Is Vodafone a Winner or a Loser?

With shares of Vodafone Group Public Limited Company (NASDAQ:VOD) trading at around $25.05, is VOD an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock’s Movement

Vodafone has approximately 407 million customers. Therefore, this is a company that won’t be going anywhere anytime soon. Vodafone also has a profitable 45 percent stake in Verizon Communications Inc. (NYSE:VZ). Other positives include diversification, a focus on returning capital to shareholders, an expectation of improved margins, strong cash flow (though not as strong as in the past), and an average analyst price target of $31.60.

On the negative side, the subscriber count has been decreasing, especially in Europe, which is the biggest negative. Other negatives include poor margins, declining revenues on an organic basis, pricing pressures, and an unsteady global economy (once again, especially in Europe).

Now let’s take a look at some important numbers prior to forming an opinion on this stock.