FREENET AG (FNTN.DE) Stock Fundamental Analysis
FRA:FNTN - Deutsche Boerse Ag - DE000A0Z2ZZ5 - Common Stock - Currency: EUR
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. FNTN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FNTN is not valued too expensively and it also shows a decent growth rate. Finally FNTN also has an excellent dividend rating. These ratings would make FNTN suitable for dividend investing!
1. Profitability
1.1 Basic Checks
FNTN had positive earnings in the past year.
In the past year FNTN had a positive cash flow from operations.
FNTN had positive earnings in each of the past 5 years.
In the past 5 years FNTN always reported a positive cash flow from operatings.
1.2 Ratios
FNTN has a Return On Assets of 7.03%. This is amongst the best in the industry. FNTN outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 16.04%, 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 11.89% 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 in line with the industry average of 5.50%.
The 3 year average ROIC (6.80%) for FNTN is below the current ROIC(11.89%), indicating increased profibility in the last year.
| 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
The Profit Margin of FNTN (9.22%) is better than 66.67% of its industry peers.
In the last couple of years the Profit Margin of FNTN has declined.
Looking at the Operating Margin, with a value of 15.62%, FNTN belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
FNTN's Operating Margin has declined in the last couple of years.
FNTN's Gross Margin of 39.83% 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 | 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
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.
FNTN has less shares outstanding than it did 5 years ago.
FNTN has a better debt/assets ratio than last year.
2.2 Solvency
FNTN has an Altman-Z score of 3.04. This indicates that FNTN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.04, 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 2.22, 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.
FNTN has a Debt to FCF ratio of 2.22. This is amongst the best in the industry. FNTN outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that FNTN is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.44, FNTN is doing good in 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 | 3.04 |
ROIC/WACC1.9
WACC6.27%
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 has a Current ratio of 0.75. This is in the lower half of the industry: FNTN underperforms 66.67% of its industry peers.
FNTN has a Quick 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.
With a Quick ratio value of 0.71, FNTN is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The current and quick ratio evaluation for FNTN is rather negative, while it does have 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.
Measured over the past years, FNTN shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.77% on average per year.
Looking at the last year, FNTN shows a decrease in Revenue. The Revenue has decreased by -3.90% in the last year.
The Revenue has been decreasing by -1.94% on average over the past years.
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
FNTN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.69% yearly.
Based on estimates for the next years, FNTN will show a small growth in Revenue. The Revenue will grow by 0.83% on average per year.
EPS Next Y83.94%
EPS Next 2Y43.01%
EPS Next 3Y27.36%
EPS Next 5Y16.69%
Revenue Next Year-5.84%
Revenue Next 2Y-1.8%
Revenue Next 3Y-0.97%
Revenue Next 5Y0.83%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 17.90, which indicates a rather expensive current valuation of FNTN.
FNTN's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of FNTN to the average of the S&P500 Index (29.35), we can say FNTN is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.06, which indicates a correct valuation of FNTN.
66.67% of the companies in the same industry are more expensive than FNTN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.10. FNTN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.9 | ||
| Fwd PE | 13.06 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FNTN.
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 | 12.56 | ||
| EV/EBITDA | 8.51 |
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.
FNTN's earnings are expected to grow with 27.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y43.01%
EPS Next 3Y27.36%
5. Dividend
5.1 Amount
FNTN has a Yearly Dividend Yield of 5.69%, which is a nice return.
Compared to an average industry Dividend Yield of 3.65, FNTN pays a better dividend. On top of this FNTN pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, FNTN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.69% |
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.
The dividend of FNTN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP91.12%
EPS Next 2Y43.01%
EPS Next 3Y27.36%
FRA:FNTN (3/7/2025, 7:00:00 PM)
34.72
+0.08 (+0.23%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupTelecommunication Services
GICS IndustryWireless Telecommunication Services
Earnings (Last)
Earnings (Next)
Inst Owners39.03%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap4.13B
Analysts80
Price Target32.38 (-6.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.69% |
Yearly Dividend1.68
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)0%
PT rev (3m)1.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.11%
EPS NY rev (1m)0%
EPS NY rev (3m)2.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.51%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.9 | ||
| Fwd PE | 13.06 | ||
| P/S | 1.65 | ||
| P/FCF | 12.56 | ||
| P/OCF | 10.98 | ||
| P/B | 2.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.51 |
EPS(TTM)1.94
EY5.59%
EPS(NY)2.66
Fwd EY7.66%
FCF(TTM)2.76
FCFY7.96%
OCF(TTM)3.16
OCFY9.11%
SpS21.07
BVpS12.11
TBVpS-0.94
PEG (NY)0.21
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 | 3.04 |
F-Score6
WACC6.27%
ROIC/WACC1.9
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 Y83.94%
EPS Next 2Y43.01%
EPS Next 3Y27.36%
EPS Next 5Y16.69%
Revenue 1Y (TTM)-3.9%
Revenue growth 3Y0.66%
Revenue growth 5Y-1.94%
Sales Q2Q%-7.53%
Revenue Next Year-5.84%
Revenue Next 2Y-1.8%
Revenue Next 3Y-0.97%
Revenue Next 5Y0.83%
EBIT growth 1Y87.52%
EBIT growth 3Y-4.06%
EBIT growth 5Y-6.03%
EBIT Next Year106.25%
EBIT Next 3Y30.71%
EBIT Next 5Y19.94%
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%