VODAFONE GROUP PLC-SP ADR (VOD) Stock Fundamental Analysis
NASDAQ:VOD - Nasdaq - US92857W3088 - ADR - Currency: USD
We assign a fundamental rating of 4 out of 10 to VOD. VOD was compared to 21 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 valued quite cheap, but it does not seem to be growing.
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's Return On Assets of -3.24% 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 worse Return On Equity (-7.90%) than 80.95% of its industry peers.
VOD has a Return On Invested Capital (3.69%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years 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 has a Operating Margin (13.19%) which is in line with its industry peers.
In the last couple of years the Operating Margin of VOD has declined.
VOD has a worse Gross Margin (33.43%) than 80.95% 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
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.
The debt/assets ratio for VOD is higher compared to a year ago.
2.2 Solvency
VOD has an Altman-Z score of -0.69. This is a bad value and indicates that VOD is not financially healthy and even 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.
VOD's Debt to FCF ratio of 6.13 is fine compared to the rest of the industry. VOD outperforms 76.19% 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.
With a Debt to Equity ratio value of 0.87, VOD perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.13 | ||
| Altman-Z | -0.69 |
ROIC/WACC0.65
WACC5.72%
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 (1.26) which is in line with 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 line with its industry, 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
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 6.04% yearly.
VOD shows a small growth in Revenue. In the last year, the Revenue has grown by 1.99%.
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 5Y6.04%
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
The Earnings Per Share is expected to grow by 7.89% on average over the next years.
VOD is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.56% yearly.
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
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
Based on the Price/Earnings ratio of 11.11, the valuation of VOD can be described as reasonable.
76.19% of the companies in the same industry are more expensive than VOD, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.45, VOD is valued rather cheaply.
A Price/Forward Earnings ratio of 9.52 indicates a reasonable valuation of VOD.
71.43% of the companies in the same industry are more expensive than VOD, based on the Price/Forward Earnings ratio.
VOD is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.89, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.11 | ||
| Fwd PE | 9.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VOD is valued cheaper than 95.24% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VOD is valued cheaper than 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.59 | ||
| EV/EBITDA | 3.16 |
4.3 Compensation for Growth
VOD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as VOD's earnings are expected to grow with 13.70% in the coming years.
PEG (NY)0.67
PEG (5Y)1.84
EPS Next 2Y14.67%
EPS Next 3Y13.7%
5. Dividend
5.1 Amount
VOD has a Yearly Dividend Yield of 4.89%, which is a nice return.
VOD's Dividend Yield is a higher than the industry average which is at 5.06.
VOD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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%
10.78
+0.11 (+1.03%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners57.41%
Inst Owner Change-40.29%
Ins Owners0.8%
Ins Owner ChangeN/A
Market Cap26.40B
Analysts69.29
Price Target11.11 (3.06%)
Short Float %0.83%
Short Ratio0.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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)-0.44%
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)-3.51%
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 | 11.11 | ||
| Fwd PE | 9.52 | ||
| P/S | 0.6 | ||
| P/FCF | 2.59 | ||
| P/OCF | 1.46 | ||
| P/B | 0.43 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 3.16 |
EPS(TTM)0.97
EY9%
EPS(NY)1.13
Fwd EY10.5%
FCF(TTM)4.17
FCFY38.66%
OCF(TTM)7.39
OCFY68.53%
SpS17.99
BVpS25.35
TBVpS9.28
PEG (NY)0.67
PEG (5Y)1.84
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
WACC5.72%
ROIC/WACC0.65
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%