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Vodafone Group

DB:VODI
Snowflake Description

Fair value with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VODI
DB
£41B
Market Cap
  1. Home
  2. DE
  3. Telecom
Company description

Vodafone Group Plc engages in telecommunication services in Europe and internationally. The last earnings update was 6 days ago. More info.


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VODI Share Price and Events
7 Day Returns
-4.5%
DB:VODI
-3%
Europe Wireless Telecom
0%
DE Market
1 Year Returns
2.2%
DB:VODI
1.1%
Europe Wireless Telecom
9.9%
DE Market
VODI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Vodafone Group (VODI) -4.5% -3.7% 9.3% 2.2% -26% -36.8%
Europe Wireless Telecom -3% -3.3% 2.2% 1.1% -14.3% -26.2%
DE Market 0% 4.6% 12.1% 9.9% 14.6% 18.2%
1 Year Return vs Industry and Market
  • VODI outperformed the Wireless Telecom industry which returned 1.1% over the past year.
  • VODI underperformed the Market in Germany which returned 9.9% over the past year.
Price Volatility
VODI
Industry
5yr Volatility vs Market

Value

 Is Vodafone Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Vodafone Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Vodafone Group.

DB:VODI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.8%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:VODI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6.7%
Wireless Telecom Unlevered Beta Simply Wall St/ S&P Global 0.34
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.337 (1 + (1- 19%) (155.25%))
0.839
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.84
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.839 * 6.65%)
5.81%

Discounted Cash Flow Calculation for DB:VODI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Vodafone Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:VODI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 5.81%)
2020 5,164.75 Analyst x4 4,881.26
2021 5,579.37 Analyst x10 4,983.69
2022 5,973.75 Analyst x8 5,043.07
2023 6,468.33 Analyst x3 5,160.87
2024 6,674.50 Analyst x2 5,033.06
2025 6,813.63 Est @ 2.08% 4,855.95
2026 6,917.71 Est @ 1.53% 4,659.52
2027 6,996.42 Est @ 1.14% 4,453.86
2028 7,056.92 Est @ 0.86% 4,245.79
2029 7,104.47 Est @ 0.67% 4,039.78
Present value of next 10 years cash flows €47,356.00
DB:VODI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €7,104.47 × (1 + 0.23%) ÷ (5.81% – 0.23%)
€127,616.59
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €127,616.59 ÷ (1 + 5.81%)10
€72,565.98
DB:VODI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €47,356.00 + €72,565.98
€119,921.98
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €119,921.98 / 26,768.44
€4.48
DB:VODI Discount to Share Price
Calculation Result
Exchange Rate EUR/GBP
(Reporting currency to currency of LSE:VOD)
0.855
Value per Share
(GBP)
= Value per Share in EUR x Exchange Rate (EUR/GBP)
= €4.48 x 0.855
£3.83
Non-primary Listing Adjustment Factor 1 share in DB:VODI represents 1.17407x of LSE:VOD
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.17407x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 3.83 x 1.17407
€4.50
Value per share (EUR) From above. €4.50
Current discount Discount to share price of €1.79
= -1 x (€1.79 - €4.50) / €4.50
60.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Vodafone Group is available for.
Intrinsic value
>50%
Share price is €1.79 vs Future cash flow value of €4.5
Current Discount Checks
For Vodafone Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Vodafone Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Vodafone Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Vodafone Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Vodafone Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:VODI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in EUR €-0.08
LSE:VOD Share Price ** LSE (2019-11-18) in GBP £1.52
LSE:VOD Share Price converted to EUR reporting currency Exchange rate (GBP/ EUR) 1.17 €1.78
Europe Wireless Telecom Industry PE Ratio Median Figure of 7 Publicly-Listed Wireless Telecom Companies 22.75x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 20.03x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Vodafone Group.

