VOD)
0.89
Value per Share
(GBP)
= Value per Share in EUR x Exchange Rate (EUR/GBP)
= €3.69 x 0.89
£3.29
Value per share (GBP) From above. £3.29
Current discount Discount to share price of £1.28
= -1 x (£1.28 - £3.29) / £3.29
61%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Vodafone Group is available for.
Intrinsic value
>50%
Share price is £1.28 vs Future cash flow value of £3.29
Current Discount Checks
For Vodafone Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Vodafone Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Vodafone Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Vodafone Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Vodafone Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:VOD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in EUR €-0.16
LSE:VOD Share Price ** LSE (2019-06-14) in GBP £1.28
LSE:VOD Share Price converted to EUR reporting currency Exchange rate (GBP/ EUR) 1.123 €1.44
Europe Wireless Telecom Industry PE Ratio Median Figure of 6 Publicly-Listed Wireless Telecom Companies 12.37x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Vodafone Group.

LSE:VOD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:VOD Share Price ÷ EPS (both in EUR)

= 1.44 ÷ -0.16

-8.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vodafone Group is loss making, we can't compare its value to the Europe Wireless Telecom industry average.
  • Vodafone Group is loss making, we can't compare the value of its earnings to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Vodafone Group's expected growth come at a high price?
Raw Data
LSE:VOD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -8.85x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
52.6%per year
Europe Wireless Telecom Industry PEG Ratio Median Figure of 5 Publicly-Listed Wireless Telecom Companies 2.09x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 576 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Vodafone Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Vodafone Group's assets?
Raw Data
LSE:VOD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in EUR €2.28
LSE:VOD Share Price * LSE (2019-06-14) in GBP £1.28
LSE:VOD Share Price converted to EUR reporting currency Exchange rate (GBP/ EUR) 1.123 €1.44
Europe Wireless Telecom Industry PB Ratio Median Figure of 10 Publicly-Listed Wireless Telecom Companies 1.68x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,371 Publicly-Listed Companies 1.48x
LSE:VOD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:VOD Share Price ÷ Book Value per Share (both in EUR)

= 1.44 ÷ 2.28

0.63x

* Primary Listing of Vodafone Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vodafone Group is good value based on assets compared to the Europe Wireless Telecom industry average.
X
Value checks
We assess Vodafone Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Wireless Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Wireless Telecom industry average (and greater than 0)? (1 check)
  5. Vodafone Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

VOD Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
52.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Vodafone Group expected to grow at an attractive rate?
  • Vodafone Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Vodafone Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Vodafone Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:VOD Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:VOD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 52.6%
LSE:VOD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 2%
Europe Wireless Telecom Industry Earnings Growth Rate Market Cap Weighted Average 34.7%
Europe Wireless Telecom Industry Revenue Growth Rate Market Cap Weighted Average 2%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.7%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:VOD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:VOD Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-03-31 46,288 1
2022-03-31 46,557 14,629 2,893 10
2021-03-31 45,925 13,973 2,864 17
2020-03-31 45,249 13,618 2,962 19
LSE:VOD Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-03-31 43,666 12,980 -4,485
2018-12-31 44,479 12,793 -2,992
2018-09-30 45,292 12,605 -1,498
2018-06-30 45,932 13,103 1,455
2018-03-31 46,571 13,600 4,408
2017-12-31 46,613 13,912 1,771
2017-09-30 46,655 14,224 -866
2017-06-30 47,143 14,224 -1,528
2017-03-31 47,631 14,223 -2,190
2016-09-30 45,710 14,421 -2,755
2016-06-30 47,760 14,379 -4,083

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Vodafone Group's earnings are expected to grow significantly at over 20% yearly.
  • Vodafone Group's revenue is expected to grow by 2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:VOD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Vodafone Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:VOD Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-03-31
2022-03-31 0.11 0.12 0.10 3.00
2021-03-31 0.10 0.13 0.06 6.00
2020-03-31 0.09 0.13 0.04 8.00
LSE:VOD Past Financials Data
Date (Data in EUR Millions) EPS *
2019-03-31 -0.16
2018-12-31 -0.11
2018-09-30 -0.05
2018-06-30 0.05
2018-03-31 0.16
2017-12-31 0.06
2017-09-30 -0.03
2017-06-30 -0.05
2017-03-31 -0.08
2016-09-30 -0.10
2016-06-30 -0.15

