# Vodafone Group (VOD.LSE)

Canonical: https://gigainvestors.com/s/VOD.LSE

Analysis as of: 2026-10-16T07:34:08.462Z. Financial observations: FY1997–FY2026.

Listing currency: GBX. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 120.20 per share; close as of 2026-10-15.

Estimated value: low GBX 174.65 per share, central GBX 191.20 per share, high GBX 213.24 per share. Buy at or below the central value GBX 191.20 per share. Valuation as of 2026-10-16T07:34:08.462Z; scenarios are not confidence intervals.

Expected annual return: 18.0% at the stated quote. About 18.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 5

- Operating margin variation: 0.42×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.07×

- FY2018: 0.10×

- FY2019: 0.08×

- FY2020: 0.08×

- FY2021: 0.08×

- FY2022: 0.12×

- FY2023: 0.10×

- FY2024: 0.10×

- FY2025: -0.01×

- FY2026: 0.09×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 3.8%

- ROIC, second-lowest year: 2.6%

- Typical minus recent gross margin: 0.2 pp

- Typical gross margin (annual median): 31.6%

- Recent gross margin (lower of latest and 3-year median): 31.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 17.4%

- ROIC including acquisitions, ten-year median: 2.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 2.6%

- FY2018: 6.7%

- FY2019: 4.1%

- FY2020: 2.9%

- FY2021: 2.8%

- FY2022: 4.8%

- FY2023: 5.4%

- FY2024: 4.5%

- FY2025: -0.5%

- FY2026: 3.4%

### economics: pass

- Owner earnings / net income, 5-yr: 1.56×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 17B

- Net income, five-year total: EUR 11B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1.2 pp

- Working capital / revenue, change between three-year averages: -7.5 pp

- Working capital / revenue, final three-year average: -0.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.49×

- FY2023: 0.86×

- FY2024: 2.42×

- FY2025: 0.53×

- FY2026: -12.10×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 4.1% vs 3.4%

- Per-share earnings: -0.08 to -0.02 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.4%

- Ordinary dilution, 5-year annual growth: -4.9%

- Market cap gain: EUR -38B

- Cumulative retained earnings: EUR -21B

- Diluted shares, 10-year annual growth: -1.4%

- Diluted shares, 5-year annual growth: -4.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: EUR 0.06

- Per-share value, starting three-year median: EUR -0.08

- Per-share value, ending three-year median: EUR -0.02

- Buybacks concentrated in cheaper years (correlation): -0.05

- Average buyback yield: 4.0%

- Buyback history: 8 years

- Debt-funded buybacks: No

- Acquisition spending: EUR 16B

- Cumulative net income, 10 years: EUR 7.5B

- ROIC, first three-year median: 4.1%

- ROIC, last three-year median: 3.4%

Chart: Earnings per share; fiscal year observations.

- FY2017: EUR -0.08

- FY2018: EUR 0.16

- FY2019: EUR -0.16

- FY2020: EUR -0.03

- FY2021: EUR 0.00

- FY2022: EUR 0.08

- FY2023: EUR 0.43

- FY2024: EUR 0.04

- FY2025: EUR -0.16

- FY2026: EUR -0.02

### accounting: pass

- Sloan accruals: -10.5%

- Receivables to sales index (DSRI): 1.39×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.1%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.72×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -10.6%

- FY2018: -6.3%

- FY2019: -12.2%

- FY2020: -10.9%

- FY2021: -11.1%

- FY2022: -10.3%

- FY2023: -4.0%

- FY2024: -10.7%

- FY2025: -15.2%

- FY2026: -10.5%

## Holders

## Price story

Price needs cash profits to shrink 8.4% a year for ten years · "Vodafone sheds 1,200 jobs in Europe amid £1.7 billon cost-cutting drive" (uk.finance.yahoo.com, Jul 2026) · sales +7%

Story as of 2026-10-16T09:59:59.319Z; price observation 2026-10-15.

