(VOD) Vodafone - Overview
Sector: Communication Services | Industry: Telecom Services | Exchange: NASDAQ (USA) | Market Cap: 35.092m USD | Total Return: 49.1% in 12m
Avg Turnover: 49.2M
Warnings
Altman Z'' -3.84 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
Vodafone Group PLC is a multinational telecommunications provider operating across Europe and Africa. The company delivers a comprehensive suite of mobile and fixed connectivity services, including 5G networking, cloud computing, and Internet of Things (IoT) platforms. Its business model integrates consumer retail services with enterprise solutions for sectors such as logistics, healthcare, and finance.
The company maintains a significant footprint in emerging markets through M-PESA, a dominant mobile money platform that provides banking infrastructure in regions with low traditional bank penetration. In the wireless telecommunication services industry, companies often balance high capital expenditure for network infrastructure with recurring revenue from long-term service contracts.
Investors can evaluate the company’s dividend sustainability and valuation metrics on ValueRay. Vodafone also manages extensive infrastructure assets, including fiber networks and mobile towers, which it frequently leverages through leasing and shared operation agreements to optimize asset utilization.
- Germany service revenue growth and market share retention drive bottom line stability
- Asset divestitures in Italy and Spain streamline operations to reduce net debt
- M-Pesa expansion in African markets accelerates high-margin financial services revenue
- European regulatory scrutiny on mobile consolidation limits inorganic growth opportunities
- High capital expenditure on 5G infrastructure deployment pressures free cash flow margins
| Net Income: 2.91b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA -2.04 > 1.0 |
| NWC/Revenue: 3.68% < 20% (prev 6.72%; Δ -3.04% < -1%) |
| CFO/TA 0.22 > 3% & CFO 28.1b > Net Income 2.91b |
| Net Debt (47.7b) to EBITDA (27.5b): 1.74 < 3 |
| Current Ratio: 1.13 > 1.5 & < 3 |
| Outstanding Shares: last quarter (2.31b) vs 12m ago -9.75% < -2% |
| Gross Margin: 34.35% > 18% (prev 0.33%; Δ 3.40k% > 0.5%) |
| Asset Turnover: 63.25% > 50% (prev 53.42%; Δ 9.83% > 0%) |
| Interest Coverage Ratio: 2.61 > 6 (EBITDA TTM 27.5b / Interest Expense TTM 3.62b) |
| A: 0.02 (Total Current Assets 27.1b - Total Current Liabilities 24.0b) / Total Assets 130b |
| B: -0.97 (Retained Earnings -127b / Total Assets 130b) |
| C: 0.07 (EBIT TTM 9.44b / Avg Total Assets 134b) |
| D: -1.23 (Book Value of Equity -93.1b / Total Liabilities 75.5b) |
| Altman-Z'' = -3.84 = D |
| DSRI: 1.14 (Receivables 10.8b/8.23b, Revenue 85.0b/74.2b) |
| GMI: 0.97 (GM 34.35% / 33.41%) |
| AQI: 0.96 (AQ_t 0.53 / AQ_t-1 0.55) |
| SGI: 1.15 (Revenue 85.0b / 74.2b) |
| TATA: -0.19 (NI 2.91b - CFO 28.1b) / TA 130b) |
| Beneish M = -3.05 (Cap -4..+1) = AA |
As of May 26, 2026, the stock is trading at USD 14.94 with a total of 2,416,800 shares traded.
Over the past week, the price has changed by +1.77%,
over one month by -3.68%,
over three months by -5.80% and
over the past year by +49.06%.
Vodafone has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold VOD.
- StrongBuy: 0
- Buy: 0
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 13.2 | -11.6% |
P/E Forward = 32.8947
P/S = 0.8673
P/B = 0.5933
P/EG = 0.6057
Revenue TTM = 85.0b USD
EBIT TTM = 9.44b USD
EBITDA TTM = 27.5b USD
Long Term Debt = 45.6b USD (estimated: total debt 52.7b - short term 7.14b)
Short Term Debt = 7.14b USD (from shortTermDebt, last quarter)
Debt = 63.5b USD (from shortLongTermDebtTotal, last quarter) + Leases 10.8b
Net Debt = 47.7b USD (calculated: Debt 63.5b - CCE 15.8b)
Enterprise Value = 82.8b USD (35.1b + Debt 63.5b - CCE 15.8b)
Interest Coverage Ratio = 2.61 (Ebit TTM 9.44b / Interest Expense TTM 3.62b)
EV/FCF = 4.46x (Enterprise Value 82.8b / FCF TTM 18.6b)
FCF Yield = 22.40% (FCF TTM 18.6b / Enterprise Value 82.8b)
FCF Margin = 21.82% (FCF TTM 18.6b / Revenue TTM 85.0b)
Net Margin = 3.42% (Net Income TTM 2.91b / Revenue TTM 85.0b)
Gross Margin = 34.35% ((Revenue TTM 85.0b - Cost of Revenue TTM 55.8b) / Revenue TTM)
Gross Margin QoQ = 30.47% (prev 37.00%)
Tobins Q-Ratio = 0.64 (Enterprise Value 82.8b / Total Assets 130b)
Interest Expense / Debt = 5.69% (Interest Expense 3.62b / Debt 63.5b)
Taxrate = 21.0% (US default 21%)
NOPAT = 7.46b (EBIT 9.44b * (1 - 21.00%))
Current Ratio = 1.13 (Total Current Assets 27.1b / Total Current Liabilities 24.0b)
Debt / Equity = 1.25 (Debt 63.5b / totalStockholderEquity, last quarter 50.7b)
Debt / EBITDA = 1.74 (Net Debt 47.7b / EBITDA 27.5b)
Debt / FCF = 2.57 (Net Debt 47.7b / FCF TTM 18.6b)
Total Stockholder Equity = 56.8b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.16% (Net Income 2.91b / Total Assets 130b)
RoE = 1.59% (Net Income TTM 2.91b / Total Stockholder Equity 183b)
RoCE = 4.12% (EBIT 9.44b / Capital Employed (Equity 183b + L.T.Debt 45.6b))
RoIC = 6.59% (NOPAT 7.46b / Invested Capital 113b)
WACC = 5.27% (E(35.1b)/V(98.6b) * Re(6.68%) + D(63.5b)/V(98.6b) * Rd(5.69%) * (1-Tc(0.21)))
Discount Rate = 6.68% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -76.83 | Cagr: -6.78%
[DCF] Terminal Value 73.10% ; FCFF base≈20.2b ; Y1≈17.7b ; Y5≈14.3b
[DCF] Fair Price = 78.99 (EV 230b - Net Debt 47.7b = Equity 182b / Shares 2.30b; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.0 | # QB: 0
Revenue Correlation: 56.76 | Revenue CAGR: 9.07% | SUE: 0.02 | # QB: 0