FREENET AG (FNTN.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:FNTN - DE000A0Z2ZZ5 - Common Stock
30.18 EUR
+0.12 (+0.4%)
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. A decent growth rate in combination with a cheap valuation! Better keep an eye on FNTN. These ratings could make FNTN a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- In the past year FNTN was profitable.
- 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 8.44%. This is amongst the best in the industry. FNTN outperforms 100.00% of its industry peers.
- FNTN has a better Return On Equity (18.29%) than 83.33% of its industry peers.
- The Return On Invested Capital of FNTN (16.08%) is better than 100.00% of its industry peers.
- FNTN had an Average Return On Invested Capital over the past 3 years of 9.45%. This is above the industry average of 6.49%.
- The last Return On Invested Capital (16.08%) for FNTN is above the 3 year average (9.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.44% | ||
| ROE | 18.29% | ||
| ROIC | 16.08% |
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 10.81% is amongst the best of the industry. FNTN outperforms 83.33% of its industry peers.
- FNTN's Profit Margin has improved in the last couple of years.
- FNTN has a better Operating Margin (17.15%) than 83.33% of its industry peers.
- FNTN's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 41.26%, FNTN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- In the last couple of years the Gross Margin of FNTN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.15% | ||
| PM (TTM) | 10.81% | ||
| GM | 41.26% |
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
- FNTN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- FNTN has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, FNTN has less shares outstanding
- The debt/assets ratio for FNTN has been reduced compared to a year ago.
2.2 Solvency
- FNTN has an Altman-Z score of 3.00. This indicates that FNTN is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of FNTN (3.00) is better than 83.33% of its industry peers.
- The Debt to FCF ratio of FNTN is 1.86, which is an excellent value as it means it would take FNTN, only 1.86 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of FNTN (1.86) is better than 83.33% of its industry peers.
- A Debt/Equity ratio of 0.26 indicates that FNTN is not too dependend on debt financing.
- FNTN has a Debt to Equity ratio of 0.26. This is in the better half of the industry: FNTN outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.86 | ||
| Altman-Z | 3 |
ROIC/WACC2.42
WACC6.64%
2.3 Liquidity
- FNTN has a Current Ratio of 0.68. This is a bad value and indicates that FNTN is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.68, FNTN is doing worse than 66.67% of the companies in the same industry.
- FNTN has a Quick Ratio of 0.68. 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 worse Quick ratio (0.64) than 66.67% of its industry peers.
- 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 | 0.68 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 17.53% over the past year.
- Measured over the past 5 years, FNTN shows a small growth in Earnings Per Share. The EPS has been growing by 6.90% on average per year.
- Looking at the last year, FNTN shows a decrease in Revenue. The Revenue has decreased by -0.62% in the last year.
- The Revenue has been decreasing by -3.31% on average over the past years.
EPS 1Y (TTM)17.53%
EPS 3Y8.69%
EPS 5Y6.9%
EPS Q2Q%13.33%
Revenue 1Y (TTM)-0.62%
Revenue growth 3Y-1.04%
Revenue growth 5Y-3.31%
Sales Q2Q%-0.57%
3.2 Future
- The Earnings Per Share is expected to grow by 8.08% on average over the next years. This is quite good.
- The Revenue is expected to grow by 2.30% on average over the next years.
EPS Next Y17.16%
EPS Next 2Y8.88%
EPS Next 3Y8%
EPS Next 5Y8.08%
Revenue Next Year0.59%
Revenue Next 2Y2.14%
Revenue Next 3Y2.16%
Revenue Next 5Y2.3%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- A Price/Earnings ratio of 13.24 indicates a correct valuation of FNTN.
- Compared to the rest of the industry, the Price/Earnings ratio of FNTN indicates a rather cheap valuation: FNTN is cheaper than 100.00% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.39. FNTN is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 12.24, FNTN is valued correctly.
- 100.00% of the companies in the same industry are more expensive than FNTN, based on the Price/Forward Earnings ratio.
- FNTN is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.24 | ||
| Fwd PE | 12.24 |
4.2 Price Multiples
- FNTN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FNTN is cheaper than 66.67% of the companies in the same industry.
- 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 | 9.93 | ||
| EV/EBITDA | 6.99 |
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)0.77
PEG (5Y)1.92
EPS Next 2Y8.88%
EPS Next 3Y8%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 6.66%, FNTN is a good candidate for dividend investing.
- FNTN's Dividend Yield is rather good when compared to the industry average which is at 2.28. FNTN pays more dividend than 100.00% of the companies in the same industry.
- FNTN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.66% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years5
5.3 Sustainability
- FNTN has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-78.19%
EPS Next 2Y8.88%
EPS Next 3Y8%
FREENET AG / FNTN.DE FAQ
Can you provide the ChartMill fundamental rating for FREENET AG?
ChartMill assigns a fundamental rating of 7 / 10 to FNTN.DE.
Can you provide the valuation status for FREENET AG?
ChartMill assigns a valuation rating of 8 / 10 to FREENET AG (FNTN.DE). This can be considered as Undervalued.
How profitable is FREENET AG (FNTN.DE) stock?
FREENET AG (FNTN.DE) has a profitability rating of 9 / 10.
What are the PE and PB ratios of FREENET AG (FNTN.DE) stock?
The Price/Earnings (PE) ratio for FREENET AG (FNTN.DE) is 13.24 and the Price/Book (PB) ratio is 2.44.
Can you provide the expected EPS growth for FNTN stock?
The Earnings per Share (EPS) of FREENET AG (FNTN.DE) is expected to grow by 17.16% in the next year.