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Vodafone
(NASDAQ:VOD)
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Rating:62Neutral
Price Target:
$14.00
▲(12.18% Upside)
Action:Reiterated
Date:05/14/26
The score is primarily driven by resilient cash generation and a constructive FY27 outlook (EBITDAaL/FCF growth and synergy potential), partially offset by volatile profitability and leverage. Technicals are mildly supportive but not strongly bullish, and valuation is mixed due to a negative P/E despite a solid dividend yield.
Positive Factors
Resilient cash generation
Consistent operating cash flow and generally solid free cash flow (management reported €2.6bn adjusted FCF in FY26) provide durable funding for capex, dividends, buyouts and debt service. This cash resilience supports strategic actions and reduces reliance on equity markets over the midterm.
Negative Factors
Sizable leverage
Leverage at or near parity with equity and large gross borrowings constrain strategic flexibility, increase interest and refinancing exposure, and limit capacity for aggressive M&A or downside cushioning. Even with recent debt reduction, meaningful leverage remains a structural constraint on returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient cash generation
Consistent operating cash flow and generally solid free cash flow (management reported €2.6bn adjusted FCF in FY26) provide durable funding for capex, dividends, buyouts and debt service. This cash resilience supports strategic actions and reduces reliance on equity markets over the midterm.
Read all positive factors
Vodafone Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how much revenue each business segment generates, highlighting which areas drive growth and which may need strategic adjustments.
Shows how much revenue each business segment generates, highlighting which areas drive growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyVodafone (VOD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.43B
Dividend Yield3.77%
Average Volume (3M)3.28M
Price to Earnings (P/E)―
Beta (1Y)0.42
Revenue Growth16.69%
EPS Growth87.12%
CountryUS
Employees93,000
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.20
Shares Outstanding2,302,755,600
10 Day Avg. Volume3,405,229
30 Day Avg. Volume3,284,819
Financial Highlights & Ratios
PEG Ratio0.88
Price to Book (P/B)0.62
Price to Sales (P/S)0.77
P/FCF Ratio3.64
Enterprise Value/Market Cap2.40
Enterprise Value/Revenue1.79
Enterprise Value/Gross Profit5.70
Enterprise Value/Ebitda5.89
Forecast
1Y Price Target
$146.92Price Target Upside1077.21% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.23
Revenue Forecast (FY)$51.00B
Vodafone Business Overview & Revenue Model
Company Description
Vodafone Group Public Limited Company, established in 1984 and based in Newbury, UK, is a global telecommunications leader delivering services across Europe and internationally. The company provides fundamental mobile services, enabling customers ...
How the Company Makes Money
Vodafone primarily makes money by charging customers recurring and usage-based fees for telecommunications connectivity and related services. The largest revenue stream typically comes from consumer mobile services, where subscribers pay monthly c...
Vodafone Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call presented a constructive outlook driven by tangible operational progress: group service revenue growth, organic EBITDA growth, strong free cash flow generation and clear midterm ambition for double-digit organic free cash flow growth. Key strengths include a standout performance in Africa, U.K. integration momentum with material synergy potential, portfolio simplification and AI-led productivity gains. Offsetting risks are concentrated in Germany where retail service revenue remains negative and FY '27 EBITDA is expected to decline, near-term U.K. revenue timing issues, temporary leverage effects from the U.K. buyout, and ongoing competitive/promotional pressures and inflation. On balance, the positives (broad-based revenue growth, cash flow improvements, strategic simplification and execution of synergies) outweigh the near-term regional headwinds.Positive Updates
Group Service Revenue Growth (Q4)
Group service revenue grew 5.1% in Q4, with growth across both Europe and Africa, signalling broad-based top-line momentum.
Negative Updates
Germany Revenue and EBITDA Pressure
Retail service revenue growth in Germany remains negative and management expects German EBITDA to remain under pressure and decline in FY '27 due to TV headwinds and a competitive mobile market.
Read all updates
Q4-2026 Updates
Positive
Negative
Group Service Revenue Growth (Q4)
Group service revenue grew 5.1% in Q4, with growth across both Europe and Africa, signalling broad-based top-line momentum.
