Vodafone (VOD) AI Stock Analysis

• Market Cap: $27.28B
• Dividend Yield: 4.37%
• Average Volume (3M): 4.60M
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.36
• Revenue Growth: 0.89%
• EPS Growth: -494.16%
• Country: US
• Employees: 93,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): -2.22
• Shares Outstanding: 2,401,552,700
• 10 Day Avg. Volume: 4,410,767
• 30 Day Avg. Volume: 4,597,985
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.28
• Enterprise Value/Revenue: 1.66
• Enterprise Value/Gross Profit: 4.97
• Enterprise Value/Ebitda: 5.27
• 1Y Price Target: $11.69
• Price Target Upside: 3.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 60 Neutral
• Price Target: $12.50 ▲(10.33% Upside)

Vodafone's overall stock score reflects significant financial challenges, with declining revenues and profitability issues being the most impactful factors. Technical analysis shows positive momentum, but valuation concerns persist due to a negative P/E ratio. The earnings call provides a mixed outlook, with strategic transformations offering potential upside.

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 is mobile services, which include subscription fees from individual customers and businesses for voice and data plans. Vodafone also earns revenue from fixed-line services, primarily broadband, which is offered to residential and business customers. Additionally, the company has a significant revenue stream from its enterprise solutions, providing telecommunications and IT services to businesses. Vodafone's Internet of Things (IoT) segment contributes to its earnings by offering connectivity solutions to various industries. Furthermore, the company benefits from partnerships and collaborations with other tech firms, enhancing its service offerings and expanding its customer base. Strategic investments in infrastructure and technology, along with a focus on expanding its market presence in emerging markets, also play a crucial role in its revenue generation.

Vodafone Financial Statement Overview

Summary

Vodafone's financial performance shows significant challenges, with declining revenues, negative net income, and a high debt-to-equity ratio. While cash flows are positive, they are under pressure, indicating the need for improved financial management.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	37.45B	36.72B	45.71B	45.58B	43.81B
Gross Profit	12.52B	12.26B	14.86B	15.01B	13.72B
EBITDA	11.61B	14.78B	11.77B	13.00B	13.60B
Net Income	-4.17B	1.14B	11.84B	2.24B	59.00M
Balance Sheet
Total Assets	128.52B	144.35B	155.52B	154.05B	155.06B
Cash, Cash Equivalents and Short-Term Investments	15.49B	10.53B	18.48B	14.73B	11.87B
Total Debt	53.14B	54.36B	61.50B	67.18B	66.80B
Total Liabilities	74.61B	83.35B	91.04B	96.98B	97.25B
Stockholders Equity	52.74B	59.97B	63.40B	54.78B	55.80B
Cash Flow
Free Cash Flow	8.67B	9.70B	13.10B	13.53B	11.80B
Operating Cash Flow	15.37B	16.56B	18.05B	18.08B	17.21B
Investing Cash Flow	4.76B	-6.12B	-379.00M	-6.87B	-9.26B
Financing Cash Flow	-15.28B	-15.86B	-13.43B	-9.71B	-15.20B

Vodafone Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.33
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VOD, the sentiment is Neutral. The current price of 11.33 is below the 20-day moving average (MA) of 11.71, below the 50-day MA of 11.51, and above the 200-day MA of 9.70, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 37.48 is Neutral, neither overbought nor oversold. The STOCH value of 6.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VOD.

Vodafone Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VZ	83 Outperform	182.06B	10.07	17.65%	6.28%	2.05%	61.39%
CMCSA	78 Outperform	116.71B	5.22	23.65%	4.05%	2.54%	60.53%
T	77 Outperform	202.50B	16.41	12.12%	3.92%	1.46%	0.88%
TMUS	73 Outperform	268.30B	22.59	19.99%	1.48%	6.27%	31.78%
CHTR	68 Neutral	40.15B	7.17	32.48%	―	1.03%	17.05%
VOD	60 Neutral	$27.28B	9.21	-7.17%	4.37%	0.89%	-494.16%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%