Vodafone Idea Limited Fundamental Analysis
Vodafone Idea Limited Fundamental Analysis
Vodafone Idea Limited (IDEA.NS) shows moderate financial fundamentals with a PE ratio of 4.68, profit margin of 77.07%, and ROE of -50.02%. The company generates $448.6B in annual revenue with weak year-over-year growth of 2.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IDEA.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentIDEA.NS demonstrates superior asset utilization.
Valuation Score
ExcellentIDEA.NS trades at attractive valuation levels.
Growth Score
ModerateIDEA.NS shows steady but slowing expansion.
Financial Health Score
ModerateIDEA.NS shows balanced financial health with some risks.
Profitability Score
ModerateIDEA.NS maintains healthy but balanced margins.
Key Financial Metrics
Is IDEA.NS Expensive or Cheap?
P/E Ratio
IDEA.NS trades at 4.68 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IDEA.NS's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Vodafone Idea Limited at -4.53 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.32 times EBITDA. This is generally considered low.
How Well Does IDEA.NS Make Money?
Net Profit Margin
For every $100 in sales, Vodafone Idea Limited keeps $77.07 as profit after all expenses.
Operating Margin
Core operations generate 5.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-50.02 in profit for every $100 of shareholder equity.
ROA
Vodafone Idea Limited generates $18.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Vodafone Idea Limited produces operating cash flow of $104.79B, showing steady but balanced cash generation.
Free Cash Flow
Vodafone Idea Limited produces free cash flow of $36.24B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.33 in free cash annually.
FCF Yield
IDEA.NS converts 2.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
-4.53
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-5.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.50
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How IDEA.NS Stacks Against Its Sector Peers
| Metric | IDEA.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.68 | 24.20 | Better (Cheaper) |
| ROE | -50.02% | 959.00% | Weak |
| Net Margin | 77.07% | -68674.00% (disorted) | Strong |
| Debt/Equity | -5.38 | 3.02 | Strong (Low Leverage) |
| Current Ratio | 0.55 | 1.71 | Weak Liquidity |
| ROA | 18.03% | -2558.00% (disorted) | Strong |
IDEA.NS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Vodafone Idea Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-61.60%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
85.29%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
-58.55%
Industry Style: Growth, Technology, Streaming
Declining