Analyst Note| Michael Hodel, CFA |
Vodafone delivered reasonably solid financial results to end fiscal 2022 even as it continued to struggle operationally in Germany. Management has yet to deliver the sort of transformational transaction in Europe that investors and we have hoped for, but commented that numerous discussions remain ongoing. For fiscal 2023, the firm expects inflation and other pressures will offset modest revenue growth, resulting in roughly flat free cash flow. Vodafone still has a way to go in reshaping its operations, but we continue to believe the market has overly discounted the value of its assets, as our GBX 185 fair value estimate reflects.