VODAFONE GROUP PLC-SP ADR (VOD) Stock Fundamental Analysis
NASDAQ:VOD - Nasdaq - US92857W3088 - ADR - Currency: USD
Overall VOD gets a fundamental rating of 4 out of 10. We evaluated VOD against 21 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 is cheap, but on the other hand it scores bad on growth.
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
With a Return On Assets value of -3.24%, VOD is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -7.90%, VOD is doing worse than 80.95% of the companies in the same industry.
VOD has a Return On Invested Capital (3.69%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VOD 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
VOD's Operating Margin of 13.19% is in line compared to the rest of the industry. VOD outperforms 57.14% of its industry peers.
In the last couple of years the Operating Margin of VOD has declined.
VOD has a Gross Margin of 33.43%. This is amonst the worse of the industry: VOD underperforms 80.95% 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
VOD has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, VOD has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.69, we must say that VOD is in the distress zone and has some risk of bankruptcy.
VOD's Altman-Z score of -0.69 is on the low side compared to the rest of the industry. VOD is outperformed by 80.95% of its industry peers.
VOD has a debt to FCF ratio of 6.13. This is a slightly negative value and a sign of low solvency as VOD would need 6.13 years to pay back of all of its debts.
The Debt to FCF ratio of VOD (6.13) is better than 76.19% 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 | -0.69 |
ROIC/WACC0.64
WACC5.77%
2.3 Liquidity
A Current Ratio of 1.26 indicates that VOD should not have too much problems paying its short term obligations.
With a Current ratio value of 1.26, VOD perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
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.
With a Quick ratio value of 1.23, VOD perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
| 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 6.04% on average per year.
The Revenue has been growing slightly by 1.99% in the past year.
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 5Y6.04%
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
Based on estimates for the next years, VOD will show a small growth in Earnings Per Share. The EPS will grow by 7.89% on average per year.
The Revenue is expected to decrease by -0.56% on average over the next years.
EPS Next Y16.69%
EPS Next 2Y14.67%
EPS Next 3Y13.7%
EPS Next 5Y7.89%
Revenue Next Year2.67%
Revenue Next 2Y1.37%
Revenue Next 3Y1.25%
Revenue Next 5Y-0.56%
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 11.55, the valuation of VOD can be described as reasonable.
Based on the Price/Earnings ratio, VOD is valued a bit cheaper than 76.19% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, VOD is valued rather cheaply.
VOD is valuated reasonably with a Price/Forward Earnings ratio of 9.84.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VOD indicates a somewhat cheap valuation: VOD is cheaper than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. VOD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 9.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VOD is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VOD indicates a rather cheap valuation: VOD is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.67 | ||
| EV/EBITDA | 3.2 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VOD's earnings are expected to grow with 13.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)1.91
EPS Next 2Y14.67%
EPS Next 3Y13.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.80%, VOD is a good candidate for dividend investing.
VOD's Dividend Yield is a higher than the industry average which is at 5.11.
VOD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
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 2Y14.67%
EPS Next 3Y13.7%
10.97
+0.03 (+0.27%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners57.41%
Inst Owner Change0%
Ins Owners0.8%
Ins Owner ChangeN/A
Market Cap26.86B
Analysts69.29
Price Target11.11 (1.28%)
Short Float %0.86%
Short Ratio1.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
Yearly Dividend0.84
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)-1.25%
PT rev (3m)2.39%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.22%
EPS NY rev (3m)-3.61%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 9.84 | ||
| P/S | 0.62 | ||
| P/FCF | 2.67 | ||
| P/OCF | 1.51 | ||
| P/B | 0.44 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 3.2 |
EPS(TTM)0.95
EY8.66%
EPS(NY)1.11
Fwd EY10.16%
FCF(TTM)4.1
FCFY37.39%
OCF(TTM)7.27
OCFY66.26%
SpS17.71
BVpS24.94
TBVpS9.13
PEG (NY)0.69
PEG (5Y)1.91
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%
ROICexcg growth 3Y-3.2%
ROICexcg 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 | -0.69 |
F-Score6
WACC5.77%
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 5Y6.04%
EPS Q2Q%-35.56%
EPS Next Y16.69%
EPS Next 2Y14.67%
EPS Next 3Y13.7%
EPS Next 5Y7.89%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y-6.34%
Revenue growth 5Y-3.6%
Sales Q2Q%29.72%
Revenue Next Year2.67%
Revenue Next 2Y1.37%
Revenue Next 3Y1.25%
Revenue Next 5Y-0.56%
EBIT growth 1Y33.65%
EBIT growth 3Y-3.06%
EBIT growth 5Y-9.83%
EBIT Next Year161.76%
EBIT Next 3Y40.87%
EBIT Next 5Y21.93%
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%