FREENET AG (FNTN.DE) Stock Fundamental Analysis
FRA:FNTN - Deutsche Boerse Ag - DE000A0Z2ZZ5 - Common Stock - Currency: EUR
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 is cheap, but on the other hand it scores bad on growth. Finally FNTN also has an excellent dividend rating. This makes FNTN very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year FNTN was profitable.
FNTN had a positive operating cash flow in the past year.
FNTN had positive earnings in each of the past 5 years.
FNTN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FNTN's Return On Assets of 7.12% is amongst the best of the industry. FNTN outperforms 100.00% of its industry peers.
FNTN's Return On Equity of 15.23% is amongst the best of the industry. FNTN outperforms 83.33% of its industry peers.
FNTN's Return On Invested Capital of 15.02% is amongst the best of the industry. FNTN outperforms 100.00% of its industry peers.
FNTN had an Average Return On Invested Capital over the past 3 years of 9.45%. This is above the industry average of 6.26%.
The last Return On Invested Capital (15.02%) for FNTN is above the 3 year average (9.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.12% | ||
| ROE | 15.23% | ||
| ROIC | 15.02% |
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
With a decent Profit Margin value of 9.79%, FNTN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of FNTN has grown nicely.
FNTN has a Operating Margin of 17.25%. This is amongst the best in the industry. FNTN outperforms 83.33% of its industry peers.
FNTN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 40.89%, FNTN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Gross Margin of FNTN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.25% | ||
| PM (TTM) | 9.79% | ||
| GM | 40.89% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FNTN is creating value.
Compared to 1 year ago, FNTN has about the same amount of shares outstanding.
The number of shares outstanding for FNTN has been reduced compared to 5 years ago.
The debt/assets ratio for FNTN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.80 indicates that FNTN is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.80, FNTN belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
The Debt to FCF ratio of FNTN is 2.08, which is a good value as it means it would take FNTN, 2.08 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.08, FNTN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that FNTN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.25, FNTN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.08 | ||
| Altman-Z | 2.8 |
ROIC/WACC2.36
WACC6.37%
2.3 Liquidity
A Current Ratio of 0.76 indicates that FNTN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.76, FNTN is doing worse than 66.67% of the companies in the same industry.
FNTN has a Quick Ratio of 0.76. 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's Quick ratio of 0.72 is on the low side compared to the rest of the industry. FNTN is outperformed by 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 | 0.76 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.24% over the past year.
FNTN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.90% yearly.
The Revenue has decreased by -7.05% in the past year.
FNTN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.31% yearly.
EPS 1Y (TTM)18.24%
EPS 3Y8.69%
EPS 5Y6.9%
EPS Q2Q%-12.73%
Revenue 1Y (TTM)-7.05%
Revenue growth 3Y-1.04%
Revenue growth 5Y-3.31%
Sales Q2Q%-5.4%
3.2 Future
FNTN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.96% yearly.
The Revenue is expected to grow by 2.04% on average over the next years.
EPS Next Y27.8%
EPS Next 2Y12.83%
EPS Next 3Y11.81%
EPS Next 5Y3.96%
Revenue Next Year2.42%
Revenue Next 2Y2.27%
Revenue Next 3Y2.25%
Revenue Next 5Y2.04%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
FNTN is valuated correctly with a Price/Earnings ratio of 13.61.
83.33% of the companies in the same industry are more expensive than FNTN, based on the Price/Earnings ratio.
FNTN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 10.33, the valuation of FNTN can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FNTN indicates a rather cheap valuation: FNTN is cheaper than 83.33% of the companies listed in the same industry.
FNTN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 10.33 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than FNTN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FNTN is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.88 | ||
| EV/EBITDA | 6.63 |
4.3 Compensation for Growth
FNTN's 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)0.49
PEG (5Y)1.97
EPS Next 2Y12.83%
EPS Next 3Y11.81%
5. Dividend
5.1 Amount
FNTN has a Yearly Dividend Yield of 7.14%, which is a nice return.
Compared to an average industry Dividend Yield of 2.98, FNTN pays a better dividend. On top of this FNTN pays more dividend than 100.00% of the companies listed in the same industry.
FNTN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.14% |
5.2 History
The dividend of FNTN has a limited annual growth rate of 2.99%.