Price needs cash profits to shrink 8.4% a year for ten years

- 2025-11-12: Vodafone (VOD) Jumps to Record High on Dividend Raise ([finance.yahoo.com](https://finance.yahoo.com/news/vodafone-vod-jumps-record-high-120107673.html))

- 2026-07-27: Vodafone earnings boosted as cost-cutting leads to 1,200 job losses in Europe ([uk.finance.yahoo.com](https://uk.finance.yahoo.com/news/vodafone-earnings-boosted-cost-cutting-074928714.html))

### Sales · FY2025–2026

sales +7%; source https://filings.xbrl.org/213800TB53ELEUKM7Q61/2026-03-31/ESEF/GB/0/213800TB53ELEUKM7Q61-2026-03-31/reports/213800TB53ELEUKM7Q61-2026-03-31-T01.html; observed 2026-06-25.

- FY2017: EUR 48B 

- FY2018: EUR 47B 

- FY2019: EUR 44B 

- FY2020: EUR 45B 

- FY2021: EUR 44B 

- FY2022: EUR 46B 

- FY2023: EUR 46B 

- FY2024: EUR 37B 

- FY2025: EUR 37B 

- FY2026: EUR 40B 

### Gross margin · FY2026

gross margin 31.5%; source https://filings.xbrl.org/213800TB53ELEUKM7Q61/2026-03-31/ESEF/GB/0/213800TB53ELEUKM7Q61-2026-03-31/reports/213800TB53ELEUKM7Q61-2026-03-31-T01.html; observed 2026-06-25.

- FY2017: 27.4% 

- FY2018: 29.6% 

- FY2019: 30.9% 

- FY2020: 31.8% 

- FY2021: 31.3% 

- FY2022: 32.9% 

- FY2023: 32.5% 

- FY2024: 33.4% 

- FY2025: 33.4% 

- FY2026: 31.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in telecom services; annual sales are EUR 40.1 billion.

- Source: https://filings.xbrl.org/213800TB53ELEUKM7Q61/2026-03-31/ESEF/GB/0/213800TB53ELEUKM7Q61-2026-03-31/reports/213800TB53ELEUKM7Q61-2026-03-31-T01.html (filed 2026-06-25); FY2026: revenue 40078811000; grossProfit 12612726000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VOD.LSE: Vodafone Group Public Limited Company provides telecommunication services in Germany, the United Kingdom, rest of Europe, Turkey, and South Africa. It offers mobile and fixed services; connectivity business solutions, such as digital services, the Internet of Things (IoT) and financial services; and IoT platforms. The company also provides cloud, multi-cloud, and edge computing solutions; M-PESA, an African mobile money platform to make payments and offer financial services; and international voice and roaming services. In addition, it offers unified communications, mobile connectivity, IoT connectivity, cloud and edge, E2E solutions, and security services; leases fibre and other fixed connectivity services; and engages in infrastructure assets, shared operations, growth platforms, retail, and service operations. The company serves private and public sector customers in health, banking and finance, transport and logistics, retail, utilities, and agriculture industries. Vodafone Group Public Limited Company was incorporated in 1984 and is based in Newbury, the United Kingdom.

### Why customers stay

Margins ranged from 31.5% to 33.4% during 2024–26; it earns 3.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2024: grossProfit / revenue = 33.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2025: grossProfit / revenue = 33.4%.

- Source: https://filings.xbrl.org/213800TB53ELEUKM7Q61/2026-03-31/ESEF/GB/0/213800TB53ELEUKM7Q61-2026-03-31/reports/213800TB53ELEUKM7Q61-2026-03-31-T01.html (filed 2026-06-25); FY2026: grossProfit / revenue = 31.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); 10-year return on capital observations [[2017,0.025784727698216874],[2018,0.06740206358526969],[2019,0.04146741014241579],[2020,0.02939576209848504],[2021,0.028115268740980786],[2022,0.04814023641975617],[2023,0.0544957266236822],[2024,0.04505464217732457],[2025,-0.0046463273278859775],[2026,0.03417323039347393]]; median 0.037820320267944865. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 33% gross margin through 2022 cost inflation.

