Vodafone (VOD) AI Stock Analysis

• Market Cap: $23.28B
• Dividend Yield: 7.44%
• Average Volume (3M): 13.11M
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.45
• Revenue Growth: -24.84%
• EPS Growth: -74.77%
• Country: US
• Employees: 93,000
• Sector: Communication Services
• Sector Strength: 85
• Industry: Telecommunications Services
• EPS (TTM): 1.02
• Shares Outstanding: 2,490,935,500
• 10 Day Avg. Volume: 12,256,389
• 30 Day Avg. Volume: 13,112,659
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.12
• Price to Cash Flow (P/CF): 2.00
• P/FCF Ratio: 1.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $7.43
• Price Target Upside: -22.36% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Vodafone's overall stock score reflects a balance of strengths and challenges. Positive technical indicators and attractive valuation are tempered by financial performance issues and competitive pressures, particularly in Germany. Strategic initiatives and strong dividend yield offer potential upside, while operational and revenue growth improvements remain key focus areas.

Vodafone Business Overview & Revenue Model

Company Description

Vodafone Group Public Limited Company engages in telecommunication services in Europe and internationally. The company offers mobile services that enable customers to call, text, and access data; fixed line services, including broadband, television (TV) offerings, and voice; and convergence services under the GigaKombi and Vodafone One names to customers. It also provides value added services, such as Internet of Things (IoT) comprising logistics and fleet management, smart metering, insurance, cloud, and security services; and automotive and health solutions. In addition, the company offers M-Pesa, an African payment platform, which provides money transfer, financial, and business and merchant payment services; and various services to operators through its partner market agreements. Vodafone Group Public Limited Company has a strategic partnership with Open Fiber. As of March 31, 2022, it had approximately 323 million mobile customers, 28 million fixed broadband customers, and 22 million TV customers. The company was incorporated in 1984 and is based in Newbury, the United Kingdom.

How the Company Makes Money

Vodafone 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.

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.

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.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
36.72B	45.71B	45.58B	43.81B	44.97B
	Gross Profit
12.26B	14.86B	15.01B	13.72B	14.29B
	EBIT
3.67B	4.46B	5.37B	3.42B	3.62B
	EBITDA
14.78B	11.77B	13.00B	13.60B	14.08B
	Net Income Common Stockholders
1.14B	11.84B	2.24B	59.00M	-920.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.53B	18.48B	14.73B	11.87B	19.53B
	Total Assets
144.35B	155.52B	154.05B	155.06B	168.17B
	Total Debt
54.36B	61.50B	67.18B	66.80B	69.63B
	Net Debt
48.18B	49.80B	59.68B	60.98B	56.08B
	Total Liabilities
83.35B	91.04B	96.98B	97.25B	105.54B
	Stockholders Equity
59.97B	63.40B	54.78B	55.80B	61.41B
Cash Flow		Free Cash Flow
9.70B	13.10B	13.53B	11.80B	12.20B
	Operating Cash Flow
16.56B	18.05B	18.08B	17.21B	17.38B
	Investing Cash Flow
-6.12B	-379.00M	-6.87B	-9.26B	-8.09B
	Financing Cash Flow
-15.86B	-13.43B	-9.71B	-15.20B	-9.35B

Vodafone Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 9.57 is above the 20-day moving average (MA) of 9.04, above the 50-day MA of 9.08, and above the 200-day MA of 9.03, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 59.37 is Neutral, neither overbought nor oversold. The STOCH value of 72.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VOD.

Vodafone Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHTR	76 Outperform	$59.20B	10.36	36.94%	―	0.93%	16.06%
VZ	75 Outperform	$184.54B	10.55	18.23%	6.41%	0.93%	56.97%
CMCSA	75 Outperform	$128.18B	8.32	18.57%	3.66%	1.33%	7.69%
T	73 Outperform	$192.45B	16.46	11.38%	4.14%	0.50%	-12.66%
TMUS	72 Outperform	$264.30B	22.69	19.35%	1.31%	5.31%	38.46%
VOD	71 Outperform	$23.28B	9.11	4.31%	7.44%	-24.84%	-74.77%
Sector *	59 Neutral	$13.69B	6.83	-3.38%	3.82%	2.32%	-34.61%