1&1 AG (1U1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:1U1 - DE0005545503 - Common Stock
26.3 EUR
-0.1 (-0.38%)
Overall 1U1 gets a fundamental rating of 4 out of 10. We evaluated 1U1 against 6 industry peers in the Wireless Telecommunication Services industry. 1U1 scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 1U1 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year 1U1 was profitable.
- 1U1 had a positive operating cash flow in the past year.
- Each year in the past 5 years 1U1 has been profitable.
- 1U1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 1.49%, 1U1 is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- The Return On Equity of 1U1 (2.05%) is comparable to the rest of the industry.
- 1U1 has a worse Return On Invested Capital (1.74%) than 66.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1U1 is below the industry average of 6.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.49% | ||
| ROE | 2.05% | ||
| ROIC | 1.74% |
ROA(3y)3.92%
ROA(5y)4.05%
ROE(3y)5.14%
ROE(5y)5.41%
ROIC(3y)4.27%
ROIC(5y)4.35%
1.3 Margins
- With a Profit Margin value of 3.13%, 1U1 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- 1U1's Profit Margin has declined in the last couple of years.
- 1U1's Operating Margin of 4.85% is on the low side compared to the rest of the industry. 1U1 is outperformed by 66.67% of its industry peers.
- 1U1's Operating Margin has declined in the last couple of years.
- 1U1 has a worse Gross Margin (22.91%) than 83.33% of its industry peers.
- In the last couple of years the Gross Margin of 1U1 has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.85% | ||
| PM (TTM) | 3.13% | ||
| GM | 22.91% |
OM growth 3Y-16.29%
OM growth 5Y-11.93%
PM growth 3Y-17.91%
PM growth 5Y-12.43%
GM growth 3Y-4.76%
GM growth 5Y-3.05%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1U1 is destroying value.
- 1U1 has about the same amout of shares outstanding than it did 1 year ago.
- 1U1 has about the same amout of shares outstanding than it did 5 years ago.
- Compared to 1 year ago, 1U1 has a worse debt to assets ratio.
2.2 Solvency
- 1U1 has an Altman-Z score of 2.53. This is not the best score and indicates that 1U1 is in the grey zone with still only limited risk for bankruptcy at the moment.
- 1U1 has a Altman-Z score of 2.53. This is in the better half of the industry: 1U1 outperforms 66.67% of its industry peers.
- 1U1 has a debt to FCF ratio of 7.73. This is a slightly negative value and a sign of low solvency as 1U1 would need 7.73 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 7.73, 1U1 is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- A Debt/Equity ratio of 0.17 indicates that 1U1 is not too dependend on debt financing.
- The Debt to Equity ratio of 1U1 (0.17) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 7.73 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.26
WACC6.65%
2.3 Liquidity
- 1U1 has a Current Ratio of 2.93. This indicates that 1U1 is financially healthy and has no problem in meeting its short term obligations.
- 1U1 has a better Current ratio (2.93) than 83.33% of its industry peers.
- A Quick Ratio of 2.81 indicates that 1U1 has no problem at all paying its short term obligations.
- The Quick ratio of 1U1 (2.81) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.93 | ||
| Quick Ratio | 2.81 |
3. Growth
3.1 Past
- The earnings per share for 1U1 have decreased strongly by -32.58% in the last year.
- Measured over the past years, 1U1 shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.76% on average per year.
- The Revenue has decreased by -0.46% in the past year.
- 1U1 shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.03% yearly.
EPS 1Y (TTM)-32.58%
EPS 3Y-17.28%
EPS 5Y-10.76%
EPS Q2Q%-38.24%
Revenue 1Y (TTM)-0.46%
Revenue growth 3Y1.3%
Revenue growth 5Y2.03%
Sales Q2Q%0.85%
3.2 Future
- The Earnings Per Share is expected to grow by 15.19% on average over the next years. This is quite good.
- 1U1 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.87% yearly.
EPS Next Y-24.78%
EPS Next 2Y1.26%
EPS Next 3Y0.83%
EPS Next 5Y15.19%
Revenue Next Year-0.51%
Revenue Next 2Y0.52%
Revenue Next 3Y0.77%
Revenue Next 5Y0.87%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- 1U1 is valuated rather expensively with a Price/Earnings ratio of 21.92.
- 1U1's Price/Earnings ratio is in line with the industry average.
- 1U1 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 21.37, which indicates a rather expensive current valuation of 1U1.
- The rest of the industry has a similar Price/Forward Earnings ratio as 1U1.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, 1U1 is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.92 | ||
| Fwd PE | 21.37 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1U1 indicates a slightly more expensive valuation: 1U1 is more expensive than 66.67% of the companies listed in the same industry.
- 1U1's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1U1 is more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.77 | ||
| EV/EBITDA | 10.82 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y1.26%
EPS Next 3Y0.83%
5. Dividend
5.1 Amount
- 1U1 has a yearly dividend return of 0.19%, which is pretty low.
- 1U1's Dividend Yield is slightly below the industry average, which is at 2.28.
- Compared to an average S&P500 Dividend Yield of 1.81, 1U1's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.19% |
5.2 History
Dividend Growth(5Y)0%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
- 6.93% of the earnings are spent on dividend by 1U1. This is a low number and sustainable payout ratio.
DP6.93%
EPS Next 2Y1.26%
EPS Next 3Y0.83%
1&1 AG / 1U1.DE FAQ
Can you provide the ChartMill fundamental rating for 1&1 AG?
ChartMill assigns a fundamental rating of 4 / 10 to 1U1.DE.
What is the valuation status of 1&1 AG (1U1.DE) stock?
ChartMill assigns a valuation rating of 1 / 10 to 1&1 AG (1U1.DE). This can be considered as Overvalued.
How profitable is 1&1 AG (1U1.DE) stock?
1&1 AG (1U1.DE) has a profitability rating of 3 / 10.
How financially healthy is 1&1 AG?
The financial health rating of 1&1 AG (1U1.DE) is 6 / 10.
What is the earnings growth outlook for 1&1 AG?
The Earnings per Share (EPS) of 1&1 AG (1U1.DE) is expected to decline by -24.78% in the next year.