- Source: https://filings.xbrl.org/213800TB53ELEUKM7Q61/2026-03-31/ESEF/GB/0/213800TB53ELEUKM7Q61-2026-03-31/reports/213800TB53ELEUKM7Q61-2026-03-31-T01.html (filed 2026-06-25); Gross margin observations: [[2021,0.31324613663859024],[2022,0.329223343571742],[2023,0.3250339123966219]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back EUR 2 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2017: growth capex 0; upkeep 6285000000; owner earnings 2611000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2018: growth capex 0; upkeep 4917000000; owner earnings 9900000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2019: growth capex 0; upkeep 5053000000; owner earnings 257000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2020: growth capex 0; upkeep 7605000000; owner earnings 3236400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2021: growth capex 0; upkeep 8640000000; owner earnings 2913600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2022: growth capex 0; upkeep 9060000000; owner earnings 1086200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2023: growth capex 0; upkeep 9213000000; owner earnings 10207200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); FY2024: growth capex 0; upkeep 6860000000; owner earnings 2759600000. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/213800TB53ELEUKM7Q61/2026-03-31/ESEF/GB/0/213800TB53ELEUKM7Q61-2026-03-31/reports/213800TB53ELEUKM7Q61-2026-03-31-T01.html (filed 2026-06-25); FY2026: growth capex 0; upkeep 4824989000; owner earnings 4758161000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); Dividend observations: [[2017,3714000000],[2018,3920000000],[2019,4064000000],[2020,2296000000],[2021,2427000000],[2022,2474000000],[2023,2484000000],[2024,2430000000],[2025,1787000000],[2026,1082676000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/213800TB53ELEUKM7Q61/2026-03-31/ESEF/GB/0/213800TB53ELEUKM7Q61-2026-03-31/reports/213800TB53ELEUKM7Q61-2026-03-31-T01.html (filed 2026-06-25); FY2026: cash repurchases 2021721000 EUR.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); VOD.LSE SharesStats.PercentInsiders = 0.127 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 8.4% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-25); Ten-year compound average after fade. Initial solved rate -0.12983834557378254. Price 120.2; FX 84.48781222921298; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share -0.3030886986595234 → FY2026 0.20611332756541656. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 224.80 per share

