Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, U.K. mobile giant Vodafone Group
With that in mind, let's take a closer look at Vodafone's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Newbury, U.K. (1984)|
|Market Cap||$145.7 billion|
|Industry||Wireless telecom services|
|Trailing-12-Month Revenue||$72.77 billion|
CEO Vittorio Colao (since 2008)
CFO Andrew Halford (since 2005)
|Return on Equity (Average, Past 3 Years)||9.1%|
|Cash/Debt||$15.5 billion / $67.65 billion|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 94% of the 897 members who have rated Vodafone believe the stock will outperform the S&P 500 going forward. These bulls include whatsthepoint and All-Star BoiseKen, who is ranked in the top 10% of our community.
Earlier this month, whatsthepoint listed several of Vodafone's positives: "The largest mobile phone company in the world! Rock solid financials, high dividend yield, and owns substantial stakes in [Verizon Wireless] and numerous emerging market telecoms..."
Over the past three years, Vodafone has even grown its top-line at a solid rate of 11.7% annually. That's faster than that of other telecom giants like AT&T's 1.5% and Verizon Communications
CAPS All-Star BoiseKen expands on the outperform argument:
[Vodafone] owns 45% of the profitable cashflow machine Verizon Wireless. ...
The valuation is nice -- cheaper than US AT&T & Verizon Communications (which is saddled with some debt and an increasingly irrelevant wireline business).
Dividend can and should grow -- payout ratio is only 50%; bring on the dividends from Verizon Wireless and we will be in the cat bird seat.
There may be a short term pullback if Verizon has to pay out lots of subsidies to make long term iPhone profit, but over 2-4 years this will be the telecom winner.
What do you think about Vodafone, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Vodafone is a Motley Fool Inside Value pick. France Telecom is a choice of Income Investor. Try any of our Foolish newsletter services free for 30 days.
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