Vodafone Group
Market Cap
UK£40.2b
Last Updated
2020/02/16 21:07 UTC
Data Sources
Company Financials +
Executive Summary
Vodafone Group Plc engages in telecommunication services in Europe and internationally.
Rewards
Risk Analysis
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
-2.0%
VOD
-0.7%
GB Wireless Telecom
-0.2%
GB Market
1 Year Return
6.3%
VOD
4.9%
GB Wireless Telecom
6.1%
GB Market
Return vs Industry: VOD exceeded the UK Wireless Telecom industry which returned 4.9% over the past year.
Return vs Market: VOD matched the UK Market which returned 6.1% over the past year.
Shareholder returns
| VOD | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.0% | -0.7% | -0.2% |
| 30 Day | -2.8% | -1.3% | -1.8% |
| 90 Day | -1.4% | -1.1% | 4.0% |
| 1 Year | 12.0%6.3% | 9.9%4.9% | 11.8%6.1% |
| 3 Year | -8.9%-24.2% | 1.5%-14.7% | 17.5%2.6% |
| 5 Year | -14.0%-35.4% | -4.0%-28.4% | 34.8%3.7% |
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
3 weeks ago | Simply Wall St
How Much Of Vodafone Group Plc (LON:VOD) Do Institutions Own?2 months ago | Simply Wall St
Why You Should Leave Vodafone Group Plc (LON:VOD)'s Upcoming Dividend On The Shelf3 months ago | Simply Wall St
Here's Why Vodafone Group (LON:VOD) Has A Meaningful Debt BurdenValuation
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 (£1.5) is trading below our estimate of fair value (£4.6)
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 (2x).
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 (3.4% 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?
4.80%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: VOD's dividend (4.8%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).
High Dividend: VOD's dividend (4.8%) is low compared to the top 25% of dividend payers in the UK market (5.1%).
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 ($USD3.96M) is about average for companies of similar size in the UK market ($USD4.70M).
Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 1.3yrs | €3.04m | 0.013% €5.3m | |
| CFO & Director | 1.6yrs | €1.18m | 0.0036% €1.5m | |
| Group Technology Officer | 4.6yrs | no data | no data | |
| Group General Counsel & Company Secretary | 9.8yrs | no data | 0.012% €4.7m | |
| Chief Human Resources Officer | 0.8yrs | no data | no data | |
| Chief Executive Officer of Vodafone Portugal Operations | 0yrs | no data | no data | |
| Chief Executive Officer of Europe Cluster | 3.3yrs | no data | 0.016% €6.2m | |
| Head of North West regional business | 7.9yrs | no data | no data | |
| Head of Regional Business | 7.9yrs | no data | no data | |
| Group Chief Commercial & Strategy Officer | 3.4yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 1.3yrs | €3.04m | 0.013% €5.3m | |
| CFO & Director | 1.6yrs | €1.18m | 0.0036% €1.5m | |
| Independent Non-Executive Director | 5.6yrs | €116.00k | 0.00013% €52.2k | |
| Group Chairman of the Board | 8.6yrs | €730.00k | 0.00082% €329.4k | |
| Non-Executive Director | 4.1yrs | €177.00k | 0.00040% €160.7k | |
| Independent Non-Executive Director | 5.4yrs | €117.00k | 0.00028% €112.5k | |
| Independent Non-Executive Director | 9.1yrs | €156.00k | 0.00010% €40.2k | |
| Senior Independent Director | 2.6yrs | €172.00k | 0.00011% €44.2k | |
| Non-Executive Director | 2yrs | €132.00k | 0.00037% €148.6k | |
| Non-Executive Director | 2.7yrs | €133.00k | 0.00011% €44.2k |
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£40.167b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| VOD | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Oct 1988 |
| VODI | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Oct 1988 |
| VODP.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Oct 1988 |
| VODE | XTRA (XETRA Trading Platform) | Yes | Ordinary Shares | DE | EUR | Oct 1988 |
| VODL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Oct 1988 |
| VOD | SWX (SIX Swiss Exchange) | Yes | Ordinary Shares | CH | CHF | Oct 1988 |
| VOD | NasdaqGS (Nasdaq Global Select) | SPON ADR REP 10 ORD SHS (POST REV SPLIT) | US | USD | Oct 1988 | |
| VOD N | BMV (Bolsa Mexicana de Valores) | SPON ADR REP 10 ORD SHS (POST REV SPLIT) | MX | MXN | Oct 1988 | |
| VODJ | DB (Deutsche Boerse AG) | SPON ADR REP 10 ORD SHS (POST REV SPLIT) | DE | EUR | Oct 1988 | |
| VODH | XTRA (XETRA Trading Platform) | SPON ADR REP 10 ORD SHS (POST REV SPLIT) | DE | EUR | Oct 1988 | |
| VOD | WBAG (Wiener Boerse AG) | SPON ADR REP 10 ORD SHS (POST REV SPLIT) | AT | EUR | Oct 1988 | |
| 0LQQ | LSE (London Stock Exchange) | SPON ADR REP 10 ORD SHS (POST REV SPLIT) | GB | USD | Oct 1988 | |
| VOD | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH REPR 1/10 OF ADR | AR | ARS | Sep 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 21:07 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/03/31 |
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.