VODAFONE GROUP PLC-SP ADR (VOD) Stock Fundamental Analysis
USA - NASDAQ:VOD - US92857W3088 - ADR
11.73 USD
+0.07 (+0.6%)
11.64 USD
-0.09 (-0.77%)
Overall VOD gets a fundamental rating of 4 out of 10. We evaluated VOD 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
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 has a worse Return On Assets (-3.24%) than 81.82% 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 81.82% of its industry peers.
VOD has a Return On Invested Capital of 3.69%. This is comparable to the rest of the industry: VOD outperforms 45.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VOD is below the industry average of 5.84%.
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
The Operating Margin of VOD (13.19%) is better than 63.64% of its industry peers.
In the last couple of years the Operating Margin of VOD has declined.
With a Gross Margin value of 33.43%, VOD is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
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.
The number of shares outstanding for VOD has been reduced compared to 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 -0.68, we must say that VOD is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.68, VOD is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
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 has a better Debt to FCF ratio (6.13) than 72.73% 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.
VOD's Debt to Equity ratio of 0.87 is in line compared to the rest of the industry. VOD outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 6.13 | ||
| Altman-Z | -0.68 |
ROIC/WACC0.64
WACC5.78%
2.3 Liquidity
VOD has a Current Ratio of 1.26. 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 Current ratio (1.26) which is comparable to the rest of the industry.
A Quick Ratio of 1.23 indicates that VOD should not have too much problems paying its short term obligations.
VOD has a Quick ratio (1.23) which 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
The Earnings Per Share has been growing slightly by 5.33% over the past year.
Measured over the past 5 years, VOD shows a small growth in Earnings Per Share. The EPS has been growing by 6.51% on average per year.
The Revenue has been growing slightly by 1.99% in the past year.
The Revenue has been decreasing by -3.60% on average over the past years.
EPS 1Y (TTM)5.33%
EPS 3Y-10.45%
EPS 5Y6.51%
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 10.49% on average over the next years. This is quite good.
VOD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.34% yearly.
EPS Next Y11.88%
EPS Next 2Y13.69%
EPS Next 3Y12.12%
EPS Next 5Y10.49%
Revenue Next Year5.55%
Revenue Next 2Y3.53%
Revenue Next 3Y2.17%
Revenue Next 5Y0.34%
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
With a Price/Earnings ratio of 11.97, the valuation of VOD can be described as very reasonable.
Based on the Price/Earnings ratio, VOD is valued a bit cheaper than 77.27% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.91. VOD is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.73, the valuation of VOD can be described as reasonable.
Based on the Price/Forward Earnings ratio, VOD is valued cheaper than 81.82% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.92, VOD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 10.73 |
4.2 Price Multiples
VOD's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VOD is cheaper than 95.45% of the companies in the same industry.
100.00% of the companies in the same industry are more expensive than VOD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.79 | ||
| 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 12.12% in the coming years.
PEG (NY)1.01
PEG (5Y)1.84
EPS Next 2Y13.69%
EPS Next 3Y12.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.37%, VOD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.53, VOD has a dividend in line with its industry peers.
VOD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
5.2 History
The dividend of VOD decreases each year by -4.17%.
VOD has been paying a dividend for at least 10 years, so it has 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 2Y13.69%
EPS Next 3Y12.12%
11.73
+0.07 (+0.6%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners59.71%
Inst Owner Change-0.12%
Ins Owners0.82%
Ins Owner ChangeN/A
Market Cap28.10B
Revenue(TTM)37.45B
Net Income(TTM)-4169000000
Analysts68.28
Price Target11.59 (-1.19%)
Short Float %0.61%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.37% |
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)-0.86%
PT rev (3m)1.52%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.65%
EPS NY rev (3m)-1.98%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)2.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 10.73 | ||
| P/S | 0.65 | ||
| P/FCF | 2.79 | ||
| P/OCF | 1.58 | ||
| P/B | 0.46 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 3.26 |
EPS(TTM)0.98
EY8.35%
EPS(NY)1.09
Fwd EY9.32%
FCF(TTM)4.2
FCFY35.79%
OCF(TTM)7.44
OCFY63.43%
SpS18.12
BVpS25.53
TBVpS9.34
PEG (NY)1.01
PEG (5Y)1.84
Graham Number23.73
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 | -0.68 |
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 5Y6.51%
EPS Q2Q%-35.56%
EPS Next Y11.88%
EPS Next 2Y13.69%
EPS Next 3Y12.12%
EPS Next 5Y10.49%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y-6.34%
Revenue growth 5Y-3.6%
Sales Q2Q%29.72%
Revenue Next Year5.55%
Revenue Next 2Y3.53%
Revenue Next 3Y2.17%
Revenue Next 5Y0.34%
EBIT growth 1Y33.65%
EBIT growth 3Y-3.06%
EBIT growth 5Y-9.83%
EBIT Next Year168.13%
EBIT Next 3Y40.81%
EBIT Next 5Y22.16%
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 7 / 10 to VODAFONE GROUP PLC-SP ADR (VOD). This can be considered as Undervalued.
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 11.88% in the next year.