OTCPK:VDMC.Y

Stock Analysis Report

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Executive Summary

Vodacom Group Limited, a unified communications provider, provides mobile voice, messaging, data, financial, and converged services to the consumer, business, and enterprise customers in South Africa and internationally. More Details


Snowflake Analysis

6 star dividend payer with excellent balance sheet.


Similar Companies

Share Price & News

How has Vodacom Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.5%

VDMC.Y

-1.0%

US Wireless Telecom

0.08%

US Market


1 Year Return

-8.9%

VDMC.Y

27.9%

US Wireless Telecom

12.8%

US Market

Return vs Industry: VDMC.Y underperformed the US Wireless Telecom industry which returned 27.9% over the past year.

Return vs Market: VDMC.Y underperformed the US Market which returned 12.8% over the past year.


Shareholder returns

VDMC.YIndustryMarket
7 Day0.5%-1.0%0.08%
30 Day-3.8%-3.9%-1.8%
90 Day1.0%3.3%7.2%
1 Year-4.1%-8.9%28.4%27.9%15.3%12.8%
3 Year-30.3%-39.5%49.3%45.9%39.2%29.9%
5 Year-6.2%-24.8%110.9%101.2%88.3%67.1%

Price Volatility Vs. Market

How volatile is Vodacom Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Vodacom Group undervalued compared to its fair value and its price relative to the market?

13.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VDMC.Y ($7.41) is trading above our estimate of fair value ($6.7)

Significantly Below Fair Value: VDMC.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VDMC.Y is good value based on its PE Ratio (13.3x) compared to the US Wireless Telecom industry average (24.6x).

PE vs Market: VDMC.Y is good value based on its PE Ratio (13.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: VDMC.Y is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: VDMC.Y is good value based on its PB Ratio (2.3x) compared to the US Wireless Telecom industry average (2.5x).


Next Steps

Future Growth

How is Vodacom Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VDMC.Y's forecast earnings growth (8% per year) is above the savings rate (2.2%).

Earnings vs Market: VDMC.Y's earnings (8% per year) are forecast to grow slower than the US market (23.1% per year).

High Growth Earnings: VDMC.Y's earnings are forecast to grow, but not significantly.

Revenue vs Market: VDMC.Y's revenue (3.8% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: VDMC.Y's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VDMC.Y's Return on Equity is forecast to be high in 3 years time (20%)


Next Steps

Past Performance

How has Vodacom Group performed over the past 5 years?

5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VDMC.Y has high quality earnings.

Growing Profit Margin: VDMC.Y's current net profit margins (17.6%) are higher than last year (17.1%).


Past Earnings Growth Analysis

Earnings Trend: VDMC.Y's earnings have grown by 5.3% per year over the past 5 years.

Accelerating Growth: VDMC.Y's earnings growth over the past year (7.5%) exceeds its 5-year average (5.3% per year).

Earnings vs Industry: VDMC.Y earnings growth over the past year (7.5%) underperformed the Wireless Telecom industry 14.3%.


Return on Equity

High ROE: VDMC.Y's Return on Equity (16.6%) is considered low.


Next Steps

Financial Health

How is Vodacom Group's financial position?


Financial Position Analysis

Short Term Liabilities: VDMC.Y's short term assets (ZAR47.8B) exceed its short term liabilities (ZAR36.8B).

Long Term Liabilities: VDMC.Y's short term assets (ZAR47.8B) do not cover its long term liabilities (ZAR53.4B).


Debt to Equity History and Analysis

Debt Level: VDMC.Y's debt to equity ratio (39.6%) is considered satisfactory.

Reducing Debt: VDMC.Y's debt to equity ratio has reduced from 114% to 39.6% over the past 5 years.

Debt Coverage: VDMC.Y's debt is well covered by operating cash flow (82.9%).

Interest Coverage: VDMC.Y's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Vodacom Group current dividend yield, its reliability and sustainability?

