VODAFONE GROUP PLC-SP ADR (VOD) Stock Fundamental Analysis
NASDAQ:VOD - Nasdaq - US92857W3088 - ADR - Currency: USD
Taking everything into account, VOD scores 5 out of 10 in our fundamental rating. VOD was compared to 22 industry peers in the Wireless Telecommunication Services industry. Both the profitability and the financial health of VOD get a neutral evaluation. Nothing too spectacular is happening here. VOD is cheap, but on the other hand it scores bad on growth.
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
VOD has a Return On Assets (0.82%) which is in line with its industry peers.
VOD has a Return On Equity (1.91%) which is in line with its industry peers.
With a Return On Invested Capital value of 2.49%, VOD perfoms like the industry average, outperforming 42.86% 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 6.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 1.91% | ||
| ROIC | 2.49% |
ROA(3y)3.28%
ROA(5y)1.87%
ROE(3y)8.22%
ROE(5y)4.65%
ROIC(3y)2.89%
ROIC(5y)3.25%
1.3 Margins
VOD has a Profit Margin of 3.10%. This is comparable to the rest of the industry: VOD outperforms 52.38% of its industry peers.
VOD's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 10.07%, VOD perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
In the last couple of years the Operating Margin of VOD has grown nicely.
With a Gross Margin value of 33.39%, VOD is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of VOD has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.07% | ||
| PM (TTM) | 3.1% | ||
| GM | 33.39% |
OM growth 3Y-2.47%
OM growth 5Y4.78%
PM growth 3Y184.61%
PM growth 5YN/A
GM growth 3Y2.15%
GM growth 5Y1.54%
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 more shares outstanding
VOD has less shares outstanding than it did 5 years ago.
VOD has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.64, we must say that VOD is in the distress zone and has some risk of bankruptcy.
VOD's Altman-Z score of -0.64 is on the low side compared to the rest of the industry. VOD is outperformed by 80.95% of its industry peers.
The Debt to FCF ratio of VOD is 5.06, which is a neutral value as it means it would take VOD, 5.06 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.06, VOD belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
A Debt/Equity ratio of 0.79 indicates that VOD is somewhat dependend on debt financing.
The Debt to Equity ratio of VOD (0.79) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 5.06 | ||
| Altman-Z | -0.64 |
ROIC/WACC0.54
WACC4.61%
2.3 Liquidity
A Current Ratio of 1.08 indicates that VOD should not have too much problems paying its short term obligations.
VOD's Current ratio of 1.08 is in line compared to the rest of the industry. VOD outperforms 42.86% of its industry peers.
A Quick Ratio of 1.05 indicates that VOD should not have too much problems paying its short term obligations.
VOD has a Quick ratio (1.05) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
VOD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.75%, which is quite good.
VOD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.45% yearly.
The Revenue for VOD has decreased by -19.67% in the past year. This is quite bad
VOD shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.41% yearly.
EPS 1Y (TTM)18.75%
EPS 3Y-2.13%
EPS 5Y8.45%
EPS Q2Q%66.67%
Revenue 1Y (TTM)-19.67%
Revenue growth 3Y-5.72%
Revenue growth 5Y-3.41%
Sales Q2Q%-16.69%
3.2 Future
The Earnings Per Share is expected to grow by 11.73% on average over the next years. This is quite good.
Based on estimates for the next years, VOD will show a decrease in Revenue. The Revenue will decrease by -2.76% on average per year.
EPS Next Y9.77%
EPS Next 2Y16.25%
EPS Next 3Y15.39%
EPS Next 5Y11.73%
Revenue Next Year-13.64%
Revenue Next 2Y-6.32%
Revenue Next 3Y-3.81%
Revenue Next 5Y-2.76%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.96 indicates a rather cheap valuation of VOD.
Based on the Price/Earnings ratio, VOD is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. VOD is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.47 indicates a rather cheap valuation of VOD.
Based on the Price/Forward Earnings ratio, VOD is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VOD to the average of the S&P500 Index (22.68), we can say VOD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.96 | ||
| Fwd PE | 7.47 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VOD is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VOD is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.84 | ||
| EV/EBITDA | 4.52 |
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.