DB:VODI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:VOD Share Price ÷ EPS (both in EUR)

= 1.78 ÷ -0.08

-22.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vodafone Group is loss making, we can't compare its value to the Europe Wireless Telecom industry average.
  • Vodafone Group is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does Vodafone Group's expected growth come at a high price?
Raw Data
DB:VODI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -22.97x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
23.3%per year
Europe Wireless Telecom Industry PEG Ratio Median Figure of 5 Publicly-Listed Wireless Telecom Companies 2.38x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Vodafone Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Vodafone Group's assets?
Raw Data
DB:VODI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in EUR €1.97
LSE:VOD Share Price * LSE (2019-11-18) in GBP £1.52
LSE:VOD Share Price converted to EUR reporting currency Exchange rate (GBP/ EUR) 1.17 €1.78
Europe Wireless Telecom Industry PB Ratio Median Figure of 9 Publicly-Listed Wireless Telecom Companies 1.82x
Germany Market PB Ratio Median Figure of 577 Publicly-Listed Companies 1.84x
DB:VODI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:VOD Share Price ÷ Book Value per Share (both in EUR)

= 1.78 ÷ 1.97

0.9x

* Primary Listing of Vodafone Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vodafone Group is good value based on assets compared to the Europe Wireless Telecom industry average.
X
Value checks
We assess Vodafone Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Wireless Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Wireless Telecom industry average (and greater than 0)? (1 check)
  5. Vodafone Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Vodafone Group expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
23.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Vodafone Group expected to grow at an attractive rate?
  • Vodafone Group's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Vodafone Group's earnings growth is expected to exceed the Germany market average.
  • Vodafone Group's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:VODI Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:VODI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 23.3%
DB:VODI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 1.3%
Europe Wireless Telecom Industry Earnings Growth Rate Market Cap Weighted Average 15.8%
Europe Wireless Telecom Industry Revenue Growth Rate Market Cap Weighted Average 1.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:VODI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:VODI Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-03-31 46,716 13,856 4,385 2
2023-03-31 47,106 15,141 3,763 5
2022-03-31 46,989 15,390 2,931 14
2021-03-31 46,261 14,628 2,636 18
2020-03-31 45,231 15,293 2,183 12
2019-11-18
DB:VODI Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-09-30 43,757 14,293 -2,214
2019-06-30 43,712 13,637 -3,350
2019-03-31 43,666 12,980 -4,485
2018-12-31 44,531 12,793 -2,961
2018-09-30 45,344 12,605 -1,467
2018-06-30 45,958 13,103 1,471
2018-03-31 46,571 13,600 4,408
2017-12-31 46,613 13,912 1,771
2017-09-30 46,655 14,224 -866
2017-06-30 47,143 14,224 -1,528
2017-03-31 47,631 14,223 -2,190

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Vodafone Group's earnings are expected to grow significantly at over 20% yearly.
  • Vodafone Group's revenue is expected to grow by 1.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:VODI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from Vodafone Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:VODI Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-03-31 0.17 0.17 0.17 1.00
2023-03-31 0.14 0.15 0.14 2.00
2022-03-31 0.10 0.11 0.09 6.00
2021-03-31 0.09 0.16 0.06 10.00
2020-03-31 0.07 0.13 0.04 7.00
2019-11-18
DB:VODI Past Financials Data
Date (Data in EUR Millions) EPS *
2019-09-30 -0.08
2019-06-30 -0.12
2019-03-31 -0.16
2018-12-31 -0.11
2018-09-30 -0.05
2018-06-30 0.05
2018-03-31 0.16
2017-12-31 0.06
2017-09-30 -0.03
2017-06-30 -0.05
2017-03-31 -0.08

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Vodafone Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Vodafone Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Vodafone Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Vodafone Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Vodafone Group's growth in the last year to its industry (Wireless Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Vodafone Group does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Vodafone Group's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Vodafone Group's 1-year growth to the Europe Wireless Telecom industry average as it is not currently profitable.
Earnings and Revenue History
Vodafone Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Vodafone Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:VODI Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 43,757.00 -2,214.00 9,442.00
2019-06-30 43,711.50 -3,349.50 9,371.50
2019-03-31 43,666.00 -4,485.00 9,301.00
2018-12-31 44,531.00 -2,960.50 8,823.50
2018-09-30 45,344.00 -1,467.00 8,702.00
2018-06-30 45,957.50 1,470.50 8,914.50
2018-03-31 46,571.00 4,408.00 9,127.00
2017-12-31 46,613.00 1,771.00 9,056.00
2017-09-30 46,655.00 -866.00 10,163.00
2017-06-30 47,143.00 -1,528.00 10,296.00
2017-03-31 47,631.00 -2,190.00 9,840.00
2016-09-30 45,710.00 -2,755.00 9,946.00
2016-06-30 47,760.00 -4,082.50 10,464.00
2016-03-31 49,810.00 -5,410.00 10,982.00
2015-09-30 57,269.06 -2,120.63 12,831.75
2015-06-30 59,042.07 2,973.95 13,050.31
2015-04-01 48,385.00 7,607.00 11,015.00
2014-09-30 51,461.30 1,242.93 10,246.76
2014-06-30 48,965.08 7,566.87 9,526.52
2014-03-31 46,386.55 13,483.14 8,804.08
2013-12-31 46,222.67 16,171.62 8,676.15
2013-09-30 46,059.55 18,829.82 8,549.44
2013-06-30 44,746.74 6,744.89 8,281.17
2013-03-31 45,082.53 -4,980.99 8,318.24
2012-12-31 39,660.06 -9,489.72 7,064.28