6.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VDMC.Y's dividend (6.3%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: VDMC.Y's dividend (6.3%) is in the top 25% of dividend payers in the US market (4.7%)


Stability and Growth of Payments

Stable Dividend: VDMC.Y's dividends per share have been stable in the past 10 years.

Growing Dividend: VDMC.Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (83.6%), VDMC.Y's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VDMC.Y's dividends in 3 years are forecast to be covered by earnings (85.5% payout ratio).


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Mohamed Shameel Joosub (49 yo)

8yrs

Tenure

R43,446,398

Compensation

Mr. Mohamed Shameel Aziz Joosub has been the Chief Executive Officer of Vodacom Group Limited since September 1, 2012. Mr. Joosub served as Managing Director of Vodacom (Pty) Limited from April 01, 2005 to ...


CEO Compensation Analysis

Compensation vs Market: Mohamed Shameel's total compensation ($USD1.24B) is above average for companies of similar size in the US market ($USD11.35M).

Compensation vs Earnings: Mohamed Shameel's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mohamed Shameel Joosub
CEO & Executive Director8yrsR43.45m0.080%
ZAR 10.4m
Sitholizwe Mdlalose
Interim CFO & Executive Director0.17yrno datano data
Dejan Kastelic
Chief Technology Officer0.33yrno datano data
Nkateko Nyoka
Chief Officer of Legal & Regulatory12.92yrsR8.14mno data
Matimba Mbungela
Chief Human Resources Officer6.33yrsR5.86mno data
T. Ralebitso
Managing Director of Vodacom Venturesno datano datano data
Johan van Graan
Chief Risk Officerno datano datano data
Muriel Loriloux
Managing Director of Vodacom Congono datano datano data
Jerry Mobbs
Managing Director of Vodacom Mozambiqueno datano datano data
Joaquim Jorge Mendes
Chief Officer of Consumer Business Unit4.25yrsno datano data
Takalani Netshitenzhe
Chief Officer of Corporate Affairs4yrsno datano data
Diego Gutierrez
Chief Officer of International Business3.08yrsno datano data

4.1yrs

Average Tenure

47yo

Average Age

Experienced Management: VDMC.Y's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mohamed Shameel Joosub
CEO & Executive Director8yrsR43.45m0.080%
ZAR 10.4m
Sitholizwe Mdlalose
Interim CFO & Executive Director0.17yrno datano data
David Brown
Lead Independent Non-Executive Director0.17yrR1.05mno data
Sakumzi Macozoma
Independent Chairman0.17yrR1.19mno data
Clive Thomson
Independent Non-Executive Director0.42yrno datano data
Phillip Moleketi
Independent Non Executive Chairman3.17yrsR2.87m0.00095%
ZAR 123.7k
Phuti Mahanyele-Dabengwa
Independent Non-Executive Director1.67yrsR755.39kno data
Vivek Badrinath
Non Executive Director3.75yrsR933.97kno data
Sunil Sood
Non-Executive Director2.17yrsR496.92kno data
Leanne Wood
Non-Independent Non-Executive Director1.17yrsR535.63kno data
John William Otty
Non-Executive Director8yrsR569.22kno data
Pierre Christian Klotz
Non-Executive Director0.42yrno datano data

1.4yrs

Average Tenure

52yo

Average Age

Experienced Board: VDMC.Y's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Vodacom Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vodacom Group Limited
  • Ticker: VDMC.Y
  • Exchange: OTCPK
  • Founded: 1993
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: R211.312b
  • Listing Market Cap: R13.019b
  • Shares outstanding: 1.70b
  • Website: https://www.vodacom.com

Number of Employees


Location

  • Vodacom Group Limited
  • Vodacom Corporate Park
  • 082 Vodacom Boulevard
  • Midrand
  • Gauteng
  • 1685
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VODJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARMay 2009
5VDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2009
VODA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2009
VDMC.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDDec 2009

Biography

Vodacom Group Limited, a unified communications provider, provides mobile voice, messaging, data, financial, and converged services to the consumer, business, and enterprise customers in South Africa and i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/21 06:04
End of Day Share Price2020/09/18 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.