Dividend Growth(5Y)2.99%
Div Incr Years1
Div Non Decr Years5
5.3 Sustainability
FNTN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP0%
EPS Next 2Y12.83%
EPS Next 3Y11.81%
FRA:FNTN (7/11/2025, 7:00:00 PM)
27.36
-0.16 (-0.58%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners39.05%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.25B
Analysts77.14
Price Target33.91 (23.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.14% |
Yearly Dividend1.68
Dividend Growth(5Y)2.99%
DP0%
Div Incr Years1
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.96%
Min EPS beat(2)-29.92%
Max EPS beat(2)6.01%
EPS beat(4)2
Avg EPS beat(4)-16.55%
Min EPS beat(4)-52.66%
Max EPS beat(4)10.36%
EPS beat(8)3
Avg EPS beat(8)-17.15%
EPS beat(12)4
Avg EPS beat(12)-23.19%
EPS beat(16)5
Avg EPS beat(16)-18.29%
Revenue beat(2)0
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-0.32%
Revenue beat(4)0
Avg Revenue beat(4)-3.74%
Min Revenue beat(4)-9.63%
Max Revenue beat(4)-0.32%
Revenue beat(8)1
Avg Revenue beat(8)-2.29%
Revenue beat(12)1
Avg Revenue beat(12)-2.2%
Revenue beat(16)1
Avg Revenue beat(16)-2.25%
PT rev (1m)-1.53%
PT rev (3m)0.05%
EPS NQ rev (1m)31.81%
EPS NQ rev (3m)36.26%
EPS NY rev (1m)0%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)-1.85%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 10.33 | ||
| P/S | 1.33 | ||
| P/FCF | 9.88 | ||
| P/OCF | 8.75 | ||
| P/B | 2.07 | ||
| P/tB | 101.03 | ||
| EV/EBITDA | 6.63 |
EPS(TTM)2.01
EY7.35%
EPS(NY)2.65
Fwd EY9.68%
FCF(TTM)2.77
FCFY10.12%
OCF(TTM)3.13
OCFY11.43%
SpS20.55
BVpS13.21
TBVpS0.27
PEG (NY)0.49
PEG (5Y)1.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.12% | ||
| ROE | 15.23% | ||
| ROCE | 18.96% | ||
| ROIC | 15.02% | ||
| ROICexc | 17.49% | ||
| ROICexgc | 90.15% | ||
| OM | 17.25% | ||
| PM (TTM) | 9.79% | ||
| GM | 40.89% | ||
| FCFM | 13.48% |
ROA(3y)4.72%
ROA(5y)6.35%
ROE(3y)10.95%
ROE(5y)15.2%
ROIC(3y)9.45%
ROIC(5y)8.82%
ROICexc(3y)10.55%
ROICexc(5y)10.11%
ROICexgc(3y)47.12%
ROICexgc(5y)42.47%
ROCE(3y)11.93%
ROCE(5y)11.14%
ROICexcg growth 3Y26.72%
ROICexcg growth 5Y35.08%
ROICexc growth 3Y17.61%
ROICexc growth 5Y16.61%
OM growth 3Y9.56%
OM growth 5Y8.4%
PM growth 3Y8.72%
PM growth 5Y8.88%
GM growth 3Y5.54%
GM growth 5Y5.22%
F-Score7
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 2.08 | ||
| Debt/EBITDA | 0.71 | ||
| Cap/Depr | 35.48% | ||
| Cap/Sales | 1.74% | ||
| Interest Coverage | 17.56 | ||
| Cash Conversion | 68.7% | ||
| Profit Quality | 137.67% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 2.8 |
F-Score7
WACC6.37%
ROIC/WACC2.36
Cap/Depr(3y)23.1%
Cap/Depr(5y)26.26%
Cap/Sales(3y)2.13%
Cap/Sales(5y)2.04%
Profit Quality(3y)257.35%
Profit Quality(5y)197.46%
High Growth Momentum
Growth
EPS 1Y (TTM)18.24%
EPS 3Y8.69%
EPS 5Y6.9%
EPS Q2Q%-12.73%
EPS Next Y27.8%
EPS Next 2Y12.83%
EPS Next 3Y11.81%
EPS Next 5Y3.96%
Revenue 1Y (TTM)-7.05%
Revenue growth 3Y-1.04%
Revenue growth 5Y-3.31%
Sales Q2Q%-5.4%
Revenue Next Year2.42%
Revenue Next 2Y2.27%
Revenue Next 3Y2.25%
Revenue Next 5Y2.04%
EBIT growth 1Y37.44%
EBIT growth 3Y8.42%
EBIT growth 5Y4.81%
EBIT Next Year53.07%
EBIT Next 3Y17.48%
EBIT Next 5Y9.46%
FCF growth 1Y-1.25%
FCF growth 3Y0.83%
FCF growth 5Y0.49%
OCF growth 1Y-6.57%
OCF growth 3Y0.32%
OCF growth 5Y0.35%