14.65 USD
-0.06 (-0.41%)
At close: Jan 30, 2026
14.65 USD
0 (0%)
After Hours: 1/30/2026, 8:00:02 PM
We assign a fundamental rating of 4 out of 10 to VOD. VOD was compared to 22 industry peers in the Wireless Telecommunication Services industry. The financial health of VOD is average, but there are quite some concerns on its profitability. VOD has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- VOD had positive earnings in the past year.
- VOD had a positive operating cash flow in the past year.
- VOD had positive earnings in 4 of the past 5 years.
- VOD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of VOD (-3.24%) is worse than 81.82% of its industry peers.
- The Return On Equity of VOD (-7.90%) is worse than 81.82% of its industry peers.
- The Return On Invested Capital of VOD (3.69%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for VOD is below the industry average of 6.55%.
- The 3 year average ROIC (2.95%) for VOD is below the current ROIC(3.69%), indicating increased profibility in the last year.
| 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 (13.19%) which is in line with its industry peers.
- VOD's Operating Margin has declined in the last couple of years.
- VOD has a worse Gross Margin (33.43%) than 77.27% of its industry peers.
- VOD's Gross Margin has been stable in the last couple of years.
| 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
- VOD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for VOD has been reduced compared to 1 year ago.
- The number of shares outstanding for VOD has been reduced compared to 5 years ago.
- The debt/assets ratio for VOD is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of -0.64, we must say that VOD is in the distress zone and has some risk of bankruptcy.
- VOD's Altman-Z score of -0.64 is on the low side compared to the rest of the industry. VOD is outperformed by 81.82% of its industry peers.
- 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 | -0.64 |
ROIC/WACC0.62
WACC5.97%
2.3 Liquidity
- VOD has a Current Ratio of 1.26. This is a normal value and indicates that VOD is financially healthy and should not expect problems in meeting its short term obligations.
- With an excellent Current ratio value of 1.26, VOD belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
- A Quick Ratio of 1.23 indicates that VOD should not have too much problems paying its short term obligations.
- The Quick ratio of VOD (1.23) is better than 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%.
- VOD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.19% yearly.
- The Revenue has been growing slightly by 1.99% in the past year.
- Measured over the past years, VOD shows a decrease in Revenue. The Revenue has been decreasing by -3.60% on average per year.
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
- VOD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.84% yearly.
- Based on estimates for the next years, VOD will show a small growth in Revenue. The Revenue will grow by 2.64% on average per year.
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 14.80.
- Based on the Price/Earnings ratio, VOD is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, VOD is valued a bit cheaper.
- The Price/Forward Earnings ratio is 12.03, which indicates a correct valuation of VOD.
- VOD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VOD is cheaper than 68.18% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of VOD to the average of the S&P500 Index (25.57), we can say VOD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.8 | ||
| Fwd PE | 12.03 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, VOD is valued cheaper than 90.91% of the companies in the same industry.
- VOD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VOD is cheaper than 95.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.63 | ||
| EV/EBITDA | 3.41 |
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)1.62
PEG (5Y)2.39
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.
- VOD's Dividend Yield is comparable with the industry average which is at 3.99.
- VOD's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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%.