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Deep Value: cash covers more than 100% of the stock price

This company holds roughly $34.6B in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Vodafone Group logo

Vodafone Group

VOD.L
34
Telecommunications Services · Communication Services
Price
117.15 GBp
-0.85 (-0.72%)
Market Cap
£26.98B
Exchange
London Stock Exchange
Winston Score
34
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Aug 23, 2026 · filings through Mar 31, 2026
How the score breaks down
Quality
Weak
Growth
Mixed
Cash Flow
Mixed
Stability
Strong
Valuation
Data not available
Dividends
Mixed

Share count falling — buybacks

2.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 24.54B (2022) → 24.03B (2026)

Winston Score History

The full picture

Vodafone is one of the world's largest mobile phone and internet companies. It sells phone plans, home broadband, and business communication services to everyday consumers and companies across multiple countries. The company is headquartered in the UK and is best known for its mobile network brand, which operates across Europe and Africa.

Vodafone makes most of its money through monthly subscription fees paid by mobile and broadband customers. It operates in around 15 countries directly and reaches many more through partner networks, serving roughly 300 million customers globally. The company has been selling off underperforming divisions — including its Italian and Spanish businesses — to cut costs and focus on stronger markets, but it still faces intense price competition from rivals and carries a heavy debt load that limits its financial flexibility. The key challenge ahead is whether cost-cutting and network investment can improve returns, which currently sit near zero.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+8.6% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+73.5% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

€0/ year

0.0% of revenue

Below sector average (12%)

Research and development spending

Insider Activity

7.6%ownership

Declining

Insider ownership declining — could be dilution or selling

Cash Position

Cash flow positive

€29.6B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Vodafone Group is growing revenue at 9% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
30.5%
Modest — 30.5% gross margin
Profit after running costs
Operating Margin
5.3%
Thin — 5.3% operating margin
Return on the money invested
ROCE
3.7%
Weak — 3.7% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth
Sales YoY
+7.2%
Steady sales growth (+7.2% YoY)
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
N/A
Data not available
Spare cash per sale
FCF Margin
21.2%
Converts sales into free cash efficiently (21.2%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
0.85
Moderate — manageable debt (0.85)
Covers its interest
Interest Cover
100.00x
Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Dividend
Dividend Yield
3.40%
Moderate income — 3.40% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
-51.2%
Dividend cut (-51.2% YoY) — warning sign

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