UK markets closed

Vodafone Group Plc (VOD.L)

LSE - LSE Delayed price. Currency in GBp
Add to watchlist
115.00+0.34 (+0.30%)
At close: 4:35PM BST
Sign in to post a message.
  • y
    y
    Technically weak, and mobile phone industry as a growth industry is over. It is aged into utility business. $15 or under worth consideration for the dividend. VOD's EU market appears to be turning around. It has growth potential in Africa. Not certain if India is still a big drain for the company.
  • i
    investor101
    All, I would highly recommend that you buy into vod (Vodafone Group) right now, as long as the market stays about what it is now or better, vod is a excellent buy right now. I have held minimal shares of vod for the last 5 years and have NOT bought anymore till now. I purchased a minimal amount of stock about 5 years ago such that I would follow vod, this is because if I do not own any stock, I generally do not follow it. So I have been following vod for about 5 years, checking their financials, fundamentals and seeing if they could dig their way out of the Vodafone Idea mess (the India purchase). They have, what happens to Vodafone Idea today, present news, no longer affects Vodafone Group, vod, even though several posters keep posting what is happening to Vodafone Idea and implying that it weighs on Vodafone Group, it doesn't, period.

    The present financials look really good for a turnaround company, the only thing weighing on vod is the high debt/equity ratio 1.07 where as the industry average is 0.74, however vod cash/share is almost 2x the industry average, meaning with time vod can pay down their debt, which they have been doing. Also vod management team is now going for value, instead of being the biggest, baddest cell phone company in the world which they tried to do when they created Vodafone Idea. The hang over from Vodafone Idea was taking out huge loans, directly or indirectly, one can say they got in debt because of 5G spectrum purchases, but my point is they would of had plenty of money had they not purchased the India cell phone company.

    Long story short, NOW IS THE TIME to purchase vod, as long as the vod management team goes after value and is on the path to become a trusted dividend paying company, then this will be a good company to hold and NOT to sell, at least as long as vod management stays on the value path.
  • S
    Someone
    better earnings coming soon
  • C
    Charles
    I bought a new phone yesterday and opted for a Vodafone plan not because I am a shareholder but because VOD genuinely offer a wide choice of plans at competitive prices.

    The very welcome hefty dividend flooded into my ISA account last Friday and was instantly reinvested in more shares, a very straightforward decision at current prices/yields. Lock in at 6.5% yield now , it will not last long.
  • M
    MARK
    This year the dividend was pretty good. So far, in 2021 I received a net dividend equivalent to 5% p.a.
    How about that?
  • i
    investor101
    Following article is bullish for Vodafone, Vodafone has stated that it's revenue stream is still 40% below pre-Covid 19 levels and have stated that as the European economy improves that Vodafone revenue stream will improve. This is totally separate from the opex program reduction efforts and there buy down efforts on debt. This article along with the other articles released on Vodafone essentially state to expect better future financial performances, meaning that Vodafone stock is going a lot higher than the $16.57 price it is right now.

    So future expectations for Vodafone are:
    1. Future revenue going up for three reasons, lower churn, economy recovering and market expansion.
    2. Lowering of debt and opex, meaning financial metrics will improve
    3. Focus on turning around Italy, Italy revenue loss is stabilizing QoQ and will soon turn into an asset
    4. Focus on value and they are starting to show the financial numbers, such as raising EBITDA, lowerig opex, and lowering debt to show they are serious, this means two things, stock price will go up in the future and dividend will increase.

    So yes, Vodafone at $16.58 right now is a buy both for short term as well as long term investment.
  • i
    investor101
    All there are 3 stocks I would recommend buying in terms of turn around, long term investments, they are:

    mt, vod and nok

    mt = Arcelor Mittal, I bought in mid February, if you go through their books and their story they are turning into a value company, i.e., buy for long term. The stock has gone up a lot since February, however no where near as high as it will go YoY. If you buy it now, it may go down 1 to 2 quarters, however mt should be turning on their dividend late this year early next year, excellent long term buy/hold stock.

    nok = Everything about Nokia is screaming it is a turn around company, financially they have reduced their costs, cut head count, start focusing on their profitable businesses, about 1 month ago they released their latest generation Systems on a Chip (SOC) ReefShark which will make them competitive, price wise to their competition. Also India is just coming up on 5G, trials start now so 5G service in India (in mass that is) will start late this year early next year, so Nokia timing of releasing the next generation ReefShark is perfect, if they can win market share in India (they lost China) this will definitely boost the stock.

    vod = See my posts on this board, vod is starting to show the financial #'s that they are now over the India debacle of several years ago, vod has plenty of cash, and they have published their recovery roadmap, one of which was to sell the Tower group which they did in May.

