12.11 USD
+0.26 (+2.19%)
12.02 USD
-0.09 (-0.74%)
VOD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 22 industry peers in the Wireless Telecommunication Services industry. The financial health of VOD is average, but 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.
VOD had positive earnings in 4 of the past 5 years.
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: 81.82% 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 81.82% of its industry peers.
VOD has a Return On Invested Capital (3.69%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VOD is below the industry average of 5.83%.
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
VOD has a Operating Margin of 13.19%. This is in the better half of the industry: VOD outperforms 63.64% of its industry peers.
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 77.27% 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.
Compared to 1 year ago, VOD has less shares outstanding
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
Based on the Altman-Z score of -0.67, we must say that VOD is in the distress zone and has some risk of bankruptcy.
VOD has a worse Altman-Z score (-0.67) than 81.82% 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.
Looking at the Debt to FCF ratio, with a value of 6.13, VOD is in line with its industry, outperforming 50.00% of the companies in the same industry.
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 | -0.67 |
ROIC/WACC0.64
WACC5.75%
2.3 Liquidity
A Current Ratio of 1.26 indicates that VOD should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.26, VOD belongs to the best of the industry, outperforming 81.82% of the companies in the same 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.
Looking at the Quick ratio, with a value of 1.23, VOD belongs to the top of the industry, outperforming 81.82% of the companies in the same 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%.
VOD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.59% 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 5Y6.59%
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
Based on estimates for the next years, VOD will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.57% on average per year.
Based on estimates for the next years, VOD will show a small growth in Revenue. The Revenue will grow by 1.01% on average per year.
EPS Next Y11.47%
EPS Next 2Y13.11%
EPS Next 3Y11.98%
EPS Next 5Y13.57%
Revenue Next Year6.05%
Revenue Next 2Y3.77%
Revenue Next 3Y2.5%
Revenue Next 5Y1.01%
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.
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
Based on the Price/Earnings ratio of 12.48, the valuation of VOD can be described as correct.
Based on the Price/Earnings ratio, VOD is valued cheaper than 86.36% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.45. VOD is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.14, the valuation of VOD can be described as very reasonable.
72.73% of the companies in the same industry are more expensive than VOD, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, VOD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.48 | ||
| Fwd PE | 11.14 |
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.
Based on the Price/Free Cash Flow ratio, VOD is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.89 | ||
| EV/EBITDA | 3.33 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.09
PEG (5Y)1.89
EPS Next 2Y13.11%
EPS Next 3Y11.98%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.43%, VOD is a good candidate for dividend investing.
VOD's Dividend Yield is comparable with the industry average which is at 8.86.
Compared to an average S&P500 Dividend Yield of 2.42, VOD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
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 2Y13.11%
EPS Next 3Y11.98%
12.11
+0.26 (+2.19%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners59.71%
Inst Owner Change-2.99%
Ins Owners0.82%
Ins Owner ChangeN/A
Market Cap28.90B
Revenue(TTM)37.45B
Net Income(TTM)-4.17B
Analysts68.57
Price Target11.8 (-2.56%)
Short Float %0.63%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
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)1.79%
PT rev (3m)1.95%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)2.82%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.48 | ||
| Fwd PE | 11.14 | ||
| P/S | 0.67 | ||
| P/FCF | 2.89 | ||
| P/OCF | 1.63 | ||
| P/B | 0.48 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 3.33 |
EPS(TTM)0.97
EY8.01%
EPS(NY)1.09
Fwd EY8.97%
FCF(TTM)4.19
FCFY34.57%
OCF(TTM)7.42
OCFY61.27%
SpS18.08
BVpS25.46
TBVpS9.32
PEG (NY)1.09
PEG (5Y)1.89
Graham Number23.57
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 | -0.67 |
F-Score6
WACC5.75%
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 5Y6.59%
EPS Q2Q%-35.56%
EPS Next Y11.47%
EPS Next 2Y13.11%
EPS Next 3Y11.98%
EPS Next 5Y13.57%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y-6.34%
Revenue growth 5Y-3.6%
Sales Q2Q%29.72%
Revenue Next Year6.05%
Revenue Next 2Y3.77%
Revenue Next 3Y2.5%
Revenue Next 5Y1.01%
EBIT growth 1Y33.65%
EBIT growth 3Y-3.06%
EBIT growth 5Y-9.83%
EBIT Next Year168.13%
EBIT Next 3Y41.18%
EBIT Next 5Y22.98%
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 11.47% in the next year.