FREENET AG (FNTN.DE) Stock Fundamental Analysis
Europe - FRA:FNTN - DE000A0Z2ZZ5 - Common Stock
27.63 EUR
-0.39 (-1.39%)
FNTN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 6 industry peers in the Wireless Telecommunication Services industry. Both the health and profitability get an excellent rating, making FNTN a very profitable company, without any liquidiy or solvency issues. FNTN is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
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
Looking at the Return On Assets, with a value of 8.27%, FNTN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 18.70%, FNTN belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
FNTN's Return On Invested Capital of 16.45% is amongst the best of 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 6.64%.
The 3 year average ROIC (9.45%) for FNTN is below the current ROIC(16.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.27% | ||
| ROE | 18.7% | ||
| ROIC | 16.45% |
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's Profit Margin of 10.46% is fine compared to the rest of the industry. FNTN outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of FNTN has grown nicely.
Looking at the Operating Margin, with a value of 16.09%, FNTN belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
FNTN's Operating Margin has improved in the last couple of years.
FNTN's Gross Margin of 40.57% is fine compared to the rest of the industry. FNTN outperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of FNTN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.09% | ||
| PM (TTM) | 10.46% | ||
| GM | 40.57% |
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.
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.
Compared to 1 year ago, FNTN has an improved debt to assets ratio.
2.2 Solvency
FNTN has an Altman-Z score of 2.78. 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 2.78, 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 1.89, which is an excellent value as it means it would take FNTN, only 1.89 years of fcf income to pay off all of its debts.
FNTN's Debt to FCF ratio of 1.89 is amongst the best of the industry. FNTN outperforms 100.00% of its industry peers.
FNTN has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.20, FNTN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.89 | ||
| Altman-Z | 2.78 |
ROIC/WACC2.55
WACC6.44%
2.3 Liquidity
A Current Ratio of 0.57 indicates that FNTN may have some problems paying its short term obligations.
FNTN's Current ratio of 0.57 is on the low side compared to the rest of the industry. FNTN is outperformed by 66.67% of its industry peers.
FNTN has a Quick Ratio of 0.57. 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 0.53 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 | 0.57 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
FNTN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.65%, which is quite good.
The Earnings Per Share has been growing slightly by 6.90% on average over the past years.
The Revenue has decreased by -2.44% in the past year.
Measured over the past years, FNTN shows a decrease in Revenue. The Revenue has been decreasing by -3.31% on average per year.
EPS 1Y (TTM)17.65%
EPS 3Y8.69%
EPS 5Y6.9%
EPS Q2Q%50%
Revenue 1Y (TTM)-2.44%
Revenue growth 3Y-1.04%
Revenue growth 5Y-3.31%
Sales Q2Q%8.89%
3.2 Future
Based on estimates for the next years, FNTN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.07% on average per year.
The Revenue is expected to grow by 2.51% on average over the next years.
EPS Next Y19.55%
EPS Next 2Y9.65%
EPS Next 3Y8.13%
EPS Next 5Y8.07%
Revenue Next Year1.82%
Revenue Next 2Y1.77%
Revenue Next 3Y1.88%
Revenue Next 5Y2.51%
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
Based on the Price/Earnings ratio of 12.56, the valuation of FNTN can be described as correct.
FNTN's Price/Earnings ratio is rather cheap when compared to the industry. FNTN is cheaper than 83.33% of the companies in the same industry.
FNTN is valuated cheaply when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.05, the valuation of FNTN can be described as reasonable.
FNTN's Price/Forward Earnings ratio is rather cheap when compared to the industry. FNTN is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, FNTN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.56 | ||
| Fwd PE | 11.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FNTN is valued a bit cheaper than 66.67% of the companies in the same industry.
