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VOD

Vodacom GroupJSE:VOD Stock Report

Market Cap

R232.0b

7D

-1.3%

1Y

8.2%

Updated

25 Oct, 2021

Data

Company Financials +
VOD fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance3/6
Financial Health5/6
Dividends5/6

VOD Overview

Vodacom Group Limited provides a range of communications products and services in South Africa and internationally.

Vodacom Group Competitors

MTN Group

JSE:MTN

R245.8b

Bharti Airtel

BSE:532454

₹3.8t

Orange

ENXTPA:ORA

€25.7b

Itissalat Al-Maghrib (IAM)

CBSE:IAM

د.م125.6b

Price History & Performance

Summary of all time highs, changes and price drops for Vodacom Group
Historical stock prices
Current Share PriceR136.91
52 Week HighR120.24
52 Week LowR151.44
Beta0.21
1 Month Change-7.45%
3 Month Change5.27%
1 Year Change8.18%
3 Year Change14.17%
5 Year Change-5.87%
Change since IPO132.84%

Recent News & Updates

Oct 03
Calculating The Fair Value Of Vodacom Group Limited (JSE:VOD)

Calculating The Fair Value Of Vodacom Group Limited (JSE:VOD)

Today we will run through one way of estimating the intrinsic value of Vodacom Group Limited ( JSE:VOD ) by projecting...

Sep 15
Is Vodacom Group (JSE:VOD) A Risky Investment?

Is Vodacom Group (JSE:VOD) A Risky Investment?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Aug 03
Returns On Capital At Vodacom Group (JSE:VOD) Paint A Concerning Picture

Returns On Capital At Vodacom Group (JSE:VOD) Paint A Concerning Picture

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Amongst other things...

Jul 12
Shareholders Will Probably Hold Off On Increasing Vodacom Group Limited's (JSE:VOD) CEO Compensation For The Time Being

Shareholders Will Probably Hold Off On Increasing Vodacom Group Limited's (JSE:VOD) CEO Compensation For The Time Being

CEO Mohamed Shameel Joosub has done a decent job of delivering relatively good performance at Vodacom Group Limited...

Shareholder Returns

VODZA Wireless TelecomZA Market
7D-1.3%-1.2%-0.03%
1Y8.2%42.3%19.0%

Return vs Industry: VOD underperformed the ZA Wireless Telecom industry which returned 42.3% over the past year.

Return vs Market: VOD underperformed the ZA Market which returned 19% over the past year.

Price Volatility

Is VOD's price volatile compared to industry and market?
VOD volatility
VOD Beta0.21
Industry Beta0.49
Market Beta1

Stable Share Price: VOD is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: VOD's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19937,636Mohamed Shameel Joosubhttps://www.vodacom.com

Vodacom Group Limited provides a range of communications products and services in South Africa and internationally. It offers voice, messaging, converged, broadband, data connectivity, and mobile financial services, as well as contract or prepaid voice and other value-added services to consumer and enterprise customers and telecommunication and other companies. The company also provides mobile and fixed line connectivity solutions, as well as internet and virtual private network services to its customers over various wireless, fixed-line, satellite, mobile, and converged technologies; and cloud hosting and security services comprising infrastructure, professional, software, and platform and managed services.

Vodacom Group Fundamentals Summary

How do Vodacom Group's earnings and revenue compare to its market cap?
VOD fundamental statistics
Market CapR231.99b
Earnings (TTM)R16.58b
Revenue (TTM)R98.30b

14.0x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VOD income statement (TTM)
RevenueR98.30b
Cost of RevenueR43.26b
Gross ProfitR55.04b
ExpensesR38.46b
EarningsR16.58b

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 15, 2021

Earnings per share (EPS)9.79
Gross Margin55.99%
Net Profit Margin16.87%
Debt/Equity Ratio44.1%

How did VOD perform over the long term?

See historical performance and comparison

Dividends

6.0%

Current Dividend Yield

84%

Payout Ratio

Valuation

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

13.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VOD (ZAR136.91) is trading above our estimate of fair value (ZAR136.89)

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


Price To Earnings Ratio

PE vs Industry: VOD is good value based on its PE Ratio (14x) compared to the African Wireless Telecom industry average (19x).

PE vs Market: VOD is poor value based on its PE Ratio (14x) compared to the ZA market (11.3x).


Price to Earnings Growth Ratio

PEG Ratio: VOD is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: VOD is good value based on its PB Ratio (2.9x) compared to the XF Wireless Telecom industry average (4.5x).


Future Growth

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

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VOD's forecast earnings growth (8.3% per year) is below the savings rate (8.8%).

Earnings vs Market: VOD's earnings (8.3% per year) are forecast to grow slower than the ZA market (12.1% per year).

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

Revenue vs Market: VOD's revenue (4.3% per year) is forecast to grow slower than the ZA market (6.4% per year).

High Growth Revenue: VOD's revenue (4.3% 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 high in 3 years time (23.2%)


Past Performance

How has Vodacom Group performed over the past 5 years?

5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VOD has high quality earnings.

Growing Profit Margin: VOD's current net profit margins (16.9%) are lower than last year (17.6%).


Past Earnings Growth Analysis

Earnings Trend: VOD's earnings have grown by 5.8% per year over the past 5 years.

Accelerating Growth: VOD's earnings growth over the past year (4%) is below its 5-year average (5.8% per year).

Earnings vs Industry: VOD earnings growth over the past year (4%) exceeded the Wireless Telecom industry -6.8%.


Return on Equity

High ROE: VOD's Return on Equity (19.9%) is considered low.


Financial Health

How is Vodacom Group's financial position?


Financial Position Analysis

Short Term Liabilities: VOD's short term assets (ZAR46.3B) exceed its short term liabilities (ZAR42.1B).

Long Term Liabilities: VOD's short term assets (ZAR46.3B) exceed its long term liabilities (ZAR44.2B).


Debt to Equity History and Analysis

Debt Level: VOD's debt to equity ratio (44.1%) is considered high.

Reducing Debt: VOD's debt to equity ratio has reduced from 120.1% to 44.1% over the past 5 years.

Debt Coverage: VOD's debt is well covered by operating cash flow (88.3%).

Interest Coverage: VOD's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet


Dividend

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

6.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VOD's dividend (6.03%) is higher than the bottom 25% of dividend payers in the ZA market (3.14%).

High Dividend: VOD's dividend (6.03%) is low compared to the top 25% of dividend payers in the ZA market (7.52%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.3%), VOD's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VOD's dividends in 3 years are forecast to be covered by earnings (82.7% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Mohamed Shameel Joosub (50 yo)

9.08yrs

Tenure

R55,008,342

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 ($USD3.74M) is above average for companies of similar size in the ZA market ($USD2.81M).

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


Leadership Team

Experienced Management: VOD's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: VOD's board of directors are not considered experienced ( 1.5 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: VOD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Vodacom Group Limited
  • Ticker: VOD
  • Exchange: JSE
  • Founded: 1993
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: R231.988b
  • Shares outstanding: 1.69b
  • Website: https://www.vodacom.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 21:37
End of Day Share Price2021/10/25 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.