Vodacom Group Limited (VDMCY)
OTHER OTC:VDMCY
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Vodacom Group
(OTC:VDMCY)
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Rating:72Outperform
Price Target:
$10.50
â–²(19.18% Upside)
Action:Reiterated
Date:05/13/26
The score is driven by attractive valuation (low P/E and ~4% yield) and constructive technicals (price above major moving averages with positive momentum). Financial performance is generally solid on profitability and cash flow, but the balance-sheet leverage uncertainty—especially the sharp 2026 debt swing—meaningfully tempers the overall rating.
Positive Factors
Strong cash generation
Consistently large operating cash flows and healthy free cash flow provide durable internal funding for network capex, digital expansion and dividends. This persistent cash generation supports reinvestment and financial flexibility through multi-year technology cycles and market expansion.
Negative Factors
Balance-sheet leverage spike
A dramatic reported increase in debt raises refinancing, interest‑cost and covenant risks and creates uncertainty around capital structure. Even absent a data anomaly, elevated leverage constrains strategic optionality (M&A, spectrum spend, dividends) over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistently large operating cash flows and healthy free cash flow provide durable internal funding for network capex, digital expansion and dividends. This persistent cash generation supports reinvestment and financial flexibility through multi-year technology cycles and market expansion.
Read all positive factors
Vodacom Group (VDMCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.29B
Dividend Yield3.17%
Average Volume (3M)1.30K
Price to Earnings (P/E)14.8
Beta (1Y)0.64
Revenue Growth16.04%
EPS Growth31.42%
CountryUS
Employees7,642
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)10.08
Shares Outstanding2,077,841,300
10 Day Avg. Volume535
30 Day Avg. Volume1,300
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)3.07
Price to Sales (P/S)1.74
P/FCF Ratio9.54
Enterprise Value/Market Cap19.92
Enterprise Value/Revenue2.10
Enterprise Value/Gross Profit5.25
Enterprise Value/Ebitda5.42
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Vodacom Group Business Overview & Revenue Model
Company Description
Vodacom Group Limited (VDMCY) is a prominent telecommunications, digital, and financial services entity operating across South Africa and international markets. Its comprehensive portfolio encompasses a wide array of communication services, spanni...
How the Company Makes Money
Vodacom primarily makes money by selling connectivity and digital services to consumers, small businesses, and large enterprises. Key revenue streams typically include: (1) Mobile service revenue: recurring and usage-based charges for prepaid and ...
Vodacom Group Earnings Call Summary
Earnings Call Date:Nov 10, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong overall performance with significant growth in revenue, customer base, and financial services. However, challenges in South Africa's prepaid market and voice revenue decline slightly tempered the positive outlook.Positive Updates
Double-Digit EBITDA Growth
The company delivered ahead of its double-digit EBITDA growth target with revenue reaching ZAR 81.6 billion, up 10.9%.
Negative Updates
Challenges in South Africa's Prepaid Market
South Africa's prepaid market faced pressure with a decline of 2.9% in Q2, contributing to a 1.6% decrease over the half, impacted by consumer pressure and competitive dynamics.
Read all updates
Q2-2026 Updates
Positive
Negative
Double-Digit EBITDA Growth
The company delivered ahead of its double-digit EBITDA growth target with revenue reaching ZAR 81.6 billion, up 10.9%.
Read all positive updates
Company Guidance
During the call, Mohamed Shameel Joosub highlighted Vodacom's strong financial performance in the first half of fiscal year 2026, with revenue reaching ZAR 81.6 billion, a 10.9% increase, and double-digit EBITDA growth exceeding targets. The company reported an impressive 8.6% rise in customer numbers to 223 million, moving closer to its Vision 2030 target of 260 million. Financial services customers also grew by 13.1% to 94 million, contributing 25% to profit before tax. Egypt's operating profit surged by 66.5% to ZAR 7.8 billion, driven by a stabilized macroeconomic environment. Safaricom's operating profit rose by 65.3%, with EBITDA margins in Kenya reaching 57.3%. International business segments doubled their operating profit to ZAR 2.1 billion, benefiting from service revenue growth in the DRC, Lesotho, and Tanzania. Despite challenges, South Africa's operating profit stood at ZAR 8.8 billion, with a focus on balancing price discipline and competitive responses in the prepaid segment. The company declared a dividend of ZAR 3.30 per share, a 15.8% increase, while maintaining a healthy return on capital employed at 26.3%. Looking ahead, Vodacom anticipates strong EBITDA growth in Egypt and international markets, with planned capital expenditures of ZAR 23 billion for the fiscal year.Vodacom Group Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
55
Neutral
Cash Flow
72
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 162.40B | 152.23B | 150.59B | 6.97B | 6.88B |
| Gross Profit | 65.00B | 92.89B | 82.76B | 2.76B | 2.81B |
| EBITDA | 69.78B | 58.80B | 59.07B | 44.61B | 43.45B |
| Net Income | 20.18B | 16.60B | 16.29B | 985.68M | 1.16B |
Balance Sheet | |||||
| Total Assets | 274.04B | 249.98B | 240.61B | 12.87B | 12.18B |
| Cash, Cash Equivalents and Short-Term Investments | 32.48B | 27.17B | 25.12B | 1.30B | 1.25B |
| Total Debt | 93.43B | 2.09B | 73.48B | 3.96B | 3.59B |
| Total Liabilities | 167.73B | 146.33B | 136.78B | 7.38B | 6.33B |
| Stockholders Equity | 91.75B | 92.02B | 92.76B | 4.84B | 5.44B |
Cash Flow | |||||
| Free Cash Flow | 29.59B | 28.11B | 26.69B | 1.22B | 1.30B |
| Operating Cash Flow | 52.31B | 52.80B | 49.01B | 2.40B | 2.23B |
| Investing Cash Flow | -34.96B | -24.21B | -20.72B | -1.88B | -1.04B |
| Financing Cash Flow | -9.57B | -25.86B | -25.70B | -375.41M | -1.09B |
Vodacom Group Technical Analysis
Negative
8.81
Price Trends
9.05
Negative
9.18
Negative
8.58
Positive
Market Momentum
0.02
Positive
45.04
Neutral
62.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VDMCY, the sentiment is Negative. The current price of 8.81 is below the 20-day moving average (MA) of 9.23, below the 50-day MA of 9.05, and above the 200-day MA of 8.58, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 45.04 is Neutral, neither overbought nor oversold. The STOCH value of 62.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VDMCY.
Vodacom Group Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $17.29B | 14.81 | 22.61% | 3.17% | 16.04% | 31.42% | |
70 Outperform | $10.04B | 11.78 | 17.55% | 7.82% | 8.21% | 30.97% | |
66 Neutral | $20.64B | 16.39 | 9.28% | 5.03% | 10.34% | 17.26% | |
64 Neutral | $15.52B | 17.17 | 11.99% | 6.14% | -4.78% | -32.55% | |
62 Neutral | $13.38B | 54.71 | 3.00% | 5.02% | -7.08% | -73.85% | |
62 Neutral | $33.05B | -70.78 | -0.79% | 3.77% | 16.69% | 87.12% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
VDMCY
Vodacom Group
8.98
2.18
32.16%
TLK
PT Telekomunikasi Indonesia Tbk
14.88
-0.78
-4.96%
SKM
Sk Telecom
36.21
13.66
60.58%
VIV
Telefonica Brasil
12.59
2.48
24.49%
TIMB
TIM
20.72
2.51
13.78%
VOD
Vodafone
14.30
4.64
47.99%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.