83.33% of the companies in the same industry are more expensive than FNTN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.27 | ||
| EV/EBITDA | 6.97 |
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)0.64
PEG (5Y)1.82
EPS Next 2Y9.65%
EPS Next 3Y8.13%
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 2.83, 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 2.38.
| 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
The dividend of FNTN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP0%
EPS Next 2Y9.65%
EPS Next 3Y8.13%
FRA:FNTN (9/16/2025, 5:29:52 PM)
27.63
-0.39 (-1.39%)
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 Cap3.29B
Analysts76
Price Target33.22 (20.23%)
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)0
Avg EPS beat(2)-23.47%
Min EPS beat(2)-29.92%
Max EPS beat(2)-17.03%
EPS beat(4)2
Avg EPS beat(4)-7.64%
Min EPS beat(4)-29.92%
Max EPS beat(4)10.36%
EPS beat(8)3
Avg EPS beat(8)-17.07%
EPS beat(12)3
Avg EPS beat(12)-28.28%
EPS beat(16)5
Avg EPS beat(16)-17.36%
Revenue beat(2)0
Avg Revenue beat(2)-3.47%
Min Revenue beat(2)-4.65%
Max Revenue beat(2)-2.29%
Revenue beat(4)0
Avg Revenue beat(4)-2.49%
Min Revenue beat(4)-4.65%
Max Revenue beat(4)-0.32%
Revenue beat(8)1
Avg Revenue beat(8)-2.59%
Revenue beat(12)1
Avg Revenue beat(12)-2.37%
Revenue beat(16)1
Avg Revenue beat(16)-2.46%
PT rev (1m)-0.98%
PT rev (3m)-3.02%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-9.14%
EPS NY rev (1m)-6.45%
EPS NY rev (3m)-6.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.56 | ||
| Fwd PE | 11.05 | ||
| P/S | 1.32 | ||
| P/FCF | 9.27 | ||
| P/OCF | 8.34 | ||
| P/B | 2.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.97 |
EPS(TTM)2.2
EY7.96%
EPS(NY)2.5
Fwd EY9.05%
FCF(TTM)2.98
FCFY10.79%
OCF(TTM)3.31
OCFY11.99%
SpS20.97
BVpS11.73
TBVpS-1.02
PEG (NY)0.64
PEG (5Y)1.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.27% | ||
| ROE | 18.7% | ||
| ROCE | 20.77% | ||
| ROIC | 16.45% | ||
| ROICexc | 17.7% | ||
| ROICexgc | 113.63% | ||
| OM | 16.09% | ||
| PM (TTM) | 10.46% | ||
| GM | 40.57% | ||
| FCFM | 14.22% |
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 Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.89 | ||
| Debt/EBITDA | 0.51 | ||
| Cap/Depr | 27.21% | ||
| Cap/Sales | 1.58% | ||
| Interest Coverage | 15.92 | ||
| Cash Conversion | 72.14% | ||
| Profit Quality | 135.93% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | 2.78 |
F-Score7
WACC6.44%
ROIC/WACC2.55
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)17.65%
EPS 3Y8.69%
EPS 5Y6.9%
EPS Q2Q%50%
EPS Next Y19.55%
EPS Next 2Y9.65%
EPS Next 3Y8.13%
EPS Next 5Y8.07%
Revenue 1Y (TTM)-2.44%
Revenue growth 3Y-1.04%
Revenue growth 5Y-3.31%
Sales Q2Q%8.89%
Revenue Next Year1.82%
Revenue Next 2Y1.77%
Revenue Next 3Y1.88%
Revenue Next 5Y2.51%
EBIT growth 1Y4.89%
EBIT growth 3Y8.42%
EBIT growth 5Y4.81%
EBIT Next Year53.07%
EBIT Next 3Y17.48%
EBIT Next 5Y12.49%
FCF growth 1Y4.73%
FCF growth 3Y0.83%
FCF growth 5Y0.49%
OCF growth 1Y-1.44%
OCF growth 3Y0.32%
OCF growth 5Y0.35%