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Vodafone Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Vodafone Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Vodafone Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

VOD Past Performance

  How has Vodafone Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Vodafone Group's growth in the last year to its industry (Wireless Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Vodafone Group does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Vodafone Group's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Vodafone Group's 1-year growth to the Europe Wireless Telecom industry average as it is not currently profitable.
Earnings and Revenue History
Vodafone Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Vodafone Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:VOD Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 43,666.00 -4,485.00 9,301.00
2018-12-31 44,479.00 -2,991.50 9,179.50
2018-09-30 45,292.00 -1,498.00 9,586.00
2018-06-30 45,931.50 1,455.00 9,620.50
2018-03-31 46,571.00 4,408.00 9,127.00
2017-12-31 46,613.00 1,771.00 9,056.00
2017-09-30 46,655.00 -866.00 10,163.00
2017-06-30 47,143.00 -1,528.00 10,296.00
2017-03-31 47,631.00 -2,190.00 9,840.00
2016-09-30 45,710.00 -2,755.00 9,946.00
2016-06-30 47,760.00 -4,082.50 10,464.00
2016-03-31 49,810.00 -5,410.00 10,982.00
2015-09-30 57,269.06 -2,120.63 12,831.75
2015-06-30 59,042.07 2,973.95 13,050.31
2015-04-01 48,385.00 7,607.00 11,015.00
2014-09-30 51,461.30 1,242.93 10,246.76
2014-06-30 48,965.08 7,566.87 9,526.52
2014-03-31 46,386.55 13,483.14 8,804.08
2013-12-31 46,222.67 16,171.62 8,676.15
2013-09-30 46,059.55 18,829.82 8,549.44
2013-06-30 44,746.74 6,744.89 8,281.17
2013-03-31 45,082.53 -4,980.99 8,318.24
2012-12-31 39,660.06 -9,489.72 7,064.28
2012-09-30 52,092.03 -5,103.12 9,382.72
2012-06-30 54,387.41 1,789.16 9,759.94

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Vodafone Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Vodafone Group has efficiently used its assets last year compared to the Europe Wireless Telecom industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Vodafone Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Vodafone Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Wireless Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Vodafone Group has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

VOD Health

 How is Vodafone Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Vodafone Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Vodafone Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Vodafone Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Vodafone Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Vodafone Group Company Filings, last reported 2 months ago.

LSE:VOD Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 63,445.00 57,243.00 25,465.00
2018-12-31 63,445.00 57,243.00 25,465.00
2018-09-30 61,376.00 48,172.00 17,931.00
2018-06-30 61,376.00 48,172.00 17,931.00
2018-03-31 68,607.00 45,642.00 12,639.00
2017-12-31 68,607.00 45,642.00 12,639.00
2017-09-30 69,686.00 44,182.00 12,226.00
2017-06-30 69,686.00 44,182.00 12,226.00
2017-03-31 73,719.00 48,512.00 13,340.00
2016-09-30 75,535.00 58,035.00 13,567.00
2016-06-30 75,535.00 58,035.00 13,567.00
2016-03-31 85,136.00 59,171.00 16,297.00
2015-09-30 87,508.77 50,000.36 8,037.81
2015-06-30 91,114.78 52,060.75 8,369.02
2015-04-01 93,708.00 48,502.00 14,854.00
2014-09-30 92,430.34 41,924.05 12,082.23
2014-06-30 89,844.16 40,751.03 11,744.17
2014-03-31 86,832.34 35,323.99 17,035.98
2013-12-31 86,347.67 35,126.82 16,940.89
2013-09-30 100,595.57 40,662.17 11,973.04
2013-06-30 98,319.49 39,742.15 11,702.14
2013-03-31 85,905.79 47,053.35 14,690.54
2012-12-31 89,359.65 48,945.14 15,281.18
2012-09-30 88,469.20 44,584.85 9,549.68
2012-06-30 87,196.04 43,943.23 9,412.25
  • Vodafone Group's level of debt (90.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (40.7% vs 90.2% today).
  • Debt is well covered by operating cash flow (22.7%, greater than 20% of total debt).
  • Vodafone Group is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Vodafone Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Vodafone Group has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

