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Vodafone (VOD)
NASDAQ:VOD

Vodafone (VOD) AI Stock Analysis

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Vodafone

(NASDAQ:VOD)

Rating:57Neutral
Price Target:
$10.50
▼(-1.59%Downside)
Vodafone's overall score is driven by a challenging financial position, with significant operational inefficiencies and high leverage. While technical analysis indicates potential for short-term gains, valuation concerns and mixed earnings call sentiment limit the score. The focus remains on addressing financial performance and leveraging restructuring successes.

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

Vodafone Business Overview & Revenue Model

Company DescriptionVodafone 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 MoneyVodafone generates revenue through multiple streams. The primary source of income is from its mobile services, which include voice, messaging, and data services. This is complemented by fixed-line services such as broadband and cable television. The company also earns by providing enterprise services, including connectivity, unified communications, and cloud hosting. Vodafone's IoT solutions contribute to its revenue by offering connectivity and related services to a variety of industries. Additionally, the company has strategic partnerships and joint ventures that enhance its service offerings and market reach, further bolstering its financial performance.

Vodafone Earnings Call Summary

Earnings Call Date:May 20, 2025
(Q4-2025)
|
% Change Since: 13.27%|
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
Vodafone has made significant progress through transformation and restructuring efforts, leading to strong performances in the U.K. and growth markets like Africa and Turkey. However, challenges remain in Germany and the B2B segment, impacting the overall outlook.
Q4-2025 Updates
Positive Updates
Transformation and Restructuring Success
Vodafone has undergone significant transformation, including the sale of operations in Spain and Italy, and the merger with Three U.K. This has led to a simplified structure, improved customer experience, and a €2 billion return to shareholders through buybacks and dividends.
Strong U.K. Performance
The U.K. segment reported strong EBITDA growth of 8%, with record low customer churn and market-leading Net Promoter Scores (NPS) in both mobile and fixed broadband.
Positive Outlook in Africa and Turkey
Vodafone's operations in Africa and Turkey have strong local positions and growth opportunities, contributing significantly to free cash flow growth in euros.
Guidance for FY '26
Vodafone expects adjusted EBITDAaL for FY '26 to be between €11 billion and €11.3 billion, with adjusted free cash flow growth accelerating to between €2.6 billion and €2.8 billion.
Negative Updates
Challenges in Germany
Vodafone faces a challenging market in Germany with declining broadband base, competition in mobile, and pricing pressures affecting ARPU.
B2B Segment Headwinds
The U.K. B2B market faced challenges with managed services and ARPU pressure, impacting growth expectations for FY '26.
Fiber Upgrade Delays
The OXG joint venture for fiber upgrades in Germany is running behind schedule, affecting the plan to reach 7 million MDU homes.
Company Guidance
During the call, Vodafone provided extensive guidance for the fiscal year 2026, highlighting a series of financial metrics and strategic priorities. The company expects adjusted EBITDAaL for the group to range between €11 billion and €11.3 billion, with a specific target of €7.2 billion to €7.4 billion for Europe. Additionally, Vodafone anticipates a significant acceleration in group adjusted free cash flow growth, forecasting a range between €2.6 billion and €2.8 billion. The impact of the U.K. merger is projected to contribute around €400 million to EBITDAaL, while posing approximately a €200 million drag on adjusted free cash flow for the full year due to front-loaded investments. The company also detailed a continued commitment to shareholder returns, having returned €2 billion through buybacks and €1.8 billion in dividends over the last year, with the first tranche of a new €2 billion buyback program commencing immediately. Vodafone aims to improve its customer experience, as evidenced by record Net Promoter Scores in the U.K. and Germany, and expects continued growth in its adjusted free cash flow, driven by strong performances in the U.K., Africa, and Turkey, alongside its transformation efforts in Germany.

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
40
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
55
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
60
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue37.45B36.72B45.71B45.58B43.81B
Gross Profit12.52B12.26B14.86B15.01B13.72B
EBITDA11.61B14.78B11.77B13.00B13.60B
Net Income-4.17B1.14B11.84B2.24B59.00M
Balance Sheet
Total Assets128.52B144.35B155.52B154.05B155.06B
Cash, Cash Equivalents and Short-Term Investments15.49B10.53B18.48B14.73B11.87B
Total Debt53.14B54.36B61.50B67.18B66.80B
Total Liabilities74.61B83.35B91.04B96.98B97.25B
Stockholders Equity52.74B59.97B63.40B54.78B55.80B
Cash Flow
Free Cash Flow8.67B9.70B13.10B13.53B11.80B
Operating Cash Flow15.37B16.56B18.05B18.08B17.21B
Investing Cash Flow4.76B-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
Positive
Last Price10.67
Price Trends
50DMA
9.81
Positive
100DMA
9.29
Positive
200DMA
9.02
Positive
Market Momentum
MACD
0.26
Negative
RSI
63.45
Neutral
STOCH
87.36
Negative
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 10.67 is above the 20-day moving average (MA) of 10.22, above the 50-day MA of 9.81, and above the 200-day MA of 9.02, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 63.45 is Neutral, neither overbought nor oversold. The STOCH value of 87.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$133.78B8.8018.57%3.68%1.33%7.69%
81
Outperform
$269.58B23.1419.35%1.48%5.31%38.46%
VZVZ
76
Outperform
$183.79B10.3618.23%6.22%0.93%56.97%
71
Outperform
$63.73B11.4336.94%0.93%16.06%
TT
69
Neutral
$203.71B17.3911.38%3.92%0.50%-12.66%
66
Neutral
¥376.80B13.682.32%2.50%5.41%-19.08%
VOVOD
57
Neutral
$26.30B9.21-7.17%4.74%0.89%-494.16%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VOD
Vodafone
10.78
2.22
25.93%
T
AT&T
28.36
10.52
58.97%
CHTR
Charter Communications
416.97
115.18
38.17%
CMCSA
Comcast
35.83
-0.76
-2.08%
VZ
Verizon
43.55
4.89
12.65%
TMUS
T Mobile US
240.75
63.98
36.19%
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: Jun 18, 2025