VODAFONE GROUP PLC-SP ADR (VOD) Stock Fundamental Analysis
NASDAQ:VOD - Nasdaq - US92857W3088 - ADR - Currency: USD
Taking everything into account, VOD scores 4 out of 10 in our fundamental rating. VOD was compared to 21 industry peers in the Wireless Telecommunication Services industry. The financial health of VOD is average, but there are quite some concerns on its profitability. 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.
VOD has a Return On Equity of -7.90%. This is amonst the worse of the industry: VOD underperforms 80.95% of its industry peers.
VOD's Return On Invested Capital of 3.69% is in line compared to the rest of the industry. VOD outperforms 42.86% of 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
The Operating Margin of VOD (13.19%) is comparable to the rest of the industry.
VOD's Operating Margin has declined in the last couple of years.
VOD's Gross Margin of 33.43% is on the low side compared to the rest of the industry. VOD is outperformed by 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
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
The number of shares outstanding for VOD has been reduced compared to 5 years ago.
VOD has a worse debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of -0.69, VOD is doing worse than 80.95% of the companies in the same industry.
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.
A Debt/Equity ratio of 0.87 indicates that VOD is somewhat dependend on debt financing.
The Debt to Equity ratio of VOD (0.87) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.13 | ||
| Altman-Z | -0.69 |
ROIC/WACC0.65
WACC5.69%
2.3 Liquidity
A Current Ratio of 1.26 indicates that VOD should not have too much problems paying its short term obligations.
The Current ratio of VOD (1.26) is comparable to the rest of the 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.
VOD has a Quick ratio (1.23) which is in line with 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 6.04% yearly.
Looking at the last year, VOD shows a small growth in Revenue. The Revenue has grown by 1.99% in the last 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
The Earnings Per Share is expected to grow by 7.89% on average over the next years.
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
With a Price/Earnings ratio of 11.26, the valuation of VOD can be described as very reasonable.
Based on the Price/Earnings ratio, VOD is valued a bit cheaper than 76.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of VOD to the average of the S&P500 Index (27.29), we can say VOD is valued rather cheaply.
The Price/Forward Earnings ratio is 9.68, which indicates a very decent valuation of VOD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VOD indicates a somewhat cheap valuation: VOD is cheaper than 71.43% 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 (21.74), we can say VOD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.26 | ||
| Fwd PE | 9.68 |
4.2 Price Multiples
95.24% 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 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.63 | ||
| EV/EBITDA | 3.18 |
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)0.67
PEG (5Y)1.86
EPS Next 2Y14.67%
EPS Next 3Y13.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.89%, VOD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.06, VOD pays a bit more dividend than its industry peers.
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%
10.92
+0.14 (+1.3%)
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 Cap26.74B
Analysts69.29
Price Target11.11 (1.74%)
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 | 11.26 | ||
| Fwd PE | 9.68 | ||
| P/S | 0.61 | ||
| P/FCF | 2.63 | ||
| P/OCF | 1.48 | ||
| P/B | 0.43 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 3.18 |
EPS(TTM)0.97
EY8.88%
EPS(NY)1.13
Fwd EY10.34%
FCF(TTM)4.15
FCFY38.04%
OCF(TTM)7.36
OCFY67.42%
SpS17.94
BVpS25.26
TBVpS9.25
PEG (NY)0.67
PEG (5Y)1.86
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
WACC5.69%
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%