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Vodafone Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Vodafone Group has efficiently used its assets last year compared to the Europe Wireless Telecom industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Vodafone Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Vodafone Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Wireless Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Vodafone Group has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Vodafone Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Vodafone Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Vodafone Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Vodafone Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Vodafone Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Vodafone Group Company Filings, last reported 1 month ago.

DB:VODI Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 59,285.00 73,947.00 12,979.00
2019-06-30 59,285.00 73,947.00 12,979.00
2019-03-31 63,445.00 56,941.00 25,465.00
2018-12-31 63,445.00 56,941.00 25,465.00
2018-09-30 61,376.00 50,046.00 17,931.00
2018-06-30 61,376.00 50,046.00 17,931.00
2018-03-31 68,607.00 45,330.00 12,639.00
2017-12-31 68,607.00 45,330.00 12,639.00
2017-09-30 69,686.00 44,182.00 12,226.00
2017-06-30 69,686.00 44,182.00 12,226.00
2017-03-31 73,719.00 48,512.00 13,340.00
2016-09-30 75,535.00 58,035.00 13,567.00
2016-06-30 75,535.00 58,035.00 13,567.00
2016-03-31 85,136.00 59,171.00 16,297.00
2015-09-30 87,508.77 50,000.36 8,037.81
2015-06-30 91,114.78 52,060.75 8,369.02
2015-04-01 93,708.00 48,502.00 14,854.00
2014-09-30 92,430.34 41,924.05 12,082.23
2014-06-30 89,844.16 40,751.03 11,744.17
2014-03-31 86,832.34 35,323.99 17,035.98
2013-12-31 86,347.67 35,126.82 16,940.89
2013-09-30 100,595.57 40,662.17 11,973.04
2013-06-30 98,319.49 39,742.15 11,702.14
2013-03-31 85,905.79 47,053.35 14,690.54
2012-12-31 89,359.65 48,945.14 15,281.18
  • Vodafone Group's level of debt (124.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (45.4% vs 124.2% today).
  • Debt is not well covered by operating cash flow (19.4%, less than 20% of total debt).
  • Vodafone Group is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Vodafone Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Vodafone Group has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Vodafone Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.87%
Current annual income from Vodafone Group dividends. Estimated to be 5.19% next year.
If you bought €2,000 of Vodafone Group shares you are expected to receive €97 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Vodafone Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.33%).
  • Vodafone Group's dividend is above the markets top 25% of dividend payers in Germany (3.68%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:VODI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
Europe Wireless Telecom Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 4.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 334 Stocks 2.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.3%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:VODI Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2024-03-31 0.10 2.00
2023-03-31 0.10 5.00
2022-03-31 0.09 15.00
2021-03-31 0.09 19.00
2020-03-31 0.09 17.00
2019-11-18
DB:VODI Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-11-12 0.087 4.607
2019-07-23 0.090 5.163
2018-07-27 0.151 9.044
2017-07-19 0.148 6.263
2017-01-31 0.146 5.979
2016-07-20 0.126 5.319
2016-01-20 0.132 5.124
2015-06-05 0.146 5.025
2015-05-19 0.153 4.531
2014-11-17 0.138 4.871
2014-05-21 0.135 5.476
2013-11-13 0.226 6.395
2013-07-24 0.214 4.839
2013-01-25 0.204 5.285
2012-06-26 0.205 5.529
2012-06-01 0.215 5.446
2012-05-22 0.216 5.527
2012-01-31 0.196 5.304
2011-07-08 0.184 5.254
2011-06-17 0.181 5.427
2011-05-18 0.183 5.401
2010-05-18 0.169 5.142
2009-05-19 0.153 5.836

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Vodafone Group's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Vodafone Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Vodafone Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Vodafone Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Vodafone Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Nick Read
COMPENSATION €3,040,000
AGE 54
TENURE AS CEO 1.1 years
CEO Bio

