Vodafone (VOD) AI Stock Analysis

• Market Cap: $29.99B
• Dividend Yield: 3.88%
• Average Volume (3M): 5.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• 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: 2,362,421,000
• 10 Day Avg. Volume: 4,689,525
• 30 Day Avg. Volume: 5,025,838
• 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: 2.37
• Enterprise Value/Revenue: 1.84
• Enterprise Value/Gross Profit: 5.59
• Enterprise Value/Ebitda: 6.05
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $12.00 ▼(-3.85% Downside)

Vodafone's overall stock score reflects a mix of financial challenges and positive strategic developments. The company's financial performance is under pressure with declining revenues and profitability issues, which weigh heavily on the score. However, the positive sentiment from the earnings call, highlighting revenue growth and strategic advancements, provides a counterbalance. Technical analysis shows moderate strength, while valuation remains a concern due to negative earnings. The attractive dividend yield offers some investor appeal.

Positive Factors

5G Network Expansion

Expanding 5G coverage enhances Vodafone's competitive position, enabling new services and improving customer experience, crucial for long-term growth.

Strategic Partnerships

The partnership with Ericsson for network modernization strengthens Vodafone's infrastructure, ensuring better service delivery and future-proofing its network capabilities.

IoT Expansion

Expanding IoT capabilities through strategic partnerships enhances Vodafone's service offerings and positions it well in the growing IoT market.

Negative Factors

Declining Revenue

A consistent decline in revenue indicates challenges in maintaining market share and competitiveness, potentially impacting long-term financial health.

High Leverage

High leverage can limit financial flexibility and increase risk, particularly in volatile markets, affecting Vodafone's ability to invest in growth opportunities.

Profitability Issues

Negative profitability metrics suggest operational inefficiencies and financial strain, which could hinder Vodafone's ability to sustain operations and growth.

Vodafone Business Overview & Revenue Model

Company Description

Vodafone Group Plc is a leading multinational telecommunications company headquartered in the UK. It operates in various sectors, providing mobile and fixed-line voice, messaging, and data services across multiple countries. Vodafone offers a range of core products and services, including mobile voice and data plans, broadband internet, and IoT solutions, serving millions of customers worldwide. The company also engages in digital services and has a growing presence in the enterprise market, focusing on connectivity and technology solutions for businesses.

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

Vodafone is facing significant financial challenges, marked by declining revenues, negative net income, and a high debt-to-equity ratio. The company's profitability metrics have deteriorated, and while cash flows remain positive, they are under pressure. The balance sheet indicates high leverage and a need for improved financial management to navigate these challenges.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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	14.82B	15.37B	16.56B	18.05B	18.08B	17.21B
Investing Cash Flow	418.00M	4.76B	-6.12B	-379.00M	-6.87B	-9.26B
Financing Cash Flow	-14.86B	-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: Negative
• 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 above the 20-day moving average (MA) of 12.33, above the 50-day MA of 11.81, and above the 200-day MA of 10.55, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 63.76 is Neutral, neither overbought nor oversold. The STOCH value of 70.45 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
VZ	81 Outperform	$171.82B	8.69	19.70%	6.60%	2.42%	102.17%
TMUS	76 Outperform	$221.46B	19.04	19.03%	1.75%	7.30%	17.67%
T	71 Outperform	$170.64B	7.82	20.88%	4.56%	1.98%	150.68%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
AMX	60 Neutral	$63.80B	16.85	17.70%	2.68%	1.14%	83.48%
VOD	58 Neutral	$29.99B	-7.00	-7.08%	3.88%	19.67%	-278.51%
TEF	45 Neutral	$22.92B	-10.48	-0.70%	7.16%	-5.49%	-75.51%

Vodafone Corporate Events

Vodafone Group Reports Strong H1 FY26 Performance

Vodafone Group Plc is a multinational telecommunications company providing a wide range of services including mobile, fixed, and broadband services, with a significant presence in Europe, Africa, and other regions. The company is known for its extensive network coverage and innovative digital services.