VOD Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.26%
Current annual income from Vodafone Group dividends. Estimated to be 7.18% next year.
If you bought £2,000 of Vodafone Group shares you are expected to receive £125 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Vodafone Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.97%).
  • Vodafone Group's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:VOD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
Europe Wireless Telecom Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 6.1%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:VOD Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-03-31 0.15 1.00
2022-03-31 0.10 11.00
2021-03-31 0.11 17.00
2020-03-31 0.09 12.00
LSE:VOD Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-05-31 0.090 6.146
2019-05-14 0.090 6.248
2018-07-27 0.151 8.708
2017-07-19 0.148 6.263
2017-01-31 0.146 5.979
2016-07-20 0.126 5.319
2016-01-20 0.132 5.124
2015-06-05 0.146 5.025
2015-05-19 0.153 4.531
2014-11-17 0.138 4.871
2014-05-21 0.135 5.476
2013-11-13 0.226 6.395
2013-07-24 0.214 4.839
2013-01-25 0.204 5.285
2012-06-26 0.205 5.529
2012-06-01 0.215 5.446
2012-05-22 0.216 5.527
2012-01-31 0.196 5.304
2011-07-08 0.184 5.254
2011-06-17 0.181 5.427
2011-05-18 0.183 5.401
2010-05-18 0.169 5.142

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vodafone Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Vodafone Group has only been paying a dividend for 9 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Vodafone Group's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess Vodafone Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Vodafone Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Vodafone Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

VOD Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Nick Read
COMPENSATION €3,040,000
AGE 53
TENURE AS CEO 0.7 years
CEO Bio

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 and Asia Pacific Region at Vodafone Essar Limited. Mr. Read was the Chief Financial Officer of Vodafone Group Plc from April 1, 2014 until July 27, 2018. As Group Chief Financial Officer, Mr. Read combines strong commercial and operational leadership with a detailed understanding of the industry and its challenges and opportunities. He served as the Chief Executive Officer Africa Middle East and Asia Pacific Region for Vodafone Group plc from October 2010 to January 1, 2014. Mr. Read served as a Regional Chief Executive Officer for Asia Pacific and Middle East Region of Vodafone UK Ltd. He served as Regional Chief Executive Officer of Asia Pacific and Middle East Region at Vodafone Group plc since November 2008. He served as the Chief Executive Officer of Vodafone UK Ltd from 2006 to September 2008. He joined Vodafone UK in 2002 as Chief Financial Officer and served as its Chief Commercial Officer since 2003. Prior to joining Vodafone in 2001, Mr. Read served as the Chief Financial Officer of Miller Freeman Worldwide and the Chief Financial Officer for the EMEA (Europe, Middle East and Africa) Region of Federal Express. He serves as a Director of Vodafone Essar Limited, Vodafone Essar Towers Limited, Indus Towers Ltd., VodafoneEgypt Communications Limited, Vodafone Australia Limited, Vodafone Qatar Limited and JIL BV and Vodafone Paging Ltd. He has been a Director of Vodafone Group Plc since April 1, 2014. He has been a Non-Executive Director of Booking Holdings Inc. since June 07, 2018. He has been a Member of Supervisory Board at VodafoneZiggo Group B.V., since December 31, 2016. He served as a Board member of Gsma Ltd. He served as a Director at Safaricom Limited since January 17, 2011 until November 15, 2013. He served as Director of Vodafone Hutchison Australia Pty Limited until March 27, 2014. He served as a Director at Vodacom Group Limited from September 13, 2010 to February 5, 2014. He served as an Independent and Non-Executive Director of Vodafone Qatar Q.S.C. since October 2008. Mr. Read served as a Non-Executive Director of China Mobile Limited from March 19, 2009 to September 22, 2010. He served as a Director of Vodafone Business Solutions Limited since September 19, 2003. He served as a Director in listed public companies include Emtel Europe Plc and Mobile Telecom Plc. Prior to joining Vodafone, he held senior global finance positions with United Business Media Plc and Federal Express Worldwide. He is a Fellow Chartered Management Accountant. Mr. Read graduated in 1986 from the Manchester Metropolitan University with a Bachelor of Arts (Honours) degree in Accountancy and Finance.