Read all positive updates
Company Guidance
Vodafone guided FY27 to “continued good” growth in adjusted EBITDAaL and adjusted free cash flow after a FY26 where organic adjusted EBITDAaL rose 4.5% (at the upper end of guidance), group service revenue grew 5.1% in Q4, and adjusted free cash flow was €2.6bn; the FY26 dividend was increased 2.5% and management reinstated a mid‑term ambition to deliver double‑digit organic growth in adjusted free cash flow. At the midpoint Europe is expected to be broadly stable, with Germany’s EBITDA expected to decline in FY27 as retail service revenue remains negative despite consumer broadband improvements (front‑book inflow ARPU +30% y/y), the U.K. set to deliver strong FY27 growth on the VodafoneThree buyout (GBP4.2bn) and material synergies (GBP700m cost/CapEx by 2030) plus FWA to 3.7m additional homes, and Africa/Turkey expected to continue strong growth (Africa posting its highest service‑revenue growth in almost two decades and Vodacom targeting double‑digit midterm growth). CapEx is expected to peak in the U.K. in FY27 then be broadly stable by market, guidance and mid‑term targets are presented on an organic basis (ex‑currency/portfolio), and leverage should return to the lower half of the group corridor by end‑FY27.Vodafone Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
58
Neutral
Cash Flow
67
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 40.73B | 37.45B | 36.72B | 37.67B | 37.01B |
| Gross Profit | 12.82B | 12.52B | 12.26B | 13.31B | 13.06B |
| EBITDA | 16.81B | 11.61B | 14.78B | 25.79B | 16.86B |
| Net Income | -399.66M | -4.17B | 1.14B | 11.84B | 2.24B |
Balance Sheet | |||||
| Total Assets | 130.05B | 138.83B | 144.35B | 168.97B | 171.40B |
| Cash, Cash Equivalents and Short-Term Investments | 15.77B | 19.90B | 10.53B | 20.34B | 17.16B |
| Total Debt | 52.69B | 57.41B | 58.51B | 72.13B | 77.99B |
| Total Liabilities | 75.52B | 80.59B | 83.35B | 98.91B | 107.90B |
| Stockholders Equity | 50.69B | 56.98B | 59.97B | 68.88B | 60.95B |
Cash Flow | |||||
| Free Cash Flow | 8.58B | 8.67B | 9.70B | 13.10B | 13.53B |
| Operating Cash Flow | 13.49B | 15.37B | 16.56B | 18.05B | 18.08B |
| Investing Cash Flow | -5.54B | 4.76B | -6.12B | -379.00M | -6.87B |
| Financing Cash Flow | -9.71B | -15.28B | -15.86B | -13.43B | -9.71B |
Vodafone Technical Analysis
Negative
12.48
Price Trends
14.81
Negative
14.84
Negative
13.52
Negative
Market Momentum
-0.45
Positive
29.03
Positive
11.36
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 12.48 is below the 20-day moving average (MA) of 14.32, below the 50-day MA of 14.81, and below the 200-day MA of 13.52, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 29.03 is Positive, neither overbought nor oversold. The STOCH value of 11.36 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $192.11B | 18.83 | 17.82% | 1.75% | 9.48% | -8.46% | |
71 Outperform | $78.98B | 15.36 | 20.61% | 2.69% | 9.51% | 187.55% | |
67 Neutral | $177.71B | 10.38 | 16.68% | 6.60% | 2.85% | -2.51% | |
66 Neutral | $143.00B | 6.88 | 19.59% | 4.56% | 2.92% | 83.12% | |
62 Neutral | $30.43B | -58.49 | -0.79% | 3.77% | 16.69% | 87.12% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
VOD
Vodafone
13.15
2.64
25.12%
AMX
America Movil
25.72
8.17
46.59%
T
AT&T
20.58
-6.64
-24.40%
VZ
Verizon
42.56
2.46
6.14%
TMUS
T Mobile US
177.52
-55.71
-23.89%
Vodafone Corporate Events
Vodafone Files Legal Opinions Backing New $3.5 Billion U.S. Bond Issuance
Jun 18, 2026
On June 18, 2026, Vodafone filed a Form 6-K in the U.S., incorporating into its existing shelf and employee share-plan registration statements legal opinions from Linklaters LLP relating to a new multi-tranche U.S. dollar debt issuance. The opinio...
Vodafone Details March 2026 Debt Profile and Agrees £4.3bn Buyout of VodafoneThree Stake
Jun 5, 2026
Vodafone has reported its capitalization and indebtedness as of March 31, 2026, showing total borrowings of €54.4 billion against total equity of €54.4 billion, resulting in overall capitalization and indebtedness of €108.8 billi...
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.