Vodafone GroupLSE:VOD -0.84%49 Operating Margin % is 7.46% as of Mar. 2026, which is 31% below its 10-year median of 10.77. GuruFocus rates LSE:VOD with a GF Score™ of 49/100 and a GF Value™ of £0.96 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 367 Telecommunication Services companies, Vodafone Group ranks worse than 52.59% on this metric.
Vodafone Group PLC operating margin has been in a 5-year decline. The average rate of decline per year is -7.6%.
The historical rank and industry rank for Vodafone Group's Operating Margin % or its related term are showing as below:
LSE:VOD'
s Operating Margin % Range Over the Past 10 Years
Min: 8.96 Med: 10.77 Max: 19.9
Current: 9.25
LSE:VOD's Operating Margin % is ranked worse than 52.59% of 367
companies
in the Telecommunication Services industry
Industry Median: 9.73
vs LSE:VOD: 9.25
Vodafone Group's 5-Year Average Operating Margin % Growth Rate was -7.60% per year.
Vodafone Group (LSE:VOD) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Vodafone Group Operating Margin % Related Terms
Vodafone Group Operating Margin % Historical Data
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The historical data trend for Vodafone Group's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LSE:VOD vs TMUS, VZ, T: Operating Margin % Comparison
For the Telecom Services subindustry, Vodafone Group's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Vodafone Group Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Vodafone Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Vodafone Group's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Vodafone Group's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Vodafone Group (LSE:VOD) has a Operating Margin % of 7.46% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Vodafone Group and its competitors. This is 31% below median its historical median of 10.77. Over the past decade, Vodafone Group's Operating Margin % has ranged from 8.96 to 19.90. According to the industry distribution chart, Vodafone Group ranks #193 out of 367 companies in the Telecommunication Services industry, placing it in the top 52.6%.
Is Vodafone Group's Operating Margin % too high?
Vodafone Group's current Operating Margin % of 7.46% is 31% below median its 10-year median of 10.77. Over the past 10 years, this metric has ranged from a low of 8.96 to a high of 19.90. The Telecommunication Services industry median Operating Margin % is 9.73. Vodafone Group's value of 7.46% is 23.3% below this industry median. Based on the distribution chart, Vodafone Group ranks #193 out of 367 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Vodafone Group has a GF Score™ of 49/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vodafone Group's Operating Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Vodafone Group ranks #193 out of 367 companies for Operating Margin %. This places Vodafone Group in the lower half of its industry. The industry median Operating Margin % is 9.73. Vodafone Group's value of 7.46% is 23.3% below this benchmark. Historically, Vodafone Group's own Operating Margin % has ranged from 8.96 to 19.90 over the past decade. While the company's 10-year median is 10.77 vs. the industry median of 9.73, Vodafone Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Telecommunication Services company?
The median Operating Margin % among Telecommunication Services companies is 9.73, based on 367 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Vodafone Group's current Operating Margin % of 7.46% is 23.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Vodafone Group and its competitors. For the Telecommunication Services industry, the median Operating Margin % is 9.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vodafone Group's current Operating Margin % is 7.46%, which is 31% below median its own 10-year median of 10.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vodafone Group stock overvalued right now?
Based on GuruFocus' analysis, Vodafone Group (LSE:VOD) is currently considered Modestly Overvalued. The stock's GF Value™ is £0.96, compared to a current price of £1.06 — trading 10.8% above its estimated fair value. The current Operating Margin % is 7.46%, which is 31% below median its 10-year median of 10.77 and 23.3% below the Telecommunication Services industry median of 9.73. Vodafone Group's overall GF Score™ is 49/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Vodafone Group (LSE:VOD), the current Operating Margin % is 7.46% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Vodafone Group (LSE:VOD) Overvalued in 2026?
Based on GuruFocus' analysis, Vodafone Group stock appears to be overvalued.
The current stock price of £1.06 is trading 10.8% above its estimated GF Value™ of £0.96.
GuruFocus considers Vodafone Group to be Modestly Overvalued.
Key valuation signals for LSE:VOD:
Operating Margin %: 7.46% (31% below median its 10-year median of 10.77)
GF Value™: £0.96 vs. price of £1.06 (10.8% above fair value)
Industry Position: 23.3% below the Telecommunication Services median (#193 of 367)
No single metric tells the full story. See the LSE:VOD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vodafone operates mobile and fixed-line networks and businesses across Europe, Africa, and the Middle East. Its largest market is Germany, where it is the second mobile operator after Deutsche Telekom and owns two cable networks after acquiring Kabel Deutschland in 2013 and Liberty Global Germany in 2019. In the UK, Vodafone merged with CK Hutchison in 2024, consolidating the mobile market. It also divested its Spanish and Italian divisions in that same year, given their low returns on invested capital.
49GF Score
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