VOD's earnings are expected to grow with 15.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.81
PEG (5Y)0.94
EPS Next 2Y16.25%
EPS Next 3Y15.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.72%, VOD is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.05, VOD pays a better dividend. On top of this VOD pays more dividend than 100.00% of the companies listed in the same industry.
VOD's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.72% |
5.2 History
The dividend of VOD decreases each year by -9.83%.
VOD has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-9.83%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
212.37% of the earnings are spent on dividend by VOD. This is not a sustainable payout ratio.
DP212.37%
EPS Next 2Y16.25%
EPS Next 3Y15.39%
8.36
+0.1 (+1.21%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners59.87%
Inst Owner Change-1.95%
Ins Owners0.79%
Ins Owner ChangeN/A
Market Cap21.20B
Analysts71.11
Price Target11.13 (33.13%)
Short Float %0.55%
Short Ratio1.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.72% |
Yearly Dividend0.09
Dividend Growth(5Y)-9.83%
DP212.37%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-5.49%
PT rev (3m)-5.49%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.73%
EPS NY rev (3m)0.73%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.89%
Revenue NY rev (3m)-1.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.96 | ||
| Fwd PE | 7.47 | ||
| P/S | 0.55 | ||
| P/FCF | 1.84 | ||
| P/OCF | 1.22 | ||
| P/B | 0.34 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 4.52 |
EPS(TTM)1.05
EY12.56%
EPS(NY)1.12
Fwd EY13.39%
FCF(TTM)4.54
FCFY54.25%
OCF(TTM)6.86
OCFY82.03%
SpS15.12
BVpS24.56
TBVpS8.72
PEG (NY)0.81
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.82% | ||
| ROE | 1.91% | ||
| ROCE | 3.15% | ||
| ROIC | 2.49% | ||
| ROICexc | 2.8% | ||
| ROICexgc | 4.43% | ||
| OM | 10.07% | ||
| PM (TTM) | 3.1% | ||
| GM | 33.39% | ||
| FCFM | 30% |
ROA(3y)3.28%
ROA(5y)1.87%
ROE(3y)8.22%
ROE(5y)4.65%
ROIC(3y)2.89%
ROIC(5y)3.25%
ROICexc(3y)3.3%
ROICexc(5y)3.73%
ROICexgc(3y)5.86%
ROICexgc(5y)6.75%
ROCE(3y)3.81%
ROCE(5y)4.27%
ROICexcg growth 3Y-14.62%
ROICexcg growth 5Y-6.54%
ROICexc growth 3Y-8.13%
ROICexc growth 5Y-3.16%
OM growth 3Y-2.47%
OM growth 5Y4.78%
PM growth 3Y184.61%
PM growth 5YN/A
GM growth 3Y2.15%
GM growth 5Y1.54%
F-Score7
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 5.06 | ||
| Debt/EBITDA | 3.76 | ||
| Cap/Depr | 63.74% | ||
| Cap/Sales | 15.36% | ||
| Interest Coverage | 1.4 | ||
| Cash Conversion | 132.76% | ||
| Profit Quality | 966.32% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | -0.64 |
F-Score7
WACC4.61%
ROIC/WACC0.54
Cap/Depr(3y)66.32%
Cap/Depr(5y)62.78%
Cap/Sales(3y)19.57%
Cap/Sales(5y)19.07%
Profit Quality(3y)442.85%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.75%
EPS 3Y-2.13%
EPS 5Y8.45%
EPS Q2Q%66.67%
EPS Next Y9.77%
EPS Next 2Y16.25%
EPS Next 3Y15.39%
EPS Next 5Y11.73%
Revenue 1Y (TTM)-19.67%
Revenue growth 3Y-5.72%
Revenue growth 5Y-3.41%
Sales Q2Q%-16.69%
Revenue Next Year-13.64%
Revenue Next 2Y-6.32%
Revenue Next 3Y-3.81%
Revenue Next 5Y-2.76%
EBIT growth 1Y-21.34%
EBIT growth 3Y-8.05%
EBIT growth 5Y1.21%
EBIT Next Year140.77%
EBIT Next 3Y35.74%
EBIT Next 5Y18.09%
FCF growth 1Y27.09%
FCF growth 3Y4.18%
FCF growth 5Y14.96%
OCF growth 1Y-6.98%
OCF growth 3Y-1.29%
OCF growth 5Y4.99%