IONOS GROUP SE (IOS.DE) Stock Fundamental Analysis

Europe • Frankfurt Stock Exchange • FRA:IOS • DE000A3E00M1

27.25 EUR

+0.05 (+0.18%)

Last: Jan 30, 2026, 07:00 PM

Fundamental Rating

We assign a fundamental rating of 5 out of 10 to IOS. IOS was compared to 70 industry peers in the IT Services industry. While IOS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. IOS is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

1.1 Basic Checks

In the past year IOS was profitable.
In the past year IOS had a positive cash flow from operations.
IOS had positive earnings in each of the past 5 years.
Each year in the past 5 years IOS had a positive operating cash flow.

1.2 Ratios

With an excellent Return On Assets value of 14.31%, IOS belongs to the best of the industry, outperforming 95.71% of the companies in the same industry.
IOS has a Return On Equity of 84.10%. This is amongst the best in the industry. IOS outperforms 97.14% of its industry peers.
IOS has a better Return On Invested Capital (21.88%) than 92.86% of its industry peers.
IOS had an Average Return On Invested Capital over the past 3 years of 15.69%. This is significantly below the industry average of 26.72%.
The last Return On Invested Capital (21.88%) for IOS is above the 3 year average (15.69%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	14.31%
ROE	84.1%
ROIC	21.88%

ROA(3y)8.67%

ROA(5y)7.05%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)15.69%

ROIC(5y)14.83%

1.3 Margins

With an excellent Profit Margin value of 15.96%, IOS belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
IOS's Profit Margin has improved in the last couple of years.
IOS's Operating Margin of 25.18% is amongst the best of the industry. IOS outperforms 95.71% of its industry peers.
In the last couple of years the Operating Margin of IOS has remained more or less at the same level.
IOS has a Gross Margin of 55.68%. This is in the lower half of the industry: IOS underperforms 60.00% of its industry peers.
In the last couple of years the Gross Margin of IOS has declined.

		Industry Rank	Sector Rank
OM	25.18%
PM (TTM)	15.96%
GM	55.68%

OM growth 3Y1.6%

OM growth 5Y-0.44%

PM growth 3Y25.34%

PM growth 5Y13.24%

GM growth 3Y-1.86%

GM growth 5Y-2.37%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IOS is creating value.
Compared to 1 year ago, IOS has less shares outstanding
Compared to 5 years ago, IOS has less shares outstanding
Compared to 1 year ago, IOS has an improved debt to assets ratio.

2.2 Solvency

IOS has an Altman-Z score of 3.48. This indicates that IOS is financially healthy and has little risk of bankruptcy at the moment.
IOS's Altman-Z score of 3.48 is fine compared to the rest of the industry. IOS outperforms 67.14% of its industry peers.
The Debt to FCF ratio of IOS is 2.42, which is a good value as it means it would take IOS, 2.42 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.42, IOS is doing good in the industry, outperforming 68.57% of the companies in the same industry.
A Debt/Equity ratio of 3.01 is on the high side and indicates that IOS has dependencies on debt financing.
With a Debt to Equity ratio value of 3.01, IOS is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
Although IOS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

		Industry Rank	Sector Rank
Debt/Equity	3.01
Debt/FCF	2.42
Altman-Z	3.48

ROIC/WACC3.25

WACC6.74%

2.3 Liquidity

IOS has a Current Ratio of 0.67. This is a bad value and indicates that IOS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.67, IOS is doing worse than 85.71% of the companies in the same industry.
A Quick Ratio of 0.67 indicates that IOS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.67, IOS is doing worse than 85.71% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.67
Quick Ratio	0.67

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

IOS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 51.40%, which is quite impressive.
IOS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.31% yearly.
Looking at the last year, IOS shows a decrease in Revenue. The Revenue has decreased by -7.15% in the last year.
IOS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.05% yearly.

EPS 1Y (TTM)51.4%

EPS 3Y39.86%

EPS 5Y25.31%

EPS Q2Q%30.3%

Revenue 1Y (TTM)-7.15%

Revenue growth 3Y12.25%

Revenue growth 5Y11.05%

Sales Q2Q%-16.87%

3.2 Future

The Earnings Per Share is expected to grow by 16.94% on average over the next years. This is quite good.
IOS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.12% yearly.

EPS Next Y29.47%

EPS Next 2Y24.86%

EPS Next 3Y21.17%

EPS Next 5Y16.94%

Revenue Next Year-4.09%

Revenue Next 2Y1.08%

Revenue Next 3Y3.32%

Revenue Next 5Y2.12%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 17.36, which indicates a rather expensive current valuation of IOS.
Compared to the rest of the industry, the Price/Earnings ratio of IOS indicates a somewhat cheap valuation: IOS is cheaper than 67.14% of the companies listed in the same industry.
IOS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.31 indicates a correct valuation of IOS.
IOS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. IOS is cheaper than 68.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of IOS to the average of the S&P500 Index (25.57), we can say IOS is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	17.36
Fwd PE	13.31

4.2 Price Multiples

IOS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, IOS is valued a bit cheaper than 65.71% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	11.41
EV/EBITDA	9.83

4.3 Compensation for Growth

IOS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of IOS may justify a higher PE ratio.
IOS's earnings are expected to grow with 21.17% in the coming years. This may justify a more expensive valuation.