CEO Compensation
  • Nick's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Nick's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Vodafone Group management team in years:

2.8
Average Tenure
53
Average Age
  • The tenure for the Vodafone Group management team is about average.
Management Team

Nick Read

TITLE
CEO & Executive Director
COMPENSATION
€3M
AGE
53
TENURE
0.7 yrs

Margherita Valle

TITLE
Group CFO & Director
COMPENSATION
€1M
TENURE
0.9 yrs

Johan Wibergh

TITLE
Group Technology Officer
AGE
55
TENURE
3.9 yrs

Rosemary Elisabeth Martin

TITLE
Group General Counsel & Company Secretary
AGE
58
TENURE
9.2 yrs

Leanne Wood

TITLE
Chief Human Resources Officer
AGE
45
TENURE
0.2 yrs

António Rui Lacerda Carrapatoso

TITLE
Chief Executive Officer of Vodafone Portugal Operations

Serpil Timuray

TITLE
Chief Executive Officer of Europe Cluster
AGE
49
TENURE
2.7 yrs

Rob Mukherjee

TITLE
Head of North West regional business
TENURE
7.3 yrs

Tony Bailey

TITLE
Head of Regional Business
TENURE
7.3 yrs

Ahmed Essam

TITLE
Chief Commercial Operations and Strategy Officer
TENURE
2.8 yrs
Board of Directors Tenure

Average tenure and age of the Vodafone Group board of directors in years:

4.8
Average Tenure
61
Average Age
  • The tenure for the Vodafone Group board of directors is about average.
Board of Directors

Gerard Kleisterlee

TITLE
Group Chairman of the Board
COMPENSATION
€730K
AGE
72
TENURE
7.9 yrs

Nick Read

TITLE
CEO & Executive Director
COMPENSATION
€3M
AGE
53
TENURE
5.2 yrs

Margherita Valle

TITLE
Group CFO & Director
COMPENSATION
€1M
TENURE
0.9 yrs

Val Gooding

TITLE
Senior Independent Director
COMPENSATION
€172K
AGE
67
TENURE
1.9 yrs

David Nish

TITLE
Non-Executive Director
COMPENSATION
€177K
AGE
58
TENURE
3.4 yrs

Sam Jonah

TITLE
Independent Non-Executive Director
COMPENSATION
€166K
AGE
68
TENURE
10.2 yrs

Renée James

TITLE
Independent Non-Executive Director
COMPENSATION
€156K
AGE
53
TENURE
8.4 yrs

Crispin Davis

TITLE
Independent Non-Executive Director
COMPENSATION
€116K
AGE
68
TENURE
4.9 yrs

Clara Frances Furse

TITLE
Independent Non-Executive Director
COMPENSATION
€117K
AGE
61
TENURE
4.8 yrs

