VODAFONE GROUP PLC-SP ADR (VOD) Stock Fundamental Analysis
USA - NASDAQ:VOD - US92857W3088 - ADR
12.32 USD
-0.09 (-0.73%)
12.2801 USD
-0.04 (-0.32%)
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. VOD scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. VOD has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year VOD was profitable.
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
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.
VOD has a Return On Invested Capital (3.69%) which is comparable to the rest of the industry.
VOD had an Average Return On Invested Capital over the past 3 years of 2.95%. This is below the industry average of 5.83%.
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
With a decent Operating Margin value of 13.19%, VOD is doing good in the industry, outperforming 63.64% of the companies in the same industry.
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.
The number of shares outstanding for VOD has been reduced compared to 1 year ago.
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 -0.67, we must say that VOD is in the distress zone and has some risk of bankruptcy.
VOD has a worse Altman-Z score (-0.67) than 81.82% of its industry peers.
The Debt to FCF ratio of VOD is 6.13, which is on the high side as it means it would take VOD, 6.13 years of fcf income to pay off all of its debts.
VOD's Debt to FCF ratio of 6.13 is fine compared to the rest of the industry. VOD outperforms 72.73% of 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 | 6.13 | ||
| Altman-Z | -0.67 |
ROIC/WACC0.64
WACC5.78%
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 in the better half of the industry: VOD outperforms 63.64% 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.
Looking at the Quick ratio, with a value of 1.23, VOD is in the better half of the industry, outperforming 63.64% 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.
VOD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.59% yearly.
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 5Y6.59%
EPS Q2Q%-35.56%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y-6.34%
Revenue growth 5Y-3.6%
Sales Q2Q%29.72%
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 13.57% yearly.
Based on estimates for the next years, VOD will show a small growth in Revenue. The Revenue will grow by 1.01% on average per year.
EPS Next Y11.47%
EPS Next 2Y13.11%
EPS Next 3Y11.98%
EPS Next 5Y13.57%
Revenue Next Year6.05%
Revenue Next 2Y3.77%
Revenue Next 3Y2.5%
Revenue Next 5Y1.01%
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
Based on the Price/Earnings ratio of 12.57, the valuation of VOD can be described as correct.
Based on the Price/Earnings ratio, VOD is valued a bit cheaper than 77.27% of the companies in the same industry.
VOD is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.24 indicates a reasonable valuation of VOD.
Based on the Price/Forward Earnings ratio, VOD is valued a bit cheaper than 68.18% of the companies in the same industry.
VOD is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.57 | ||
| Fwd PE | 11.24 |
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 | 2.92 | ||
| EV/EBITDA | 3.35 |
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)1.1
PEG (5Y)1.91
EPS Next 2Y13.11%
EPS Next 3Y11.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.43%, VOD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.23, VOD has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, VOD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
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-42.86%
EPS Next 2Y13.11%
EPS Next 3Y11.98%
12.32
-0.09 (-0.73%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners59.71%
Inst Owner Change-1.89%
Ins Owners0.82%
Ins Owner ChangeN/A
Market Cap29.40B
Revenue(TTM)37.45B
Net Income(TTM)-4.17B
Analysts68.57
Price Target11.56 (-6.17%)
Short Float %0.57%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
Yearly Dividend0.86
Dividend Growth(5Y)-4.17%
DP-42.86%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)0.13%
PT rev (3m)1.33%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.18%
EPS NY rev (3m)-2.88%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.57 | ||
| Fwd PE | 11.24 | ||
| P/S | 0.68 | ||
| P/FCF | 2.92 | ||
| P/OCF | 1.65 | ||
| P/B | 0.48 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 3.35 |
EPS(TTM)0.98
EY7.95%
EPS(NY)1.1
Fwd EY8.9%
FCF(TTM)4.22
FCFY34.28%
OCF(TTM)7.48
OCFY60.75%
SpS18.23
BVpS25.68
TBVpS9.4
PEG (NY)1.1
PEG (5Y)1.91
Graham Number23.8
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 | 23.16% |
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 | 6.13 | ||
| Debt/EBITDA | 2.93 | ||
| Cap/Depr | 62% | ||
| Cap/Sales | 17.89% | ||
| Interest Coverage | 1.83 | ||
| Cash Conversion | 97.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | -0.67 |
F-Score6
WACC5.78%
ROIC/WACC0.64
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 5Y6.59%
EPS Q2Q%-35.56%
EPS Next Y11.47%
EPS Next 2Y13.11%
EPS Next 3Y11.98%
EPS Next 5Y13.57%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y-6.34%
Revenue growth 5Y-3.6%
Sales Q2Q%29.72%
Revenue Next Year6.05%
Revenue Next 2Y3.77%
Revenue Next 3Y2.5%
Revenue Next 5Y1.01%
EBIT growth 1Y33.65%
EBIT growth 3Y-3.06%
EBIT growth 5Y-9.83%
EBIT Next Year168.13%
EBIT Next 3Y41.18%
EBIT Next 5Y22.98%
FCF growth 1Y-10.55%
FCF growth 3Y-1.3%
FCF growth 5Y-2.36%
OCF growth 1Y-7.15%
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.
Can you provide the valuation status for VODAFONE GROUP PLC-SP ADR?
ChartMill assigns a valuation rating of 6 / 10 to VODAFONE GROUP PLC-SP ADR (VOD). This can be considered as Fairly Valued.
How profitable is VODAFONE GROUP PLC-SP ADR (VOD) stock?
VODAFONE GROUP PLC-SP ADR (VOD) has a profitability rating of 3 / 10.
How financially healthy is VODAFONE GROUP PLC-SP ADR?
The financial health rating of VODAFONE GROUP PLC-SP ADR (VOD) is 4 / 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 11.47% in the next year.