VODVodafone Group Public Limited Company
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (6.4×).
Operating profit is fully backed by cash.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is VOD?
Vodafone Group Public Limited Company earns 2.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 6.6 points below what the capital costs: growth destroys value
- Operating margin
- 7.0%
Operating margin · Telecom Services median 14% · fiscal year to FY2026
- Cash conversion
- 6.36×
Cash conversion · operating cash flow covers the operating profit after tax
- Share count, year on year
- −8.1%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | 12% |
| FY2022 | 16% |
| FY2023 | 38% |
| FY2024 | 10.0% |
| FY2025 | −1.1% |
| FY2026 | 7.0% |
Details›
- Gross marginfiscal year to FY2026
- 31%
- Operating marginfiscal year to FY2026
- 7.0%
- Net marginfiscal year to FY2026
- −0.98%
- Free cash flow margin
- 23%
- Revenue, trailing twelve months
- $40.5B
- Free cash flow, trailing twelve months
- $9.42B
- Net income, trailing twelve months
- −$397M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 2.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.