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Vodafone Group logo

Vodafone Group

VOD.L
31
Telecommunications Services · Communication Services
Price
117.80 GBp
+1.55 (+1.33%)
Market Cap
£27.13B
Exchange
London Stock Exchange
Winston Score
31
Winston is serious
Below-average fundamentals — multiple weak pillars.

Share count falling — buybacks

2.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 24.54B (2022) → 24.03B (2026)

Vodafone is one of the world's largest mobile phone and internet companies. It sells phone plans, home broadband, and business communication services to everyday consumers and companies across multiple countries. The company is headquartered in the UK and is best known for its mobile network brand, which operates across Europe and Africa.

Vodafone makes most of its money through monthly subscription fees paid by mobile and broadband customers. It operates in around 15 countries directly and reaches many more through partner networks, serving roughly 300 million customers globally. The company has been selling off underperforming divisions — including its Italian and Spanish businesses — to cut costs and focus on stronger markets, but it still faces intense price competition from rivals and carries a heavy debt load that limits its financial flexibility. The key challenge ahead is whether cost-cutting and network investment can improve returns, which currently sit near zero.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+29.7% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

-435.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (12%)

Research and development spending

Insider Activity

21.9%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$9.1B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Vodafone Group grew revenue 30% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
33.2%
Modest — 33.2% gross margin
Operating Margin
-14.6%
Losing money on operations — -14.6%
ROCE
-2.9%
Weak — -2.9% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
-21.2%
Shrinking sales (-21.2% YoY)
EPS YoY
-114.8%
Earnings shrinking (-114.8% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
31.2%
Converts sales into free cash efficiently (31.2%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
0.80
Moderate — manageable debt (0.80)
Interest Cover
1.03x
Dangerous — barely covers interest (1.0x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Dividend Yield
3.75%
Moderate income — 3.75% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
-51.0%
Dividend cut (-51.0% YoY) — warning sign

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