Maria Moraleda Martinez

TITLE
Non-Executive Director
COMPENSATION
€133K
AGE
54
TENURE
2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
06. Mar 19 Buy David Nish Individual 06. Mar 19 06. Mar 19 20,000 £1.32 £26,382
28. Dec 18 Sell Ronald Adrianus Schellekens Individual 27. Dec 18 27. Dec 18 -316,329 £1.50 £-474,810
27. Nov 18 Sell Maria Moraleda Martinez Individual 26. Nov 18 26. Nov 18 -25,000 £1.58 £-39,597
27. Nov 18 Buy Maria Moraleda Martinez Individual 23. Nov 18 23. Nov 18 30,000 £1.55 £46,351
07. Sep 18 Buy Serpil Timuray Individual 07. Sep 18 07. Sep 18 156,158 £1.65 £258,192
07. Sep 18 Buy Nicholas Read Individual 07. Sep 18 07. Sep 18 150,151 £1.65 £248,260
07. Sep 18 Buy Gerard Kleisterlee Individual 05. Sep 18 05. Sep 18 112,922 £1.64 £185,565
13. Aug 18 Sell Nicholas Jeffery Individual 09. Aug 18 09. Aug 18 -566,382 £1.85 £-1,050,242
X
Management checks
We assess Vodafone Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Vodafone Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

VOD News

Simply Wall St News

Are Insiders Selling Vodafone Group Plc (LON:VOD) Stock?

So shareholders might well want to know whether insiders have been buying or selling shares in Vodafone Group Plc (LON:VOD). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' Check out our latest analysis for Vodafone Group Vodafone Group Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the , Nicholas Jeffery, for UK£1.1m worth of shares, at about UK£1.85 per share. … Over the last year we saw more insider selling of Vodafone Group shares, than buying.

Simply Wall St -

Know This Before Buying Vodafone Group Plc (LON:VOD) For Its Dividend

As a loss-making company, we can also measure Vodafone Group's dividend payments against its levered free cash flow, to see if enough cash was generated to cover the dividend. … Given Vodafone Group is paying a dividend but reported a loss over the past year, we need to check its balance sheet for signs of financial distress. … Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. Vodafone Group has EBIT of 6.65 times its interest expense, which we think is adequate. Consider getting our latest analysis on Vodafone Group's financial position here. Dividend Volatility From the perspective of an income investor who wants to earn dividends for many years, there is not much point buying a stock if its dividend is regularly cut or is not reliable. For the purpose of this article, we only scrutinise the last decade of Vodafone Group's dividend payments. The dividend has been cut by more than 20% on at least one occasion historically. During the past ten-year period, the first annual payment was €0.15 in 2009, compared to €0.09 last year. The dividend has shrunk at around -5.1% a year during that period. Vodafone Group's dividend has been cut sharply at least once, so it hasn't fallen by -5.1% every year, but this is a decent approximation of the long term change. Dividend Growth Potential With a relatively unstable dividend, and a poor history of shrinking dividends, it's even more important to see if EPS are growing. In the last five years, Vodafone Group's earnings per share have shrunk at approximately 46% per annum. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation. We'd also point out that Vodafone Group issued a meaningful number of new shares in the past year. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Do Directors Own Vodafone Group Plc (LON:VOD) Shares?

The big shareholder groups in Vodafone Group Plc (LON:VOD) have power over the company. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Vodafone Group is a pretty big company.

Simply Wall St -

Is Vodafone Group Plc's (LON:VOD) Balance Sheet Strong Enough To Weather A Storm?

the key to their continued success lies in its financial health. … Let’s take a look at Vodafone Group’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further

Simply Wall St -

The Vodafone Group Share Price Is Down 42% So Some Shareholders Are Getting Worried

So we wouldn't blame long term Vodafone Group Plc (LON:VOD) shareholders for doubting their decision to hold, with the stock down 42% over a half decade. … In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … Over five years Vodafone Group improved its earnings per share from a loss-making position.

Simply Wall St -

Should You Be Worried About Insider Transactions At Vodafone Group Plc (LON:VOD)?

