LSE:VOD

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

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

Stable Share Price: VOD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.1%

VOD

-5.2%

GB Wireless Telecom

-5.4%

GB Market


1 Year Return

9.5%

VOD

5.6%

GB Wireless Telecom

2.0%

GB Market

Return vs Industry: VOD exceeded the UK Wireless Telecom industry which returned 5.6% over the past year.

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


Shareholder returns

VODIndustryMarket
7 Day-6.1%-5.2%-5.4%
30 Day-5.2%-3.3%-4.2%
90 Day-5.1%-4.3%-2.6%
1 Year15.4%9.5%10.6%5.6%7.6%2.0%
3 Year-13.2%-27.8%-3.0%-18.4%11.4%-2.7%
5 Year-14.3%-35.7%-4.1%-28.4%29.0%-0.6%

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 (£1.46) is trading below our estimate of fair value (£4.63)

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 (0.9x) compared to the XE Wireless Telecom industry average (1.9x).


Next Steps

Future Growth

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

22.9%

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 (0.5%).

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 (1.4% per year) is forecast to grow slower than the UK market (3.8% per year).

High Growth Revenue: VOD's revenue (1.4% 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 (6.9%).


Next Steps

Past Performance

How has Vodafone Group performed over the past 5 years?

-25.3%

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, and losses have increased over the past 5 years at a rate of -25.3% 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 (14.3%).


Return on Equity

High ROE: VOD has a negative Return on Equity (-2.92%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vodafone Group's financial position?


Financial Position Analysis

Short Term Liabilities: VOD's short term assets (€27.7B) do not cover its short term liabilities (€28.0B).

Long Term Liabilities: VOD's short term assets (€27.7B) do not cover its long term liabilities (€72.7B).


Debt to Equity History and Analysis

Debt Level: VOD's debt to equity ratio (124.7%) is considered high.

Reducing Debt: VOD's debt to equity ratio has increased from 45.4% to 124.7% over the past 5 years.


Balance Sheet

Inventory Level: VOD has a high level of physical assets or inventory.

Debt Coverage by Assets: VOD's debt is not covered by short term assets (assets are 0.4x debt).


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: VOD has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: VOD has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

4.98%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%1.9%markettop25%5.4%industryaverage5.1%forecastin3Years5.3%

Current dividend yield vs market & industry

Notable Dividend: VOD's dividend (4.98%) is higher than the bottom 25% of dividend payers in the UK market (1.92%).

High Dividend: VOD's dividend (4.98%) is low compared to the top 25% of dividend payers in the UK market (5.37%).


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.


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 (68.9% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Nick Read (54yo)

1.3yrs

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's total compensation ($USD3.93M) is about average for companies of similar size in the UK market ($USD4.93M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Read
CEO & Executive Director1.3yrs€3.04m0.013% 5.1m
Margherita Della Valle
CFO & Director1.6yrs€1.18m0.0036% 1.4m
Johan Wibergh
Group Technology Officer4.6yrsno datano data
Rosemary Elisabeth Martin
Group General Counsel & Company Secretary9.8yrsno data0.012% 4.5m
Leanne Wood
Chief Human Resources Officer0.8yrsno datano data
António Rui Lacerda Carrapatoso
Chief Executive Officer of Vodafone Portugal Operations0yrsno datano data
Serpil Timuray
Chief Executive Officer of Europe Cluster3.3yrsno data0.016% 6.1m
Rob Mukherjee
Head of North West regional business7.9yrsno datano data
Tony Bailey
Head of Regional Business7.9yrsno datano data
Ahmed Essam
Group Chief Commercial & Strategy Officer3.4yrsno datano data

3.4yrs

Average Tenure

53.5yo

Average Age

Experienced Management: VOD's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nicholas Read
CEO & Executive Director1.3yrs€3.04m0.013% 5.1m
Margherita Della Valle
CFO & Director1.6yrs€1.18m0.0036% 1.4m
Crispin Davis
Independent Non-Executive Director5.6yrs€116.00k0.00013% 50.9k
Gerard Kleisterlee
Group Chairman of the Board8.6yrs€730.00k0.00082% 321.2k
David Nish
Non-Executive Director4.1yrs€177.00k0.00040% 156.7k
Clara Hedwig Frances Furse
Independent Non-Executive Director5.4yrs€117.00k0.00028% 109.7k
Renée James
Independent Non-Executive Director9.1yrs€156.00k0.00010% 39.2k
Valerie Gooding
Senior Independent Director2.6yrs€172.00k0.00011% 43.1k
Michel Demaré
Non-Executive Director2yrs€132.00k0.00037% 144.9k
Maria Amparo Moraleda Martinez
Non-Executive Director2.7yrs€133.00k0.00011% 43.1k

4.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: VOD's board of directors are considered experienced (4.8 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 been diluted in the past year, with total shares outstanding growing by 4.1%.


Top Shareholders

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£39.166b
  • 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
VODEXTRA (XETRA Trading Platform)YesOrdinary SharesDEEUROct 1988
VODLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 1988
VODSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFOct 1988
VODNasdaqGS (Nasdaq Global Select)SPON ADR REP 10 ORD SHSUSUSDOct 1988
VOD NBMV (Bolsa Mexicana de Valores)SPON ADR REP 10 ORD SHSMXMXNOct 1988
VODJDB (Deutsche Boerse AG)SPON ADR REP 10 ORD SHSDEEUROct 1988
VODHXTRA (XETRA Trading Platform)SPON ADR REP 10 ORD SHSDEEUROct 1988
VODWBAG (Wiener Boerse AG)SPON ADR REP 10 ORD SHSATEUROct 1988
0LQQLSE (London Stock Exchange)SPON ADR REP 10 ORD SHSGBUSDOct 1988
VODBASE (Buenos Aires Stock Exchange)CEDEAR EACH REPR 1/10 OF ADRARARSSep 2000

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, 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 21:29
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
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.