FREENET AG (FNTN.DE)
DE000A0Z2ZZ5 - Common Stock
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 gets an excellent profitability rating and is at the same time showing great financial health properties. FNTN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally FNTN also has an excellent dividend rating. With these ratings, FNTN could be worth investigating further 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.
FNTN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.03%, FNTN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
FNTN has a better Return On Equity (16.04%) than 83.33% of its industry peers.
FNTN has a better Return On Invested Capital (11.89%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FNTN is in line with the industry average of 5.44%.
The last Return On Invested Capital (11.89%) for FNTN is above the 3 year average (6.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 16.04% | ||
| ROIC | 11.89% |
ROA(3y)3.91%
ROA(5y)5.65%
ROE(3y)9.39%
ROE(5y)14.76%
ROIC(3y)6.8%
ROIC(5y)6.63%
1.3 Margins
FNTN has a Profit Margin of 9.22%. This is in the better half of the industry: FNTN outperforms 66.67% of its industry peers.
FNTN's Profit Margin has declined in the last couple of years.
The Operating Margin of FNTN (15.62%) is better than 83.33% of its industry peers.
FNTN's Operating Margin has declined in the last couple of years.
FNTN has a better Gross Margin (39.83%) than 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 | 15.62% | ||
| PM (TTM) | 9.22% | ||
| GM | 39.83% |
OM growth 3Y-4.68%
OM growth 5Y-4.18%
PM growth 3Y-35.53%
PM growth 5Y-5.24%
GM growth 3Y2.66%
GM growth 5Y3.14%
2. Health
2.1 Basic Checks
FNTN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for FNTN remains at a similar level compared to 1 year ago.
The number of shares outstanding for FNTN has been reduced compared to 5 years ago.
FNTN has a better debt/assets ratio than last year.
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 2.22, which is a good value as it means it would take FNTN, 2.22 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FNTN (2.22) is better than 100.00% of its industry peers.
FNTN has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.44, 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 | 0.44 | ||
| Debt/FCF | 2.22 | ||
| Altman-Z | 2.78 |
ROIC/WACC2
WACC5.96%
2.3 Liquidity
FNTN has a Current Ratio of 0.75. 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 Current ratio of 0.75 is on the low side compared to the rest of the industry. FNTN is outperformed by 66.67% of its industry peers.
A Quick Ratio of 0.71 indicates that FNTN may have some problems paying its short term obligations.
FNTN has a worse Quick ratio (0.71) 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 | 0.75 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
FNTN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 120.45%, which is quite impressive.
FNTN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.77% yearly.
Looking at the last year, FNTN shows a decrease in Revenue. The Revenue has decreased by -3.90% in the last year.
Measured over the past years, FNTN shows a decrease in Revenue. The Revenue has been decreasing by -1.94% on average per year.
EPS 1Y (TTM)120.45%
EPS 3Y-33.55%
EPS 5Y-5.77%
EPS Q2Q%13.21%
Revenue 1Y (TTM)-3.9%
Revenue growth 3Y0.66%
Revenue growth 5Y-1.94%
Sales Q2Q%-7.53%
3.2 Future
The Earnings Per Share is expected to grow by 16.39% 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 0.57% yearly.
EPS Next Y79.47%
EPS Next 2Y40.46%
EPS Next 3Y26.41%
EPS Next 5Y16.39%
Revenue Next Year-6.25%
Revenue Next 2Y-2.18%
Revenue Next 3Y-0.77%
Revenue Next 5Y0.57%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 14.47, the valuation of FNTN can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as FNTN.
FNTN is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.95, the valuation of FNTN can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FNTN indicates a somewhat cheap valuation: FNTN is cheaper than 66.67% 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 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.47 | ||
| Fwd PE | 10.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FNTN is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FNTN indicates a rather cheap valuation: FNTN is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.16 | ||
| EV/EBITDA | 7.05 |
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.
FNTN has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FNTN's earnings are expected to grow with 26.41% in the coming years.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y40.46%
EPS Next 3Y26.41%
5. Dividend
5.1 Amount
FNTN has a Yearly Dividend Yield of 6.33%, which is a nice return.
Compared to an average industry Dividend Yield of 3.85, FNTN pays a better dividend. On top of this FNTN pays more dividend than 83.33% 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 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.33% |
5.2 History
The dividend of FNTN has a limited annual growth rate of 2.99%.
Dividend Growth(5Y)2.99%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
91.12% of the earnings are spent on dividend by FNTN. This is not a sustainable payout ratio.
