Vodafone Group PLC
🇬🇧 VOD.LSE · London · GB00BH4HKS39
Telecom
GBX 115.05 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
N/A
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
TTM period through: 2025-09-30
Why N/A?
EPS (TTM) = -17.15 (negative or zero)
Cannot calculate P/E with negative earnings.
Forward P/E (estimated): 10.8
Based on analyst estimates
Reference: Provider P/E (Forward): 10.8
Yield (Fwd)
3.48%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 3.96%
Net Debt/EBITDA (TTM)
3.5x
Latest quarter: 6.0x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-09-30
Latest quarter (2025-09-30): 6.0x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (TTM)
101.8%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Cash Flow Payout (TTM): 8.0%
FCF Coverage (TTM): 8.53x
ROE
-6.6%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
5.4x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Vodafone is a major global telecommunications provider operating in an essential services sector. However, a decade-long trajectory of declining revenues, recurring structural net losses, and a history of serial dividend cuts make the company unsuitable for conservative dividend strategies. Not recommended for new positions, as the impending 41.5% dividend cut and long-term fundamental deterioration far outweigh any apparent value in the current stock price.
Sector Context
Vodafone operates globally as a major telecommunications provider, offering essential mobile, broadband, and digital services. While telecom infrastructure provides critical, non-discretionary services that typically offer stable cash flows, companies in this space require heavy, ongoing capital expenditure to maintain and upgrade networks, which can strain balance sheets if revenues decline.
📊 Strategy Analysis
- • Operates in the essential telecommunications sector with significant global network infrastructure assets.
- • Generates substantial free cash flow, resulting in a low cash flow payout ratio of 7.9% despite accounting net losses.
⚠ What to Watch
- • Severe long-term fundamental deterioration, evidenced by a 10-year revenue CAGR of -3.2% and a 28% total revenue decline over the past decade.
- • Highly unreliable dividend history with four cuts in the last ten years, plus a newly proposed massive 41.5% cut for 2026, destroying income predictability.
- • Consistent earnings volatility characterized by multiple massive net loss years (2016, 2017, 2019, 2020, 2025), most recently a €4.5 billion impairment.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.