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Vodafone (VOD)
NASDAQ:VOD
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Vodafone
(NASDAQ:VOD)
71Outperform
Vodafone (VOD) vs. S&P 500 (SPY)
Market Cap
$23.42B
Dividend Yield7.39%
Average Volume (3M)10.61M
Price to Earnings (P/E)9.2
Beta (1Y)0.33
Revenue Growth-24.84%
EPS Growth-74.77%
CountryUS
Employees85,887
SectorCommunication Services
Sector Strength85
IndustryTelecommunications
Share Statistics
EPS (TTM)1.02
Shares Outstanding2,503,092,800
10 Day Avg. Volume11,007,049
30 Day Avg. Volume10,606,682
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.67
Price to Cash Flow (P/CF)2.00
P/FCF Ratio3.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1.74Price Target Upside-81.59% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Vodafone Business Overview & Revenue Model
Company DescriptionVodafone Group Plc (VOD) is a multinational telecommunications company that operates primarily in Europe and Africa. It provides a wide range of services, including mobile voice, messaging, data, and fixed broadband. The company serves both consumer and enterprise customers, offering products such as mobile phone contracts, broadband internet, and IoT solutions. Vodafone is also involved in network infrastructure development and maintenance, ensuring robust connectivity for its users.
How the Company Makes MoneyVodafone generates revenue through several key streams. The primary source of income is the provision of mobile services, which includes voice, text, and data plans for both prepaid and postpaid customers. Additionally, Vodafone earns from fixed-line broadband services, offering internet access to residential and business clients. The company also capitalizes on enterprise solutions, providing managed services, cloud solutions, and Internet of Things (IoT) services to corporate customers. Roaming charges and international call services contribute to its earnings as well. Vodafone benefits from strategic partnerships and joint ventures, which enhance its service offerings and market reach, particularly in emerging markets. Revenue is further supported by the sale of handsets and devices, often bundled with service contracts.
Vodafone Financial Statement Overview
Summary
Vodafone's financial statements indicate a mixed performance with declining revenue and profitability pressures. The income statement reflects a revenue drop and reduced net profit margin, while the balance sheet shows stability with manageable debt levels. Cash flow has weakened, yet operational efficiency remains strong.Income Statement
Vodafone's income statement indicates a decline in revenue from the previous year, with a negative revenue growth rate of 19.67%. The gross profit margin stands at 33.4% for 2024, reflecting a decrease from previous years, and the net profit margin is markedly lower at 3.1% due to a significant drop in net income. While EBITDA margin is strong at 40.2%, the overall profitability has weakened, suggesting challenges in maintaining operational efficiency and revenue generation.60
Neutral
Balance Sheet
The balance sheet shows a stable equity position with a debt-to-equity ratio of 0.91, indicating a manageable level of leverage. The return on equity stands at a modest 1.9% due to reduced net income, reflecting the need for improved profitability. The equity ratio is robust at 41.5%, demonstrating a solid capital structure with a balanced asset base.70
Positive
Cash Flow
Cash flow analysis reveals a decrease in free cash flow, with a negative growth rate of 25.98%, highlighting reduced cash generation capabilities. However, the operating cash flow to net income ratio is strong at 14.52, indicating efficient conversion of earnings to cash. Despite the decline in free cash flow, Vodafone maintains a positive free cash flow to net income ratio of 8.51, suggesting continued albeit diminished cash flow support for operations.65
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 18.28B | 36.72B | 45.71B | 45.58B | 43.81B | 44.97B | Gross Profit |
| 6.15B | 12.26B | 14.86B | 15.01B | 13.72B | 14.29B | EBIT |
| 2.38B | 3.67B | 4.46B | 5.37B | 3.42B | 3.62B | EBITDA |
| 6.09B | 14.78B | 11.77B | 13.00B | 13.60B | 14.08B | Net Income Common Stockholders |
| 1.06B | 1.14B | 11.84B | 2.24B | 59.00M | -920.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 26.65B | 10.53B | 18.48B | 14.73B | 11.87B | 19.53B | Total Assets |
| 142.86B | 144.35B | 155.52B | 154.05B | 155.06B | 168.17B | Total Debt |
| 52.95B | 54.36B | 61.50B | 67.18B | 66.80B | 69.63B | Net Debt |
| 39.32B | 48.18B | 49.80B | 59.68B | 60.98B | 56.08B | Total Liabilities |
| 79.42B | 83.35B | 91.04B | 96.98B | 97.25B | 105.54B | Stockholders Equity |
| 62.22B | 59.97B | 63.40B | 54.78B | 55.80B | 61.41B |
| Cash Flow | Free Cash Flow | ||||
| 3.46B | 9.70B | 13.10B | 13.53B | 11.80B | 12.20B | Operating Cash Flow |
| 5.64B | 16.56B | 18.05B | 18.08B | 17.21B | 17.38B | Investing Cash Flow |
| 2.47B | -6.12B | -379.00M | -6.87B | -9.26B | -8.09B | Financing Cash Flow |
| -7.33B | -15.86B | -13.43B | -9.71B | -15.20B | -9.35B |
Vodafone Technical Analysis
Positive
9.45
Price Trends
8.53
Positive
8.73
Positive
8.95
Positive
Market Momentum
0.21
Negative
76.69
Negative
92.38
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VOD, the sentiment is Positive. The current price of 9.45 is above the 20-day moving average (MA) of 8.70, above the 50-day MA of 8.53, and above the 200-day MA of 8.95, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 76.69 is Negative, neither overbought nor oversold. The STOCH value of 92.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VOD.
