VODVOD
US • —
$12.99
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
+7.8% YoY
Gross Margin
31.5%
Health Score
5/10
D/E Ratio
1.01
Confidence
LOW
Business Snapshot
Vodafone Group operates as a telecommunications company providing mobile and fixed-line services to consumers and businesses across Europe and Africa. The company competes in a mature, highly regulated telecom market where it holds a significant but challenged position, facing intense competition and substantial infrastructure investment requirements. Vodafone has historically relied on its extensive network infrastructure and scale across multiple European markets as a competitive advantage, though heavy capital expenditure needs have constrained financial flexibility. The company generates modest revenue growth of 7.8% year-over-year, reflecting some pricing power despite market headwinds, while maintaining a geographically diversified revenue base.
Financial Health
Gross margin stands at 31.5% with net margin at -1.0%, indicating the company is barely profitable at the net income level after accounting for all expenses and financing costs. The debt-to-equity ratio of 1.01x is manageable and suggests a balanced capital structure, though it does leave limited headroom for additional leverage without straining the balance sheet...
Risk Assessment
- EARNINGS QUALITY — Despite beating estimates in 3 of 4 quarters, the company's net margin of -1.0% indicates it operates at a loss, raising questions about the sustainability of earnings surprises.
- DEBT / LIQUIDITY — Return on equity of -8.3% signals that the company is destroying shareholder value, with negative returns on the equity capital invested in the business.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- FCF / CASH BURN — Free cash flow is negative or unavailable, preventing a DCF calculation and indicating the company may not be generating sufficient cash to fund operations and investment.
- VALUATION DIVERGENCE — The P/E ratio is not calculable due to negative or negligible net income, making traditional valuation analysis unreliable and difficult to compare against sector peers....
Gross margin stands at 31.5% with net margin at -1.0%, indicating the company is barely profitable at the net income level after accounting for all expenses and financing costs. The debt-to-equity ratio of 1.01x is manageable and suggests a balanced capital structure, though it does leave limited headroom for additional leverage without straining the balance sheet. The current ratio of 1.26x points to adequate short-term liquidity, with current assets modestly exceeding current liabilities. Free cash flow data is unavailable, making it impossible to assess the company's actual cash generation capacity or dividend sustainability. Negative return on equity of -8.3% signals that the company is destroying shareholder value at the equity level, a concerning metric for long-term investors focused on capital allocation discipline.
- EARNINGS QUALITY — Despite beating estimates in 3 of 4 quarters, the company's net margin of -1.0% indicates it operates at a loss, raising questions about the sustainability of earnings surprises. - DEBT / LIQUIDITY — Return on equity of -8.3% signals that the company is destroying shareholder value, with negative returns on the equity capital invested in the business. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - FCF / CASH BURN — Free cash flow is negative or unavailable, preventing a DCF calculation and indicating the company may not be generating sufficient cash to fund operations and investment. - VALUATION DIVERGENCE — The P/E ratio is not calculable due to negative or negligible net income, making traditional valuation analysis unreliable and difficult to compare against sector peers.
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