Examining how Vodafone Group Plc (LON:VOD) is performing as a company requires looking at more than just a years’ earnings. Below, I will run you through a simple sense check to build perspective on how Vodafone Group is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its wireless telecom industry peers.
Did VOD’s recent performance beat its trend and industry?
VOD’s trailing twelve-month earnings (from 31 March 2018) of €4.41b has
In terms of returns from investment, Vodafone Group has fallen short of achieving a 20% return on equity (ROE), recording 6.9% instead. Furthermore, its return on assets (ROA) of 3.2% is below the GB Wireless Telecom industry of 6.2%, indicating Vodafone Group’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for Vodafone Group’s debt level, has increased over the past 3 years from 1.3% to 3.6%.
What does this mean?
Though Vodafone Group’s past data is helpful, it is only one aspect of my investment thesis. You should continue to research Vodafone Group to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for VOD’s future growth? Take a look at our free research report of analyst consensus for VOD’s outlook.
- Financial Health: Are VOD’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.