VODAFONE GROUP PLC-SP ADR (VOD) Stock Fundamental Analysis
USA - NASDAQ:VOD - US92857W3088 - ADR
11.66 USD
-0.11 (-0.93%)
11.65 USD
-0.01 (-0.09%)
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. While VOD seems to be doing ok healthwise, there are quite some concerns on its profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on VOD.
1. Profitability
1.1 Basic Checks
In the past year VOD was profitable.
VOD had a positive operating cash flow in the past year.
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
The Return On Assets of VOD (-3.24%) is worse than 77.27% of its industry peers.
VOD's Return On Equity of -7.90% is on the low side compared to the rest of the industry. VOD is outperformed by 77.27% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.69%, VOD is in line with its industry, outperforming 45.45% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VOD is below the industry average of 6.09%.
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
With a Operating Margin value of 13.19%, VOD perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
In the last couple of years the Operating Margin of VOD has declined.
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
VOD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for VOD has been reduced compared to 1 year ago.
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
VOD has an Altman-Z score of -0.68. This is a bad value and indicates that VOD is not financially healthy and even has some risk of bankruptcy.
VOD has a worse Altman-Z score (-0.68) than 77.27% 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.
With a decent Debt to FCF ratio value of 6.13, VOD is doing good in the industry, outperforming 72.73% of the companies in the same industry.
VOD has a Debt/Equity ratio of 0.87. This is a neutral value indicating VOD is somewhat dependend on debt financing.
VOD has a Debt to Equity ratio of 0.87. This is comparable to the rest of the industry: VOD outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.13 | ||
| Altman-Z | -0.68 |
ROIC/WACC0.63
WACC5.83%
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 comparable to the rest of the industry: VOD outperforms 59.09% of its industry peers.
A Quick Ratio of 1.23 indicates that VOD should not have too much problems paying its short term obligations.
The Quick ratio of VOD (1.23) is comparable to the rest of the 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 6.36% on average per year.
VOD shows a small growth in Revenue. In the last year, the Revenue has grown by 1.99%.
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 5Y6.36%
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 10.28% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.47% on average over the next years.
EPS Next Y9.78%
EPS Next 2Y12.5%
EPS Next 3Y12.33%
EPS Next 5Y10.28%
Revenue Next Year5.6%
Revenue Next 2Y3.63%
Revenue Next 3Y2.7%
Revenue Next 5Y0.47%
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
With a Price/Earnings ratio of 11.78, the valuation of VOD can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of VOD indicates a somewhat cheap valuation: VOD is cheaper than 77.27% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, VOD is valued rather cheaply.
A Price/Forward Earnings ratio of 10.75 indicates a reasonable valuation of VOD.
Based on the Price/Forward Earnings ratio, VOD is valued a bit cheaper than 72.73% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VOD to the average of the S&P500 Index (22.70), we can say VOD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 10.75 |
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.
VOD's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VOD is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.75 | ||
| EV/EBITDA | 3.26 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as VOD's earnings are expected to grow with 12.33% in the coming years.
PEG (NY)1.2
PEG (5Y)1.85
EPS Next 2Y12.5%
EPS Next 3Y12.33%
5. Dividend
5.1 Amount
VOD has a Yearly Dividend Yield of 4.39%, which is a nice return.
VOD's Dividend Yield is comparable with the industry average which is at 5.28.
VOD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
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 2Y12.5%
EPS Next 3Y12.33%
11.66
-0.11 (-0.93%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners57.41%
Inst Owner Change-0.41%
Ins Owners0.8%
Ins Owner ChangeN/A
Market Cap28.13B
Analysts68.28
Price Target11.69 (0.26%)
Short Float %0.69%
Short Ratio2.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
Yearly Dividend0.85
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)2.08%
PT rev (3m)3.91%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-5.39%
EPS NY rev (3m)-3.35%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)2.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 10.75 | ||
| P/S | 0.64 | ||
| P/FCF | 2.75 | ||
| P/OCF | 1.55 | ||
| P/B | 0.45 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 3.26 |
EPS(TTM)0.99
EY8.49%
EPS(NY)1.09
Fwd EY9.31%
FCF(TTM)4.24
FCFY36.41%
OCF(TTM)7.52
OCFY64.52%
SpS18.33
BVpS25.81
TBVpS9.45
PEG (NY)1.2
PEG (5Y)1.85
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 | -0.68 |
F-Score6
WACC5.83%
ROIC/WACC0.63
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 5Y6.36%
EPS Q2Q%-35.56%
EPS Next Y9.78%
EPS Next 2Y12.5%
EPS Next 3Y12.33%
EPS Next 5Y10.28%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y-6.34%
Revenue growth 5Y-3.6%
Sales Q2Q%29.72%
Revenue Next Year5.6%
Revenue Next 2Y3.63%
Revenue Next 3Y2.7%
Revenue Next 5Y0.47%
EBIT growth 1Y33.65%
EBIT growth 3Y-3.06%
EBIT growth 5Y-9.83%
EBIT Next Year161.76%
EBIT Next 3Y41.02%
EBIT Next 5Y22.26%
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%