    There is one other company which is not a turnaround company but presently at a very good buy point I would recommend and that is bdx, bdx is a buy anywhere less than 256. BDX is presently consolidating and it's current price is around 256, it is likely to trade awhile from 240 to 256. I would say buy bdx periodically, if it is 256 or less, I wouldn't wait for it to hit 240 to buy cause bdx may decide to climb any time. If bdx hits 240, I would say double your buying.........as long as bdx remains a good company and presently it is a good company with good financials.

    For stocks mt, vod and nok you can buy periodically for the next 12 months, don't worry if the stock goes below your buy point, ONLY worry if they reduce their dividend. I expect mt to turn on their dividend soon and nok is likely to turn on their dividend next year or more probably the year after that.
  • S
    Someone
    stuck forever
  • i
    investor101
    From July 23, 2021 Vodafone Q1 Report, it is solid and good:_____________________Original guidance __Updated guidance___FY21 outcomeAdjusted EBITDA ?___________________#$%$14.4-14.6 billion___#$%$14.4 billionFree cash flow (pre spectrum, At least #$%$5.0 billion At least #$%$5.0 billion #$%$5.0 billionrestructuring and integration costs)Outlook for FY22Our performance during FY21 has been in line with our expectations and demonstrates the relative resilience of our operating model. We remain focused on the delivery of the next phase of our strategy.Adjusted EBITDA will be referred to as ?adjusted EBITDAaL? from FY22 onwards, with no change to the underlying definition. Free cash flow (pre spectrum, restructuring and integration costs) will be referred to as ?adjusted free cash flow?1, and excludes Vantage Towers growth capital additions.FY22 GuidanceBased on the current prevailing assessments of the global macroeconomic outlook:? Adjusted EBITDAaL is expected to be between #$%$15.0 ? #$%$15.4 billion in FY22; and? Adjusted free cash flow1 is expected to be at least #$%$5.2 billion in FY22.
  • i
    investor101
    Vodafone's Group EBITDA Margin is 42%, meaning they are rich in cash, given the large debt that Vodafone is carrying, following would hurt the Vodafone stock:

