13.5 USD
-0.32 (-2.32%)
13.48 USD
-0.02 (-0.15%)
Taking everything into account, VOD scores 4 out of 10 in our fundamental rating. VOD was compared to 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
VOD had positive earnings in the past year.
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 has a worse Return On Assets (-3.24%) than 81.82% of its industry peers.
With a Return On Equity value of -7.90%, VOD is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 3.69%, VOD is in line with its industry, 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 6.34%.
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
The Operating Margin of VOD (13.19%) is better than 63.64% of 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.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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's Debt to FCF ratio of 6.72 is in line compared to the rest of the industry. VOD outperforms 50.00% of its industry peers.
VOD has a Debt/Equity ratio of 0.87. This is a neutral value indicating 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/WACC0.63
WACC5.89%
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.
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 better Quick ratio (1.23) than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.33% over the past year.
VOD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.84% 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 5Y5.84%
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
The Earnings Per Share is expected to grow by 13.41% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.73% on average over the next years.
EPS Next Y6.68%
EPS Next 2Y9.52%
EPS Next 3Y11.06%
EPS Next 5Y13.41%
Revenue Next Year6.57%
Revenue Next 2Y4.67%
Revenue Next 3Y3.68%
Revenue Next 5Y1.73%
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
The Price/Earnings ratio is 14.21, which indicates a correct valuation of VOD.
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 27.19. VOD is valued slightly cheaper when compared to this.
VOD is valuated reasonably with a Price/Forward Earnings ratio of 11.80.
The rest of the industry has a similar Price/Forward Earnings ratio as VOD.
VOD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.21 | ||
| Fwd PE | 11.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VOD indicates a rather cheap valuation: VOD is cheaper than 90.91% of the companies listed 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 | 3.49 | ||
| EV/EBITDA | 3.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.13
PEG (5Y)2.44
EPS Next 2Y9.52%
EPS Next 3Y11.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.42%, VOD has a reasonable but not impressive dividend return.
VOD's Dividend Yield is comparable with the industry average which is at 5.49.
Compared to an average S&P500 Dividend Yield of 1.94, VOD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
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 2Y9.52%
EPS Next 3Y11.06%
13.5
-0.32 (-2.32%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners61.35%
Inst Owner Change0%
Ins Owners0.84%
Ins Owner ChangeN/A
Market Cap32.18B
Revenue(TTM)37.45B
Net Income(TTM)-4.17B
Analysts69.63
Price Target12.71 (-5.85%)
Short Float %0.52%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
Yearly Dividend0.83
Dividend Growth(5Y)-4.17%
DP-27.44%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)7.73%
PT rev (3m)9.66%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-4.3%
EPS NY rev (3m)-7.48%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.21 | ||
| Fwd PE | 11.8 | ||
| P/S | 0.74 | ||
| P/FCF | 3.49 | ||
| P/OCF | 1.86 | ||
| P/B | 0.52 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 3.37 |
EPS(TTM)0.95
EY7.04%
EPS(NY)1.14
Fwd EY8.47%
FCF(TTM)3.87
FCFY28.68%
OCF(TTM)7.26
OCFY53.77%
SpS18.34
BVpS25.83
TBVpS9.46
PEG (NY)2.13
PEG (5Y)2.44
Graham Number23.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.24% | ||
| ROE | -7.9% | ||
| ROCE | 4.67% | ||
| ROIC | 3.69% | ||
| ROICexc | 4.47% | ||
| ROICexgc | 7.24% | ||
| OM | 13.19% | ||
| PM (TTM) | N/A | ||
| GM | 33.43% | ||
| FCFM | 21.11% |
ROA(3y)1.72%
ROA(5y)1.33%
ROE(3y)4.22%
ROE(5y)3.37%
ROIC(3y)2.95%
ROIC(5y)3.04%
ROICexc(3y)3.44%
ROICexc(5y)3.51%
ROICexgc(3y)5.61%
ROICexgc(5y)6.14%
ROCE(3y)3.86%
ROCE(5y)3.97%
ROICexgc growth 3Y-3.2%
ROICexgc growth 5Y-6.95%
ROICexc growth 3Y3.53%
ROICexc growth 5Y-4.45%
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%
F-Score6
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.72 | ||
| Debt/EBITDA | 2.8 | ||
| Cap/Depr | 59.99% | ||
| Cap/Sales | 18.47% | ||
| Interest Coverage | 2.24 | ||
| Cash Conversion | 90% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | -0.65 |
F-Score6
WACC5.89%
ROIC/WACC0.63
Cap/Depr(3y)65.18%
Cap/Depr(5y)64.45%
Cap/Sales(3y)18.91%
Cap/Sales(5y)19.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)5.33%
EPS 3Y-10.45%
EPS 5Y5.84%
EPS Q2Q%-14.07%
EPS Next Y6.68%
EPS Next 2Y9.52%
EPS Next 3Y11.06%
EPS Next 5Y13.41%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y-6.34%
Revenue growth 5Y-3.6%
Sales Q2Q%7.29%
Revenue Next Year6.57%
Revenue Next 2Y4.67%
Revenue Next 3Y3.68%
Revenue Next 5Y1.73%
EBIT growth 1Y33.65%
EBIT growth 3Y-3.06%
EBIT growth 5Y-9.83%
EBIT Next Year168.65%
EBIT Next 3Y45.04%
EBIT Next 5Y23.96%
FCF growth 1Y-7.75%
FCF growth 3Y-1.3%
FCF growth 5Y-2.36%
OCF growth 1Y-14.42%
OCF growth 3Y-5.26%
OCF growth 5Y-2.42%
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 6.68% 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%.