Vodacom Group (VDMCY) AI Stock Analysis

• Market Cap: $15.63B
• Dividend Yield: 4.21%
• Average Volume (3M): 1.30K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.70
• Revenue Growth: 3.88%
• EPS Growth: 4.83%
• Country: US
• Employees: 7,642
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): N/A
• Shares Outstanding: 2,077,841,300
• 10 Day Avg. Volume: 535
• 30 Day Avg. Volume: 1,300
• PEG Ratio: 3.89
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 1.64
• P/FCF Ratio: 8.90
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 0.20
• Enterprise Value/Ebitda: 0.31
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: $9.00 ▲(11.39% Upside)

Vodacom Group's strong financial performance is the most significant factor, supported by solid profitability and cash flow metrics. The technical analysis indicates stability, while the valuation is fair with an attractive dividend yield. These factors collectively contribute to a robust overall stock score.

Vodacom Group Business Overview & Revenue Model

Company Description

Vodacom Group Limited operates as a connectivity, digital, and financial services company in South Africa and internationally. It offers range of communication services, including data, mobile and fixed voice, messaging, financial services, enterprise IT, and converged services. The company also provides mobile and fixed line connectivity solutions, as well as internet and virtual private network services to its customers over various wireless, fixed-line, satellite, mobile, and converged technologies; and cloud hosting and security services comprising infrastructure as a service, platform as a service, software as a service, security services, hosted applications, and primary and direct connectivity to all hyperscalers. In addition, it offers carrier service products, including wholesale APN data, microwave, managed satellite, WiFi, international private leased circuit, IP transit, fiber, and IP-VPN; ethernet over MPLS, carrier ethernet, cloud connect, dedicated internet access, broadband internet access, software-defined WAN, and VSAT services; sensors and other electronic devices that are attached to a remote machine enabling the capturing of critical information, such as temperature, speed, location, etc.; and digital financial services for personal finance and business solutions. Further, the company offers and SmartCitizen mobile app to provide transparency and accountability with services, such as water and sanitation, roads, education, and health. The company was founded in 1993 and is headquartered in Midrand, South Africa. Vodacom Group Limited is a subsidiary of Vodafone Investments SA (Pty) Limited.

How the Company Makes Money

Vodacom generates revenue primarily through its mobile network services, which include voice calls, SMS, and data services. The company has a robust subscriber base, with revenue significantly driven by data usage as consumers increasingly rely on mobile internet for communication and entertainment. Additionally, Vodacom earns income from value-added services such as mobile banking through its M-Pesa platform, mobile advertising, and partnerships with content providers. The company also benefits from fixed-line services, including broadband and enterprise solutions, catering to both individual and corporate clients. Strategic partnerships with technology firms and fintech companies enhance its service offerings and create new revenue streams. Overall, Vodacom's diversified portfolio and focus on innovation play a crucial role in sustaining its financial performance.

Vodacom Group Financial Statement Overview

Summary

Vodacom Group demonstrates solid financial health across all verticals. The income statement shows strong profitability and growth trends with a healthy gross profit margin and stable net profit margin. The balance sheet is stable with low leverage, though there is potential for enhancing equity strength. Cash flows are impressive, with strong operational cash generation.

Income Statement

The company shows a strong income statement performance with consistent revenue growth, increasing from 150.59 billion to 152.23 billion annually. Gross profit margin is healthy at approximately 61%, and the net profit margin is stable around 11%. EBIT and EBITDA margins are robust, reflecting efficient operations and cost management. The revenue growth rate from the previous year is positive, indicating continued expansion.

Balance Sheet

The balance sheet reveals a solid financial structure with a low debt-to-equity ratio of 0.02, indicating low leverage and reduced financial risk. The return on equity is decent at approximately 18%, suggesting effective use of shareholder funds. However, the equity ratio is moderate, with stockholders' equity constituting about 37% of total assets, implying room for strengthening the equity base.

Cash Flow

Cash flow metrics are strong, with robust operating cash flows exceeding net income, highlighting good cash generation capabilities. Free cash flow growth is positive at 5.34%, demonstrating effective capital expenditure management. The operating cash flow to net income ratio is approximately 3.18, indicating efficient conversion of profit to cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	152.23B	152.23B	150.59B	6.97B	6.88B	5.98B
Gross Profit	82.45B	92.89B	82.76B	2.76B	2.81B	2.42B
EBITDA	55.03B	58.80B	59.07B	44.61B	43.45B	43.09B
Net Income	16.60B	16.60B	16.29B	985.68M	1.16B	1.01B
Balance Sheet
Total Assets	249.98B	249.98B	240.61B	12.87B	12.18B	11.65B
Cash, Cash Equivalents and Short-Term Investments	27.17B	27.17B	34.84B	1.30B	1.25B	1.50B
Total Debt	2.09B	2.09B	73.48B	3.96B	3.59B	3.38B
Total Liabilities	146.33B	146.33B	136.78B	7.38B	6.33B	5.84B
Stockholders Equity	92.02B	92.02B	92.76B	4.84B	5.44B	5.38B
Cash Flow
Free Cash Flow	28.11B	28.11B	26.69B	1.22B	1.30B	1.24B
Operating Cash Flow	52.80B	52.80B	49.01B	2.40B	2.23B	2.06B
Investing Cash Flow	-24.21B	-24.21B	-20.72B	-1.88B	-1.04B	-814.02M
Financing Cash Flow	-25.86B	-25.86B	-25.70B	-375.41M	-1.09B	-1.20B

Vodacom Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VDMCY, the sentiment is Positive. The current price of 8.08 is above the 20-day moving average (MA) of 7.90, above the 50-day MA of 7.85, and above the 200-day MA of 7.20, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 57.75 is Neutral, neither overbought nor oversold. The STOCH value of 70.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VDMCY.

Vodacom Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIMB	―	$10.94B	17.27	13.78%	6.42%	-7.99%	2.16%
VIV	―	$19.16B	19.02	8.20%	5.11%	-6.51%	-0.21%
VDMCY	―	$15.63B	17.15	18.39%	4.21%	3.88%	4.83%
TLK	―	$19.11B	13.66	17.71%	6.57%	-5.13%	-5.90%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
SKM	―	$7.79B	19.37	―	4.94%	-4.74%	-16.57%
VOD	―	$28.97B	―	-7.17%	4.11%	0.89%	-494.16%

Vodacom Group Corporate Events

Vodacom Group Reports Robust Revenue Growth

Vodacom Group Limited is a telecommunications company based in South Africa, providing a range of communication services, including mobile and financial services, across multiple African countries.