Vodafone Group Public Limited Company (VOD) is listed on NASDAQ and operates in the Telecommunications Services industry (Communication Services sector).
Vodafone 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.
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 13 |
| Hold | 7 |
| Sell | 5 |
| Strong Sell | 0 |
Vodafone Group Public Limited Company operates in the telecommunications sector, providing services in Europe and internationally. Its offerings include mobile services for calls, texts, and data access, as well as fixed-line services such as broadband, television, and voice. The company also delivers convergence services under the GigaKombi and Vodafone One brands. Vodafone's value-added services encompass Internet of Things (IoT) solutions, including logistics, fleet management, smart metering, and cloud and security services. Additionally, it offers M-Pesa, an African payment platform for money transfers and financial services. Vodafone has a strategic partnership with Open Fiber. As of March 31, 2022, Vodafone served approximately 323 million mobile, 28 million fixed broadband, and 22 million TV customers. Established in 1984, the company is headquartered in Newbury, UK.
Over the past three fiscal years, the company has faced significant challenges in profitability and cash generation. Revenue showed an inconsistent trend, slightly declining at a -0.3% CAGR from €37.67 billion in 2023 to €37.45 billion in 2025. Despite this, the company managed to reduce its net debt by 12.5% annually, from €59.41 billion to €45.52 billion, indicating a focus on deleveraging. However, profitability metrics deteriorated sharply, with operating margins dropping from a robust 38.4% in 2023 to a negative 1.1% by 2025, and net margins following a similar pattern, declining from 31.4% to -11.1%. This decline in profitability was mirrored in the EPS, which fell consistently from €4.3 to -€1.6. Cash flow from operations and free cash flow also decreased consistently, with FCF falling from €13.1 billion to €8.67 billion, and its margin compressing by 11.6pp to 23.2%. Despite these challenges, the company executed a share buyback, reducing the share count by 5.7%, which helped to partially offset the impact on per-share metrics. The interest coverage ratio fell below 3x, indicating thin coverage, while the return on invested capital (ROIC) decreased consistently to 0.9%, reflecting diminished capital efficiency. Overall, the company is navigating a period of financial strain, with declining margins and cash flows, but has made strides in reducing debt and enhancing per-share value through buybacks.
Recent developments for Vodafone Group PLC have been marked by significant analyst activity and strategic initiatives. On April 13, analysts set a 12-month price target of $72 for Vodafone's stock, which opened at $15, indicating a positive outlook among brokers. This follows CoreCap Advisors LLC's sale of 38,820 shares in the fourth quarter, as reported on April 3. In terms of strategic initiatives, Vodafone Fiji launched the M-PAiSA Digital Card Issuance in collaboration with Entrust on April 20, enhancing its digital financial services. Additionally, on April 16, Tomorrow Street, a joint venture between Vodafone and Luxembourg's technology incubator, selected Arqit to integrate quantum security solutions into its portfolio, highlighting Vodafone's commitment to advancing cybersecurity. These developments reflect Vodafone's ongoing efforts to strengthen its market position and technological capabilities.