Is Vodafone a Winner or a Loser?

February 27, 2013

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E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio for Vodafone is normal and stronger than the industry average of 0.80. The balance sheet is in negative territory, but operating cash flow is $18.69 billion.

	Debt-To-Equity	Cash	Long-Term Debt
VOD	0.50	$12.23 Billion	$57.09 Billion
VZ	0.61	$3.56 Billion	$51.99 Billion
T	0.75	$4.87 Billion	$69.84 Billion

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T = Technicals on the Stock Chart Are Weak

Over a one-year timeframe, Vodafone has performed poorly in a strong market. This is rarely a good sign for near-future potential. And momentum hasn’t improved as of late. Year-to-date, Vodafone has underperformed Verizon and AT&T (NYSE:T). Of these three companies, AT&T offers the most impressive dividend yield at 5 percent. Verizon yields 4.50 percent. Vodafone yields 4.10 percent.

	1 Month	Year-To-Date	1 Year	3 Year
VOD	-9.12%	-2.34%	-4.44%	37.42%
VZ	8.09%	7.83%	26.72%	87.15%
T	4.35%	6.67%	23.10%	69.73%

At $24.55, Vodafone is currently trading below all its averages.

50-Day SMA	26.08
100-Day SMA	26.53
200-Day SMA	27.37

E = Earnings Have Been Steady

Earnings have been steady yet unspectacular on an annual basis.

	2008	2009	2010	2011	2012
Revenue ($)in billions	71.42	70.63	70.98	71.40	74.09
Diluted EPS ($)	2.50	0.89	2.60	2.30	2.17

Unfortunately, we don’t have the quarterly information for the last five quarters. However, much of the information in the Catalyst section referred to the last quarter’s results.

	N/A	N/A	N/A	N/A	N/A
Revenue ($)in billions	N/A	N/A	N/A	N/A	N/A
Diluted EPS ($)	N/A	N/A	N/A	N/A	N/A

Let’s take a look at the next page for the Trends and Conclusion. Is this stock an OUTPERFORM, a WAIT AND SEE, or a STAY AWAY?

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