Mr. Nicholas Jonathan Read, also known as Nick, serves as Chief Executive Officer since October 1, 2018 and has been its Executive Director. He serves as the Chief Executive Officer of Africa, Middle East and Asia Pacific Region at Vodafone Essar Limited. Mr. Read was the Chief Financial Officer of Vodafone Group Plc from April 1, 2014 until July 27, 2018. As Group Chief Financial Officer, Mr. Read combines strong commercial and operational leadership with a detailed understanding of the industry and its challenges and opportunities. He served as the Chief Executive Officer Africa Middle East and Asia Pacific Region for Vodafone Group plc from October 2010 to January 1, 2014. Mr. Read served as a Regional Chief Executive Officer for Asia Pacific and Middle East Region of Vodafone UK Ltd. He served as Regional Chief Executive Officer of Asia Pacific and Middle East Region at Vodafone Group plc since November 2008. He served as the Chief Executive Officer of Vodafone UK Ltd from 2006 to September 2008. He joined Vodafone UK in 2002 as Chief Financial Officer and served as its Chief Commercial Officer since 2003. Prior to joining Vodafone in 2001, Mr. Read served as the Chief Financial Officer of Miller Freeman Worldwide and the Chief Financial Officer for the EMEA (Europe, Middle East and Africa) Region of Federal Express. He serves as a Director of Vodafone Essar Limited, Vodafone Essar Towers Limited, Indus Towers Ltd., VodafoneEgypt Communications Limited, Vodafone Australia Limited, Vodafone Qatar Limited and JIL BV and Vodafone Paging Ltd. He has been a Director of Vodafone Group Plc since April 1, 2014. He has been a Non-Executive Director of Booking Holdings Inc. since June 07, 2018. He has been a Member of Supervisory Board at VodafoneZiggo Group B.V., since December 31, 2016. He served as a Board member of Gsma Ltd. He served as a Director at Safaricom Limited since January 17, 2011 until November 15, 2013. He served as Director of Vodafone Hutchison Australia Pty Limited until March 27, 2014. He served as a Director at Vodacom Group Limited from September 13, 2010 to February 5, 2014. He served as an Independent and Non-Executive Director of Vodafone Qatar Q.S.C. since October 2008. Mr. Read served as a Non-Executive Director of China Mobile Limited from March 19, 2009 to September 22, 2010. He served as a Director of Vodafone Business Solutions Limited since September 19, 2003. He served as a Director in listed public companies include Emtel Europe Plc and Mobile Telecom Plc. Prior to joining Vodafone, he held senior global finance positions with United Business Media Plc and Federal Express Worldwide. He is a Fellow Chartered Management Accountant. Mr. Read graduated in 1986 from the Manchester Metropolitan University with a Bachelor of Arts (Honours) degree in Accountancy and Finance.

CEO Compensation
  • Nick's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Nick's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Vodafone Group management team in years:

3.2
Average Tenure
53.5
Average Age
  • The tenure for the Vodafone Group management team is about average.
Management Team

Nick Read

TITLE
CEO & Executive Director
COMPENSATION
€3M
AGE
54
TENURE
1.1 yrs

Margherita Della Valle

TITLE
CFO & Director
COMPENSATION
€1M
AGE
53
TENURE
1.3 yrs

Johan Wibergh

TITLE
Group Technology Officer
AGE
56
TENURE
4.3 yrs

Rosemary Elisabeth Martin

TITLE
Group General Counsel & Company Secretary
AGE
59
TENURE
9.6 yrs

Leanne Wood

TITLE
Chief Human Resources Officer
AGE
46
TENURE
0.6 yrs

António Rui Lacerda Carrapatoso

TITLE
Chief Executive Officer of Vodafone Portugal Operations

Serpil Timuray

TITLE
Chief Executive Officer of Europe Cluster
AGE
50
TENURE
3.1 yrs

Rob Mukherjee

TITLE
Head of North West regional business
TENURE
7.7 yrs

Tony Bailey

TITLE
Head of Regional Business
TENURE
7.7 yrs

Ahmed Essam

TITLE
Group Chief Commercial & Strategy Officer
TENURE
3.2 yrs
Board of Directors Tenure

Average tenure and age of the Vodafone Group board of directors in years:

4.5
Average Tenure
60.5
Average Age
  • The tenure for the Vodafone Group board of directors is about average.
Board of Directors