Vodafone Risk Analysis
Vodafone disclosed 13 risk factors in its most recent earnings report. Vodafone reported the most risks in the “Macro & Political” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vodafone Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $136.53B | 9.07 | 19.24% | 3.30% | 1.78% | 11.62% | |
76 Outperform | $195.82B | 18.18 | 10.54% | 4.09% | -0.08% | -24.48% | |
76 Outperform | $304.42B | 27.44 | 17.93% | 1.15% | 3.62% | 38.24% | |
74 Outperform | $59.18B | 10.61 | 38.11% | ― | 0.88% | 16.44% | |
73 Outperform | $195.71B | 11.11 | 18.27% | 5.83% | 0.61% | 50.39% | |
71 Outperform | $23.42B | 9.18 | 4.31% | 7.39% | -24.84% | -74.77% | |
59 Neutral | $30.54B | 0.25 | -13.23% | 4.04% | 2.36% | -49.53% |
* Communication Services Sector Average
Performance Comparison
VOD
Vodafone
9.45
1.13
13.58%
T
AT&T
27.28
11.02
67.77%
CHTR
Charter Communications
373.52
78.82
26.75%
CMCSA
Comcast
36.11
-5.74
-13.72%
VZ
Verizon
46.49
8.90
23.68%
TMUS
T Mobile US
266.63
105.23
65.20%
Vodafone Earnings Call Summary
Earnings Call Date: Nov 12, 2024 | % Change Since: 4.07% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with notable achievements in EBITDA growth and strategic investments, particularly in the UK and Turkiye. However, these are counterbalanced by challenges in Germany's service revenue and increased competition in the German mobile market.Highlights
Group EBITDA Growth
Group EBITDA grew by 3.8% in the first half, supported by significant growth in the UK at over 8% and Turkiye by circa 50% in euro terms.
UK Performance
The UK experienced strong EBITDA growth and achieved its highest-ever NPS alongside its lowest-ever churn, driven by improving consumer satisfaction.
Turkiye Market Share Record
Vodafone achieved its highest-ever market share in Turkiye, with significant growth performance.
Vodafone Investments Division Activity
Vodafone sold down a further stake in Vantage Towers for €1.3 billion to achieve a co-control structure.
Role Reduction Program
Vodafone has completed 80% of its role reduction program, aligning with its simplicity strategic priority.
Lowlights
Service Revenue Decline in Germany
Service revenue trends slowed in Germany, reflecting the impact of the MDU transition and broadband net adds remaining negative.
Competitive Pressure in German Mobile Market
Increased competition in the German mobile market, with aggressive pricing moves by competitors.
B2B Revenue Decline in the UK
UK B2B service revenue is still in decline, attributed to project phasing and market competition.
Company Guidance
In the recent call, Vodafone reiterated its full-year guidance, highlighting a 3.8% growth in Group EBITDA for the first half of the fiscal year, with notable contributions from the U.K. at over 8%, other European markets at over 3%, and Turkiye experiencing a significant rise of approximately 50% in euro terms. The company addressed challenges in Germany due to the MDU transition, which impacted service revenue trends in Q2. Vodafone's strategic priorities focus on customer satisfaction, simplicity in operations, and growth. As part of its operational improvements, Vodafone has completed the formation of a new management team in Germany, achieved a 75% gigabit-capable broadband coverage for German households, and is investing in digital services, which saw an 18% growth. The company also highlighted its progress in simplifying operations, achieving 80% of its role reduction program, and finalized a partnership with Accenture to further commercialize shared operations. Additionally, Vodafone's new Investments division facilitated a €1.3 billion stake reduction in Vantage Towers, aligning with its co-control structure plans. The company anticipates improved performance and growth into fiscal year 2026, driven by ongoing strategic initiatives and operational enhancements.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.