    1. lowering of the dividend
    2. Increasing of interest rates
    3. Taking on more debt
    4. Reduction of Free Cash Flow
    5. Reduction of Revenue
    6. Economic slowdown
  • i
    investor101
    When would Vodafone likely reduce their dividend, presently Vodafone Group dividend payout ratio is around 16.7% of free cash flow, if this ratio should increase to 25% or higher, IMO vod would likely reduce their dividend. This would mean free cash flow would have to drop by around 8 to 9 %. This is unlikely to happen, but it can happen, so one needs to watch market and vod financial metrics which would reduce free cash flow by 9%. Again though, vod, presently have all improving financial metrics.
  • i
    investor101
    Vodafone is a buy at this price, mainly due to the dividend which is at 6.82% which is 3x higher than the S&P500 dividend. Also Vodafone payout ratio vs cash flow is 16.30%, one of the lowest in the cell phone industry, meaning the dividend is safe.
  • M
    MARK
    Holding this stock for the strong dividend payment alone is still good value for money.
  • i
    investor101
    So why is Vodafone group going up, IMO the reason is simple, many Hedge funds, mutual fund managers want to get a 6% return on anything they purchase, their expenses will range from 0.1% to 1%, most are in the range of 0.1 to 0.3%. Vodafone at 16.97 is giving a dividend at 6.33%, what this means is large fund managers are buying into Vodafone, the research that they do is, they just have to determine the likelihood of Vodafone Dividend going down. IMO this is one of the reason we are seeing increasing number of analyst covering Vodafone and also why Vodafone is going up.
  • i
    investor101
    All, if you do TA (I do TA and fundamental) then there are two price targets for Vodafone, vod, one is 17.20 and there could be a small retrace, the next price target then is 17.68, at which there is likely to be a retrace. After 17.68 the next price target will be 18.40. Technically and fundamentally vod looks good right now.
  • i
    investor101
    All one caution in buying dividend stock, which vod is and is trying to become a good dividend stock. The valuation IS NOT in the stock price, it IS in the dividend. If for example, interests rates go up, almost ALL dividend stock prices will fall, including Vodafone Group. A GOOD dividend stock will NOT reduce its dividend $/share, it will keep it the same. If a company keeps the dividend the same as the interest rates rises, then you have a good dividend company, in this scenario you should buy MORE of that dividend company stock, given that it is a good dividend company. I see a lot of people on this board buying vod BECAUSE they expect the stock to increase, while I think it will.....THIS IS NOT THE VALUE of buying Vodafone, vod, it IS the DIVIDEND. Also, FYI, a good dividend company will raise their dividend as fast as inflation or faster and will raise them as fast as interest rates go up. If you buy Vodafone NOW, you are potentially buying a company that is turning things around and will become a GOOD/EXCELLENT Dividend Company.............POTENTIALLY, they have an excellent chance right now, they ONLY need to reduce their debt and capitalize on all the 5G spectrum they went out and bought, hence the debt along with Vodafone Idea fiasco, but again Vodafone Idea is off the books and Vodafone Group WILL NOT pump anymore money into Vodafone Idea. IF VODAFONE IDEA becomes solvent, that is icing on top of the cake for Vodafone Group since they still own 45% of Vodafone Idea, however understand Vodafone Idea is written off the books as an asset.
  • i
    investor101
    Below you can find Vodafone Q1 22 report published one week ago, it is a very good report and essentially, long story short, Vodafone stock should start going up Quarter over Quarter (QoQ) assuming that the market remains the same as it is now or better:

    https://www.vodafone.com/news/press-release/vodafone-group-q1-2022-trading

    The above report IS not a growth stock report, in other words vod will shoot up in a short amount of time. It is a report if you are looking to buy vod periodically and stay in the stock until they start reporting bad financial numbers. It is a very good report and if you go through the numbers and what they are doing, you should be able to buy Vod, every two weeks or once a month for at least the next 12 months and expect to have good dividend returns, meaning vod is turning into a buy and forget stock. I wouldn't recommend forgetting, you should always visit your portfolio periodically to make sure the stocks you own that the companies are doing OK.
    Vodafone has today announced its trading update for the quarter ended 30 June 2021.
    Vodafone has today announced its trading update for the quarter ended 30 June 2021.
    www.vodafone.com
  • i
    investor101
    Another item to look out for, do not be surprised if the market goes down that Vodafone will go up, the reason is hedge funds will be selling their stock in name brand companies, they will have money and they are likely to put some of their money into Vodafone, IF THEY DEEM THE DIVIDEND to be SAFE. If you see this happen, that is another vote of confidence by the market place that Vodafone dividend is safe.
  • i
    investor101
    I should be clear as to why I am recommending to buy vod, Vodafone Group, the reason is for the dividend, the dividend is safe. As far as significant stock appreciation we maybe 1 to 2 years too early. Vodafone debt/equity is simply too high and eps per share is still too low for the stock to climb significantly. Vodafone is likely to go up one price channel, and trade between 20 to 26 and I suspect it will trade in this range for awhile, till the Vodafone group management show improving financial numbers. There is very few safe stocks where you can buy and the dividend is above 6%, Vodafone is one of those safe dividend stocks above 6% return on dividends. I wouldn't expect the vodafone dividend to increase, maybe in one to to two years, but it is unlikely to decrease unless the market tanks.
  • i
    investor101
    Great article if you haven't read it, if you are new to investing this is what investors focus on, in general there are two items:

    1. Do you have enough cash flow to continue to fight in the war....so to speak
    2. The cash you have, is it being used efficiently, i.e., is your cash expenditure generating more revenue/profits

    The article below is addresses #2, note the article is correct that vod has away to go, however past performance of capitol efficiency is encouraging:

    https://finance.yahoo.com/news/vodafone-group-lon-vod-doing-083324511.html