- 2016-11: GBX 193.90 per share

- 2016-12: GBX 199.85 per share

- 2017-01: GBX 194.35 per share

- 2017-02: GBX 201.90 per share

- 2017-03: GBX 208.10 per share

- 2017-04: GBX 199.05 per share

- 2017-05: GBX 231.50 per share

- 2017-06: GBX 217.75 per share

- 2017-07: GBX 222.00 per share

- 2017-08: GBX 221.40 per share

- 2017-09: GBX 208.80 per share

- 2017-10: GBX 215.60 per share

- 2017-11: GBX 224.30 per share

- 2017-12: GBX 235.00 per share

- 2018-01: GBX 224.60 per share

- 2018-02: GBX 203.75 per share

- 2018-03: GBX 194.22 per share

- 2018-04: GBX 211.60 per share

- 2018-05: GBX 191.82 per share

- 2018-06: GBX 183.82 per share

- 2018-07: GBX 186.00 per share

- 2018-08: GBX 164.50 per share

- 2018-09: GBX 164.50 per share

- 2018-10: GBX 147.82 per share

- 2018-11: GBX 168.94 per share

- 2018-12: GBX 152.90 per share

- 2019-01: GBX 138.58 per share

- 2019-02: GBX 134.28 per share

- 2019-03: GBX 139.80 per share

- 2019-04: GBX 142.00 per share

- 2019-05: GBX 129.42 per share

- 2019-06: GBX 129.32 per share

- 2019-07: GBX 150.08 per share

- 2019-08: GBX 155.24 per share

- 2019-09: GBX 162.00 per share

- 2019-10: GBX 157.40 per share

- 2019-11: GBX 153.36 per share

- 2019-12: GBX 146.76 per share

- 2020-01: GBX 149.30 per share

- 2020-02: GBX 134.36 per share

- 2020-03: GBX 113.00 per share

- 2020-04: GBX 112.14 per share

- 2020-05: GBX 133.02 per share

- 2020-06: GBX 128.86 per share

- 2020-07: GBX 115.56 per share

- 2020-08: GBX 111.44 per share

- 2020-09: GBX 102.68 per share

- 2020-10: GBX 103.00 per share

- 2020-11: GBX 123.68 per share

- 2020-12: GBX 120.94 per share

- 2021-01: GBX 124.84 per share

- 2021-02: GBX 122.02 per share

- 2021-03: GBX 131.88 per share

- 2021-04: GBX 136.80 per share

- 2021-05: GBX 128.30 per share

- 2021-06: GBX 121.34 per share

- 2021-07: GBX 116.18 per share

- 2021-08: GBX 121.96 per share

- 2021-09: GBX 113.30 per share

- 2021-10: GBX 108.04 per share

- 2021-11: GBX 109.34 per share

- 2021-12: GBX 112.26 per share

- 2022-01: GBX 130.02 per share

- 2022-02: GBX 131.44 per share

- 2022-03: GBX 124.84 per share

- 2022-04: GBX 121.54 per share

- 2022-05: GBX 130.58 per share

- 2022-06: GBX 126.66 per share

- 2022-07: GBX 120.80 per share

- 2022-08: GBX 115.68 per share

- 2022-09: GBX 101.12 per share

- 2022-10: GBX 101.64 per share

- 2022-11: GBX 91.84 per share

- 2022-12: GBX 84.24 per share

- 2023-01: GBX 93.12 per share

- 2023-02: GBX 99.78 per share

- 2023-03: GBX 89.30 per share

- 2023-04: GBX 95.90 per share

- 2023-05: GBX 76.37 per share

- 2023-06: GBX 73.97 per share

- 2023-07: GBX 74.43 per share

- 2023-08: GBX 73.21 per share

- 2023-09: GBX 76.82 per share

- 2023-10: GBX 75.70 per share

- 2023-11: GBX 71.33 per share

- 2023-12: GBX 68.56 per share

- 2024-01: GBX 67.32 per share

- 2024-02: GBX 69.12 per share

- 2024-03: GBX 70.46 per share

- 2024-04: GBX 67.66 per share

- 2024-05: GBX 75.62 per share

- 2024-06: GBX 69.76 per share

- 2024-07: GBX 72.44 per share

- 2024-08: GBX 74.42 per share

- 2024-09: GBX 75.04 per share

- 2024-10: GBX 72.02 per share

- 2024-11: GBX 70.88 per share

- 2024-12: GBX 68.30 per share

- 2025-01: GBX 68.68 per share

- 2025-02: GBX 70.18 per share

- 2025-03: GBX 72.90 per share

- 2025-04: GBX 73.26 per share

- 2025-05: GBX 76.88 per share

- 2025-06: GBX 77.78 per share

- 2025-07: GBX 82.02 per share

- 2025-08: GBX 88.36 per share

- 2025-09: GBX 86.16 per share

- 2025-10: GBX 92.14 per share

- 2025-11: GBX 94.02 per share

- 2025-12: GBX 98.88 per share

- 2026-01: GBX 107.40 per share

- 2026-02: GBX 114.50 per share

- 2026-03: GBX 113.30 per share

- 2026-04: GBX 117.25 per share

- 2026-05: GBX 111.40 per share

- 2026-06: GBX 99.60 per share

- 2026-07: GBX 117.85 per share

- 2026-08: GBX 118.45 per share

- 2026-09: GBX 122.70 per share

- 2026-10: GBX 117.70 per share

## Annual estimated value (GBX per share)

- FY2017: low GBX 123.62 per share, central GBX 135.51 per share, high GBX 151.33 per share

- FY2018: low GBX 271.07 per share, central GBX 303.55 per share, high GBX 346.78 per share

- FY2019: low GBX 155.33 per share, central GBX 166.37 per share, high GBX 181.07 per share

- FY2020: low GBX 130.88 per share, central GBX 141.55 per share, high GBX 155.75 per share

- FY2021: low GBX 121.95 per share, central GBX 134.44 per share, high GBX 151.08 per share

- FY2022: low GBX 136.27 per share, central GBX 149.53 per share, high GBX 167.19 per share

- FY2023: low GBX 154.51 per share, central GBX 168.44 per share, high GBX 186.99 per share

- FY2024: low GBX 120.36 per share, central GBX 132.75 per share, high GBX 149.25 per share

- FY2025: low GBX 135.59 per share, central GBX 147.72 per share, high GBX 163.86 per share

- FY2026: low GBX 175.27 per share, central GBX 191.88 per share, high GBX 214.00 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:55.780Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/213800TB53ELEUKM7Q61/2026-03-31/ESEF/GB/0/213800TB53ELEUKM7Q61-2026-03-31/reports/213800TB53ELEUKM7Q61-2026-03-31-T01.html); period 2026-03-31, filed 2026-06-25.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.