Vodafone (VOD) AI Stock Analysis

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Vodafone

(NASDAQ:VOD)

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Neutral 54 (OpenAI - 4o)

Rating:54Neutral

Price Target:

$11.50

▼(-0.09% Downside)

Vodafone's overall stock score reflects significant financial challenges and valuation concerns, offset by positive strategic developments and growth prospects in certain regions. The earnings call provided a more optimistic outlook, particularly in the U.K. and emerging markets, but ongoing issues in Germany and high leverage remain key risks.

Vodafone (VOD) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$27.02B

Dividend Yield4.39%

Average Volume (3M)5.62M

Price to Earnings (P/E)―

Beta (1Y)0.36

Revenue Growth0.89%

EPS Growth-494.16%

CountryUS

Employees93,000

SectorCommunication Services

Sector Strength97

IndustryTelecommunications Services

Share Statistics

EPS (TTM)-2.22

Shares Outstanding2,388,448,000

10 Day Avg. Volume7,658,396

30 Day Avg. Volume5,622,021

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap2.30

Enterprise Value/Revenue1.66

Enterprise Value/Gross Profit4.97

Enterprise Value/Ebitda5.27

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

Vodafone Business Overview & Revenue Model

Company DescriptionVodafone Group Plc is a British multinational telecommunications company headquartered in London, United Kingdom. It operates in various sectors, primarily focusing on mobile and fixed-line telecommunications services, broadband, and digital services. Vodafone provides a range of products including mobile voice and data services, IoT solutions, and enterprise solutions, serving millions of customers across Europe, Africa, Asia, and the Middle East.

How the Company Makes MoneyVodafone 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 Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Shows how much revenue each business segment generates, highlighting which areas drive growth and which may need strategic adjustments.

Chart InsightsVodafone's revenue from Germany shows stagnation, reflecting challenges highlighted in the earnings call, such as declining broadband and mobile competition. The U.K. segment is performing well, supported by strong EBITDA growth and customer satisfaction. Africa is a bright spot, with robust revenue growth aligning with positive outlooks in the earnings call. The absence of revenue from Spain and Italy indicates strategic exits, simplifying operations. The earnings call underscores a focus on transformation and restructuring, with a promising outlook for free cash flow growth, despite ongoing challenges in Germany and the B2B segment.

Data provided by:

Main Street Data

Vodafone Earnings Call Summary

Earnings Call Date:May 20, 2025

(Q4-2025)

% Change Since: |

Next Earnings Date:Nov 11, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mix of positive developments, particularly in the U.K. and emerging markets, alongside challenges in Germany and the B2B segment. While Vodafone has successfully undergone significant transformation and restructuring, certain market-specific issues, especially in Germany, pose concerns.

Q4-2025 Updates

Positive Updates

Strong Performance in the U.K.

Vodafone delivered strong EBITDA growth of 8% in the U.K. and achieved market-leading NPS, resulting in record low levels of customer churn.

Successful Transformation and Restructuring

Vodafone has reshaped its structure with the sales of Spain and Italy and the merger of Vodafone and Three U.K., leading to a strengthened balance sheet and €2 billion returned to shareholders via buybacks.

Growth in Africa and Turkey

Significant growth opportunities were identified in Africa and Turkey, with strong local positions and a focus on digital services.

Positive Financial Guidance for FY '26

Guidance for FY '26 expects continued underlying growth in adjusted EBITDAaL and free cash flow, with adjusted EBITDAaL projected to be between €11 billion and €11.3 billion.

Negative Updates

Challenges in Germany

Vodafone faced a declining broadband base and heightened competition in mobile, with implied mid-single-digit decline for Germany in the FY '26 outlook.

Pressure on German Mobile ARPU

The market environment in Germany remains challenging with continued ARPU pressure due to aggressive pricing, especially in the mid to high-end segments.

U.K. B2B Market Headwinds

The U.K. experienced a slight decline in B2B for the full year due to lower inflation-related price increases and the loss of managed services contracts.

Company Guidance

During the call, Vodafone provided detailed guidance and updates on their strategic priorities and financial outlook for fiscal year 2026 and beyond. CEO Margherita Della Valle highlighted the company's transformation over the past two years, focusing on customers, simplicity, and growth. Key actions included the sale of assets in Spain and Italy, a merger with Three U.K., and the further monetization of Vantage Towers. Financially, Vodafone delivered on its fiscal year 2025 guidance, achieving adjusted EBITDAaL between €11 billion and €11.3 billion and adjusted free cash flow between €2.6 billion and €2.8 billion for fiscal year 2026. The company also announced a new €2 billion share buyback program. Despite challenges in Germany, Vodafone expects to stabilize and improve its performance, while significant growth is anticipated in the U.K., Africa, and Turkey. The company emphasized its focus on customer experience, with notable improvements in Net Promoter Scores and reduced churn in key markets. CFO Luka Mucic reaffirmed Vodafone's commitment to underlying growth in adjusted EBITDAaL and adjusted free cash flow and highlighted the potential impacts of the U.K. merger, including €700 million in annual cost and CapEx synergies by the fifth year.

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

Negative

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

Neutral

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

Neutral

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

Negative

Last Price11.51

Price Trends

50DMA

11.60

Negative

100DMA

11.33

Negative

200DMA

10.18

Positive

Market Momentum

MACD

0.01

Positive

RSI

42.11

Neutral

STOCH

6.85

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VOD, the sentiment is Negative. The current price of 11.51 is below the 20-day moving average (MA) of 11.59, below the 50-day MA of 11.60, and above the 200-day MA of 10.18, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 42.11 is Neutral, neither overbought nor oversold. The STOCH value of 6.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VOD.

Vodafone Risk Analysis

Vodafone disclosed 13 risk factors in its most recent earnings report. Vodafone reported the most risks in the "Macro & Political" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Vodafone Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMX	74 Outperform	$69.22B	18.25	17.70%	2.27%	1.14%	83.48%
TMUS	73 Outperform	$230.74B	19.84	19.03%	1.72%	7.30%	17.67%
VZ	72 Outperform	$165.79B	8.38	19.70%	6.86%	2.42%	102.17%
T	72 Outperform	$173.27B	7.94	20.88%	4.52%	1.98%	150.68%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
VOD	54 Neutral	$27.02B	―	-7.17%	4.39%	0.89%	-494.16%
TEF	49 Neutral	$24.19B	―	-0.70%	7.89%	-5.49%	-75.51%

* Communication Services Sector Average

Performance Comparison

VOD

Vodafone

11.27

2.39

26.91%

AMX

America Movil

22.97

7.58

49.25%

AT&T

24.56

3.46

16.40%

TEF

Telefonica

4.16

-0.07

-1.65%

Verizon

39.69

1.73

4.56%

TMUS

T Mobile US

204.74

-23.50

-10.30%

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.Date of analysis: Oct 15, 2025