14.23 USD
+0.06 (+0.42%)
14.21 USD
-0.02 (-0.14%)
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. While VOD seems to be doing ok healthwise, there are quite some concerns on its profitability. VOD has a correct valuation and a medium 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.
- Of the past 5 years VOD 4 years were profitable.
- In the past 5 years VOD always reported a positive cash flow from operatings.
1.2 Ratios
- VOD's Return On Assets of -3.24% is on the low side compared to the rest of the industry. VOD is outperformed by 81.82% of its industry peers.
- VOD has a Return On Equity of -7.90%. This is amonst the worse of the industry: VOD underperforms 81.82% of its industry peers.
- With a Return On Invested Capital value of 3.69%, VOD perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
- VOD had an Average Return On Invested Capital over the past 3 years of 2.95%. This 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.
- With a Gross Margin value of 33.43%, VOD is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VOD is destroying value.
- Compared to 1 year ago, VOD has less shares outstanding
- VOD has less shares outstanding than it did 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 -0.65, we must say that VOD is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of -0.65, VOD is doing worse than 81.82% of the companies in the same industry.
- 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 has a Debt to FCF ratio (6.72) which is in line with its industry peers.
- A Debt/Equity ratio of 0.87 indicates that VOD is somewhat dependend on debt financing.
- VOD has a Debt to Equity ratio (0.87) which is in line with 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.
- The Current ratio of VOD (1.26) is better than 81.82% of its industry peers.
- VOD has a Quick Ratio of 1.23. This is a normal value and indicates that VOD is financially healthy and should not expect problems in meeting 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%.
- 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.
- VOD shows a small growth in Revenue. In the last year, the Revenue has grown by 1.99%.
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 14.52, VOD is valued correctly.
- Based on the Price/Earnings ratio, VOD is valued cheaper than 81.82% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. VOD is valued slightly cheaper when compared to this.
- VOD is valuated reasonably with a Price/Forward Earnings ratio of 11.81.
- 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.
- VOD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 11.81 |
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.
- 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 | 3.57 | ||
| EV/EBITDA | 3.37 |
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)2.35
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 3.98.
- Compared to an average S&P500 Dividend Yield of 1.82, 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 paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-4.17%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- The earnings of VOD are negative and hence is the payout ratio. VOD will probably not be able to sustain this dividend level.
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%.