So we'll take a look at whether insiders have been buying or selling shares in Vodafone Group Plc (LON:VOD). … The Last 12 Months Of Insider Transactions At Vodafone Group. … Although we don't gain confidence from insider selling, we note that this large sale was at well above current price of UK£1.48

Simply Wall St -

What Should Investors Know About Vodafone Group Plc's (LON:VOD) Capital Returns?

and want a simplistic look at the return on Vodafone Group Plc (LON:VOD) stock. … To understand Vodafone Group’s capital returns we will look at a useful metric called return on capital employed. … Vodafone Group's Return On Capital Employed

Simply Wall St -

Check If Insiders Are Selling Vodafone Group Plc (LON:VOD)

some insider selling over the past three months, with insiders divesting from. … It is widely considered that insider selling stock in their own companies is potentially a bearish signal. … A two-decade research published in The MIT Press (1998) showed that stocks following insider selling declined 2.7% relative to the market

Simply Wall St -

Is Vodafone Group Plc's (LON:VOD) Balance Sheet A Threat To Its Future?

There are a number of reasons that attract investors towards large-cap companies such as Vodafone Group Plc (LON:VOD), with a market cap of €47.06b. … Today we will look at Vodafone Group’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further

Simply Wall St -

Who Are The Major Shareholders Of Vodafone Group Plc (LON:VOD)?

Today, I will be analyzing Vodafone Group Plc’s (LON:VOD) recent ownership structure, an important but not-so-popular subject among individual investors. … Ownership structure has been found to have an impact on shareholder returns in both short- and long-term. … See our latest analysis for Vodafone Group

Simply Wall St -

VOD Company Info

Description

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, including broadband, television (TV) offerings, and voice; and convergence services under the GigaKombi and Vodafone One names to customers. It also provides mobile, fixed, and a suite of converged communication services, such as Internet of Things (IoT) comprising managed IoT connectivity, automotive, and insurance services, as well as smart metering and health solutions; cloud and security portfolio comprising public and private cloud services, as well as cloud-based applications and products for securing networks and devices; and international voice, IP transit, and messaging services to support business customers that include small home offices and large multi-national companies. In addition, the company offers M-Pesa, an African payment platform, which provides money transfer, financial, and business and merchant payment services; and various services to operators through its partner market agreements, as well as rents capacity to mobile virtual network operators to provide mobile services. Vodafone Group Plc has a strategic partnership with Open Fiber. As of March 31, 2019, it had approximately 650 million mobile customers, 19 million fixed broadband customers, and 14 million TV customers. The company was founded in 1984 and is headquartered in Newbury, the United Kingdom.

Details
Name: Vodafone Group Plc
VOD
Exchange: LSE
Founded: 1984
£34,211,275,821
26,723,383,707
Website: http://www.vodafone.com
Address: Vodafone Group Plc
Vodafone House,
The Connection,
Newbury,
Berkshire, RG14 2FN,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE VOD Ordinary Shares London Stock Exchange GB GBP 26. Oct 1988
OTCPK VODP.F Ordinary Shares Pink Sheets LLC US USD 26. Oct 1988
DB VODI Ordinary Shares Deutsche Boerse AG DE EUR 26. Oct 1988
SWX VOD Ordinary Shares SIX Swiss Exchange CH CHF 26. Oct 1988
BATS-CHIXE VODL Ordinary Shares BATS 'Chi-X Europe' GB GBP 26. Oct 1988
NasdaqGS VOD SPON ADR EACH REP 10 ORD Nasdaq Global Select US USD 27. Oct 1988
DB VODJ SPON ADR EACH REP 10 ORD Deutsche Boerse AG DE EUR 27. Oct 1988
LSE 0LQQ SPON ADR EACH REP 10 ORD London Stock Exchange GB USD 27. Oct 1988
WBAG VOD SPON ADR EACH REP 10 ORD Wiener Boerse AG AT EUR 27. Oct 1988
BMV VOD N SPON ADR REP 10 ORD SHS Bolsa Mexicana de Valores MX MXN 24. Feb 2014
Number of employees
Current staff
Staff numbers
94,442
Vodafone Group employees.
Industry
Wireless Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 20:58
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/13
Last earnings filing: 2019/05/31
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.