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Vodafone Group PLC VOD

Morningstar Rating
GBX 69.10 −0.52 (0.75%)
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Company Report

Vodafone Keeps Pruning Its Business Portfolio With the Sale of Its Italian Operations

Vodafone is a telecommunications conglomerate present in more than 20 countries around the world. Its most important markets are Germany and the United Kingdom. Vodafone has historically been a mobile player, but during the last decade it has carried out several deals to solidify its fixed-line presence. Vodafone is the owner of the cable network in Germany, thanks to the acquisitions of Kabel Deutschland (2013) and Liberty Global Germany (2019). These moves made Germany Vodafone’s largest market by revenue, a decision we support, given the historical price stability in this geography.

Price vs Fair Value

VOD is trading at a 44% discount.
Price
GBX 69.62
Fair Value
GBX 159.00
Uncertainty
Medium
1-Star Price
GBX 516.59
5-Star Price
GBX 41.50
Economic Moat
Xfw
Capital Allocation
Lpgqnqsx

Bulls Say, Bears Say

Bulls

The new CEO, Margherita della Valle, is making bold and right capital allocation decisions, divesting underperforming businesses that have been a drag for the past decade and cutting dividends.

Bears

Regulation remains very tough for European telecoms, preventing effective consolidation and constantly encouraging the entrance of new players that drop prices.

Is it the right time to buy, sell, or hold?
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News

Trading Information

Previous Close Price
GBX 69.62
Day Range
GBX 68.6470.06
52-Week Range
GBX 62.7197.05
Bid/Ask
GBX 68.60 / GBX 71.00
Market Cap
GBX 1.87 Tril
Volume/Avg
60.0 Mil / 123.0 Mil

Key Statistics

Price/Earnings (Normalized)
10.35
Price/Sales
0.49
Dividend Yield (Trailing)
11.08%
Dividend Yield (Forward)
9.41%
Total Yield
15.24%

Company Profile

Vodafone operates mobile and fixed-line networks and businesses in more than 20 countries. Its largest market is Germany, where it is the second mobile operator after Deutsche Telekom and owns a cable network after acquiring Kabel Deutschland in 2013 and Liberty Global Germany in 2019. In the UK it acts mainly as a mobile operator, being the second largest player after BT Group. In 2024 Vodafone divested its Spanish and Italian divisions, given their low returns on invested capital.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Large Value
Total Number of Employees
93,095

Competitors

Valuation

Metric
VOD
DTEGY
ORAN
Price/Earnings (Normalized)
10.3513.4511.23
Price/Book Value
0.361.840.88
Price/Sales
0.490.960.65
Price/Cash Flow
1.482.802.37
Price/Earnings
VOD
DTEGY
ORAN

Financial Strength

Metric
VOD
DTEGY
ORAN
Quick Ratio
0.860.860.68
Current Ratio
0.891.010.83
Interest Coverage
5.222.463.80
Quick Ratio
VOD
DTEGY
ORAN

Profitability

Metric
VOD
DTEGY
ORAN
Return on Assets (Normalized)
2.36%2.67%2.84%
Return on Equity (Normalized)
6.07%13.98%9.89%
Return on Invested Capital (Normalized)
4.33%4.95%9.61%
Return on Assets
VOD
DTEGY
ORAN
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