Vodacom Group Limited
Vodacom Group Limited Fundamental Analysis
Vodacom Group Limited (VODAF) shows moderate financial fundamentals with a PE ratio of 25.54, profit margin of 11.36%, and ROE of 10.49%. The company generates $84.1B in annual revenue with strong year-over-year growth of 26.37%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze VODAF's fundamental strength across five key dimensions:
Efficiency Score
ExcellentVODAF demonstrates superior asset utilization.
Valuation Score
ModerateVODAF shows balanced valuation metrics.
Growth Score
ModerateVODAF shows steady but slowing expansion.
Financial Health Score
ExcellentVODAF maintains a strong and stable balance sheet.
Profitability Score
WeakVODAF struggles to sustain strong margins.
Key Financial Metrics
Is VODAF Expensive or Cheap?
P/E Ratio
VODAF trades at 25.54 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VODAF's PEG of 0.11 indicates potential undervaluation.
Price to Book
The market values Vodacom Group Limited at 2.71 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.40 times EBITDA. This is generally considered low.
How Well Does VODAF Make Money?
Net Profit Margin
For every $100 in sales, Vodacom Group Limited keeps $11.36 as profit after all expenses.
Operating Margin
Core operations generate 21.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.49 in profit for every $100 of shareholder equity.
ROA
Vodacom Group Limited generates $66.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Vodacom Group Limited produces operating cash flow of $20.79B, showing steady but balanced cash generation.
Free Cash Flow
Vodacom Group Limited generates strong free cash flow of $9.12B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.72 in free cash annually.
FCF Yield
VODAF converts 3.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.90
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.67
vs 25 benchmark
ROCE
Return on capital employed
1.77
vs 25 benchmark
How VODAF Stacks Against Its Sector Peers
| Metric | VODAF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.54 | 21.66 | Worse (Expensive) |
| ROE | 10.49% | 1190.00% | Weak |
| Net Margin | 11.36% | -55754.00% (disorted) | Strong |
| Debt/Equity | 0.05 | 1.32 | Strong (Low Leverage) |
| Current Ratio | 1.09 | 1.59 | Neutral |
| ROA | 66.51% | -202359.00% (disorted) | Strong |
VODAF outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Vodacom Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
52.74%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-3.43%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
53.57%
Industry Style: Growth, Technology, Streaming
High Growth