OTCPK:VODA.F

Stock Analysis Report

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.

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.


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


Market Performance


7 Day Return

3.6%

OTCPK:VODA.F

-1.0%

US Wireless Telecom

-0.02%

US Market


1 Year Return

3.0%

OTCPK:VODA.F

5.3%

US Wireless Telecom

1.6%

US Market

VODA.F underperformed the Wireless Telecom industry which returned 6.5% over the past year.

VODA.F outperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

VODA.FIndustryMarket
7 Day3.6%-1.0%-0.02%
30 Day3.6%2.0%2.7%
90 Dayn/a-1.0%1.4%
1 Year3.0%3.0%6.5%5.3%3.8%1.6%
3 Year-19.8%-19.8%33.5%28.3%45.2%35.8%
5 Year-27.7%-27.7%41.2%27.1%61.8%44.1%

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

32%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Vodacom Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Vodacom Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Vodacom Group is good value based on earnings compared to the US Wireless Telecom industry average.

Vodacom Group is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Vodacom Group is poor value based on expected growth next year.


Price Based on Value of Assets

Vodacom Group is overvalued based on assets compared to the US Wireless Telecom industry average.


Next Steps

Future Growth

How is Vodacom Group expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Vodacom Group's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).

Vodacom Group's earnings are expected to grow by 9% yearly, however this is not considered high growth (20% yearly).

Vodacom Group's revenue growth is positive but not above the United States of America market average.

Vodacom Group's earnings growth is positive but not above the United States of America market average.

Vodacom Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Vodacom Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Vodacom Group performed over the past 5 years?

3.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Vodacom Group's year on year earnings growth rate has been positive over the past 5 years.

Vodacom Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Vodacom Group's 1-year earnings growth is negative, it can't be compared to the US Wireless Telecom industry average.


Return on Equity

Vodacom Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Vodacom Group used its assets more efficiently than the US Wireless Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Vodacom Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Vodacom Group's financial position?


Financial Position Analysis

Vodacom Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Vodacom Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Vodacom Group's level of debt (37.7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (54.4% vs 37.7% today).

Debt is well covered by operating cash flow (86%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.2x debt.


Next Steps

Dividend

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

7.00%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Vodacom Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Vodacom Group's dividend is above the markets top 25% of dividend payers in United States of America (3.69%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (1.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.1x coverage).


Next Steps

Management

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

6.2yrs

Average management tenure


CEO

Mohamed Shameel Joosub (48yo)

7yrs

Tenure

SAR50,272,495

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

Mohamed Shameel's remuneration is lower than average for companies of similar size in United States of America.

Mohamed Shameel's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

6.2yrs

Average Tenure

47.5yo

Average Age

The average tenure for the Vodacom Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.4yrs

Average Tenure

52.5yo

Average Age

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


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Mohamed Shameel Joosub (48yo)

    CEO & Executive Director

    • Tenure: 7yrs
    • Compensation: SAR50.27m
  • T. Ralebitso

    Managing Director of Vodacom Ventures

    • Tenure: 0yrs
  • Johan van Graan

    Chief Risk Officer

    • Tenure: 0yrs
  • Andries Daniel Delport (54yo)

    Chief Technology Officer

    • Tenure: 8.8yrs
    • Compensation: SAR9.11m
  • Snakes Nyoka (56yo)

    Chief Officer of Legal & Regulatory

    • Tenure: 11.9yrs
    • Compensation: SAR8.14m
  • Matimba Mbungela (47yo)

    Chief Human Resources Officer

    • Tenure: 5.3yrs
    • Compensation: SAR5.86m
  • Muriel Loriloux

    Managing Director of Vodacom Congo

    • Tenure: 0yrs
  • Jerry Mobbs

    Managing Director of Vodacom Mozambique

    • Tenure: 0yrs
  • Phil Streichert (45yo)

    CFO & Executive Director

    • Tenure: 4.1yrs
    • Compensation: SAR916.21k
  • Joaquim Jorge Mendes (45yo)

    Chief Officer of Consumer Business Unit

    • Tenure: 3.3yrs

Board Members

  • David Brown (57yo)

    Independent Non-Executive Director

    • Tenure: 7.7yrs
    • Compensation: SAR939.67k
  • Saki Macozoma (62yo)

    Lead Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: SAR614.08k
  • Mohamed Shameel Joosub (48yo)

    CEO & Executive Director

    • Tenure: 7yrs
    • Compensation: SAR50.27m
  • Jabu Moleketi (62yo)

    Independent Non Executive Chairman

    • Tenure: 2.2yrs
    • Compensation: SAR2.07m
  • Phuti Mahanyele-Dabengwa (48yo)

    Independent Non-Executive Director

    • Tenure: 0.7yrs
  • Vivek Badrinath (50yo)

    Non Executive Director

    • Tenure: 2.8yrs
    • Compensation: SAR713.33k
  • Sunil Sood (58yo)

    Non-Executive Director

    • Tenure: 1.2yrs
  • John William Otty (55yo)

    Non-Executive Director

    • Tenure: 7yrs
    • Compensation: SAR455.00k
  • Bafelelang Mabelane (46yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: SAR636.00k
  • Phil Streichert (45yo)

    CFO & Executive Director

    • Tenure: 4.1yrs
    • Compensation: SAR916.21k

Company Information

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


Key Information

  • Name: Vodacom Group Limited
  • Ticker: VODA.F
  • Exchange: OTCPK
  • Founded: 1993
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: SAR213.475b
  • Listing Market Cap: SAR14.591b
  • 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 Analysis2019/09/19 00:11
End of Day Share Price2019/09/18 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.