14.17 USD
+0.23 (+1.65%)
14.22 USD
+0.05 (+0.35%)
VOD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 22 industry peers in the Wireless Telecommunication Services industry. VOD scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. VOD is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year VOD was profitable.
- In the past year VOD had a positive cash flow from operations.
- VOD had positive earnings in 4 of the past 5 years.
- In the past 5 years VOD always reported a positive cash flow from operatings.
1.2 Ratios
- VOD has a worse Return On Assets (-3.24%) than 81.82% of its industry peers.
- VOD's Return On Equity of -7.90% is on the low side compared to the rest of the industry. VOD is outperformed by 81.82% of its industry peers.
- The Return On Invested Capital of VOD (3.69%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for VOD is below the industry average of 6.55%.
- The last Return On Invested Capital (3.69%) for VOD is above the 3 year average (2.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.24% | ||
| ROE | -7.9% | ||
| ROIC | 3.69% |
ROA(3y)1.72%
ROA(5y)1.33%
ROE(3y)4.22%
ROE(5y)3.37%
ROIC(3y)2.95%
ROIC(5y)3.04%
1.3 Margins
- VOD has a Operating Margin of 13.19%. This is comparable to the rest of the industry: VOD outperforms 59.09% of its industry peers.
- In the last couple of years the Operating Margin of VOD has declined.
- VOD's Gross Margin of 33.43% is on the low side compared to the rest of the industry. VOD is outperformed by 77.27% of its industry peers.
- In the last couple of years the Gross Margin of VOD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.19% | ||
| PM (TTM) | N/A | ||
| GM | 33.43% |
OM growth 3Y3.5%
OM growth 5Y-6.47%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.51%
GM growth 5Y1.02%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VOD is destroying value.
- VOD has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, VOD has less shares outstanding
- The debt/assets ratio for VOD is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of -0.65, we must say that VOD is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of -0.65, VOD is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
- The Debt to FCF ratio of VOD is 6.72, which is on the high side as it means it would take VOD, 6.72 years of fcf income to pay off all of its debts.
- VOD's Debt to FCF ratio of 6.72 is in line compared to the rest of the industry. VOD outperforms 54.55% of its industry peers.
- A Debt/Equity ratio of 0.87 indicates that VOD is somewhat dependend on debt financing.
- VOD's Debt to Equity ratio of 0.87 is in line compared to the rest of the industry. VOD outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.72 | ||
| Altman-Z | -0.65 |
ROIC/WACC0.62
WACC5.93%
2.3 Liquidity
- A Current Ratio of 1.26 indicates that VOD should not have too much problems paying its short term obligations.
- VOD has a better Current ratio (1.26) than 81.82% of its industry peers.
- A Quick Ratio of 1.23 indicates that VOD should not have too much problems paying its short term obligations.
- VOD has a Quick ratio of 1.23. This is amongst the best in the industry. VOD outperforms 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
- VOD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.33%.
- Measured over the past 5 years, VOD shows a small growth in Earnings Per Share. The EPS has been growing by 6.19% on average per year.
- The Revenue has been growing slightly by 1.99% in the past year.
- VOD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.60% yearly.
EPS 1Y (TTM)5.33%
EPS 3Y-10.45%
EPS 5Y6.19%
EPS Q2Q%-14.07%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y-6.34%
Revenue growth 5Y-3.6%
Sales Q2Q%7.29%
3.2 Future
- Based on estimates for the next years, VOD will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.84% on average per year.
- The Revenue is expected to grow by 2.64% on average over the next years.
EPS Next Y9.11%
EPS Next 2Y10.71%
EPS Next 3Y11.8%
EPS Next 5Y11.84%
Revenue Next Year6.57%
Revenue Next 2Y4.67%
Revenue Next 3Y3.68%
Revenue Next 5Y2.64%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- VOD is valuated correctly with a Price/Earnings ratio of 14.46.
- VOD's Price/Earnings ratio is rather cheap when compared to the industry. VOD is cheaper than 81.82% of the companies in the same industry.
- VOD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 11.86, which indicates a very decent valuation of VOD.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of VOD indicates a somewhat cheap valuation: VOD is cheaper than 68.18% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of VOD to the average of the S&P500 Index (25.98), we can say VOD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 11.86 |
4.2 Price Multiples
- 90.91% of the companies in the same industry are more expensive than VOD, based on the Enterprise Value to EBITDA ratio.
- 95.45% of the companies in the same industry are more expensive than VOD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.58 | ||
| EV/EBITDA | 3.38 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.59
PEG (5Y)2.34
EPS Next 2Y10.71%
EPS Next 3Y11.8%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.78%, VOD has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 3.98, VOD has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.81, VOD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
5.2 History
- The dividend of VOD decreases each year by -4.17%.
- VOD has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-4.17%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- VOD has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-27.44%
EPS Next 2Y10.71%
EPS Next 3Y11.8%
VODAFONE GROUP PLC-SP ADR / VOD FAQ
What is the fundamental rating for VOD stock?
ChartMill assigns a fundamental rating of 4 / 10 to VOD.
What is the valuation status of VODAFONE GROUP PLC-SP ADR (VOD) stock?
ChartMill assigns a valuation rating of 6 / 10 to VODAFONE GROUP PLC-SP ADR (VOD). This can be considered as Fairly Valued.
What is the profitability of VOD stock?
VODAFONE GROUP PLC-SP ADR (VOD) has a profitability rating of 3 / 10.
What is the expected EPS growth for VODAFONE GROUP PLC-SP ADR (VOD) stock?
The Earnings per Share (EPS) of VODAFONE GROUP PLC-SP ADR (VOD) is expected to grow by 9.11% in the next year.
Can you provide the dividend sustainability for VOD stock?
The dividend rating of VODAFONE GROUP PLC-SP ADR (VOD) is 3 / 10 and the dividend payout ratio is -27.44%.