FREENET AG (FNTN.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:FNTN - DE000A0Z2ZZ5 - Common Stock
29.76 EUR
+0.16 (+0.54%)
Taking everything into account, FNTN scores 7 out of 10 in our fundamental rating. FNTN was compared to 6 industry peers in the Wireless Telecommunication Services industry. FNTN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. FNTN may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, FNTN could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
- In the past year FNTN was profitable.
- In the past year FNTN had a positive cash flow from operations.
- In the past 5 years FNTN has always been profitable.
- Each year in the past 5 years FNTN had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 8.44%, FNTN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- FNTN's Return On Equity of 18.29% is amongst the best of the industry. FNTN outperforms 83.33% of its industry peers.
- FNTN has a Return On Invested Capital of 16.08%. This is amongst the best in the industry. FNTN outperforms 100.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for FNTN is above the industry average of 6.49%.
- The last Return On Invested Capital (16.08%) for FNTN is above the 3 year average (9.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.44% | ||
| ROE | 18.29% | ||
| ROIC | 16.08% |
ROA(3y)4.72%
ROA(5y)6.35%
ROE(3y)10.95%
ROE(5y)15.2%
ROIC(3y)9.45%
ROIC(5y)8.82%
1.3 Margins
- FNTN has a better Profit Margin (10.81%) than 83.33% of its industry peers.
- FNTN's Profit Margin has improved in the last couple of years.
- FNTN's Operating Margin of 17.15% is amongst the best of the industry. FNTN outperforms 83.33% of its industry peers.
- In the last couple of years the Operating Margin of FNTN has grown nicely.
- With a decent Gross Margin value of 41.26%, FNTN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- FNTN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.15% | ||
| PM (TTM) | 10.81% | ||
| GM | 41.26% |
OM growth 3Y9.56%
OM growth 5Y8.4%
PM growth 3Y8.72%
PM growth 5Y8.88%
GM growth 3Y5.54%
GM growth 5Y5.22%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FNTN is creating value.
- The number of shares outstanding for FNTN remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, FNTN has less shares outstanding
- FNTN has a better debt/assets ratio than last year.
2.2 Solvency
- FNTN has an Altman-Z score of 2.98. This is not the best score and indicates that FNTN is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.98, FNTN belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- The Debt to FCF ratio of FNTN is 1.86, which is an excellent value as it means it would take FNTN, only 1.86 years of fcf income to pay off all of its debts.
- FNTN has a better Debt to FCF ratio (1.86) than 83.33% of its industry peers.
- A Debt/Equity ratio of 0.26 indicates that FNTN is not too dependend on debt financing.
- The Debt to Equity ratio of FNTN (0.26) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.86 | ||
| Altman-Z | 2.98 |
ROIC/WACC2.43
WACC6.63%
2.3 Liquidity
- A Current Ratio of 0.68 indicates that FNTN may have some problems paying its short term obligations.
- With a Current ratio value of 0.68, FNTN is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- FNTN has a Quick Ratio of 0.68. This is a bad value and indicates that FNTN is not financially healthy enough and could expect problems in meeting its short term obligations.
- FNTN has a worse Quick ratio (0.64) than 66.67% of its industry peers.
- FNTN does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 17.53% over the past year.
- Measured over the past 5 years, FNTN shows a small growth in Earnings Per Share. The EPS has been growing by 6.90% on average per year.
- The Revenue has decreased by -0.62% in the past year.
- The Revenue has been decreasing by -3.31% on average over the past years.
EPS 1Y (TTM)17.53%
EPS 3Y8.69%
EPS 5Y6.9%
EPS Q2Q%13.33%
Revenue 1Y (TTM)-0.62%
Revenue growth 3Y-1.04%
Revenue growth 5Y-3.31%
Sales Q2Q%-0.57%
3.2 Future
- The Earnings Per Share is expected to grow by 8.08% on average over the next years. This is quite good.
- FNTN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.30% yearly.
EPS Next Y17.37%
EPS Next 2Y9.06%
EPS Next 3Y7.87%
EPS Next 5Y8.08%
Revenue Next Year0.59%
Revenue Next 2Y2.14%
Revenue Next 3Y2.16%
Revenue Next 5Y2.3%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 13.05, FNTN is valued correctly.
- Compared to the rest of the industry, the Price/Earnings ratio of FNTN indicates a rather cheap valuation: FNTN is cheaper than 100.00% of the companies listed in the same industry.
- FNTN is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- FNTN is valuated correctly with a Price/Forward Earnings ratio of 12.03.
- Based on the Price/Forward Earnings ratio, FNTN is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
- FNTN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 12.03 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FNTN is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- FNTN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FNTN is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.8 | ||
| EV/EBITDA | 6.89 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The excellent profitability rating of FNTN may justify a higher PE ratio.
PEG (NY)0.75
PEG (5Y)1.89
EPS Next 2Y9.06%
EPS Next 3Y7.87%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.81%, FNTN is a good candidate for dividend investing.
- FNTN's Dividend Yield is rather good when compared to the industry average which is at 2.31. FNTN pays more dividend than 100.00% of the companies in the same industry.
- FNTN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.81% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years5
5.3 Sustainability
- FNTN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-78.19%
EPS Next 2Y9.06%
EPS Next 3Y7.87%
FREENET AG / FNTN.DE FAQ
Can you provide the ChartMill fundamental rating for FREENET AG?
ChartMill assigns a fundamental rating of 7 / 10 to FNTN.DE.
Can you provide the valuation status for FREENET AG?
ChartMill assigns a valuation rating of 8 / 10 to FREENET AG (FNTN.DE). This can be considered as Undervalued.
How profitable is FREENET AG (FNTN.DE) stock?
FREENET AG (FNTN.DE) has a profitability rating of 9 / 10.
What are the PE and PB ratios of FREENET AG (FNTN.DE) stock?
The Price/Earnings (PE) ratio for FREENET AG (FNTN.DE) is 13.05 and the Price/Book (PB) ratio is 2.4.
Can you provide the expected EPS growth for FNTN stock?
The Earnings per Share (EPS) of FREENET AG (FNTN.DE) is expected to grow by 17.37% in the next year.