Vodafone (VOD) AI Stock Analysis

• Market Cap: $34.30B
• Dividend Yield: 3.77%
• Average Volume (3M): 5.02M
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.45
• Revenue Growth: 19.67%
• EPS Growth: -278.51%
• Country: US
• Employees: 93,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.80
• Shares Outstanding: 2,311,429,200
• 10 Day Avg. Volume: 4,013,172
• 30 Day Avg. Volume: 5,015,307
• PEG Ratio: 0.01
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 2.64
• Enterprise Value/Market Cap: 2.23
• Enterprise Value/Revenue: 1.97
• Enterprise Value/Gross Profit: 6.01
• Enterprise Value/Ebitda: 6.50
• 1Y Price Target: $11.58
• Price Target Upside: -7.21% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.01
• Revenue Forecast (FY): $47.75B

• Rating: 60 Neutral
• Price Target: $16.50 ▲(32.21% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held back mainly by weak financial performance (declining revenue and recent losses) and only moderate valuation support (negative P/E despite a ~3.17% yield). Offsetting factors include strong technical uptrend signals and a constructive earnings-call outlook with improving service revenue/EBITDAaL trends, supportive guidance, and continued capital returns, though Germany and B2B pressures remain notable risks.

Positive Factors

Recurring & diversified revenue

Vodafone’s mix of subscription-based consumer mobile, fixed broadband, enterprise managed services and wholesale provides diversified, recurring revenue. This reduces reliance on any single market or product, smoothing cash flows and supporting durable investment in networks and shareholder returns.

Positive operating cash flow

The company generates positive operating and free cash flow despite reported net losses. Persistent cash generation supports ongoing capex, network upgrades, debt servicing and progressive dividend/buyback programs, giving Vodafone structural financial flexibility over the medium term.

Network scale & strategic M&A

Extensive 5G coverage and completed UK consolidation reflect network scale and strategic execution. High network reach, large customer bases and M&A-driven scale raise barriers to entry, improve unit economics and support long-term competitive advantage across core markets.

Negative Factors

Declining revenue & losses

Multi-year revenue declines combined with negative EBIT and net income point to structural profitability issues. Ongoing losses erode margins and retained earnings, constrain reinvestment capacity, and increase the dependence on operational fixes to restore sustainable earnings power.

High leverage

A relatively high debt-to-equity ratio signals meaningful leverage that limits strategic optionality. Elevated indebtedness increases interest burden and refinancing risk, particularly amid weak reported profits, which may constrain future M&A, capex timing or payout policies over the medium term.

Market-specific headwinds

Structural pressures in Germany (underlying revenue down ~2-3% ex-wholesale), moderating emerging-market growth and U.K. B2B legacy declines create persistent top-line headwinds. These market-specific challenges can slow group recovery and pressure margins absent sustained strategic remediation.

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 primarily through its mobile and fixed-line services, which include subscription fees from individual and business customers for voice, messaging, and data services. Key revenue streams include monthly service charges, device sales, and value-added services such as mobile payments and financial services. Additionally, Vodafone earns income from its broadband and television services, leveraging partnerships with content providers. The company also benefits from strategic alliances and joint ventures, particularly in emerging markets, which enhance its service offerings and customer reach. Furthermore, Vodafone's investment in IoT and enterprise solutions contributes to its revenue diversification, as businesses increasingly adopt connected technologies.

Vodafone Financial Statement Overview

Summary

Income statement is weak (declining revenue, negative EBIT and net income), partly offset by steadier balance-sheet footing and positive operating/free cash flow, though leverage remains high and free cash flow is under pressure.

Income Statement

Vodafone's financial performance over the years shows significant challenges. The revenue has been declining over recent years, and in 2025, the company recorded a negative EBIT and net income, indicating operational inefficiencies and losses. The gross profit margin is not improving significantly, and the net profit margin has turned negative, reflecting profitability issues. Although EBITDA margin remains relatively stable, the overall trajectory suggests financial strain.

Balance Sheet

The balance sheet shows a stable, albeit challenging financial position. The debt-to-equity ratio is relatively high, indicating significant leverage, which could pose risks in volatile markets. The return on equity has turned negative, reflecting the company's recent net losses. However, the equity ratio is reasonable, suggesting that a substantial portion of assets is financed through equity, which provides a cushion against liabilities.

Cash Flow

Vodafone's cash flow analysis reveals some strengths, with positive operating cash flow and free cash flow. However, the free cash flow has decreased compared to the previous year, indicating potential cash management challenges. The operating cash flow to net income ratio is skewed due to negative net income, which limits the effectiveness of the metric. Overall, while cash generation remains positive, there are concerns about sustaining free cash flow levels amidst declining profitability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	38.78B	37.45B	36.72B	37.67B	37.01B	43.81B
Gross Profit	12.75B	12.52B	12.26B	13.31B	13.06B	13.72B
EBITDA	11.78B	11.61B	14.78B	25.79B	16.86B	21.01B
Net Income	-4.40B	-4.17B	1.14B	11.84B	2.24B	59.00M
Balance Sheet
Total Assets	128.86B	138.83B	144.35B	168.97B	171.40B	155.06B
Cash, Cash Equivalents and Short-Term Investments	13.53B	19.90B	10.53B	20.34B	17.16B	11.87B
Total Debt	53.91B	57.41B	58.51B	72.13B	77.99B	66.80B
Total Liabilities	72.25B	80.59B	83.35B	98.91B	107.90B	97.25B
Stockholders Equity	52.82B	56.98B	59.97B	68.88B	60.95B	55.80B
Cash Flow
Free Cash Flow	10.23B	8.67B	9.70B	13.10B	13.53B	11.80B
Operating Cash Flow	14.23B	15.37B	16.56B	18.05B	18.08B	17.21B
Investing Cash Flow	43.81M	4.76B	-6.12B	-379.00M	-6.87B	-9.26B
Financing Cash Flow	-13.83B	-15.28B	-15.86B	-13.43B	-9.71B	-15.20B

Vodafone Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 12.48 is below the 20-day moving average (MA) of 15.02, below the 50-day MA of 14.65, and above the 200-day MA of 12.18, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 49.06 is Neutral, neither overbought nor oversold. The STOCH value of 56.26 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
TMUS	76 Outperform	$235.08B	20.84	18.18%	1.75%	7.30%	17.67%
VZ	72 Outperform	$213.08B	10.02	16.62%	6.60%	2.42%	102.17%
T	67 Neutral	$194.97B	8.14	20.35%	4.56%	1.98%	150.68%
AMX	62 Neutral	$72.87B	14.48	17.05%	2.69%	1.14%	83.48%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
VOD	60 Neutral	$34.30B	7.35	-8.37%	3.77%	19.67%	-278.51%