FNTN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP91.12%
EPS Next 2Y40.46%
EPS Next 3Y26.41%
FREENET AG
FRA:FNTN (1/3/2025, 7:00:00 PM)
28.08
+0.1 (+0.36%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners40.49%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.34B
Analysts81.74
Price Target32.18 (14.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.33% |
Dividend Growth(5Y)2.99%
DP91.12%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-21.15%
Min EPS beat(2)-52.66%
Max EPS beat(2)10.36%
EPS beat(4)2
Avg EPS beat(4)-21.48%
Min EPS beat(4)-52.66%
Max EPS beat(4)10.36%
EPS beat(8)2
Avg EPS beat(8)-36.18%
EPS beat(12)4
Avg EPS beat(12)-18.83%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-6.18%
Min Revenue beat(2)-9.63%
Max Revenue beat(2)-2.72%
Revenue beat(4)0
Avg Revenue beat(4)-3.9%
Min Revenue beat(4)-9.63%
Max Revenue beat(4)-1.03%
Revenue beat(8)1
Avg Revenue beat(8)-2.45%
Revenue beat(12)1
Avg Revenue beat(12)-2.51%
Revenue beat(16)1
Avg Revenue beat(16)-6.97%
PT rev (1m)1.8%
PT rev (3m)5.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.3%
EPS NY rev (1m)0%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.47 | ||
| Fwd PE | 10.95 | ||
| P/S | 1.33 | ||
| P/FCF | 10.16 | ||
| P/OCF | 8.88 | ||
| P/B | 2.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.05 |
EPS(TTM)1.94
EY6.91%
EPS(NY)2.56
Fwd EY9.13%
FCF(TTM)2.76
FCFY9.84%
OCF(TTM)3.16
OCFY11.26%
SpS21.07
BVpS12.11
TBVpS-0.94
PEG (NY)0.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 16.04% | ||
| ROCE | 16.64% | ||
| ROIC | 11.89% | ||
| ROICexc | 12.98% | ||
| ROICexgc | 46.41% | ||
| OM | 15.62% | ||
| PM (TTM) | 9.22% | ||
| GM | 39.83% | ||
| FCFM | 13.12% |
ROA(3y)3.91%
ROA(5y)5.65%
ROE(3y)9.39%
ROE(5y)14.76%
ROIC(3y)6.8%
ROIC(5y)6.63%
ROICexc(3y)7.61%
ROICexc(5y)7.54%
ROICexgc(3y)31.2%
ROICexgc(5y)27.81%
ROCE(3y)9.52%
ROCE(5y)9.28%
ROICexcg growth 3Y11.22%
ROICexcg growth 5Y18.88%
ROICexc growth 3Y4.08%
ROICexc growth 5Y4.09%
OM growth 3Y-4.68%
OM growth 5Y-4.18%
PM growth 3Y-35.53%
PM growth 5Y-5.24%
GM growth 3Y2.66%
GM growth 5Y3.14%
F-Score6
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 2.22 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 31.85% | ||
| Cap/Sales | 1.89% | ||
| Interest Coverage | 14.94 | ||
| Cash Conversion | 69.62% | ||
| Profit Quality | 142.31% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 2.78 |
F-Score6
WACC5.96%
ROIC/WACC2
Cap/Depr(3y)23.84%
Cap/Depr(5y)26.21%
Cap/Sales(3y)2.15%
Cap/Sales(5y)1.99%
Profit Quality(3y)267.36%
Profit Quality(5y)204.7%
High Growth Momentum
Growth
EPS 1Y (TTM)120.45%
EPS 3Y-33.55%
EPS 5Y-5.77%
EPS Q2Q%13.21%
EPS Next Y79.47%
EPS Next 2Y40.46%
EPS Next 3Y26.41%
EPS Next 5Y16.39%
Revenue 1Y (TTM)-3.9%
Revenue growth 3Y0.66%
Revenue growth 5Y-1.94%
Sales Q2Q%-7.53%
Revenue Next Year-6.25%
Revenue Next 2Y-2.18%
Revenue Next 3Y-0.77%
Revenue Next 5Y0.57%
EBIT growth 1Y87.52%
EBIT growth 3Y-4.06%
EBIT growth 5Y-6.03%
EBIT Next Year106.25%
EBIT Next 3Y30.71%
EBIT Next 5Y19.64%
FCF growth 1Y-1.4%
FCF growth 3Y3.68%
FCF growth 5Y1.86%
OCF growth 1Y-4.22%
OCF growth 3Y3.68%
OCF growth 5Y1.5%