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Vodacom Group Limited

VODAF
60
Telecommunications Services · Communication Services
Price
$8.98
+0.00 (+0.00%)
Market Cap
$17.35B
Exchange
Other OTC
Winston Score
60
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Mar 31, 2026
How the score breaks down
Quality
Strong
Growth
Weak
Cash Flow
Exceptional
Stability
Good
Valuation
Strong
Dividends
Exceptional

Share count rising — dilution

+14.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 1.74B (2022) → 1.99B (2026)

Winston Score History

The full picture

Vodacom Group Limited is a major mobile network operator based in South Africa. It provides mobile voice calls, text messaging, mobile data, and financial services to tens of millions of consumers and businesses across Africa. Vodacom is one of the largest telecom companies on the continent and is majority-owned by the UK-based Vodafone Group.

Vodacom earns most of its revenue from monthly service fees, data plans, and prepaid airtime sold to customers in South Africa, Tanzania, Mozambique, Lesotho, and the Democratic Republic of Congo. Its M-Pesa mobile money platform, which lets people send money and pay bills using a basic phone, gives it a competitive edge beyond traditional telecom services. The key growth driver is expanding mobile data usage and financial services across underserved African markets, though currency volatility in its operating countries and intense competition from other regional carriers remain meaningful risks.

Score breakdown

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Quality

Profit per sale
Gross Margin
39.6%
Modest — 39.6% gross margin
Profit after running costs
Operating Margin
24.4%
Excellent — 24.4% operating margin
Return on the money invested
ROCE
20.4%
Exceptional — 20.4% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
N/A
Data not available
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
259%
Turns 259% of profit into real cash
Spare cash per sale
FCF Margin
18.2%
Converts sales into free cash efficiently (18.2%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
1.02
Elevated debt (1.02)
Covers its interest
Interest Cover
4.58x
Adequate interest coverage (4.6x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
14.3x
Attractive valuation — P/E 14.3

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+3.7
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (14.3 → 10.5)

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Dividends

Dividend
Dividend Yield
4.95%
Healthy income — 4.95% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record
Dividend Growth
+13.3%
Dividend growing fast (13.3% YoY)

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