tiprankstipranks
Trending News
More News >
Vodafone (VOD)
NASDAQ:VOD
Advertisement

Vodafone (VOD) AI Stock Analysis

Compare
3,097 Followers

Top Page

VOD

Vodafone

(NASDAQ:VOD)

Rating:60Neutral
Price Target:
$12.50
▲(6.38% 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 (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 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
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
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 Price11.75
Price Trends
50DMA
11.27
Positive
100DMA
10.43
Positive
200DMA
9.49
Positive
Market Momentum
MACD
0.18
Positive
RSI
56.86
Neutral
STOCH
45.70
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 11.75 is above the 20-day moving average (MA) of 11.73, above the 50-day MA of 11.27, and above the 200-day MA of 9.49, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 56.86 is Neutral, neither overbought nor oversold. The STOCH value of 45.70 is Neutral, 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
$186.28B10.1618.26%6.13%2.05%61.39%
81
Outperform
$287.98B24.1319.74%1.40%6.27%31.78%
77
Outperform
$207.93B16.5812.12%3.75%1.46%0.88%
68
Neutral
$61.08B21.0714.41%2.68%-0.64%56.92%
60
Neutral
$46.28B4.13-13.12%4.13%1.85%-42.71%
60
Neutral
$28.34B9.21-7.17%4.21%0.89%-494.16%
60
Neutral
$30.16B-3.55%6.74%-4.73%-251.31%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VOD
Vodafone
11.75
2.25
23.68%
AMX
America Movil
19.50
3.82
24.36%
T
AT&T
29.58
9.55
47.68%
TEF
Telefonica
5.29
0.85
19.14%
VZ
Verizon
44.18
5.62
14.57%
TMUS
T Mobile US
252.12
61.83
32.49%
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: Aug 19, 2025