Vodafone Group Plc (VOD.L) stock analysis

In our weekly check, Vodafone Group Plc is graded C (A to F). Of 23 checks on debt, profit, cash flow and trend: 12 pass, warnings: 3, red flags: 8.

About Vodafone Group Plc

Vodafone Group Plc is a Communication Services company (Telecommunications Services) based in the United Kingdom, listed on LSE as VOD.L.

What our checks show for VOD.L

Red flags

• Operating profit covers interest only 1.6 times: a weak year could make the payments hard.
• The net margin fell by 5.9 points over 5 years, to -1%: the company keeps less of each sale as profit.
• Revenue fell 4.3% a year over the last 3 years.
• Earnings per share fell 66.3% a year over the last 3 years.
• The company is losing money: the net margin is -1%.
• Vodafone Group Plc pays a dividend while losing money: it is funded from reserves or debt.
• The stock has fallen as much as 75% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 3.3%.

Warning signs

• Net debt is 2.7x a year of EBITDA (debt/equity 1.04). That limits room in a downturn and raises refinancing risk.
• The gross margin fell by 1.5 points, to 31.5%: costs are rising faster than prices.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 33.75x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 107% a year over the next years.
• Analysts expect the net margin to improve by 9.3 points from today's -1%.
• Free cash flow is 21.1% of revenue: cash for dividends, buybacks or growth.
• A large company: market value $36.61 billion.
• Beta 0.33: the stock usually moves less than the market.

Similar companies

SCMN.SW · VIV · BT-A.L · ORA.PA · TEF.MC · BCE

Questions

What grade does Vodafone Group Plc (VOD.L) have?

In our weekly check, Vodafone Group Plc is graded C (A to F). Of 23 checks on debt, profit, cash flow and trend: 12 pass, warnings: 3, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of VOD.L stock?

This week's biggest flags for Vodafone Group Plc: Weak interest cover, Margins falling, Weak revenue growth. In total 11 of 23 checks show a warning or a red flag.

What does Vodafone Group Plc do?

Vodafone Group Plc is a Communication Services company (Telecommunications Services) based in the United Kingdom, listed on LSE as VOD.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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