Vodacom Group Limited (VDMCY)
OTHER OTC:VDMCY
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Vodacom Group
(OTC:VDMCY)
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Rating:79Outperform
Price Target:
$11.00
â–²(24.86% Upside)
Action:ReiteratedDate:03/06/26
The score is driven primarily by strong financial performance (profitability, cash conversion, and very low leverage) and supportive valuation (low P/E plus dividend yield). Technical indicators are more mixed, with neutral momentum and slight near-term softness versus the 20-day average, tempering the overall score.
Positive Factors
High and stable margins
Sustained gross margins near 61% and a stable ~11% net margin indicate durable pricing power and efficient cost controls across services. These margins support reinvestment in networks and services, cushioning profitability through cycles and enabling consistent cash generation over months.
Negative Factors
Moderate equity buffer
Although leverage is low, equity represents a moderate ~37% of assets which limits the capital cushion against large asset write-downs or aggressive expansion. Over 2-6 months this constraint could force equity or retained earnings reliance for major investments or shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
High and stable margins
Sustained gross margins near 61% and a stable ~11% net margin indicate durable pricing power and efficient cost controls across services. These margins support reinvestment in networks and services, cushioning profitability through cycles and enabling consistent cash generation over months.
Read all positive factors
Vodacom Group (VDMCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.55B
Dividend Yield3.17%
Average Volume (3M)1.30K
Price to Earnings (P/E)7.5
Beta (1Y)0.73
Revenue Growth8.58%
EPS Growth31.38%
CountryUS
Employees7,642
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding2,077,841,300
10 Day Avg. Volume535
30 Day Avg. Volume1,300
Financial Highlights & Ratios
PEG Ratio3.89
Price to Book (P/B)2.72
Price to Sales (P/S)1.64
P/FCF Ratio8.90
Enterprise Value/Market Cap15.19
Enterprise Value/Revenue1.71
Enterprise Value/Gross Profit3.62
Enterprise Value/Ebitda4.54
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 operates as a connectivity, digital, and financial services company in South Africa and internationally. It offers range of communication services, including data, mobile and fixed voice, messaging, financial services, enterp...
How the Company Makes Money
Vodacom generates revenue through multiple streams, primarily from mobile voice and data services, which include prepaid and postpaid plans for individuals and businesses. The company also earns income from value-added services such as mobile mone...
Vodacom Group Earnings Call Summary
Earnings Call Date:Nov 10, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 11, 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
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 156.04B | 152.23B | 150.59B | 6.97B | 6.88B | 5.98B |
| Gross Profit | 73.74B | 92.89B | 82.76B | 2.76B | 2.81B | 2.42B |
| EBITDA | 58.80B | 58.80B | 59.07B | 44.61B | 43.45B | 43.09B |
| Net Income | 18.49B | 16.60B | 16.29B | 985.68M | 1.16B | 1.01B |
Balance Sheet | ||||||
| Total Assets | 249.76B | 249.98B | 240.61B | 12.87B | 12.18B | 11.65B |
| Cash, Cash Equivalents and Short-Term Investments | 24.78B | 27.17B | 34.84B | 1.30B | 1.25B | 1.50B |
| Total Debt | 79.97B | 2.09B | 73.48B | 3.96B | 3.59B | 3.38B |
| Total Liabilities | 146.48B | 146.33B | 136.78B | 7.38B | 6.33B | 5.84B |
| Stockholders Equity | 90.11B | 92.02B | 92.76B | 4.84B | 5.44B | 5.38B |
Cash Flow | ||||||
| Free Cash Flow | 30.84B | 28.11B | 26.69B | 1.22B | 1.30B | 1.24B |
| Operating Cash Flow | 55.24B | 52.80B | 49.01B | 2.40B | 2.23B | 2.06B |
| Investing Cash Flow | -27.01B | -24.21B | -20.72B | -1.88B | -1.04B | -814.02M |
| Financing Cash Flow | -20.54B | -25.86B | -25.70B | -375.41M | -1.09B | -1.20B |
Vodacom Group Technical Analysis
Positive
8.81
Price Trends
9.30
Negative
8.80
Positive
8.25
Positive
Market Momentum
-0.17
Negative
54.78
Neutral
54.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VDMCY, the sentiment is Positive. The current price of 8.81 is above the 20-day moving average (MA) of 8.69, below the 50-day MA of 9.30, and above the 200-day MA of 8.25, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 54.78 is Neutral, neither overbought nor oversold. The STOCH value of 54.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $17.55B | 7.46 | 20.71% | 3.17% | 8.58% | 31.38% | |
77 Outperform | $18.35B | 16.17 | 15.56% | 6.14% | -5.21% | -7.45% | |
73 Outperform | $12.93B | 11.93 | 17.46% | 7.82% | -4.90% | 14.83% | |
70 Outperform | $26.63B | 17.32 | 9.03% | 5.03% | -3.16% | 4.70% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $36.36B | 7.35 | -8.37% | 3.77% | 19.67% | -278.51% | |
57 Neutral | $12.70B | 27.39 | 3.37% | 5.02% | -8.16% | -52.52% |
* Communication Services Sector Average
VDMCY
Vodacom Group
9.10
3.08
51.12%
TLK
PT Telekomunikasi Indonesia Tbk
18.93
5.60
42.00%
SKM
Sk Telecom
34.40
13.24
62.57%
VIV
Telefonica Brasil
16.57
8.30
100.39%
TIMB
TIM
27.00
13.39
98.43%
VOD
Vodafone
15.77
7.69
95.10%
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.