Gerard Kleisterlee

TITLE
Group Chairman of the Board
COMPENSATION
€730K
AGE
73
TENURE
8.3 yrs

Nick Read

TITLE
CEO & Executive Director
COMPENSATION
€3M
AGE
54
TENURE
5.6 yrs

Margherita Della Valle

TITLE
CFO & Director
COMPENSATION
€1M
AGE
53
TENURE
1.3 yrs

Val Gooding

TITLE
Senior Independent Director
COMPENSATION
€172K
AGE
68
TENURE
2.3 yrs

David Nish

TITLE
Non-Executive Director
COMPENSATION
€177K
AGE
59
TENURE
3.8 yrs

Renée James

TITLE
Independent Non-Executive Director
COMPENSATION
€156K
AGE
54
TENURE
8.8 yrs

Crispin Davis

TITLE
Independent Non-Executive Director
COMPENSATION
€116K
AGE
69
TENURE
5.3 yrs

Clara Hedwig Frances Furse

TITLE
Independent Non-Executive Director
COMPENSATION
€117K
AGE
62
TENURE
5.2 yrs

Maria Amparo Moraleda Martinez

TITLE
Non-Executive Director
COMPENSATION
€133K
AGE
55
TENURE
2.4 yrs

Michel Demaré

TITLE
Non-Executive Director
COMPENSATION
€132K
AGE
63
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
06. Mar 19 Buy David Nish Individual 06. Mar 19 06. Mar 19 20,000 €1.53 €30,628
28. Dec 18 Sell Ronald Adrianus Schellekens Individual 27. Dec 18 27. Dec 18 -316,329 €1.66 €-526,385
27. Nov 18 Sell Maria Amparo Moraleda Martinez Individual 26. Nov 18 26. Nov 18 -25,000 €1.79 €-44,751
27. Nov 18 Buy Maria Amparo Moraleda Martinez Individual 23. Nov 18 23. Nov 18 30,000 €1.75 €52,358
X
Management checks
We assess Vodafone Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Vodafone Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Vodafone Group Plc 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 mobile, fixed, and a suite of converged communication services, such as Internet of Things (IoT) comprising managed IoT connectivity, automotive, and insurance services, as well as smart metering and health solutions; cloud and security portfolio comprising public and private cloud services, as well as cloud-based applications and products for securing networks and devices; and international voice, IP transit, and messaging services to support business customers that include small home offices and large multi-national companies. 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, as well as rents capacity to mobile virtual network operators to provide mobile services. Vodafone Group Plc has a strategic partnership with Open Fiber. As of March 31, 2019, it had approximately 650 million mobile customers, 19 million fixed broadband customers, and 14 million TV customers. The company was founded in 1984 and is headquartered in Newbury, the United Kingdom.

Details
Name: Vodafone Group Plc
VODI
Exchange: DB
Founded: 1984
£47,629,896,633
26,768,442,898
Website: http://www.vodafone.com
Address: Vodafone Group Plc
Vodafone House,
The Connection,
Newbury,
Berkshire, RG14 2FN,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE VOD Ordinary Shares London Stock Exchange GB GBP 26. Oct 1988
OTCPK VODP.F Ordinary Shares Pink Sheets LLC US USD 26. Oct 1988
DB VODI Ordinary Shares Deutsche Boerse AG DE EUR 26. Oct 1988
SWX VOD Ordinary Shares SIX Swiss Exchange CH CHF 26. Oct 1988
BATS-CHIXE VODL Ordinary Shares BATS 'Chi-X Europe' GB GBP 26. Oct 1988
NasdaqGS VOD SPON ADR EACH REP 10 ORD Nasdaq Global Select US USD 27. Oct 1988
DB VODJ SPON ADR EACH REP 10 ORD Deutsche Boerse AG DE EUR 27. Oct 1988
LSE 0LQQ SPON ADR EACH REP 10 ORD London Stock Exchange GB USD 27. Oct 1988
WBAG VOD SPON ADR EACH REP 10 ORD Wiener Boerse AG AT EUR 27. Oct 1988
BMV VOD N SPON ADR EACH REP 10 ORD Bolsa Mexicana de Valores MX MXN 27. Oct 1988
Number of employees
Current staff
Staff numbers
94,442
Vodafone Group employees.
Industry
Wireless Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/18 20:57
End of day share price update: 2019/11/18 00:00
Last estimates confirmation: 2019/11/18
Last earnings filing: 2019/11/12
Last earnings reported: 2019/09/30
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.