14.57 USD
+0.07 (+0.48%)
14.35 USD
-0.22 (-1.51%)
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. The financial health of VOD is average, but 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.
- VOD had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years VOD had a positive operating cash flow.
1.2 Ratios
- VOD has a worse Return On Assets (-3.24%) than 81.82% of its industry peers.
- VOD has a worse Return On Equity (-7.90%) than 81.82% of its industry peers.
- VOD's Return On Invested Capital of 3.69% is in line compared to the rest of the industry. VOD outperforms 45.45% of its industry peers.
- 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.
- Looking at the Gross Margin, with a value of 33.43%, VOD is doing worse than 77.27% of the companies in the same industry.
- 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.
- VOD has less shares outstanding than it did 1 year ago.
- VOD has less shares outstanding than it did 5 years ago.
- VOD has a worse debt/assets ratio than last year.
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.
- VOD has a worse Altman-Z score (-0.65) than 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 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
WACC5.97%
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 Current ratio of 1.26. This is amongst the best in the industry. VOD outperforms 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.
- Looking at the Quick ratio, with a value of 1.23, VOD belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
| 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.
- 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.
- Looking at the last year, VOD shows a small growth in Revenue. The Revenue has grown by 1.99% in the last 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
- 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.
- VOD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.64% yearly.
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
- A Price/Earnings ratio of 14.72 indicates a correct valuation of VOD.
- Based on the Price/Earnings ratio, VOD is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
- VOD's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.60.
- Based on the Price/Forward Earnings ratio of 11.96, the valuation of VOD can be described as reasonable.
- 68.18% of the companies in the same industry are more expensive than VOD, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of VOD to the average of the S&P500 Index (25.83), we can say VOD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 11.96 |
4.2 Price Multiples
- VOD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VOD is cheaper than 90.91% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, VOD is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.61 | ||
| EV/EBITDA | 3.39 |
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)1.61
PEG (5Y)2.38
EPS Next 2Y10.71%
EPS Next 3Y11.8%
5. Dividend
5.1 Amount
- VOD has a Yearly Dividend Yield of 3.78%.
- 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 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
- 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%.