14.17 USD
+0.23 (+1.65%)
14.15 USD
-0.02 (-0.14%)
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. While VOD seems to be doing ok healthwise, there are quite some concerns on its profitability. 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.
- Of the past 5 years VOD 4 years were profitable.
- VOD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of -3.24%, VOD is doing worse than 81.82% of the companies in the same industry.
- 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.
- 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.
- Measured over the past 3 years, the Average Return On Invested Capital for VOD is below the industry average of 6.24%.
- 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's Operating Margin of 13.19% is fine compared to the rest of the industry. VOD outperforms 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.
- 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
- 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
- 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.
- 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.
- VOD has a debt to FCF ratio of 6.72. This is a slightly negative value and a sign of low solvency as VOD would need 6.72 years to pay back of all of its debts.
- VOD has a Debt to FCF ratio (6.72) which is in line with 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/WACC0.62
WACC5.95%
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.
- 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.
- 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
- 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 5.84% yearly.
- The Revenue has been growing slightly by 1.99% in the past year.
- The Revenue has been decreasing by -3.60% on average over the past years.
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 11.84% on average over the next years. This is quite good.
- VOD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.64% yearly.
EPS Next Y6.68%
EPS Next 2Y9.52%
EPS Next 3Y11.06%
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.
- 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
- Based on the Price/Earnings ratio of 14.76, the valuation of VOD can be described as correct.
- VOD's Price/Earnings ratio is a bit cheaper when compared to the industry. VOD is cheaper than 77.27% 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.
- With a Price/Forward Earnings ratio of 12.36, VOD is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of VOD indicates a somewhat cheap valuation: VOD is cheaper than 63.64% 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 (24.26), we can say VOD is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 12.36 |
4.2 Price Multiples
- 95.45% of the companies in the same industry are more expensive than VOD, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, VOD is valued cheaper than 95.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.65 | ||
| EV/EBITDA | 3.38 |
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)2.21
PEG (5Y)2.53
EPS Next 2Y9.52%
EPS Next 3Y11.06%
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 6.15, VOD has a dividend in line with its industry peers.
- 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 2Y9.52%
EPS Next 3Y11.06%
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 5 / 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%.