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

-0.4%

VOD

-0.3%

GB Wireless Telecom

0.4%

GB Market


1 Year Return

-4.6%

VOD

-2.9%

GB Wireless Telecom

-0.9%

GB Market

VOD matched the Wireless Telecom industry (-5%) over the past year.

VOD underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -0.7% over the past year.


Share holder returns

VODIndustryMarket
7 Day-0.4%-0.3%0.4%
30 Day8.2%5.7%4.4%
90 Day26.4%18.5%0.5%
1 Year0.9%-4.6%1.8%-2.9%3.9%-0.9%
3 Year-14.0%-28.2%-4.8%-20.4%20.5%6.1%
5 Year3.5%-21.7%11.1%-17.0%33.2%5.1%

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 based on future cash flows and its price relative to the stock market?

46%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

Unable to calculate PEG ratio for Vodafone Group, we can't assess if its growth is good value.


Price Based on Value of Assets

Vodafone Group is good value based on assets compared to the Europe Wireless Telecom industry average.


Next Steps

Future Growth

How is Vodafone Group expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

36.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Vodafone Group's revenue is expected to grow by 1.2% yearly, however this is not considered high growth (20% yearly).

Vodafone Group's earnings are expected to grow significantly at over 20% yearly.

Vodafone Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Vodafone Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Vodafone Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Vodafone Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

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.


Return on Equity

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.


Return on Assets

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.


Return on Capital Employed

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.


Next Steps

Financial Health

How is Vodafone Group's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Vodafone Group's level of debt (89.7%) 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 89.7% today).

Debt is well covered by operating cash flow (22.8%, greater than 20% of total debt).

Vodafone Group is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

Low level of unsold assets.

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?

5.07%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Vodafone Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).

Vodafone Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.49%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

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 (1.3x coverage).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Nick Read (54yo)

0.9yrs

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

Nick's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Nick's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.0yrs

Average Tenure

53.5yo

Average Age

The tenure for the Vodafone Group management team is about average.


Board Age and Tenure

4.3yrs

Average Tenure

60.5yo

Average Age

The tenure for the Vodafone Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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
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
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

Ownership Breakdown


Management Team

  • Rosemary Elisabeth Martin (59yo)

    Group General Counsel & Company Secretary

    • Tenure: 9.4yrs
  • António Rui Lacerda Carrapatoso

    Chief Executive Officer of Vodafone Portugal Operations

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

    CEO & Executive Director

    • Tenure: 0.9yrs
    • Compensation: €3.04m
  • Rob Mukherjee

    Head of North West regional business

    • Tenure: 7.5yrs
  • Johan Wibergh (56yo)

    Group Technology Officer

    • Tenure: 4.2yrs
  • Serpil Timuray (50yo)

    Chief Executive Officer of Europe Cluster

    • Tenure: 2.9yrs
  • Margherita Della Valle (53yo)

    CFO & Director

    • Tenure: 1.2yrs
  • Ahmed Essam

    Group Chief Commercial & Strategy Officer

    • Tenure: 3yrs
  • Leanne Wood (46yo)

    Chief Human Resources Officer

    • Tenure: 0.4yrs
  • Tony Bailey

    Head of Regional Business

    • Tenure: 7.5yrs

Board Members

  • Crispin Davis (69yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: €116.00k
  • Gerard Kleisterlee (73yo)

    Group Chairman of the Board

    • Tenure: 8.2yrs
    • Compensation: €730.00k
  • David Nish (59yo)

    Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: €177.00k
  • Clara Hedwig Frances Furse (62yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: €117.00k
  • Renée James (54yo)

    Independent Non-Executive Director

    • Tenure: 8.7yrs
    • Compensation: €156.00k
  • Nick Read (54yo)

    CEO & Executive Director

    • Tenure: 0.9yrs
    • Compensation: €3.04m
  • Val Gooding (68yo)

    Senior Independent Director

    • Tenure: 2.2yrs
    • Compensation: €172.00k
  • Michel Demaré (63yo)

    Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: €132.00k
  • Maria Amparo Moraleda Martinez (55yo)

    Non-Executive Director

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

    CFO & Director

    • Tenure: 1.2yrs

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£42.936b
  • 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 Analysis2019/09/19 20:50
End of Day Share Price2019/09/19 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.